Lemon Law - Indiana
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.
IC 24-5-13-1
Sec. 1. This chapter applies to all motor
vehicles that are sold, leased, transferred, or replaced by a dealer
or manufacturer in Indiana.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-2
Sec. 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).
As added by P.L.150-1988, SEC.1.
IC 24-5-13-3
Sec. 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.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-3.4
Sec. 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.
As added by P.L.24-1989, SEC.25.
IC 24-5-13-3.7
Sec. 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).
As added by P.L.24-1989, SEC.26.
IC 24-5-13-4
Sec. 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.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-5
Sec. 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.
As added by P.L.150-1988, SEC.1. Amended by P.L.141-1990, SEC.1;
P.L.2-1991, SEC.84.
IC 24-5-13-6
Sec. 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.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-7
Sec. 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).
As added by P.L.150-1988, SEC.1.
IC 24-5-13-8
Sec. 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.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-9
Sec. 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.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-10
Sec. 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.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-11
Sec. 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 lienholder, if any, as their respective
interests appear on the records of ownership.
As added by P.L.150-1988, SEC.1. Amended by P.L.24-1989, SEC.27.
IC 24-5-13-11.5
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Sec. 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.
As added by P.L.24-1989, SEC.28.
IC 24-5-13-12
Sec. 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.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-13
Sec. 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.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-14
Sec. 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.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-15
Sec. 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.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-16
Sec. 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.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-17 Repealed
(Repealed by P.L.65-1992, SEC.4.)
IC 24-5-13-18
Sec. 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.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-19
Sec. 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.
As added by P.L.150-1988, SEC.1. Amended by P.L.24-1989, SEC.29.
IC 24-5-13-20
Sec. 20. This chapter does not limit the
rights or remedies that are otherwise available to a buyer under any
other applicable provision of law.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-21
Sec. 21. A buyer may bring a civil action to
enforce this chapter in any circuit or superior court.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-22
Sec. 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.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-23
Sec. 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.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-24
Sec. 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.
As added by P.L.150-1988, SEC.1.
