Section 1345.71 Definitions.
As used in sections 1345.71 to 1345.78 of the Revised Code:
(A) "Consumer"
means any of the following:
(1) The purchaser, other than for purposes of
resale, of a motor vehicle;
(2) Any lessee of a motor vehicle in a
contractual arrangement under which a charge is made for the use of the
vehicle at a periodic rate for a term of thirty days or more, and title to
the vehicle is in the name of a person other than the user;
(3) Any person to whom the motor vehicle is
transferred during the duration of the express warranty that is applicable
to the motor vehicle;
(4) Any other person who is entitled by the
terms of the warranty to enforce the warranty.
(B) "Manufacturer"
and "distributor" have the same meanings as
in section 4517.01 of the Revised Code, and manufacturer includes a
remanufacturer as defined in that section.
(C) "Express warranty"
and "warranty" mean the written warranty of
the manufacturer or distributor of a new motor vehicle concerning the
condition and fitness for use of the vehicle, including any terms or
conditions precedent to the enforcement of obligations under that
warranty.
(D) "Motor vehicle"
means any passenger car or noncommercial motor vehicle as defined in
section 4501.01 of the Revised Code, or those parts of any motor home, as
defined in section 4501.01 of the Revised Code, that are not part of the
permanently installed facilities for cold storage, cooking and consuming
of food, and for sleeping, but does not mean any mobile home as defined in
division (O) of section 4501.01 of the Revised Code, recreational vehicle
as defined in division (Q) of that section, or manufactured home as
defined in division (C)(4) of section 3781.06 of the Revised Code.
(E) "Nonconformity"
means any defect or condition which substantially impairs the use, value,
or safety of a motor vehicle and does not conform to the express warranty
of the manufacturer or distributor.
(F) "Full purchase
price" means both of the following:
(1) In the case of a sale, the contract
price for the motor vehicle, including charges for transportation,
undercoating, dealer-installed options and accessories, dealer services,
dealer preparation, and delivery charges; all finance, credit insurance,
warranty, and service contract charges incurred by the consumer; and all
sales tax, license and registration fees, and other government charges.
(2) In the case of a lease, the capitalized
cost reduction, security deposit, taxes, title fees, all monthly lease
payments, the residual value of the vehicle, and all finance, credit
insurance, warranty, and service contract charges incurred by the
consumer.
(G) "Buyback"
means a motor vehicle that has been replaced or repurchased by a
manufacturer as the result of a court judgment, a determination of an
informal dispute settlement mechanism, or a settlement agreed to by a
consumer regardless of whether it is in the context of a court, an
informal dispute settlement mechanism, or otherwise, in this or any other
state, in which the consumer has asserted that the motor vehicle does not
conform to the warranty, has presented documentation to establish that a
nonconformity exists pursuant to section 1345.72 or 1345.73 of the Revised
Code, and has requested replacement or repurchase of the vehicle.
(H) "Mobile home", "motor home", "noncommercial motor vehicle,"
"passenger car," and "recreational vehicle" have the same meanings as in
section 4501.01 of the Revised Code.
HISTORY: 142 v
H 232 (Eff 10-22-87);
147 v S 142
(Eff 3-30-99); 148 v H 21. Eff
9-15-99.
Section 1345.72
Duty to repair nonconforming new motor vehicles;
consumer's options when repairs unsuccessful.
(A) If a new motor vehicle does not conform
to any applicable express warranty and the consumer reports the
nonconformity to the manufacturer, its agent, or its authorized dealer
during the period of one year following the date of original delivery or
during the first eighteen thousand miles of operation, whichever is
earlier, the manufacturer, its agent, or its authorized dealer shall make
any repairs as are necessary to conform the vehicle to such express
warranty, notwithstanding the fact that the repairs are made after the
expiration of the appropriate time period.
(B) If the manufacturer, its agent, or its
authorized dealer is unable to conform the motor vehicle to any applicable
express warranty by repairing or correcting any defect or condition that
substantially impairs the use, safety, or value of the motor vehicle to
the consumer after a reasonable number of repair attempts, the
manufacturer shall, at the consumer's option, and subject to division (D)
of this section replace the motor vehicle with a new motor vehicle
acceptable to the consumer or accept return of the vehicle from the
consumer and refund each of the following:
(1) The full purchase price;
(2) All incidental damages, including, but
not limited to, any fees charged by the lender or lessor for making or
canceling the loan or lease, and any expenses incurred by the consumer as
a result of the nonconformity, such as charges for towing, vehicle rental,
meals, and lodging.
(C) Nothing in this section imposes any
liability on a new motor vehicle dealer or creates a cause of action by a
buyer against a new motor vehicle dealer.
(D) Sections 1345.71 to 1345.78 of the
Revised Code do not affect the obligation of a consumer under a loan or
retail installment sales contract or the interest of any secured party,
except as follows:
(1) If the consumer elects to take a refund,
the manufacturer shall forward the total sum required under division (B)
of this section by an instrument jointly payable to the consumer and any
lienholder that appears on the face of the certificate of title or the
lessor. Prior to disbursing the funds to the consumer, the lienholder or
lessor may deduct the balance owing to it, including any fees charged for
canceling the loan or the lease and refunded pursuant to division (B) of
this section, and shall immediately remit the balance if any, to the
consumer and cancel the lien or the lease.
(2) If the consumer elects to take a new
motor vehicle, the manufacturer shall notify any lienholder noted on the
certificate of title under section 4505.13 of the Revised Code or the
lessor. If both the lienholder or the lessor and the consumer consent to
finance or lease the new motor vehicle obtained through the exchange in
division (B) of this section, the lienholder or the lessor shall release
the lien on or surrender the title to the nonconforming motor vehicle
after it has obtained a lien on or title to the new motor vehicle. If the
existing lienholder or lessor does not finance or lease the new motor
vehicle, it has no obligation to discharge the note or cancel the lien on
or surrender the title to the nonconforming motor vehicle until the
original indebtedness or the lease terms are satisfied.
HISTORY: 142 v
H 232 (Eff 10-22-87);
148 v H 21.
Eff 9-15-99.
Section 1345.73 Presumption of reasonable number of attempts to
repair.
It shall be presumed that a reasonable number of attempts have been
undertaken by the manufacturer, its dealer, or its authorized agent to
conform a motor vehicle to any applicable express warranty if, during the
period of one year following the date of original delivery or during the
first eighteen thousand miles of operation, whichever is earlier, any of
the following apply:
(A) Substantially the same nonconformity has
been subject to repair three or more times and continues to exist or
recurs;
(B) The vehicle is out of service by reason
of repair for a cumulative total of thirty or more calendar days;
(C) There have been eight or more attempts to
repair any nonconformity;
(D) There has been at least one attempt to
repair a nonconformity that results in a condition that is likely to cause
death or serious bodily injury if the vehicle is driven, and the
nonconformity either continues to exist or recurs.
HISTORY: 142 v
H 232 (Eff 10-22-87);
148 v H 21.
Eff 9-15-99.
Section 1345.74 Written statements of consumer's rights and of work
performed
(A) At the time of purchase, the
manufacturer, either directly or through its agent or its authorized
dealer, shall provide to the consumer a written statement on a separate
piece of paper, in ten-point type, all capital letters, in substantially
the following form: IMPORTANT: IF THIS VEHICLE IS DEFECTIVE, YOU MAY BE
ENTITLED UNDER STATE LAW TO A REPLACEMENT OR TO COMPENSATION.
In the case of a leased motor vehicle, the written statement described in
this division shall be provided to the consumer by the manufacturer,
either directly or through the lessor, at the time of execution of the
lease agreement.
(B) The manufacturer or authorized dealer
shall provide to the consumer, each time the motor vehicle of the consumer
is returned from being serviced or repaired, a fully itemized written
statement indicating all work performed on the vehicle, including, but not
limited to, parts and labor as described in the rules adopted pursuant to
section 1345.77 of the Revised Code.
HISTORY: 142 v
H 232 (Eff 10-22-87);
148 v H 21.
Eff 9-15-99.
Section 1345.75
Civil action for loss due to noncompliance.
(A) Any consumer may bring a civil action in
a court of common pleas or other court of competent jurisdiction against
any manufacturer if the manufacturer fails to comply with section 1345.72
of the Revised Code and, in addition to the relief to which the consumer
is entitled under that section, shall be entitled to recover reasonable
attorney's fees and all court costs.
(B) The remedies in sections 1345.71 to
1345.78 of the Revised Code are in addition to remedies otherwise
available to consumers under law.
(C) Any action brought under division (A) of
this section shall be commenced within five years of the date of original
delivery of the motor vehicle. Any period of limitation of actions under
any federal or Ohio laws with respect to any consumer shall be tolled for
the period that begins on the date that a complaint is filed with an
informal dispute resolution mechanism established pursuant to section
1345.77 of the Revised Code and ends on the date of the decision by the
informal dispute resolution mechanism.
(D) It is an affirmative defense to any claim
under this section that a nonconformity is the result of abuse, neglect,
or the unauthorized modification or alteration of a motor vehicle by
anyone other than the manufacturer, its agent, or its authorized dealer.
HISTORY:
142 v
H 232 (Eff 10-22-87);
148 v H 21.
Eff 9-15-99.
Section 1345.76
Conditions for resale or lease of buyback.
(A) A buyback may not be resold or leased in
this state unless each of the following applies:
(1) The manufacturer provides the same
express warranty that was provided to the original consumer, except that
the term of the warranty shall be the greater of either of the following:
(a) Twelve thousand miles or twelve months
after the date of resale, whichever is earlier;
(b) The remaining term of any manufacturer's
original warranty.
(2) The manufacturer provides to the
consumer, either directly or through its agent or its authorized dealer,
and prior to obtaining the signature of the consumer on any document, a
written statement on a separate piece of paper, in ten-point type, all
capital letters, in substantially the following form: WARNING: THIS
VEHICLE PREVIOUSLY WAS SOLD AS NEW. IT WAS RETURNED TO THE MANUFACTURER OR
ITS AGENT IN EXCHANGE FOR A REPLACEMENT VEHICLE OR REFUND AS A RESULT OF
THE FOLLOWING DEFECT(S) OR CONDITION(S):
1.
...........................................................................................................................................
2.
...........................................................................................................................................
3.
...........................................................................................................................................
4.
...........................................................................................................................................
5.
...........................................................................................................................................
...................... ...............................................
DATE BUYER'S SIGNATURE
The manufacturer shall list each defect or condition on a separate line of
the written statement provided to the consumer.
(B) Notwithstanding the provisions of
division (A) of this section, if a new motor vehicle has been returned
under the provisions of section 1345.72 of the Revised Code or a similar
law of another state because of a nonconformity likely to cause death or
serious bodily injury if the vehicle is driven, the motor vehicle may not
be sold, leased, or operated in this state.
(C) A manufacturer that takes possession of a
buyback shall obtain the certificate of title for the buyback from the
consumer, lienholder, or the lessor. The manufacturer and any subsequent
transferee, within thirty days and prior to transferring title to the
buyback, shall deliver the certificate of title to the clerk of the court
of common pleas and shall make application for a certificate of title for
the buyback. The clerk shall issue a buyback certificate of title for the
vehicle on a form, prescribed by the registrar of motor vehicles, that
bears or is stamped on its face with the words "BUYBACK: This vehicle was
returned to the manufacturer because it may not have conformed to its
warranty." in * black boldface letters in an appropriate location as
determined by the registrar. The buyback certificate of title shall be
assigned upon transfer of the buyback, for use as evidence of ownership of
the buyback and is transferable to any person. Every subsequent
certificate of title, memorandum certificate of title, or duplicate copy
of a certificate of title or memorandum certificate of title issued for
the buyback also shall bear or be stamped on its face with the words
"BUYBACK: This vehicle was returned to the manufacturer because it may not
have conformed to its warranty." in * black boldface letters in the
appropriate location.
The clerk of the court of common pleas shall charge a fee of five dollars
for each buyback certificate of title, duplicate copy of a buyback
certificate of title, memorandum buyback certificate of title, and
notation of any lien on a buyback certificate of title. The clerk shall
retain two dollars and twenty-five cents of the fee charged for each
buyback certificate of title, four dollars and seventy-five cents of the
fee charged for each duplicate copy of a buyback certificate of title, all
of the fees charged for each memorandum buyback certificate of title, and
four dollars and twenty-five cents of the fee charged for each notation of
a lien.
The remaining two dollars and seventy-five cents charged for the buyback
certificate of title, the remaining twenty-five cents charged for the
duplicate copy of a buyback certificate of title, and the remaining
seventy-five cents charged for the notation of any lien on a buyback
certificate of title shall be paid to the registrar in accordance with
division (A) of section 4505.09 of the Revised Code, who shall deposit it
as required by division (B) of that section.
(D) No manufacturer that applies for a
certificate of title for a buyback shall fail to clearly and unequivocally
inform the clerk of the court of common pleas to whom application for a
buyback certificate of title for the motor vehicle is submitted that the
motor vehicle for which application for a buyback certificate of title is
being made is a buyback and that the manufacturer, its agent, or its
authorized dealer is applying for a buyback certificate of title for the
motor vehicle and not a certificate of title.
HISTORY:
142 v
H 232 (Eff 10-22-87); 148 v H 21. Eff
9-15-99.
Section 1345.77 Rules for informal dispute resolution mechanism.
(A) The attorney general shall adopt rules
for the establishment and qualification of an informal dispute resolution
mechanism to provide for the resolution of warranty disputes between the
consumer and the manufacturer, its agent, or its authorized dealer. The
mechanism shall be under the supervision of the division of consumer
protection of the office of the attorney general and shall meet or exceed
the minimum requirements for an informal dispute resolution mechanism as
provided by the "Magnuson-Moss Warranty Federal Trade Commission
Improvement Act," 88 Stat. 2183, 15 U.S.C. 2301, and regulations adopted
thereunder.
(B) If a qualified informal dispute
resolution mechanism exists and the consumer receives timely notification,
in writing, of the availability of the mechanism with a description of its
operation and effect, the cause of action under section 1345.75 of the
Revised Code may not be asserted by the consumer until after the consumer
has initially resorted to the informal dispute resolution mechanism. If
such a mechanism does not exist, if the consumer is dissatisfied with the
decision produced by the mechanism, or if the manufacturer, its agent, or
its authorized dealer fails to promptly fulfill the terms determined by
the mechanism, the consumer may assert a cause of action under section
1345.75 of the Revised Code.
(C) Any violation of a rule adopted pursuant
to division (A) of this section is an unfair and deceptive act or practice
as defined by section 1345.02 of the Revised Code.
HISTORY: 142 v
H 232. Eff 10-22-87.
Section 1345.78
Violations concerning buybacks.
(A) Failure to comply with section 1345.76 of
the Revised Code, in connection with a consumer transaction as defined in
division (A) of section 1345.01 of the Revised Code, is an unfair and
deceptive act or practice in violation of division (A) of section 1345.02
of the Revised Code.
(B) The attorney general shall investigate
any alleged violation of division (D) of section 1345.76 of the Revised
Code and, in an appropriate case, may bring an appropriate action in a
court of competent jurisdiction, charging a manufacturer with a violation
of that division.
HISTORY: 148 v
H 21. Eff 9-15-99.
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