HB 1970 -- CIVIL ACTIONS AGAINST MOTOR VEHICLE DEALERS

SPONSOR:  Wasson

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Professional Registration and Licensing by a vote of 7 to 1.

This bill prohibits a person from initiating a civil action against an
licensed motor vehicle dealer with whom he or she did not
directly and personally negotiate or communicate during the
retail sale or lease of a motor vehicle or other related
merchandise.

FISCAL NOTE:  No impact on state funds in FY 2009, FY 2010, and
FY 2011.

PROPONENTS:  Supporters say that due to a Missouri Supreme Court
case, individuals can seek damages against parties with which
they have had no direct contractual relationship.  If individuals
are allowed to sue automobile wholesalers and manufacturers for
problems incurred with used cars which should have been disclosed
by the auto dealer, it will have an adverse impact on the used
car industry bringing about lower trade-in values and higher
prices to cover liability costs.

Testifying for the bill were Representative Wasson; Mike Kehoe,
New Car Dealers Association; Ford Motor Company; and Missouri
Power Sports Dealers Association.

OPPONENTS:  Those who oppose the bill say there are concerns with
the language prohibiting individuals from bringing civil actions
against manufacturers and wholesalers for product liability.

Testifying against the bill was Missouri Association of Trial
Attorneys.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:11 pm