S2434 — An Act relative to motor vehicle leasing parity

Summary

An Act relative to motor vehicle leasing parity

Bill Text

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This bill amends various sections of the general laws related to motor vehicle sales and leases, establishing new rights for buyers and lessees including the ability to void contracts under specific conditions, and updating definitions and requirements for dealers and lessors.

• Chapter 90, Section 7N

  section 7N → Section 7N. Notwithstanding any disclaimer of warranty, a motor vehicle contract of sale or lease may be voided by the buyer or lessee if the motor vehicle fails to pass, within seven days from the date of such sale or lease, the periodic staggered inspection at an inspection station licensed pursuant to section seven W; provided, that the defects which are the reasons for the failure to issue a certificate of inspection were not caused by the abusive or negligent operation of the motor vehicle or by damage resulting from an accident or collision occurring after the date of the sale or lease; and provided, further, that the cost of repairs necessary to permit the issuance of a certificate of inspection exceeds ten per cent of the purchase price of the motor vehicle, or in the case of a leased vehicle the exceeds ten percent total amount of payments due by the consumer to the lessor over the full term of the lease.

  This change allows buyers or lessees to void a sale or lease if the vehicle fails inspection within seven days under specific conditions.

• Chapter 90, Section 7N1/4, subsection 1

  subsection 1 → (1) For the purposes of this section the following words shall have the following meanings:- “Buyer” includes a lessee of a used motor vehicle

  This update broadens the definition of 'Buyer' to include lessees, providing them with similar protections.

• Chapter 90, Section 7N1/4, subsection 1

  “Lessee” means any person who acquires the right to possession of and use of a motor vehicle under a lease agreement for a term of not less than one year. → “Lessee” means any consumer who acquires the right to possession of and use of a motor vehicle under a lease agreement for a term of not less than one year.

  The definition of 'Lessee' is adjusted to clarify that it refers specifically to consumers, thereby reinforcing consumer rights.

• Chapter 93, Section 115

  Section 115. A motor vehicle dealer shall not assess or represent the value of a motor vehicle in a lease agreement in an amount greater than what the dealer has advertised or otherwise represented as that vehicle’s purchase price.

  This addition prohibits dealers from inflating the lease value beyond the advertised purchase price, protecting consumers.

• Chapter 140D, Section 29A

  Section 29A. The commissioner shall prescribe rule and regulations consistent with the provisions of the portion of the federal Truth in Lending Act known as the Consumer Leasing Act.

  This establishes state rules for consumer leasing consistent with federal regulations, enhancing consumer protection.

• Chapter 140D, Section 32, paragraph 2

  transaction, → transaction, or in the case of a consumer lease under section 29A, 25 percent of the total amount of monthly payments under the lease

  This clarification adds specific provisions for consumer leases regarding payment thresholds, enhancing transparency.

• Chapter 231, Section 85J

  Whoever, by deceit or fraud, sells or leases personal property shall be liable in tort to a purchaser or lessee in treble the amount of damages sustained by such purchaser or lessee. → Whoever, by deceit or fraud, sells or leases personal property shall be liable in tort to a purchaser or lessee in treble the amount of damages sustained by such purchaser or lessee.

  This modification reaffirms the liability for fraud in sales and leases, maintaining strong protections for consumers.

• Chapter 255, Section 13I

  section 13I → Section 13I. For the purposes of this section and section 13J “Collateral” shall mean consumer goods secured or motor vehicles leased by a consumer credit transaction which are located in commonwealth at the time of default.

  This changes the definitions related to consumer credit transactions, clarifying terms applicable to motor vehicle leases.

• Chapter 255, Section 13I

  “creditor” and “secured creditor” shall include the lessor of a motor vehicle; and “debtor” shall include a consumer lessee of a motor vehicle. → “creditor” and “secured creditor” shall include the lessor of a motor vehicle; and “debtor” shall include a consumer lessee of a motor vehicle.

  This reiteration ensures that lessors and lessees are recognized under consumer credit laws, enhancing their rights.

Sponsors

• Jacob R. Oliveira · Primary

Subjects