SF 2177 (LSB 5923XS (5) 86)

SENATE FILE 2177

BY  GUTH

A BILL FOR

An Act relating to persons selling dogs or cats to persons for their own use and enjoyment, by providing for express warranties covering the condition of the dogs or cats, and including penalties.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 162.2, Code 2016, is amended by adding the following new subsections:
   NEW SUBSECTION.  22A.  “Qualified purchaser” means a person, other than a commercial establishment, who is transferred ownership and possession of a dog or cat from another person as part of a sale or exchange, if the transfer is for the person’s personal use and enjoyment and not for further sale or exchange.
   NEW SUBSECTION.  24B.  “Seller” means a commercial establishment or other person who transfers ownership and possession of a dog or cat to another person as part of a sale or exchange.
    Sec. 2.  Section 162.12A, Code 2016, is amended by adding the following new subsection:
   NEW SUBSECTION.  1A.  A seller who does not honor an express warranty as required in section 162.17 is subject to a civil penalty of not more than five hundred dollars and each day that the seller fails to honor that warranty constitutes a separate offense.
    Sec. 3.  NEW SECTION.  162.17  Express warranty.
   1.  A seller who sells or exchanges a dog or cat to a qualified purchaser shall furnish the qualified purchaser with an express warranty in written form covering damages caused by the condition of the dog or cat as provided in this section. The form of the express warranty shall be prescribed by the department.
   2.  If a seller fails to furnish a written express warranty to a qualified purchaser, the express warranty shall apply as if the seller had furnished the written express warranty to the qualified purchaser. 
   3.  The express warranty shall expire twenty-one days from the date that the qualified purchaser is transferred possession of the dog or cat from the seller.
   4.  The express warranty shall cover all of the following conditions:
   a.  An illness or disease that arose prior to the transfer of possession of the dog or cat and that adversely affects the health of the dog or cat, including the presence of symptoms of a contagious or infectious disease or an obvious sign of severe parasitism that is extreme enough to influence the general health of the dog or cat. An illness or disease does not include the presence of fleas or ticks.
   b.  A congenital or hereditary condition that adversely affects the health of the dog or cat, if the condition results in any of the following:
   (1)  The hospitalization of the dog or cat or a nonelective surgical procedure performed on the dog or cat, as recommended by a veterinarian.
   (2)  The death of the dog or cat.
   5.  A qualified purchaser who makes a claim on an express warranty shall demand compensation from the seller in any of the following forms:
   a.  A return of the consideration paid by the qualified purchaser to the seller, including a refund of the sales price paid to the seller, upon the qualified purchaser’s return of the live dog or cat to the seller or proof provided by the qualified purchaser to the seller that the dog or cat died as a result of a condition covered by the express warranty.
   b.  An exchange of the dog or cat for another dog or cat of comparable value as agreed to by the qualified purchaser and the seller.
   c.  A reimbursement of reasonable veterinary fees paid by the qualified purchaser to a licensed veterinarian for diagnosing and treating the dog or cat during the twenty-one-day period. The reimbursement shall not exceed the amount of consideration paid by the qualified purchaser to the seller for the dog or cat.
   6.  An express warranty shall not cover the condition of a dog or cat that arises after the seller transfers possession of the dog or cat to the qualified purchaser, including but not limited to any of the following:
   a.  An illness or disease afflicting the dog or cat.
   b.  An injury sustained by the dog or cat.
   c.  Any condition that could be reasonably attributable to neglect, including a failure to provide the dog or cat with the same standard of care applicable to commercial establishments under section 162.10A, subsection 1.
   d.  Any condition that could be reasonably attributable to the dog or cat’s mistreatment, including but not limited to any mistreatment that could classify the dog or cat as a threatened animal under chapter 717B.
   7.  Any waiver of a right by a qualified purchaser under this section is void, unless the qualified purchaser and seller sign a written statement waiving the express warranty. The written statement must disclose any known illness or disease afflicting the dog or cat and any congenital or hereditary condition that adversely affects the dog or cat. Upon the signing of the statement by the parties, the seller shall not be subject to a claim as described in subsection 5.
   8.  A commercial establishment that transfers a dog or cat must post a notice at a conspicuous public location in the commercial establishment’s principal place of business. The notice must briefly explain the terms and conditions of the warranty as required by the department.
   9.  This section shall not limit rights or remedies available to a qualified purchaser under any other law. In addition to pursuing any other remedy, a qualified purchaser who is not compensated under this section may bring an action in district court. The court shall award a qualified purchaser who prevails in such an action the amount of any pecuniary loss, together with costs and reasonable attorney fees which shall be taxed as part of the costs of the action, and any equitable relief that the court determines is appropriate.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   BILL’S PROVISIONS. This bill requires that when a person (seller) transfers possession and ownership of a dog or cat, by sale or exchange, to another person for that person’s own personal use and enjoyment (qualified purchaser), the seller must furnish the qualified purchaser with an express warranty in written form covering damages caused by the condition of the dog or cat at the time of sale or exchange. The express warranty applies regardless of whether the seller provides the qualified purchaser with a specific written form required to be promulgated by the department. The express warranty expires 21 days from the date that the qualified purchaser takes possession of the dog or cat. The express warranty covers illness, disease, or a congenital or hereditary condition. The express warranty allows the qualified purchaser to make a claim for compensation in one of three forms: (1) return of the paid consideration (refund), (2) exchange for another dog or cat, or (3) reimbursement of veterinarian fees. However, the express warranty does not cover a condition that occurred after the seller transfers possession of the dog or cat to the qualified purchaser. The parties may execute a statement waiving the express warranty, so long as the statement discloses any known illness or disease afflicting the dog or cat and any congenital or hereditary condition that adversely affects the dog or cat.
   The bill requires a commercial establishment to post a notice briefly explaining the express warranty in a conspicuous place.
   The bill does not limit the rights or remedies provided to qualified purchasers under other law. A qualified purchaser who does not receive compensation from the seller may bring an action in court to recover pecuniary damages plus court costs and reasonable attorney fees, which are to be taxed as part of the costs of the action. In addition, the court may grant any equitable relief that the court determines is appropriate.
   CIVIL PENALTY. A seller violating the bill’s provisions is subject to a civil penalty of not more than $500 and each day that the seller fails to honor an express warranty constitutes a separate offense.
   BACKGROUND. Commercial establishments that are involved in the sale or exchange of dogs and cats include animal shelters and pounds which are required to obtain a certificate of registration; pet shops which are required to obtain a state license; and commercial breeders which are required to obtain a state license or a permit if licensed by the United States department of agriculture (USDA).