24-5-13-1
This chapter
applies to all motor vehicles that are sold, leased,
transferred, or replaced by a dealer or manufacturer in Indiana.
24-5-13-2
As used in this
chapter, "business day" means a day other than Sunday
or a legal holiday (as defined in IC 1-1-9-1).
24-5-13-3
As used in this
chapter, "buyer" means any person who, for purposes
other than resale or sublease, enters into an agreement or
contract within Indiana for the transfer, lease, or purchase of
a motor vehicle covered under this chapter.
24-5-13-3.4
As used in this
chapter, "lease" means a contract in the form of a
lease or bailment for the use of a motor vehicle by a person for
more than four (4) months, whether or not the lessee has the
option to purchase or otherwise become the owner of the property
at the expiration of the lease.
24-5-13-3.7
As used in this
chapter, "lessor" means a person who:
(1) holds
title to a motor vehicle leased to a lessee under a written
lease agreement; or
(2) holds
the lessor's rights under an agreement described in subdivision
(1).
24-5-13-4
As used in this
chapter, "manufacturer" means any person who is
engaged in the business of manufacturing motor vehicles, or, in
the case of motor vehicles not manufactured in the United
States, any person who is engaged in the business of importing
motor vehicles.
24-5-13-5
As used in this
chapter, "motor vehicle" or "vehicle" means
any self-propelled vehicle that:
(1) has a
declared gross vehicle weight of less than ten thousand (10,000)
pounds;
(2) is
sold to:
(A) a
buyer in Indiana and registered in Indiana; or
(B) a
buyer in Indiana who is not an Indiana resident (as defined in
IC 9-13-2-78);
(3) is
intended primarily for use and operation on public highways; and
(4) is
required to be registered or licensed before use or operation.
The term does not
include conversion vans, motor homes, farm tractors, and other
machines used in the actual production, harvesting, and care of
farm products, road building equipment, truck tractors, road
tractors, motorcycles, mopeds, snowmobiles, or vehicles designed
primarily for off road use.
24-5-13-6
As used in this
chapter, "nonconformity" means any specific or generic
defect or condition or any concurrent combination of defects or
conditions that:
(1)
substantially impairs the use, market value, or safety of a
motor vehicle; or
(2)
renders the motor vehicle nonconforming to the terms of an
applicable manufacturer's warranty.
24-5-13-7
As used in this
chapter, "term of protection" means a period of time
that:
(1)
begins:
(A) on the date
of original delivery of a motor vehicle to a buyer; or
(B) in the case
of a replacement vehicle provided by a manufacturer to a buyer
under this chapter, on the date of delivery of the replacement
vehicle to the buyer; and
(2) ends
the earlier of:
(A)
eighteen (18) months after the date identified under subdivision
(1); or
(B) the
time the motor vehicle has been driven eighteen thousand
(18,000) miles after the date identified under subdivision (1).
24-5-13-8
If a motor
vehicle suffers from a nonconformity and the buyer reports the
nonconformity within the term of protection to the manufacturer
of the vehicle, its agent, or its authorized dealer then the
manufacturer of the motor vehicle or the manufacturer's agent or
authorized dealer shall make the repairs that are necessary to
correct the nonconformity, even if the repairs are made after
expiration of the term of protection.
24-5-13-9
(a) A
buyer must first notify the manufacturer of a claim under this
chapter if the manufacturer has made the disclosure required by
subsection (b). However, if the manufacturer has not made the
required disclosure, the buyer is not required to notify the
manufacturer of a claim under this chapter.
(b) The
manufacturer shall clearly and conspicuously disclose to the
buyer, in the warranty or owner's manual, that written
notification of the nonconformity is required before the buyer
may be eligible for a refund or replacement of the vehicle. The
manufacturer shall include with the warranty or owner's manual
the name and address to which the buyer must send notification.
24-5-13-10
If, after a
reasonable number of attempts, the manufacturer, its agent, or
authorized dealer is unable to correct the nonconformity, the
manufacturer shall accept the return of the vehicle from the
buyer and, at the buyer's option, either, within thirty (30)
days, refund the amount paid by the buyer or provide a
replacement vehicle of comparable value.
24-5-13-11
(a) If a
refund is tendered under this chapter with respect to a vehicle
that is not a leased vehicle, the refund must be the full
contract price of the vehicle, including all credits and
allowances for any trade-in vehicle and less a reasonable
allowance for use.
(b) To
determine a reasonable allowance for use under this section,
multiply:
(1) the
total contract price of the vehicle; by
(2) a
fraction having as its denominator one hundred thousand
(100,000) and having as its numerator the number of miles that
the vehicle traveled before the manufacturer's acceptance of its
return.
(c) The
refund must also include reimbursement for the following
incidental costs:
(1) All
sales tax.
(2) The
unexpended portion of the registration fee and excise tax that
has been prepaid for any calendar year.
(3) All
finance charges actually expended.
(4) The
cost of all options added by the authorized dealer.
(d)
Refunds made under this section shall be made to the buyer and
lien holder, if any, as their respective interests appear on the
records of ownership.
24-5-13-11.5
(a) If a
refund is tendered under this chapter with respect to a leased
motor vehicle, the refund shall be made as follows:
(1) The
lessee shall receive all deposit and lease payments paid by the
lessee to the lessor, including all credits and allowances for
any trade-in vehicles, less a reasonable allowance for use.
(2) The
lessor shall receive:
(A) the
lessor's purchase cost, including freight and accessories;
(B) any
fee paid to another to obtain the lease;
(C) any
insurance premiums or other costs expended by the lessor for the
benefit of the lessee;
(D) sales
tax paid by the lessor; and
(E) five
percent (5%) of the amount described in subdivision (2)(A);
less the total of
all deposit and lease payments paid by the lessee to the lessor,
including all credits and allowances for any trade-in vehicle.
(b) To
determine a reasonable allowance for use under this section,
multiply:
(1) the
total lease obligation of the lessee at the inception of the
lease; by
(2) a
fraction having as its denominator one hundred thousand
(100,000) and as its numerator the number of miles that the
vehicle traveled before the lessor's acceptance of its return.
24-5-13-12
(a) If a
vehicle is replaced by a manufacturer under this chapter, the
manufacturer shall reimburse the buyer for any fees for the
transfer of registration or any sales tax incurred by the buyer
as a result of replacement.
(b) If a
replaced vehicle was financed by the manufacturer, its
subsidiary, or agent, the manufacturer, subsidiary, or agent may
not require the buyer to enter into any refinancing agreement
concerning a replacement vehicle that would create any financial
obligations upon the buyer less favorable than those of the
original financing agreement.
24-5-13-13
Whenever a
vehicle is replaced or refunded under this chapter, the
manufacturer shall reimburse the buyer for necessary towing and
rental costs actually incurred as a direct result of the
nonconformity.
24-5-13-14
A buyer has the
option of retaining the use of any vehicle returned under this
chapter until the time that the buyer has been tendered a full
refund or replacement vehicle of comparable value. The use of
any vehicle retained by a buyer after its return to a
manufacturer under this chapter must, in cases in which a refund
is tendered, be reflected in the reasonable allowance for use
required by section 11 of this chapter.
24-5-13-15
(a) A
reasonable number of attempts is considered to have been
undertaken to correct a nonconformity if:
(1) the
nonconformity has been subject to repair at least four (4) times
by the manufacturer or its agents or authorized dealers, but the
nonconformity continues to exist; or
(2) the
vehicle is out of service by reason of repair of any
nonconformity for a cumulative total of at least thirty (30)
business days, and the nonconformity continues to exist.
(b) The
thirty (30) business day period in subsection (a)(2) shall be
extended by any period of time during which repair services are
not available as a direct result of a strike. The manufacturer,
its agent, or authorized dealer shall provide or make provision
for the free use of a vehicle to any buyer whose vehicle is out
of service by reason of repair during a strike.
(c) The
burden is on the manufacturer to show that the reason for an
extension under subsection (b) was the direct cause for the
failure of the manufacturer, its agent, or authorized dealer to
cure any nonconformity during the time of the event.
24-5-13-16
(a) A
manufacturer, its agent, or authorized dealer may not refuse to
diagnose or repair any vehicle for the purpose of avoiding
liability under this chapter.
(b) A
manufacturer, its agent, or authorized dealer shall provide a
buyer with a written repair order each time the buyer's vehicle
is brought in for examination or repair. The repair order must
indicate all work performed on the vehicle including examination
of the vehicle, parts, and labor.
24-5-13-18
It is an
affirmative defense to any claim under this chapter that:
(1) the
nonconformity, defect, or condition does not substantially
impair the use, value, or safety of the motor vehicle; or
(2) the
nonconformity, defect, or condition is the result of abuse,
neglect, or unauthorized modification or alteration of the motor
vehicle by the buyer.
24-5-13-19
This chapter does
not apply to any buyer who has not first resorted to an informal
procedure established by a manufacturer or in which a
manufacturer participates if:
(1) the
procedure is certified by the attorney general as:
(A)
complying in all respects with 16 C.F.R. 703; and
(B)
complying with any other rules concerning certification adopted
by the attorney general, including but not limited to the
requirement of oral hearings, pursuant to IC 4-22-2; and
(2) the
buyer has received adequate written notice from the manufacturer
of the existence of the procedure.
Adequate written
notice includes the incorporation of the informal dispute
settlement procedure into the terms of the written warranty to
which the motor vehicle does not conform.
24-5-13-20
This chapter does
not limit the rights or remedies that are otherwise available to
a buyer under any other applicable provision of law.
24-5-13-21
A buyer may bring
a civil action to enforce this chapter in any circuit or
superior court.
24-5-13-22
A buyer who
prevails in any action brought under this chapter is entitled to
recover as part of the judgment a sum equal to the aggregate
amount of cost and expenses, including attorney's fees based on
actual time expended by the attorney, determined by the court to
have been reasonably incurred by the buyer for or in connection
with the commencement and prosecution of the action.
24-5-13-23
(a) An
action brought under this chapter must be commenced within two
(2) years following the date the buyer first reports the
nonconformity to the manufacturer, its agent, or authorized
dealer.
(b) When
the buyer has commenced an informal dispute settlement procedure
described in section 19 of this chapter, the two (2) year period
specified in subsection (a) is tolled during the time the
informal dispute settlement procedure is being conducted.
24-5-13-24
Nothing in this
chapter imposes any liability on a dealer or creates a cause of
action by a consumer against a dealer, and a manufacturer may
not, directly or indirectly, expose any franchised dealer to
liability under this chapter.
24-5-13.5-1
This chapter
applies to all motor vehicles that are sold, leased,
transferred, or replaced by a dealer or manufacturer in Indiana.
24-5-13.5-2
As used in this
chapter, "bureau" refers to the bureau of motor
vehicles created by IC 9-14-1-1.
24-5-13.5-3
As used in this
chapter, "buyback vehicle" means a motor vehicle that
has been replaced or repurchased by a manufacturer or a
nonresident manufacturer's agent or an authorized dealer, either
under this chapter or IC 24-5-13 by judgment, decree,
arbitration award, settlement agreement, or voluntary agreement
in Indiana or another state, but does not include a motor
vehicle that was repurchased pursuant to a guaranteed repurchase
or satisfaction program advertised by the manufacturer and was
not alleged or found to have a nonconformity as defined in IC
24-5-13-6.
24-5-13.5-4
As used in this
chapter, "buyer" means a person who, for purposes
other than resale or sublease, enters into an agreement or a
contract within Indiana for the transfer, lease, or purchase of
a buyback vehicle.
24-5-13.5-5
As used in this
chapter, "dealer" means a person engaged in the
business of buying, selling, leasing, or exchanging motor
vehicles. A person is a "dealer" under this section if
the person sells, leases, or advertises the sale or lease of
more than four (4) motor vehicles within a twelve (12) month
period.
24-5-13.5-6
As used in this
chapter, "manufacturer" has the meaning set forth in
IC 24-5-13-4.
24-5-13.5-7
As used in this
chapter, "motor vehicle" has the meaning set forth in
IC 24-5-13-5.
24-5-13.5-8
As used in this
chapter, "nonconformity" has the meaning set forth in
IC 24-5-13-6.
24-5-13.5-9
As used in this
chapter, "warranty" means:
(1) a
written warranty issued by the manufacturer; or
(2) an
affirmation of fact or promise made by the manufacturer,
excluding statements made by the dealer;
in connection
with the sale or lease of a motor vehicle to a consumer that
relates to the nature of the material or workmanship and affirms
or promises that such material or workmanship is free of defects
or will meet a specified level of performance.
24-5-13.5-10
A buyback motor
vehicle may not be resold in Indiana unless the following
conditions have been met:
(1) The
manufacturer provides the same express warranty the manufacturer
provided to the original purchaser, except that the term of the
warranty need only last for twelve thousand (12,000) miles or
twelve (12) months after the date of resale.
(2) The
following disclosure language must be conspicuously contained in
a contract for the sale or lease of a buyback vehicle to a
consumer or contained in a form affixed to the contract:
IMPORTANT
This vehicle
was previously sold as new. It was subsequently returned to the
manufacturer or authorized dealer in exchange for a replacement vehicle
or a refund because it did not conform to the manufacturer's
express warranty and the nonconformity was not cured within a
reasonable time as provided by Indiana law.
(3) The
manufacturer provides the dealer a separate document with a
written statement identifying the vehicle conditions that formed
the basis for the previous owner's or lessee's dissatisfaction
and the steps taken to deal with that dissatisfaction in
10-point all capital type.
24-5-13.5-11
Before reselling
a buyback motor vehicle in Indiana, a dealer must provide to the
buyer the express warranty required by section 10(1) of this
chapter and the written statement of disclosure required by
section 10(3) of this chapter and obtain the buyer's
acknowledgment of this disclosure at the time of sale or lease
as evidenced by the buyer's signature on the statement of
disclosure.
24-5-13.5-12
A manufacturer
who accepts return of a motor vehicle that is considered a
buyback vehicle under this chapter shall do the following:
(1) Before
transferring ownership of the buyback vehicle, stamp the words
"Manufacturer Buyback A Disclosure on File" on the
face of the original certificate of title.
(2) Not
more than thirty-one (31) days after receipt of the certificate
of title, apply to the bureau for a certificate of title in the
name of the manufacturer and provide to the bureau a copy of the
disclosure document required by section 10(3) of this chapter.
24-5-13.5-13
(a) A
person who fails to comply with section 10, 11, or 12 of this
chapter is liable for the following:
(1) Actual
damages or the value of the consideration, at the election of
the buyer.
(2) The
costs of an action to recover damages and reasonable attorney's
fees.
(3) Not
more than three (3) times the value of the actual damages or the
consideration as exemplary damages.
(4) Other
equitable relief, including restitution, as is considered proper
in addition to damages and costs.
(b) Actual
damages under this section include the following:
(1) The
difference between the actual market value of the vehicle at the
time of purchase and the contract price of the vehicle.
(2)
Towing, repair, and storage expenses.
(3) Rental
of substitute transportation.
(4) Food
and lodging expenses.
(5) Lost
wages.
(6)
Finance charges.
(7) Sales
or use tax or other governmental fees.
(8) Lease
charges.
(9) Other
incidental and consequential damages.
(c) Lack
of privacy is not a bar to an action under this section.
(d) This
subsection does not apply to consent orders or stipulated
judgments in which there is no admission of liability by the
defendant. A permanent injunction, final judgment, or final
order of the court obtained by the attorney general under
section 14 of this chapter is prima facie evidence in an action
brought under this section that the defendant has violated
section 10, 11, or 12 of this chapter.
(e) An
action to enforce liability under this section may be brought
within two (2) years from the date of discovery by the buyer.
24-5-13.5-14
A manufacturer or
dealer who fails to comply with section 10, 11, or 12 of this
chapter, as applicable to the manufacturer or dealer, commits a
deceptive act that is actionable by the attorney general under
IC 24-5-0.5-4 and is subject to the remedies and penalties set
forth in IC 24-5-0.5. |