HB 91 -- New Motor Vehicle Purchases

Sponsor:  Mays (50)

This bill requires contracts for the sale or lease of a new
motor vehicle to include a notice of cancellation.  The notice
allows buyers until midnight of the third business day after the
date of the contract to cancel it.  To cancel the contract, the
buyer must provide written notice by certified or registered
U.S. mail to the seller before the expiration of 3 business
days.  In order to obtain immediate delivery of the motor
vehicle, the buyer can sign a waiver of the right to cancel the
contract.  If the buyer does not sign a waiver, the seller is
not obligated to deliver a motor vehicle to the buyer until the
cancellation period has expired.

If a buyer removes a trade-in vehicle from the seller's lot
after signing a contract, but before the expiration of the
cancellation period, the seller is authorized to reappraise the
value of the trade-in vehicle upon its return to the seller.
Reappraisal does not extend or begin another cancellation period.

If a buyer cancels a contract, the seller is authorized to
retain $100 from any cash downpayment as compensation for
cancellation of the contract.