OEM and Non-OEM Automobile Replacement Parts: The Solution to Avery v. State Farm
![handle is hein.journals/flsulr28 and id is 557 raw text is: OEM OR NON-OEM AUTOMOBILE
REPLACEMENT PARTS:
THE SOLUTION TO AVERY V. STATE FARM
MATTHEW W. REARDEN*
I. INTRODUCTION .................................................................................................. 543
II. AVERY V. STATE FARMMUTUAL AUTOMOBILE INSURANCE Co .......................... 544
III. RELATED CASES ................................................................................................. 550
IV. THE DEBATE: OEM VS. NON-OEM .................................................................... 552
A Differences Between Non-OEM and OEM Parts ........................................ 552
B . Safety .......................................................................................................... 553
C. W arranty Issues .......................................................................................... 554
D . P rice ............................................................................................................ 555
1. Parts ..................................................................................................... 555
2. Installation ........................................................................................... 556
E . C om petition ................................................................................................ 557
V. SOLUTION: GIVE CONSUMERS A CHOICE ............................................................ 558
VI. CONCLUSION ...................................................................................................... 566
A PPENDIX A ....................................................................................................... 567
APPENDIX B ....................................................................................................... 568
APPENDIX C ...................................................................................................... 569
I. INTRODUCTION
Would you pay $101,355 for a $23,263 Toyota Camry? If you built
that car using only. Original Equipment Manufacturer (OEM) parts
from Toyota, that is how much it would cost.' Even more shocking,
the $101,355 would not even include paint or the labor required to
assemble the vehicle.2 But a recent Illinois case-Avery u. State Farm
Mutual Automobile Insurance Co.3-has effectively mandated the use
of OEM parts when insurance companies repair damaged vehicles.4
* Candidate for J.D., Florida State University, 2001; B.A., Oral Roberts University,
1997. I would like to thank Professor Angela Toman for her instruction and support. I also
thank Lisa Midkiff Eric Dickey, Michael Sjuggerud, and the Law Review staff for their as-
sistance. This Note is dedicated to Karen Rearden, my mother, for her endless encourage-
ment, love, and guidance.
1. See Press Release, Alliance of Am. Insurers, Rebuilt Camry Costs 4x Retail Price,
Proving OEM Auto Parts Are $7.2 Billion Rip-Off, Alliance Study Finds (July 30, 1999)
[hereinafter AAI, Rebuilt Camry].
2. See id.
3. No. 97-L-114, (Ill. Cir. Ct. Oct. 8,1999), available in WESTLAW, 1999 WL 955543
(Count I); No. 97-L-114, 1999 WL 1022134 (Count II), appeal docketed, No. 5-99-0830 (Ill.
App. Ct. Dec. 21, 1999), and motion for direct appeal denied, No. 88833. Count I pertained
to plaintiffs' breach of contract action. See 1999 WL 955543, at * 1. Counts I and III ad-
dressed plaintiffs' claims under an Illinois consumer fraud and deceptive business prac-
tices statute. See 1999 WL 1022134, at *I.
4. See 1999 WL 1022134, at *5.](ViewImageLocal?handle=hein.journals/flsulr28&div=26&collection=&method=preview&ext=.png&size=3)
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OEM and Non-OEM Automobile Replacement Parts: The Solution to Avery v. State Farm
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