Chapter 382
AN ACT
HB 2941
Relating to motor vehicle transactions; creating new provisions; and
amending ORS 646.315 and 646.877.
Be It Enacted by the People of
the State of Oregon:
SECTION 1.
ORS 646.315 is amended to read:
646.315. As used in ORS
646.315 to 646.375:
(1) “Consumer” means:
(a) The purchaser or
lessee, other than for purposes of resale, of a new motor vehicle normally used
for personal, family or household purposes;
(b) Any person to whom a
new motor vehicle used for personal, family or household purposes is
transferred for the same purposes during the duration of an express warranty
applicable to such motor vehicle; and
(c) Any other person
entitled by the terms of such warranty to enforce the obligations of the warranty.
(2) “Motor vehicle”
means a passenger motor vehicle as defined in ORS 801.360 [that is sold in this state].
SECTION 2.
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) “Final approval
of funding” means a lender’s irrevocable agreement to finance a sale or lease
of a motor vehicle according to the exact terms that the seller and buyer have
negotiated.
(c) “Lender” means any
person that finances a sale or lease of a motor vehicle.
[(b)] (d) “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)] (e) “Seller” means a holder of a current, valid vehicle
dealer certificate issued under ORS 822.020 or renewed under ORS 822.040.
(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 within 14 days after the date on which the buyer takes
possession of the motor vehicle and the seller has not received final approval
of funding from the lender, the seller shall return to the buyer all items
of value received from the buyer as part of the transaction; [or] and
(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 received final approval of funding from the
lender.
(4) In any transaction
described in subsection (2) of this section, if the buyer has accepted a motor
vehicle from the seller, and a lender 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] 14 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. 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]
14 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 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 3. The
amendments to ORS 646.315 and 646.877 by sections 1 and 2 of this 2007 Act
apply to all motor vehicle transactions that occur on or after the effective
date of this 2007 Act.
Approved by the Governor June 12, 2007
Filed in the office of Secretary of State June 13, 2007
Effective date January 1, 2008
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