September 21, 1970
Page 32927
Mr. BAKER. Mr. President, I call up my amendment which is pending at the desk.
The PRESIDING OFFICER. The amendment will be stated.
The amendment was read, as follows:
On page 63 insert "(1)" after "(c)" on line 19 and on page 64 insert between lines 22 and 23 a new paragraph (2) as follows: "(2) Nothing in this subsection shall be construed as imposing any cost obligation resulting from any warranty requirement imposed by this subsection on any dealer. The transfer of any such cost obligation from a manufacturer to any dealer through franchise or other agreement is prohibited.
Mr. BAKER. Mr. President, I wish to amend the amendment by inserting after the word "obligation" in the second line, section (2), the words "on any dealer" before the word "resulting," and striking the words "on any dealer" from the third line.
The PRESIDING OFFICER. The amendment is so modified.
The amendment, as modified, is as follows:
On page 63 insert "(1)" after "(c)" on line 19 and on page 64 insert between lines 22 and 23 a new paragraph (2) as follows:
"(2) Nothing in this subsection shall be construed as imposing any cost obligation on any dealer resulting from any warranty requirement imposed by this subsection. The transfer of any such cost obligation from a manufacturer to any dealer through franchise or other agreement is prohibited.”
Mr. BAKER. Mr. President, the amendment to S. 4358, to amend the Clean Air Act, and for other purposes, has the effect of excluding from the application of cost responsibility under the warranty section of dealers and distributors.
Although the subject matter of this amendment is addressed in the report on the bill and, therefore, conforms to the intent of the committee, I feel that the matter should be addressed explicitly in the bill.
Mr. President, often obligations and responsibilities under product warranties are assigned or otherwise transferred, to dealers and distributors by manufacturers, often through the leverage of franchise agreements.
Mr. President, the obligations of the manufacturer under this bill to produce a clean car should be borne by the manufacturer and the manufacturer alone. Such obligations should not be transferred to any dealer.
Thus, my amendment would make it clear that the cost obligations under the warranty required by the statute run against the manufacturer of the automobile and not against dealers and distributors.
Mr. President, it might be pointed out further, that while the amendment provides against the shifting of any cost obligation resulting from the warranty it does not mean the manufacturer could not call upon his dealer network to perform services or adjustments under the warranty. It does mean that the cost of those adjustments and services would be borne by the manufacturer and not the dealer, and that the franchise agreement could not be used as leverage to require the dealer to absorb any related costs.
Mr. MUSKIE. Mr. President, I have discussed this matter with the Senator from Tennessee. Because of the careful consideration he gives to legislation, I think his amendment is an accurate reflection of the intent of the committee. It is a point the committee overlooked in its consideration of the warranty. We focused entirely upon the responsibility of the manufacturer. It did not occur to us that we would be imposing an obligation on the dealer. It was not our intent to do so. I would be willing to accept his amendment, but before doing so I yield to the Senator from Kentucky.
Mr. COOPER. Mr. President, I rise because I joined with the Senator from Tennessee in offering this amendment.
During the discussion of the bill in committee this issue was raised by the Senator from Tennessee. I join in this matter because of the many messages I was receiving from distributors and dealers of automobiles in my State asking if obligations under the warranty ran against the distributors and agencies.
I believe the committee agreed it was not so intended, and I think the Senator from Tennessee is night in offering this clarifying amendment.
It is well to have a provision to reassure many people and I am glad to join with the Senator from Tennessee in the amendment and I support it strongly.
Mr. MUSKIE. Mr. President, I did not realize that the Senator from Michigan wanted to be recognized.
Mr. GRIFFIN. Mr. President, it occurs to me that I had better get my 2 cents worth in here because it looks as if action is about to be taken on an amendment and, frankly it had been my understanding that this bill will be laid down but no amendment would be acted upon.
I am not at all sure this amendment is all that noncontroversial. I wonder if the Senator from Maine expects to take action on the amendment this evening.
Mr. MUSKIE. Mr. President, I would yield to the desire of Senators. I think when I discussed it with the Senator from Tennessee we looked at this amendment as a clarification of the committee intent.
If it would be helpful to the Senator from Michigan to postpone action on the amendment I yield to the Senator from Tennessee. We were trying to dispose of whatever we could this evening, not thinking that we were by this amendment getting involved in anything complicated.
Mr. BAKER. Mr. President, if the Senator will yield, I have no objection to putting the amendment over until tomorrow.
I have discussed the amendment with the Senator from Maine (Mr. MUSKIE) and the Senator from Kentucky (Mr. COOPER) on the basis that the amendment was a clarification of the committee's amendment. If we cannot dispose of it this afternoon, I am willing to put it over until tomorrow.
However I point out that on page 81 of the bill it states that the provision shall not include any dealer, and the report language itself makes it clear. However, the Senator from Kentucky did not feel it was spelled out with particularity, and we introduced this amendment for the purpose of clarification.
If the Senator from Michigan wants to defer action on the amendment, I am certainly willing to defer it.
Mr. GRIFFIN. I think it would be well to study the effect of the amendment.
Mr. MUSKIE. I have no objection at all.
Mr. BAKER. Mr. President, a parliamentary inquiry.
The PRESIDING OFFICER. The Senator will state it.
Mr. BAKER. Is it necessary for me to get unanimous consent to withdraw the amendment at this particular time?
The PRESIDING OFFICER. The Senator from Tennessee may withdraw his amendment or he may leave it as the pending question without any action being taken on it.
Mr. BAKER. Mr. President, I do not have any idea of discommoding the Senate for the transaction of other business it may have while it is waiting for us to act on this amendment, but if it is agreeable to all concerned, I prefer that the amendment remain as the pending business.
Mr. MUSKIE. Mr. President, reserving the night to object, I would like to suggest that I have some purely technical amendments which I would like to offer at this time.
The PRESIDING OFFICER. The Chair would suggest to the Senator from Maine that that might be accomplished with the unanimous consent of the Senate.
Mr. MUSKIE. Then I have no objection to leaving the amendment as the pending business tomorrow.
I ask unanimous consent that technical amendments I send to the desk be considered at this time.
The PRESIDING OFFICER. Is there objection? Without objection, it is so ordered.
The amendments offered by the Senator from Maine will be stated.
The assistant legislative clerk proceeded to read the amendments.
Mr. MUSKIE. Mr. President, I ask unanimous consent that further reading of the amendments be dispensed with.
The PRESIDING OFFICER. Without objection it is so ordered.
The amendments are as follows:
On page 27, in line 16 change "(d)" to “(e)” .
On page 34, in line 4 change "(d)" to “(e)".
On page 62, in line 3 change "(F)" to “(E)”.
On page 77, in line 8 change "(2) " to "(4) " and "subsection" to "section".
On page 78, in line 11 change "subsection (a) or (b)" to "subsection (a), (b) or (c)".
On page 85, in line 17 change "its" to "the".
On page 86, in line 6 strike "under clause (1) of this subsection".
On page 91, in line 4 strike "patent application,".
On page 92, in line 8 strike "patent application,".
The PRESIDING OFFICER. Without objection, the amendments will be considered en bloc.
Without objection, the amendments are agreed to en bloc.
Mr. COOPER. Mr. President, will the Senator yield ?
Mr. MUSKIE. I yield.
AMENDMENT NO. 930
Mr. COOPER. Mr. President, I send to the desk an amendment, in which Senator BAKER and Senator GURNEY join as cosponsors. I do not intend to call it up this evening, but I ask that it be received and printed, and lie on the table.
The PRESIDING OFFICER. The amendment will be received, printed, and will lie on the table.
Mr. COOPER. I might give notice to the Chairman of the subcommittee that it is similar in substance to the amendment I offered in the committee. As the Senator knows so well, the warranty provided for in the bill goes not only to the design and assembly of the automobile propulsion system as it affects emissions, but also to its performance over a period of service, 50,000 miles, under operation by various owners.
I intend to call the amendment up at some time and discuss it, to see if my conception is correct in the view of the committee and the chairman, and then I shall decide whether I shall ask for a vote on it.
Mr. President, I ask unanimous consent that the proposed amendment for myself, Senator BAKER and Senator GURNEY, be printed at this point in the RECORD, for the information of Members.
There being no objection, the amendment No. 930 was ordered to be printed in the RECORD, as follows:
On page 63, beginning on line 23, strike out all through line 4 on page 64, and insert in lieu thereof the following:
"and shall be so warranted for the lifetime of such vehicle or engine. Fifty thousand miles shall be taken as the basis for the lifetime of a vehicle or engine under this section. As a condition to the obligation of manufacturers to correct defects in design, manufacture or assembly, manufacturers may require the ultimate purchaser and subsequent purchasers of such vehicle or engines".
On page 64, line 12, strike out the words "adjustment, operation".
Mr. MUSKIE. Mr. President, I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The assistant legislative clerk proceeded to call the roll.
Mr. BYRD of West Virginia. Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.