322G.1
Legislative intent.
The general
assembly recognizes that a motor vehicle is a major consumer
acquisition and that a defective motor vehicle undoubtedly
creates a hardship for the consumer. The general assembly
further recognizes that a duly franchised motor vehicle dealer
is an authorized service agent of the manufacturer. It is the
intent of the general assembly that a good faith motor vehicle
warranty complaint by a consumer be resolved by the manufacturer
within a specified period of time. It is further the intent of
the general assembly to provide the statutory procedures whereby
a consumer may receive a replacement motor vehicle, or a full
refund, for a motor vehicle which cannot be brought into
conformity with the warranty provided for in this chapter.
However, this chapter does not limit the rights or remedies
which are otherwise available to a consumer under any other law.
322G.2
Definitions.
As used in this
chapter, unless the context otherwise requires:
1.
"Collateral charges" means those additional charges to
a consumer wholly incurred as a result of the acquisition of the
motor vehicle. For the purposes of this chapter, collateral
charges include, but are not limited to, charges for
manufacturer-installed or agent-installed items, earned finance
charges, use taxes, and title charges.
2.
"Condition" means a general problem that may be
attributable to a defect in more than one part.
3.
"Consumer" means the purchaser or lessee, other than
for purposes of lease or resale, of a new or previously untitled
motor vehicle, or any other person entitled by the terms of the
warranty to enforce the obligations of the warranty during the
duration of the lemon law rights period.
4.
"Days" means calendar days.
5.
"Department" means the attorney general.
6.
"Incidental charges" means those reasonable costs
incurred by the consumer, including, but not limited to, towing
charges and the costs of obtaining alternative transportation,
which are the direct result of the nonconformity or
nonconformities which are the subject of the claim. Incidental
charges do not include loss of use, loss of income, or personal
injury claims.
7.
"Lease price" means the aggregate of the following:
a.
Lessor's actual purchase costs.
b.
Collateral charges, if applicable.
c. Any fee
paid to another to obtain the lease.
d. Any
insurance or other costs expended by the lessor for the benefit
of the lessee.
e. An
amount equal to state and local use taxes, not otherwise
included as collateral charges, paid by the lessor when the
vehicle was initially purchased.
f. An
amount equal to five percent of the lessor's actual purchase
cost.
8.
"Lemon law rights period" means the term of the
manufacturer's written warranty, the period ending two years
after the date of the original delivery of a motor vehicle to a
consumer, or the first twenty-four thousand miles of operation
attributable to a consumer, whichever expires first.
9.
"Lessee" means any consumer who leases a motor vehicle
for one year or more pursuant to a written lease agreement which
provides that the lessee is responsible for repairs to the motor
vehicle.
10.
"Lessee cost" means the aggregate of the deposit and
rental payments previously paid to the lessor for the leased
vehicle.
11. "Lessor"
means a person who holds the title to a motor vehicle leased to
a lessee under a written lease agreement or who holds the
lessor's rights under the agreement.
12.
"Manufacturer" means a person engaged in the business
of constructing or assembling new motor vehicles or installing
on previously assembled vehicle chassis special bodies or
equipment which, when installed, form an integral part of the
new motor vehicle, or a person engaged in the business of
importing new motor vehicles into the United States for the
purpose of selling or distributing the new motor vehicles to new
motor vehicle dealers.
13.
"Motor vehicle" means a self-propelled vehicle
purchased or leased in this state, except as provided in section
322G.15, and primarily designed for the transportation of
persons or property over public streets and highways, but does
not include mopeds, motorcycles, motor homes, or vehicles over
ten thousand pounds gross vehicle weight rating.
14.
"Nonconformity" means a defect, malfunction, or
condition in a motor vehicle such that the vehicle fails to
conform to the warranty, but does not include a defect,
malfunction, or condition that results from an accident, abuse,
neglect, modification, or alteration of the motor vehicle by
persons other than the manufacturer or its authorized service
agent.
15.
"Person" means person as defined in section 714.16.
16.
"Program" means an informal dispute settlement
procedure established by a manufacturer which mediates and
arbitrates motor vehicle warranty disputes arising in this
state.
17.
"Purchase price" means the cash price paid for the
motor vehicle appearing in the sales agreement or contract,
including any net allowance given for a trade-in vehicle.
18.
"Reasonable offset for use" means the number of miles
attributable to a consumer up to the date of the third attempt
to repair the same nonconformity which is the subject of the
claim, or the first attempt to repair a nonconformity that is
likely to cause death or serious bodily injury, or the twentieth
cumulative day when the vehicle is out of service by reason of
repair of one or more nonconformities, whichever occurs first,
multiplied by the purchase price of the vehicle, or in the event
of a leased vehicle, the lessor's actual lease price plus an
amount equal to two percent of the purchase price, and divided
by one hundred twenty thousand.
19.
"Replacement motor vehicle" means a motor vehicle
which is identical or reasonably equivalent to the motor vehicle
to be replaced, and as the motor vehicle to be replaced would
have existed without the nonconformity at the time of original
acquisition.
20.
"Substantially impair" means to render the motor
vehicle unfit, unreliable, or unsafe for warranted or ordinary
use, or to significantly diminish the value of the motor
vehicle.
21.
"Warranty" means any written warranty issued by the
manufacturer; or any 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, which relates to the nature of the material or
workmanship and affirms or promises that the material or
workmanship is free of defects or will meet a specified level of
performance.
322G.3 Duties
of manufacturer.
1. At the
time of the consumer's purchase or lease of the vehicle, the
manufacturer shall provide to the consumer a written statement
that explains the consumer's rights and obligations under this
chapter. The written statement shall be prepared by the attorney
general and shall contain a telephone number that the consumer
can use to obtain information from the attorney general
regarding the rights and obligations provided under this
chapter.
2. At the
time of the consumer's purchase or lease of the vehicle, the
manufacturer shall provide to the consumer the address and phone
number for the zone, district, or regional office of the
manufacturer for this state where a claim may be filed by the
consumer. This information shall be provided to the consumer in
a clear and conspicuous manner. Within thirty days of the
introduction of a new model year for each make and model of
motor vehicle sold in this state, the manufacturer shall notify
the attorney general of such introduction. The manufacturer
shall also inform the attorney general that a copy of the
owner's manual and applicable written warranties shall be
provided upon request and provide information as to where the
request should be made. The manufacturer shall inform the
attorney general where such a request should be directed and
shall provide the copy of the owner's manual and applicable
written warranties within five business days of a request by the
attorney general.
3. A
manufacturer or the authorized service agent of the manufacturer
shall make repairs as necessary to conform the vehicle to the
warranty if a motor vehicle does not conform to the warranty and
the consumer reports the nonconformity to the manufacturer or
authorized service agent during the lemon law rights period.
Such repairs shall be made irrespective of whether they can be
made prior to the expiration of the lemon law rights period.
4. A
manufacturer or the authorized service agent of the
manufacturer, shall provide to the consumer, each time the motor
vehicle is returned after being examined or repaired under the
warranty, a fully itemized, legible statement or repair order
indicating any diagnosis made, and all work performed on the
motor vehicle including, but not limited to, a general
description of the problem reported by the consumer or an
identification of the defect or condition, parts and labor, the
date and the odometer reading when the motor vehicle was
submitted for examination or repair, and the date when the
repair or examination was completed.
5. Upon
request from the consumer, the manufacturer, or the authorized
service agent of the manufacturer, shall provide a copy of
either or both of the following:
a. Any
report or printout of any diagnostic computer operation compiled
by the manufacturer or authorized service agent regarding an
inspection or diagnosis of the motor vehicle.
b. A copy
of any technical service bulletin issued by the manufacturer
regarding the year and model of the motor vehicle as it pertains
to any material, feature, component, or the performance of the
motor vehicle.
322G.4
Nonconformity of motor vehicles.
1. After
three attempts have been made to repair the same nonconformity
that substantially impairs the motor vehicle, or after one
attempt to repair a nonconformity that is likely to cause death
or serious bodily injury, the consumer may give written
notification, which shall be by certified or registered mail or
by overnight service, to the manufacturer of the need to repair
the nonconformity in order to allow the manufacturer a final
attempt to cure the nonconformity. The manufacturer shall,
within ten days after receipt of such notification, notify and
provide the consumer with the opportunity to have the vehicle
repaired at a reasonably accessible repair facility and after
delivery of the vehicle to the designated repair facility by the
consumer, the manufacturer shall, within ten days, conform the
motor vehicle to the warranty. If the manufacturer fails to
notify and provide the consumer with the opportunity to have the
vehicle repaired at a reasonably accessible repair facility or
perform the repairs within the time periods prescribed in this
subsection, the requirement that the manufacturer be given a
final attempt to cure the nonconformity does not apply.
After twenty or
more cumulative days when the motor vehicle has been out of
service by reason of repair of one or more nonconformities, the
consumer may give written notification to the manufacturer which
shall be by certified or registered mail or by overnight
service. Commencing upon the date such notification is received,
the manufacturer has ten cumulative days when the vehicle has
been out of service by reason of repair of one or more
nonconformities to conform the motor vehicle to the warranty.
2. If the
manufacturer, or its authorized service agent, has not conformed
the motor vehicle to the warranty by repairing or correcting one
or more nonconformities that substantially impair the motor
vehicle after a reasonable number of attempts, the manufacturer
shall, within forty days of receipt of payment by the
manufacturer of a reasonable offset for use by the consumer,
replace the motor vehicle with a replacement motor vehicle
acceptable to the consumer, or repurchase the motor vehicle from
the consumer or lessor and refund to the consumer or lessor the
full purchase or lease price, less a reasonable offset for use.
The replacement or refund shall include payment of all
collateral and reasonably incurred incidental charges. The
consumer has an unconditional right to choose a refund rather
than a replacement. If the consumer elects to receive a refund,
and the refund exceeds the amount of the payment for a
reasonable offset for use, the requirement that the consumer pay
the reasonable offset for use in advance does not apply, and the
manufacturer shall deduct that amount from the refund due to the
consumer. If the consumer elects a replacement motor vehicle,
the manufacturer shall provide the consumer a substitute motor
vehicle to use until such time as the replacement vehicle is
delivered to the consumer. At the time of the refund or
replacement, the consumer, lien holder, or lessor shall furnish
to the manufacturer clear title to and possession of the
original motor vehicle.
Refunds shall be
made to the consumer and lien holder of record, if any, as their
interests appear. If applicable, refunds shall be made to the
lessor and lessee as follows: the lessee shall receive the
lessee's cost less a reasonable offset for use, and the lessor
shall receive the lease price less the aggregate deposit and
rental payments previously paid to the lessor for the leased
vehicle. If it is determined that the lessee is entitled to a
refund pursuant to this chapter, the consumer's lease agreement
with the lessor is terminated upon payment of the refund and no
penalty for early termination shall be assessed. The department
of revenue and finance shall refund to the manufacturer any use
tax which the manufacturer refunded to the consumer, lessee, or
lessor under this section, if the manufacturer provides to the
department of revenue and finance a written request for a refund
and evidence that the use tax was paid when the vehicle was
purchased and that the manufacturer refunded the use tax to the
consumer, lessee, or lessor.
3. It is
presumed that a reasonable number of attempts have been
undertaken to conform a motor vehicle to the warranty if, during
the lemon law rights period, any of the following occur:
a. The
same nonconformity that substantially impairs the motor vehicle
has been subject to examination or repair at least three times
by the manufacturer or its authorized service agent, plus a
final attempt by the manufacturer to repair the motor vehicle if
undertaken as provided for in subsection 1, and such
nonconformity continues to exist.
b. A
nonconformity that is likely to cause death or serious bodily
injury has been subject to examination or repair at least one
time by the manufacturer or its authorized service agent, plus a
final attempt by the manufacturer to repair the motor vehicle if
undertaken as provided for in subsection 1, and such
nonconformity continues to exist.
c. The
motor vehicle has been out of service by reason of repair by the
manufacturer, or its authorized service agent, of one or more
nonconformities that substantially impair the motor vehicle for
a cumulative total of thirty or more days, exclusive of down
time for routine maintenance prescribed by the owner's manual.
The thirty-day period may be extended by any period of time
during which repair services are not available to the consumer
because of war, invasion, strike, fire, flood, or natural
disaster.
The terms of this
subsection shall be extended for a period of up to two years
after the date of the original delivery of a motor vehicle to a
consumer, or the first twenty-four thousand miles of operation
attributable to a consumer, whichever occurs first, if a
nonconformity has been reported but has not been cured by the
manufacturer, or its authorized service agent, before the
expiration of the lemon law rights period.
4. A
manufacturer, or its authorized service agent, shall not refuse
to examine or repair any nonconformity for the purpose of
avoiding liability under this chapter.
322G.5
Affirmative defenses.
Any of the
following is an affirmative defense to a claim under this
chapter:
1. The
alleged nonconformity or nonconformities do not substantially
impair the motor vehicle.
2. A
nonconformity is the result of an accident, abuse, neglect, or
unauthorized modification or alteration of the motor vehicle by
a person other than the manufacturer or its authorized service
agent.
3. The
claim by the consumer was not filed in good faith.
4. Any
other defense allowed by law which may be raised against the
claim.
322G.6
Informal dispute settlement procedures
Operations and
certification.
1. At the
time of the consumer's purchase or lease of the vehicle, a
manufacturer who has established a program certified pursuant to
this section shall, at a minimum, clearly and conspicuously
disclose to the consumer in written materials accompanying the
vehicle how and where to file a claim with the program.
2. A
certified program shall be funded and competently staffed at a
level sufficient to ensure fair and expeditious resolution of
all disputes, and shall not charge consumers any fee for use of
the program. The manufacturer shall take all steps necessary to
ensure that a certified program and its staff and decision
makers are sufficiently insulated from the manufacturer so that
the performance of the staff and the decisions of the decision
makers are not influenced by the manufacturer. Such steps, at a
minimum, shall ensure that the manufacturer does not make
decisions on whether a consumer's dispute proceeds to the
decision maker. Staff and decision makers of a certified program
shall be trained in the provisions of this chapter and rules
adopted under this chapter.
3. A
certified program shall allow an oral presentation by a party,
or by a party's employee, agent, or representative.
Within five days
following the consumer's notification to the certified program
of the dispute, the program shall inform each party of their
right to make an oral presentation.
Meetings of a
certified program to hear and decide disputes shall be open to
observers, including either party to the dispute, on reasonable
and nondiscriminatory terms.
4. A
certified program shall render a decision no later than sixty
days from the day of the consumer's notification of the dispute,
provided that a significant number of decisions are rendered
within forty days. For the purposes of this section,
notification is deemed to have occurred when a certified program
has received the consumer's name and address; the current date
and the date of the original delivery of the motor vehicle to a
consumer; the year, make, model, and identification number of
the motor vehicle; and a description of the nonconformity. If
the consumer has not previously notified the manufacturer of the
nonconformity, the sixty-day period is extended for an
additional seven days.
5. A
certified program shall, in rendering decisions, take into
account the provisions of this chapter and all legal and
equitable factors germane to a fair and just decision. The
decision shall disclose to the consumer and the manufacturer the
reasons for the decision, and the manufacturer's required
actions, if applicable. If the decision is in favor of the
consumer, the consumer shall have up to twenty-five days from
the date of receipt of the certified program's decision to
indicate acceptance of the decision. The decision shall
prescribe a reasonable period of time, not to exceed thirty days
from the date the consumer notifies the manufacturer of
acceptance of the decision, within which the manufacturer must
fulfill the terms of the decision. If the manufacturer has had a
reasonable number of attempts to conform a motor vehicle to the
warranty as set forth in section 322G.4, subsection 3, including
a final attempt by the manufacturer to repair the motor vehicle,
if undertaken as provided for in section 322G.4, subsection 1,
and the consumer is entitled to a replacement vehicle or a
refund under section 322G.4, subsection 2, the decision shall be
limited to relief as allowed under section 322G.4, subsection 2.
In an action brought by a consumer under this chapter, the
decision of a certified program is admissible in evidence.
6. A
certified program shall establish written procedures which
explain operation of the certified program. Copies of the
written procedures shall be made available to any person upon
request and shall be sent to the consumer upon notification of
the dispute.
7. A
certified program shall retain all records for each dispute for
at least four years after the final disposition of the dispute.
A certified program shall have an independent audit conducted
annually to determine whether the manufacturer and its
performance and the program and its implementation are in
compliance with this chapter. All records for each dispute shall
be available for the audit. Such audit, upon completion, shall
be forwarded to the attorney general.
8. Any
manufacturer licensed to sell motor vehicles in this state may
apply to the attorney general for certification of its program.
A manufacturer seeking certification of its program in this
state shall submit to the attorney general an application for
certification on a form prescribed by the attorney general.
9. A
program certified in this state or a program established by a
manufacturer applying for certification in this state shall
submit to the attorney general a copy of each settlement
approved by the program or decision made by the decision maker
within thirty days after the settlement is reached or the
decision is rendered. The decision or settlement shall contain
information prescribed by the attorney general.
10. The
attorney general shall review the operations of any certified
program at least once annually. The attorney general shall
prepare annual and periodic reports evaluating the operation of
certified programs serving consumers in this state or programs
established by motor vehicle manufacturers applying for
certification in this state. The reports shall indicate whether
certification should be granted, renewed, denied, or revoked.
11. If a
manufacturer has established a program which the attorney
general has certified as substantially complying with the
provisions of and the rules adopted under this chapter, and has
informed the consumer how and where to file a claim with the
program pursuant to subsection 1, the provisions of section
322G.4, subsection 2, do not apply to any consumer who has not
first resorted to the program.
322G.7
Informal dispute settlement procedure
Certification
uniformity.
To facilitate
uniform application, interpretation, and enforcement of this
section and section 322G.6, and in implementing rules adopted
pursuant to section 322G.14, the attorney general may cooperate
with agencies that perform similar functions in any other states
that enact these or similar sections. The cooperation authorized
by this subsection may include any of the following:
1.
Establishing a central depository for copies of all applications
and accompanying materials submitted by manufacturers for
certification, and all reports prepared, notices issued, and
determinations made by the attorney general under section
322G.6.
2. Sharing
and exchanging information, documents, and records pertaining to
program operations.
3. Sharing
personnel to perform joint reviews, surveys, and investigations
of program operations.
4.
Preparing joint reports evaluating program operations.
5.
Granting joint certifications and certification renewals.
6. Issuing
joint denials or revocations of certification.
7. Holding
a joint administrative hearing.
8.
Formulating, in accordance with chapter 17A, the administrative
procedure Act, rules or proposed rules on matters such as
guidelines, forms, statements of policy, interpretative
opinions, and any other information necessary to implement
section 322G.6.
322G.8
Consumer remedies.
1. If a
consumer resorts to a manufacturer's certified program and a
decision is not rendered within the time periods allowed in this
chapter, or a manufacturer has no certified program and the
consumer has notified the manufacturer pursuant to section
322G.4, subsection 1, the consumer may file an action in
district court under this chapter within one year from the
expiration of the lemon law rights period or an extension of the
period pursuant to section 322G.4, subsection 3.
2. If a
consumer resorts to a manufacturer's certified program and is
not satisfied with the performance of the manufacturer as
ordered in the decision, or the manufacturer does not perform as
directed by the decision within the time period specified in the
decision, the consumer may file an action in district court
under this chapter within six months after the date prescribed
in the decision by which the manufacturer must fulfill the terms
of the decision. If the consumer declines to accept the decision
of the manufacturer's certified program, the consumer may appeal
the decision pursuant to subsection 4. For purposes of this
subsection, "not satisfied with the performance of the
decision" means, following the consumer's acceptance of the
decision, the consumer indicates that the manufacturer failed to
comply with the terms of the decision within the time specified
in the decision or failed to cure the nonconformity within the
time specified in the decision if further repairs were ordered.
3. In an
action under either subsection 1 or 2, the court shall award a
consumer who prevails the amount of any pecuniary loss,
including relief the consumer is entitled to under section
322G.4, subsection 2, reasonable attorney's fees, and costs. In
addition, if the court affirms the decision of the certified
program, the court may award any additional amounts allowed
under subsection 7.
4. A
certified program's decision is final unless appealed by either
party. A petition to the district court to appeal a decision
must be made within fifty days after receipt of the decision or
within twenty-five days from the date the consumer indicates
acceptance of the decision to the manufacturer, whichever occurs
first. Within seven days after the petition has been filed, the
appealing party must send, by certified, registered, or express
mail, a copy of the petition to the attorney general. If the
attorney general receives no notice of the petition within sixty
days after the manufacturer's receipt of a decision in favor of
the consumer, and the consumer has indicated acceptance of the
decision within the twenty-five days of receipt of the decision,
but the manufacturer has neither complied with, nor petitioned
to appeal the decision, the attorney general may apply to the
court to impose a fine up to one thousand dollars per day
against the manufacturer until the amount stands at twice the
purchase price of the motor vehicle, unless the manufacturer
provides clear and convincing evidence that the delay or failure
was beyond its control or was acceptable to the consumer as
evidenced by a written statement signed by the consumer. If the
manufacturer fails to provide such evidence or fails to pay the
fine, the attorney general shall initiate proceedings against
the manufacturer for failure to pay the fine. The proceeds from
the fine imposed shall be placed in the attorney general's motor
vehicle fraud and odometer law enforcement fund for
implementation and enforcement of this chapter.
5. If the
manufacturer fails to comply with a decision which has been
timely accepted by the consumer or fails to file a timely
petition for appeal, the court shall affirm the board's decision
upon application by the consumer.
6. An
appeal of a decision by a certified program to the court by a
consumer or a manufacturer shall be tried de novo, and may be
based upon stipulated facts. In a written petition to appeal a
decision by the board, the appealing party must state the action
requested and the grounds relied upon for appeal.
7. If a
decision of the certified program in favor of the consumer is
affirmed or upheld by the court, recovery by the consumer shall
include the pecuniary value of the award, including relief the
consumer is entitled to under section 322G.4, subsection 2,
attorney's fees incurred in obtaining confirmation of the award,
and all costs and continuing damages in an amount of twenty-five
dollars per day for all days beyond the twenty-five-day period
following the manufacturer's receipt of the consumer's
acceptance of the certified program's decision. If a court
determines that a manufacturer filed a petition for appeal to be
tried de novo in bad faith or brought such an appeal solely for
the purpose of harassment, the court shall double, and may
triple, the amount of the total award, after consideration of
all circumstances.
8.
Appellate review of a court decision in favor of the consumer
may be conditioned upon payment by the manufacturer of the
consumer's attorney's fees and giving security for costs and
expenses resulting from the review period.
9. This
chapter does not prohibit a consumer from pursuing other rights
or remedies under any other law.
322G.9
Compliance and disciplinary action.
The attorney
general may enforce and ensure compliance with the provisions of
this chapter and rules adopted pursuant to section 322G.14, may
issue subpoenas requiring the attendance of witnesses and the
production of evidence, and may petition any court having
jurisdiction to compel compliance with the subpoenas. The
attorney general may levy and collect an administrative fine in
an amount not to exceed one thousand dollars for each violation
against any manufacturer found to be in violation of this
chapter or rules adopted pursuant to section 322G.14. A
manufacturer may request a hearing pursuant to chapter 17A, the
administrative procedure Act, if the manufacturer contests the
fine levied against it. The proceeds from any fine levied and
collected pursuant to this section shall be placed in the
attorney general's motor vehicle fraud and odometer law
enforcement fund for implementation and enforcement of this
chapter.
322G.10 Unfair
or deceptive trade practice.
A violation by a
manufacturer of this chapter is an unfair or deceptive trade
practice in violation of section 714.16, subsection 2, paragraph
"a".
322G.11 Dealer
liability.
This chapter,
except for the requirements of section 322G.12, does not impose
any liability on a franchised motor vehicle dealer or create a
cause of action by a consumer against a dealer. A dealer shall
not be made a party defendant in any action involving or
relating to this chapter, except as provided in this section.
The manufacturer shall not charge back or require reimbursement
by the dealer for any costs, including but not limited to any
refunds or vehicle replacements, incurred by the manufacturer
pursuant to this chapter, in the absence of a finding by a court
that the related repairs had been carried out by the dealer in a
manner substantially inconsistent with the manufacturer's
published instructions. A manufacturer who is found by a court
to have improperly charged back a dealer because of a violation
of this section is liable to the injured dealer for full
reimbursement plus reasonable costs and any attorney's fees.
322G.12 Resale
of returned vehicles.
Subsequent to
December 31, 1991, a manufacturer who accepts the return of a
motor vehicle pursuant to a settlement, determination, or
decision under this chapter shall notify the state department of
transportation and report the vehicle identification number of
that motor vehicle within ten days after the acceptance. The
state department of transportation shall note the fact that the
motor vehicle was returned pursuant to this chapter on the title
for the motor vehicle. A person shall not knowingly lease; or
sell, either at wholesale or retail; or transfer a title to a
motor vehicle returned by reason of a settlement, determination,
or decision pursuant to this chapter or a similar statute of any
other state unless the nature of the nonconformity is clearly
and conspicuously disclosed to the prospective transferee,
lessee, or buyer. The attorney general shall prescribe by rule
the form, content, and procedure pertaining to such a disclosure
statement, recognizing the need of manufacturers to implement a
uniform disclosure form. The manufacturer shall make a
reasonable effort to ensure that such disclosure is made to the
first subsequent retail buyer or lessee. For purposes of this
subsection, "settlement" includes an agreement entered
into between the manufacturer and the consumer that occurs after
the dispute has been submitted to a state-operated dispute
resolution program or to a manufacturer-established program
certified in this or any other state, but does not include
agreements reached in informal proceedings prior to the first
written or oral presentation to the state-operated or
state-certified dispute resolution program by either party.
"Settlement" also includes an agreement entered into
between a manufacturer and a consumer that occurs after the
dispute has been submitted to a dispute resolution program that
is not state-operated or state-certified.
322G.13
Certain agreements void.
Any agreement
entered into by a consumer that waives, limits, or disclaims the
rights set forth in this chapter is void as contrary to public
policy.
322G.14
Rulemaking authority.
1. The
attorney general shall adopt rules as necessary to implement
this chapter.
2. In
prescribing rules and forms under this chapter, the attorney
general may cooperate with agencies that perform similar
functions in other states with a view to effectuating the policy
of this chapter to achieve maximum uniformity in the form and
content of certification, regulation, and procedural evaluation
of manufacturer-established programs, required record keeping,
required reporting wherever practicable, and required notices to
consumers.
322G.15
Applicability.
This chapter
applies to motor vehicles originally purchased or leased in this
state by consumers on or after July 1, 1991. Except for section
322G.3, subsections 1 and 2, and section 322G.6, subsection 1,
this chapter applies to motor vehicles originally purchased or
leased in other states, if the consumer is a resident of this
state at the time the consumer's rights are asserted under this
chapter. Section 322G.14, which concerns rulemaking, shall take
effect May 9, 1991. |