72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
 
 
                            Enrolled
 
                         Senate Bill 103
 
Printed pursuant to Senate Interim Rule 213.28 by order of the
  President of the Senate in conformance with presession filing
  rules, indicating neither advocacy nor opposition on the part
  of the President (at the request of Attorney General Hardy
  Myers for Department of Justice)
 
 
                     CHAPTER ................
 
 
                             AN ACT
 
 
Relating to motor vehicle financing; creating new provisions;
  amending ORS 646.608 and 646.877; and declaring an emergency.
 
Be It Enacted by the People of the State of Oregon:
 
  SECTION 1. ORS 646.877 is amended to read:
  646.877. (1) As used in this section:
  (a) 'Buyer' means the purchaser or lessee of a motor vehicle.
  (b) 'Motor vehicle' means a motor vehicle, as defined in ORS
801.360, that is sold  { + or leased + } in this state for
personal, family or household purposes.
  (c) 'Seller' means a holder of a current, valid vehicle dealer
certificate issued under ORS 822.020 or renewed under ORS
822.040. 'Seller' does not include a dealer engaged primarily in
the sale of manufactured homes.
  (2) A seller may make an offer to sell  { + or lease + } a
motor vehicle to a buyer or prospective buyer that is subject to
future acceptance by a lender that may finance the transaction at
the request of the seller.
  (3) In any transaction described in subsection (2) of this
section  { - , - }  { + :
  (a) If a lender does not agree to finance the transaction on
the exact terms negotiated between the seller and the buyer, the
seller shall return to the buyer all items of value received from
the buyer as part of the transaction; or
  (b) + } If the seller has accepted a trade-in motor vehicle
from the buyer or prospective buyer, the seller shall not sell
 { + or lease + } the buyer's or prospective buyer's trade-in
motor vehicle before the seller has   { - obtained - }
 { + received final approval of funding + } from the
lender { + . + }   { - written acceptance or approval of the
exact terms negotiated between the seller and the buyer or
prospective buyer. - }
    { - (4) In any transaction described in subsection (2) of
this section, if no lender agrees to finance the transaction on
the exact terms negotiated between the seller and the buyer, the
seller shall return to the buyer all items of value received from
the buyer as part of the transaction. - }
    { - (5) - }   { + (4) + } In any transaction described in
subsection (2) of this section, if the buyer has accepted a motor
 
 
Enrolled Senate Bill 103 (SB 103-B)                        Page 1
 
 
 
vehicle from the seller, and   { - no - }   { + a + } lender
 { - agrees - }   { + does not agree + } to finance the
transaction on the exact terms negotiated between the seller and
the buyer, the buyer shall return to the seller all items of
value received from the seller as part of the transaction. The
offer or contract to sell { +  or lease + } the motor vehicle may
provide in writing that the buyer is liable to the seller for:
  (a) The fair market value of damage to, excessive wear and tear
on or loss of the motor vehicle occurring between the date the
buyer takes possession of the motor vehicle and the date the
buyer returns the motor vehicle to the seller's custody; and
  (b)  { + If, within 20 days of the date the buyer takes
possession of the motor vehicle, the seller sends notice to the
buyer by first class mail that financing is unavailable, + } a
reasonable charge per mile for the use of the motor
vehicle { + . + }   { - occurring between the date the buyer
takes possession of the motor vehicle and the date the buyer
returns the motor vehicle to the seller's custody. - }   { + If
the buyer returns the motor vehicle within five days of the
mailing of the notice, the seller may charge the buyer for miles
driven during the first 20 days that the buyer had possession of
the motor vehicle. If the buyer does not return the vehicle
within five days of the mailing of the notice, the seller may
charge the buyer for all miles driven while the buyer has
possession of the motor vehicle. + } The charge   { - shall - }
 { + may + } not exceed the rate per mile allowed under federal
law as a deduction for federal income tax purposes for an
ordinary and necessary business expense.
   { +  (5) It is an affirmative defense to a claim or charge of
violating subsection (3)(a) of this section that the buyer failed
to return the motor vehicle after the seller sent notice to the
buyer by first class mail that financing was unavailable. + }
  SECTION 2. 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.
 
 
 
 
Enrolled Senate Bill 103 (SB 103-B)                        Page 2
 
 
 
  (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.
  (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) Manufactures mercury fever thermometers.
  (x) Sells or supplies mercury fever thermometers unless the
thermometer is required by federal law, or is:
  (A) Prescribed by a person licensed under ORS chapter 677; and
  (B) Supplied with instructions on the careful handling of the
thermometer to avoid breakage and on the proper cleanup of
mercury should breakage occur.
  (y) Sells a thermostat that contains mercury unless the
thermostat is labeled in a manner to inform the purchaser that
 
 
Enrolled Senate Bill 103 (SB 103-B)                        Page 3
 
 
 
mercury is present in the thermostat and that the thermostat may
not be disposed of until the mercury is removed, reused, recycled
or otherwise managed to ensure that the mercury does not become
part of the solid waste stream or wastewater. For purposes of
this paragraph, 'thermostat' means a device commonly used to
sense and, through electrical communication with heating, cooling
or ventilation equipment, control room temperature.
  (z) Violates the provisions of ORS 803.375, 803.385 or 815.410
to 815.430.
  (aa) Violates ORS 646.850 (1).
  (bb) Violates any requirement of ORS 646.661 to 646.686.
  (cc) Violates the provisions of ORS 128.801 to 128.898.
  (dd) Violates ORS 646.883 or 646.885.
  (ee) Violates any provision of ORS 646.195.
  (ff) Violates ORS 646.569.
  (gg) Violates the provisions of ORS 646.859.
  (hh) Violates ORS 759.290.
  (ii) Violates ORS 646.872.
  (jj) Violates ORS 646.553 or 646.557 or any rule adopted
pursuant thereto.
  (kk) Violates ORS 646.563.
  (LL) Violates ORS 759.690 or any rule adopted pursuant thereto.
  (mm) Violates the provisions of ORS 759.705, 759.710 and
759.720 or any rule adopted pursuant thereto.
  (nn) Violates ORS 646.892 or 646.894.
  (oo) Violates any provision of ORS 646.249 to 646.259.
  (pp) Violates ORS 646.384.
  (qq) Violates ORS 646.871.
  (rr) Violates ORS 822.046.
  (ss) Violates ORS 128.001.
  (tt) Violates ORS 646.649 (2) to (4).
  (uu) Violates ORS 646.877 (2) to   { - (5) - }  { +  (4) + }.
  (vv) Violates ORS 87.686.
  (ww) Violates ORS 646.651.
  (xx) Violates ORS 646.879.
  (yy) Violates ORS 646.402 or any rule adopted under ORS 646.402
or 646.404.
  (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 3. ORS 646.608, as amended by section 13, chapter 924,
Oregon Laws 2001, 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.
 
 
 
Enrolled Senate Bill 103 (SB 103-B)                        Page 4
 
 
 
  (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.
  (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.
 
 
Enrolled Senate Bill 103 (SB 103-B)                        Page 5
 
 
 
  (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) Manufactures mercury fever thermometers.
  (x) Sells or supplies mercury fever thermometers unless the
thermometer is required by federal law, or is:
  (A) Prescribed by a person licensed under ORS chapter 677; and
  (B) Supplied with instructions on the careful handling of the
thermometer to avoid breakage and on the proper cleanup of
mercury should breakage occur.
  (y) Sells a thermostat that contains mercury unless the
thermostat is labeled in a manner to inform the purchaser that
mercury is present in the thermostat and that the thermostat may
not be disposed of until the mercury is removed, reused, recycled
or otherwise managed to ensure that the mercury does not become
part of the solid waste stream or wastewater. For purposes of
this paragraph, 'thermostat' means a device commonly used to
sense and, through electrical communication with heating, cooling
or ventilation equipment, control room temperature.
  (z) Sells or offers for sale a motor vehicle manufactured after
January 1, 2006, that contains mercury light switches.
  (aa) Violates the provisions of ORS 803.375, 803.385 or 815.410
to 815.430.
  (bb) Violates ORS 646.850 (1).
  (cc) Violates any requirement of ORS 646.661 to 646.686.
  (dd) Violates the provisions of ORS 128.801 to 128.898.
  (ee) Violates ORS 646.883 or 646.885.
  (ff) Violates any provision of ORS 646.195.
  (gg) Violates ORS 646.569.
  (hh) Violates the provisions of ORS 646.859.
  (ii) Violates ORS 759.290.
  (jj) Violates ORS 646.872.
  (kk) Violates ORS 646.553 or 646.557 or any rule adopted
pursuant thereto.
  (LL) Violates ORS 646.563.
  (mm) Violates ORS 759.690 or any rule adopted pursuant thereto.
  (nn) Violates the provisions of ORS 759.705, 759.710 and
759.720 or any rule adopted pursuant thereto.
  (oo) Violates ORS 646.892 or 646.894.
  (pp) Violates any provision of ORS 646.249 to 646.259.
  (qq) Violates ORS 646.384.
  (rr) Violates ORS 646.871.
  (ss) Violates ORS 822.046.
  (tt) Violates ORS 128.001.
  (uu) Violates ORS 646.649 (2) to (4).
  (vv) Violates ORS 646.877 (2) to   { - (5) - }  { +  (4) + }.
  (ww) Violates ORS 87.686.
  (xx) Violates ORS 646.651.
  (yy) Violates ORS 646.879.
  (zz) Violates ORS 646.402 or any rule adopted under ORS 646.402
or 646.404.
  (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.
 
 
Enrolled Senate Bill 103 (SB 103-B)                        Page 6
 
 
 
  (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 4.  { + The amendments to ORS 646.877 by section 1 of
this 2003 Act apply to offers made by sellers on or after the
effective date of this 2003 Act. + }
  SECTION 5.  { + This 2003 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2003 Act takes effect on its
passage. + }
                         ----------
 
 
Passed by Senate May 19, 2003
 
 
      ...........................................................
                                              Secretary of Senate
 
      ...........................................................
                                              President of Senate
 
Passed by House June 10, 2003
 
 
      ...........................................................
                                                 Speaker of House
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Enrolled Senate Bill 103 (SB 103-B)                        Page 7
 
 
 
 
 
Received by Governor:
 
......M.,............., 2003
 
Approved:
 
......M.,............., 2003
 
 
      ...........................................................
                                                         Governor
 
Filed in Office of Secretary of State:
 
......M.,............., 2003
 
 
      ...........................................................
                                               Secretary of State
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Enrolled Senate Bill 103 (SB 103-B)                        Page 8