Lemon Law - Iowa
Lemon Law
Lemon Law - "Lemon
law" is that body of state law which defines an automobile
owners rights when the manufacturer is not able to repair the
automobile within the limits specified. In
such cases, the automobile is referred to as a "lemon",
and is subject to the conditions of the state lemon law.
Your Lemon Law:
Disclaimer:
These pages are created to inform and educate the public about lemon
law and under the lemon law in your state. They are not and
should not be considered legal opinions or advice as to whether you
have rights under lemon law or whether you should pursue "a
lemon law case". If after reading this information,
you believe you qualify, you should seek the advice and counsel of
an attorney specializing in lemon law in your state. Remember
that each state's lemon laws vary.
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.
Find other Lemon Laws in these
states:
Lemon Law
Lemon Law - "Lemon
law" is that body of state law which defines an automobile
owners rights when the manufacturer is not able to repair the
automobile within the limits specified by state lemon law. In
such cases, the automobile is referred to as a "lemon",
and is subject to the conditions of the state lemon law.
Your Lemon Law
Disclaimer:
These pages are created to inform and educate the public about lemon
law and under the lemon law in your state. They are not and
should not be considered legal opinions or advice as to whether you
have rights under lemon law or whether you should pursue "a
lemon law case". If after reading this information,
you believe you qualify, you should seek the advice and counsel of
an attorney specializing in lemon law in your state. Remember
that each state's lemon laws vary.
Lemon Law - Lemon
Law - Lemon Law- Lemon Law
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