Iowa
Lemon Law
Chapter 322G.1-15
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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.
91 Acts, ch 153,
§1
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.
91 Acts, ch 153,
§2; 95 Acts, ch 45, §6
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.
91 Acts, ch 153,
§3
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, lienholder, 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 lienholder
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.
91 Acts, ch 153,
§4
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.
91 Acts, ch 153,
§5
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.
91 Acts, ch 153,
§6
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.
91 Acts, ch 153,
§7
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.
91 Acts, ch 153,
§8
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.
91 Acts, ch 153,
§9
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".
91 Acts, ch 153,
§10
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.
91 Acts, ch 153,
§11; 95 Acts, ch 45, §7
322G.12 Resale of returned vehicles.
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, report the vehicle
identification number of that motor
vehicle within ten days after the
acceptance, and obtain a new certificate
of title for the vehicle in the manufacturer's
name pursuant to section 321.46. In
obtaining a new certificate of title,
the manufacturer shall title the vehicle
in the county of the transferor's
residence and shall be exempt from
the registration fee requirements
of section 321.46. For purposes of
chapter 423, a manufacturer's acceptance
of the return of a motor vehicle,
as described in this section, shall
not be considered "use",
as defined in section 423.1. The new
certificate of title, and all subsequent
registration receipts and certificates
of title issued for the motor vehicle,
shall contain a designation indicating
that the motor vehicle was returned
to the manufacturer pursuant to this
chapter or a similar law of another
state. The state department of transportation
shall determine the manner in which
the designation is to be indicated
on registration receipts and certificates
of title and may determine that a
"REBUILT" or "SALVAGE"
designation supersedes the designation
required by this paragraph and include
the "REBUILT" or "SALVAGE"
designation on the registration receipt
and certificate of title in lieu of
the designation required by this paragraph.
A person shall not
knowingly lease, 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 law of another 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 section,
"settlement" includes an
agreement entered into between the
manufacturer and the consumer that
occurs after the thirtieth day following
the manufacturer's receipt of the
consumer's written notification pursuant
to section 322G.4.
91 Acts, ch 153,
§12; 95 Acts, ch 45, §8
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.
91 Acts, ch 153,
§13
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 recordkeeping, required reporting
wherever practicable, and required
notices to consumers.
91 Acts, ch 153,
§14
322G.15 Applicability.
1. This chapter takes effect July
1, 1991, and applies to motor vehicles
originally purchased or leased by
consumers on or after that date.
2. This chapter applies
to motor vehicles originally purchased
or leased in this state and, except
for section 322G.3, subsections 1
and 2, and section 322G.6, subsection
1, 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.
91 Acts, ch 153,
§15; 95 Acts, ch 45, §9;
96 Acts, ch 1079, § 10
