PROPOSAL/EXECUTIVE SUMMARY: This bill would create "the Computer Lemon Law." Computers that are found to be defective within two years must be repaired, replaced or have the costs refunded to consumers.


EXISTING LAW: This is a new act.


ANALYSIS: This bill would provide: (1) rights to purchasers of defective computer devices; (2) protection from warranty abuses; (3) effective warranty repairs; (4) certain recordkeeping requirements; and (5) a right of action.


Purchasers protected are Pennsylvania residents, students or businesses with less than 30 computer workstations that lease, purchase or receive by gift a computer. Computers include central processing units or terminal display screens, all circuitry and connective devices, printers, modem, scanners or other devices used with a computer. Purchasers shall receive a statement of the purchasers' rights established by this Act. The manufacturer must obtain a signed statement from the purchaser that his rights have been explained and are understood; time limits for various purchaser rights are extended if the manufacturer delays in securing the signed statement. Also, the manufacturer must disclose at the time of sale the name of all software likely to cause operating problems; it is the manufacturer's burden to prove such disclosures in any claim brought under this Act.


During the first two years after purchase, the purchaser is entitled to free repairs for any nonconformity. The manufacturer must repair any computer and return it to the purchaser within approximately five business days. Free repairs must be made at the purchaser's location if provided for in the warranty. Otherwise, the manufacturer must arrange and pay for the cost of shipping. Repairs must be guaranteed for two years.


If the first repair is ineffective, the manufacturer shall have a second chance to repair at the purchaser's location so long as the repair is completed within three business days. If the second repair is ineffective or not timely, the purchaser may get a full refund or receive a new computer of equal or greater value. If the computer has more than one nonconformity, no second repair attempt is required to get the refund or new computer. The manufacturer may request return of the unrepaired computer if it has been refunded or replaced, but it may not be resold in Pennsylvania. Any manufacturer who refuses to honor the terms of any warranty entitles the purchaser to treble the purchase price.


Manufacturers must retain records of all contacts with the purchaser and make copies upon request; related violations entitle the purchaser to treble the purchase price. A purchaser may initiate a civil action to seek recovery. Awards not only Include refund or replacement, but may also entitle the prevailing purchaser to $1,600-$6,000 depending on the judicial body deciding the issue. The manufacturer must produce at every court proceeding a corporate witness fully aware of the case and have available a copy of all data. The manufacturer must pay reasonable attorney fees, costs, and expert expenses if a purchaser has retained legal counsel. A nonconformity caused by a software programming problem is not a defense if: (1) software was preinstalled by the manufacturer; (2) unless the manufacturer produces an expert who can specify the cause and correction of the problem, and (3) unless the manufacturer has strictly complied with the notice provisions of this Act.


Purchasers seeking relief are not required to retain an expert witness. Violations of this Act shall also be violations of the Unfair Trade Practices and Consumer Protection Law. The purchaser may not waive provisions of this Act.


EFFECTIVE DATE-The Act shall take effect in 60 days.


PREPARED BY: Laura Jan Kuller. 783-3797