71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 3697
A-Engrossed
House Bill 3917
Ordered by the House April 27
Including House Amendments dated April 27
Sponsored by Representative MERKLEY (at the request of
Manufactured Housing Task Force)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
Prescribes trade practices that are unlawful in transaction
involving manufactured dwelling. Creates remedy for unlawful
practice involving manufactured dwelling. Makes false or
misleading representation about loan in close connection with
sale of goods unlawful.
A BILL FOR AN ACT
Relating to trade practices; creating new provisions; and
amending ORS 646.605, 646.608 and 646.638.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + (1) As used in this section:
(a) 'Buyer' means a person who buys or agrees to buy a
manufactured dwelling.
(b) 'Manufactured dwelling' has the meaning given that term in
ORS 446.003.
(c) 'Retail installment contract' has the meaning given that
term in ORS 83.010.
(2) A person engages in an unlawful practice when, in a sale of
a manufactured dwelling, the person does any of the following:
(a) Misrepresents to a buyer that the terms of a retail
installment sale or a loan are more favorable than other terms
that the person offers and for which the buyer qualifies.
(b) Misrepresents to a buyer that, as part of the sale or as a
condition of financing, the buyer must purchase credit life
insurance, credit disability insurance or an extended warranty.
(c) In close connection with the sale, fails to disclose
clearly and conspicuously to a buyer that the person will share
in the distribution of interest on a retail installment contract
or a loan and that the person's sharing in the distribution may
affect the rate of interest and the amount of the buyer's monthly
payment.
(d) In close connection with the sale, misrepresents to a
lender:
(A) The cash sale price;
(B) The amount of the buyer's down payment; or
(C) The buyer's credit or employment history. + }
SECTION 2. ORS 646.638 is amended to read:
646.638. (1) Except as provided in subsection (8) of this
section, any person who suffers any ascertainable loss of money
or property, real or personal, as a result of willful use or
employment by another person of a method, act or practice
declared unlawful by ORS 646.608 { + or section 1 of this 2001
Act + }, may bring an individual action in an appropriate court
to recover actual damages or $200, whichever is greater. The
court or the jury, as the case may be, may award punitive damages
and the court may provide { - such - } { + the + } equitable
relief { - as it deems - } { + the court considers + }
necessary or proper.
(2) Upon commencement of any action brought under subsection
(1) of this section the party bringing the action shall mail a
copy of the complaint or other initial pleading to the Attorney
General and, upon entry of any judgment { - or decree - } in
the action, shall mail a copy of { - such - } { + the + }
judgment { - or decree - } to the Attorney General. Failure to
mail a copy of the complaint shall not be a jurisdictional
defect, but { - no - } { + a court may not enter + } judgment
{ - shall be entered - } for the plaintiff until proof of
mailing is filed with the court. Proof of mailing may be by
affidavit or by return receipt of mailing.
(3) Except as provided in subsection (4) of this section, the
court may award reasonable attorney fees to the prevailing party
in an action under this section.
(4) The court may not award attorney fees to a prevailing
defendant under the provisions of subsection (3) of this section
if the action under this section is maintained as a class action
pursuant to ORCP 32.
(5) Any permanent injunction or final judgment or order of the
court made under ORS 646.632 or 646.636 { - shall be - }
{ + is + } prima facie evidence in an action brought under this
section that the respondent used or employed a method, act or
practice declared unlawful by ORS 646.608 { + or section 1 of
this 2001 Act + }, but an assurance of voluntary compliance,
whether or not approved by the court, shall not be evidence of
{ - such - } { + the + } violation.
(6) Actions brought under this section shall be commenced
within one year from the discovery of the unlawful method, act or
practice. However, whenever any complaint is filed by a
prosecuting attorney to prevent, restrain or punish violations of
ORS 646.608 { + or section 1 of this 2001 Act + }, running of
the statute of limitations with respect to every private right of
action under this section and based in whole or in part on any
matter complained of in said proceeding shall be suspended during
the pendency thereof.
(7) Notwithstanding subsection (6) of this section, in any
action brought by a seller or lessor against a purchaser or
lessee of real estate, goods or services, { - such - }
{ + the + } purchaser or lessee may assert any counterclaim the
purchaser or lessee has arising out of a violation of ORS 646.605
to 646.652.
(8) This section does not apply to any method, act or practice
described in ORS 646.608 (1)(w). Actions for violation of laws
relating to odometers are provided under ORS 815.410 and 815.415.
SECTION 3. ORS 646.605 is amended to read:
646.605. As used in ORS 646.605 to 646.652:
(1) 'Appropriate court' means the circuit court of a county:
(a) Where one or more of the defendants reside;
(b) Where one or more of the defendants maintain a principal
place of business;
(c) Where one or more of the defendants are alleged to have
committed an act prohibited by ORS 646.605 to 646.652; or
(d) With the defendant's consent, where the prosecuting
attorney maintains an office.
(2) 'Documentary material' means the original or a copy of any
book, record, report, memorandum, paper, communication,
tabulation, map, chart, photograph, mechanical transcription, or
other tangible document or recording, wherever situate.
(3) 'Examination' of documentary material shall include
inspection, study, or copying of any such material, and taking
testimony under oath or acknowledgment in respect of any such
documentary material or copy thereof.
(4) 'Person' means natural persons, corporations, trusts,
partnerships, incorporated or unincorporated associations, and
any other legal entity except bodies or officers acting under
statutory authority of this state or the United States.
(5) 'Prosecuting attorney' means the Attorney General or the
district attorney of any county in which a violation of ORS
646.605 to 646.652 is alleged to have occurred.
(6) 'Real estate, goods or services' means those which are or
may be obtained primarily for personal, family or household
purposes, or which are or may be obtained for any purposes as a
result of a telephone solicitation, and includes franchises,
distributorships and other similar business opportunities, but
does not include insurance. Real estate does not cover conduct
covered by ORS chapter 90.
(7) 'Telephone solicitation' means a solicitation where a
person, in the course of the person's business, vocation or
occupation, uses a telephone or an automatic dialing-announcing
device to initiate telephonic contact with a potential customer
and the person is not one of the following:
(a) A person who is a broker-dealer or salesperson licensed
under ORS 59.175, or a mortgage banker or mortgage broker
licensed under ORS 59.850 when the solicitation is for a security
qualified for sale pursuant to ORS 59.055;
(b) A person who is licensed or is otherwise authorized to
engage in professional real estate activity pursuant to ORS
chapter 696, when the solicitation involves professional real
estate activity;
(c) A person licensed or exempt from licensure as a builder
pursuant to ORS chapter 701, when the solicitation involves the
construction, alteration, repair, improvement or demolition of a
structure;
(d) A person licensed or otherwise authorized to sell insurance
as an agent pursuant to ORS chapter 744, when the solicitation
involves insurance;
(e) A person soliciting the sale of a newspaper of general
circulation, a magazine or membership in a book or record club
who complies with ORS 646.611, when the solicitation involves
newspapers, magazines or membership in a book or record club;
(f) A person soliciting without the intent to complete and who
does not complete the sales presentation during the telephone
solicitation and who only completes the sales presentation at a
later face-to-face meeting between the solicitor and the
prospective purchaser;
(g) A supervised financial institution or parent, subsidiary or
affiliate thereof. As used in this paragraph, 'supervised
financial institution' means any financial institution or trust
company, as those terms are defined in ORS 706.008, or any
personal property broker, consumer finance lender, commercial
finance lender or insurer that is subject to regulation by an
official or agency of this state or of the United States;
(h) A person who is authorized to conduct prearrangement or
preconstruction funeral or cemetery sales, pursuant to ORS
chapter 692, when the solicitation involves prearrangement or
preconstruction funeral or cemetery plans;
(i) A person who solicits the services provided by a cable
television system licensed or franchised pursuant to state, local
or federal law, when the solicitation involves cable television
services;
(j) A person or affiliate of a person whose business is
regulated by the Public Utility Commission of Oregon;
(k) A person who sells farm products as defined by ORS chapter
576 if the solicitation neither intends to nor actually results
in a sale that costs the purchaser in excess of $100;
(L) An issuer or subsidiary of an issuer that has a class of
securities that is subject to section 12 of the Securities
Exchange Act of 1934 and that is either registered or exempt from
registration under paragraph (A), (B), (C), (E), (F), (G) or (H)
or subsection (g) of that section;
(m) A person soliciting exclusively the sale of telephone
answering services to be provided by that person or that person's
employer when the solicitation involves answering services; or
(n) A telecommunications utility with access lines of 15,000 or
less or a cooperative telephone association when the solicitation
involves regulated goods or services.
(8) 'Trade' and 'commerce' mean advertising, offering or
distributing, whether by sale, rental or otherwise, any real
estate, goods or services, and includes any trade or commerce
directly or indirectly affecting the people of this state.
(9) 'Unconscionable tactics' include, but are not limited to,
actions by which a person:
(a) Knowingly takes advantage of a customer's physical
infirmity, ignorance, illiteracy or inability to understand the
language of the agreement;
(b) Knowingly permits a customer to enter into a transaction
from which the customer will derive no material benefit; or
(c) Permits a customer to enter into a transaction with
knowledge that there is no reasonable probability of payment of
the attendant financial obligation in full by the customer when
due.
(10) A willful violation occurs when the person committing the
violation knew or should have known that the conduct of the
person was a violation.
{ + (11) A loan is made 'in connection with the sale of goods
' if:
(a) The lender directly or indirectly controls, is controlled
by or is under common control with the seller, unless the
relationship is remote and is not a factor in the transaction;
(b) The lender gives a commission, rebate or credit in any form
to a seller who refers the borrower to the lender, other than
payment of the proceeds of the loan jointly to the seller and the
borrower;
(c) The lender is related to the seller by blood or marriage;
(d) The seller directly and materially assists the borrower in
obtaining the loan;
(e) The seller prepares documents that are given to the lender
and used in connection with the loan; or
(f) The lender supplies documents to the seller used by the
borrower in obtaining the loan. + }
SECTION 4. ORS 646.608 is amended to read:
646.608. (1) A person engages in an unlawful practice when in
the course of the person's business, vocation or occupation the
person does any of the following:
(a) Passes off real estate, goods or services as those of
another.
(b) Causes likelihood of confusion or of misunderstanding as to
the source, sponsorship, approval, or certification of real
estate, goods or services.
(c) Causes likelihood of confusion or of misunderstanding as to
affiliation, connection, or association with, or certification
by, another.
(d) Uses deceptive representations or designations of
geographic origin in connection with real estate, goods or
services.
(e) Represents that real estate, goods or services have
sponsorship, approval, characteristics, ingredients, uses,
benefits, quantities or qualities that they do not have or that a
person has a sponsorship, approval, status, qualification,
affiliation, or connection that the person does not have.
(f) Represents that real estate or goods are original or new if
they are deteriorated, altered, reconditioned, reclaimed, used or
secondhand.
(g) Represents that real estate, goods or services are of a
particular standard, quality, or grade, or that real estate or
goods are of a particular style or model, if they are of another.
(h) Disparages the real estate, goods, services, property or
business of a customer or another by false or misleading
representations of fact.
(i) Advertises real estate, goods or services with intent not
to provide them as advertised, or with intent not to supply
reasonably expectable public demand, unless the advertisement
discloses a limitation of quantity.
(j) Makes false or misleading representations of fact
concerning the reasons for, existence of, or amounts of price
reductions.
(k) Makes false or misleading representations concerning credit
availability or the nature of the transaction or obligation
incurred { + , including concerning a loan made in close
connection with the sale of goods + }.
(L) Makes false or misleading representations relating to
commissions or other compensation to be paid in exchange for
permitting real estate, goods or services to be used for model or
demonstration purposes or in exchange for submitting names of
potential customers.
(m) Performs service on or dismantles any goods or real estate
when not authorized by the owner or apparent owner thereof.
(n) Solicits potential customers by telephone or door to door
as a seller unless the person provides the information required
under ORS 646.611.
(o) In a sale, rental or other disposition of real estate,
goods or services, gives or offers to give a rebate or discount
or otherwise pays or offers to pay value to the customer in
consideration of the customer giving to the person the names of
prospective purchasers, lessees, or borrowers, or otherwise
aiding the person in making a sale, lease, or loan to another
person, if earning the rebate, discount or other value is
contingent upon occurrence of an event subsequent to the time the
customer enters into the transaction.
(p) Makes any false or misleading statement about a prize,
contest or promotion used to publicize a product, business or
service.
(q) Promises to deliver real estate, goods or services within a
certain period of time with intent not to deliver them as
promised.
(r) Organizes or induces or attempts to induce membership in a
pyramid club.
(s) Makes false or misleading representations of fact
concerning the offering price of, or the person's cost for real
estate, goods or services.
(t) Concurrent with tender or delivery of any real estate,
goods or services fails to disclose any known material defect or
material nonconformity.
(u) Engages in any other unfair or deceptive conduct in trade
or commerce.
(v) Violates any of the provisions relating to auction sales,
auctioneers or auction marts under ORS 698.640, whether in a
commercial or noncommercial situation.
(w) Violates the provisions of ORS 803.375, 803.385 or 815.410
to 815.430.
(x) Violates ORS 646.850 (1).
(y) Violates any requirement of ORS 646.661 to 646.686.
(z) Violates the provisions of ORS 128.801 to 128.898.
(aa) Violates ORS 646.883 or 646.885.
(bb) Violates any provision of ORS 646.195.
(cc) Violates ORS 646.569.
(dd) Violates the provisions of ORS 646.859.
(ee) Violates ORS 759.290.
(ff) Violates ORS 646.872.
(gg) Violates ORS 646.553 or 646.557 or any rule adopted
pursuant thereto.
(hh) Violates ORS 646.563.
(ii) Violates ORS 759.690 or any rule adopted pursuant thereto.
(jj) Violates the provisions of ORS 759.705, 759.710 and
759.720 or any rule adopted pursuant thereto.
(kk) Violates ORS 646.892 or 646.894.
(LL) Violates any provision of ORS 646.249 to 646.259.
(mm) Violates ORS 646.384.
(nn) Violates ORS 646.871.
(oo) Violates ORS 822.046.
(pp) Violates ORS 128.001.
(qq) Violates ORS 646.649 (2) to (4).
(rr) Violates ORS 646.877 (2) to (5).
(ss) Violates ORS 87.686.
(tt) Violates ORS 646.651.
(uu) Violates ORS 646.879.
(2) A representation under subsection (1) of this section or
ORS 646.607 may be any manifestation of any assertion by words or
conduct, including, but not limited to, a failure to disclose a
fact.
(3) In order to prevail in an action or suit under ORS 646.605
to 646.652, a prosecuting attorney need not prove competition
between the parties or actual confusion or misunderstanding.
(4) No action or suit shall be brought under subsection (1)(u)
of this section unless the Attorney General has first established
a rule in accordance with the provisions of ORS 183.310 to
183.550 declaring the conduct to be unfair or deceptive in trade
or commerce.
SECTION 5. { + Section 1 of this 2001 Act and the amendments
to ORS 646.605, 646.608 and 646.638 by sections 2 to 4 of this
2001 Act apply to conduct occurring on or after the effective
date of this 2001 Act. + }
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