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 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.
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.
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.
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 recordkeeping, required
reporting wherever practicable, and required notices to consumers.
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.
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