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Iowa State Lemon Law
Iowa Code
Annotated § 322G.1 to § 322G.15
322G.1
Legislative intent.
The general
assembly recognizes that a motor vehicle is a major consumer
acquisition and that a defective motor vehicle undoubtedly creates a
hardship for the consumer. The general assembly further recognizes
that a duly franchised motor vehicle dealer is an authorized service
agent of the manufacturer. It is the intent of the general assembly
that a good faith motor vehicle warranty complaint by a consumer be
resolved by the manufacturer within a specified period of time. It
is further the intent of the general assembly to provide the
statutory procedures whereby a consumer may receive a replacement
motor vehicle, or a full refund, for a motor vehicle which cannot be
brought into conformity with the warranty provided for in this
chapter. However, this chapter does not limit the rights or remedies
which are otherwise available to a consumer under any other law.
322G.2
Definitions.
As used in this
chapter, unless the context otherwise requires:
1.
"Collateral charges" means those additional charges to a consumer
wholly incurred as a result of the acquisition of the motor vehicle.
For the purposes of this chapter, collateral charges include, but
are not limited to, charges for manufacturer-installed or
agent-installed items, earned finance charges, use taxes, and title
charges.
2.
"Condition" means a general problem that may be attributable to a
defect in more than one part.
3.
"Consumer" means the purchaser or lessee, other than for purposes of
lease or resale, of a new or previously untitled motor vehicle, or
any other person entitled by the terms of the warranty to enforce
the obligations of the warranty during the duration of the lemon law
rights period.
4.
"Days" means calendar days.
5.
"Department" means the attorney general.
6.
"Incidental charges" means those reasonable costs incurred by the
consumer, including, but not limited to, towing charges and the
costs of obtaining alternative transportation, which are the direct
result of the nonconformity or nonconformities which are the subject
of the claim. Incidental charges do not include loss of use, loss of
income, or personal injury claims.
7.
"Lease price" means the aggregate of the following:
a.
Lessor's actual purchase costs.
b.
Collateral charges, if applicable.
c.
Any fee paid to another to obtain the lease.
d.
Any insurance or other costs expended by the lessor for the benefit
of the lessee.
e.
An amount equal to state and local use taxes, not otherwise included
as collateral charges, paid by the lessor when the vehicle was
initially purchased.
f.
An amount equal to five percent of the lessor's actual purchase
cost.
8.
"Lemon law rights period" means the term of the manufacturer's
written warranty, the period ending two years after the date of the
original delivery of a motor vehicle to a consumer, or the first
twenty-four thousand miles of operation attributable to a consumer,
whichever expires first.
9.
"Lessee" means any consumer who leases a motor vehicle for one year
or more pursuant to a written lease agreement which provides that
the lessee is responsible for repairs to the motor vehicle.
10.
"Lessee cost" means the aggregate of the deposit and rental payments
previously paid to the lessor for the leased vehicle.
11.
"Lessor" means a person who holds the title to a motor vehicle
leased to a lessee under a written lease agreement or who holds the
lessor's rights under the agreement.
12.
"Manufacturer" means a person engaged in the business of
constructing or assembling new motor vehicles or installing on
previously assembled vehicle chassis special bodies or equipment
which, when installed, form an integral part of the new motor
vehicle, or a person engaged in the business of importing new motor
vehicles into the United States for the purpose of selling or
distributing the new motor vehicles to new motor vehicle dealers.
13.
"Motor vehicle" means a self-propelled vehicle purchased or leased
in this state, except as provided in section 322G.15, and primarily
designed for the transportation of persons or property over public
streets and highways, but does not include mopeds, motorcycles,
motor homes, or vehicles over ten thousand pounds gross vehicle
weight rating.
14.
"Nonconformity" means a defect, malfunction, or condition in a motor
vehicle such that the vehicle fails to conform to the warranty, but
does not include a defect, malfunction, or condition that results
from an accident, abuse, neglect, modification, or alteration of the
motor vehicle by persons other than the manufacturer or its
authorized service agent.
15.
"Person" means person as defined in section 714.16.
16.
"Program" means an informal dispute settlement procedure established
by a manufacturer which mediates and arbitrates motor vehicle
warranty disputes arising in this state.
17.
"Purchase price" means the cash price paid for the motor vehicle
appearing in the sales agreement or contract, including any net
allowance given for a trade-in vehicle.
18.
"Reasonable offset for use" means the number of miles attributable
to a consumer up to the date of the third attempt to repair the same
nonconformity which is the subject of the claim, or the first
attempt to repair a nonconformity that is likely to cause death or
serious bodily injury, or the twentieth cumulative day when the
vehicle is out of service by reason of repair of one or more
nonconformities, whichever occurs first, multiplied by the purchase
price of the vehicle, or in the event of a leased vehicle, the
lessor's actual lease price plus an amount equal to two percent of
the purchase price, and divided by one hundred twenty thousand.
19.
"Replacement motor vehicle" means a motor vehicle which is identical
or reasonably equivalent to the motor vehicle to be replaced, and as
the motor vehicle to be replaced would have existed without the
nonconformity at the time of original acquisition.
20.
"Substantially impair" means to render the motor vehicle unfit,
unreliable, or unsafe for warranted or ordinary use, or to
significantly diminish the value of the motor vehicle.
21.
"Warranty" means any written warranty issued by the manufacturer; or
any affirmation of fact or promise made by the manufacturer,
excluding statements made by the dealer, in connection with the sale
or lease of a motor vehicle to a consumer, which relates to the
nature of the material or workmanship and affirms or promises that
the material or workmanship is free of defects or will meet a
specified level of performance.
322G.3
Duties of manufacturer.
1.
At the time of the consumer's purchase or lease of the vehicle, the
manufacturer shall provide to the consumer a written statement that
explains the consumer's rights and obligations under this chapter.
The written statement shall be prepared by the attorney general and
shall contain a telephone number that the consumer can use to obtain
information from the attorney general regarding the rights and
obligations provided under this chapter.
2.
At the time of the consumer's purchase or lease of the vehicle, the
manufacturer shall provide to the consumer the address and phone
number for the zone, district, or regional office of the
manufacturer for this state where a claim may be filed by the
consumer. This information shall be provided to the consumer in a
clear and conspicuous manner. Within thirty days of the introduction
of a new model year for each make and model of motor vehicle sold in
this state, the manufacturer shall notify the attorney general of
such introduction. The manufacturer shall also inform the attorney
general that a copy of the owner's manual and applicable written
warranties shall be provided upon request and provide information as
to where the request should be made. The manufacturer shall inform
the attorney general where such a request should be directed and
shall provide the copy of the owner's manual and applicable written
warranties within five business days of a request by the attorney
general.
3.
A manufacturer or the authorized service agent of the manufacturer
shall make repairs as necessary to conform the vehicle to the
warranty if a motor vehicle does not conform to the warranty and the
consumer reports the nonconformity to the manufacturer or authorized
service agent during the lemon law rights period. Such repairs shall
be made irrespective of whether they can be made prior to the
expiration of the lemon law rights period.
4.
A manufacturer or the authorized service agent of the manufacturer,
shall provide to the consumer, each time the motor vehicle is
returned after being examined or repaired under the warranty, a
fully itemized, legible statement or repair order indicating any
diagnosis made, and all work performed on the motor vehicle
including, but not limited to, a general description of the problem
reported by the consumer or an identification of the defect or
condition, parts and labor, the date and the odometer reading when
the motor vehicle was submitted for examination or repair, and the
date when the repair or examination was completed.
5.
Upon request from the consumer, the manufacturer, or the authorized
service agent of the manufacturer, shall provide a copy of either or
both of the following:
a.
Any report or printout of any diagnostic computer operation compiled
by the manufacturer or authorized service agent regarding an
inspection or diagnosis of the motor vehicle.
b.
A copy of any technical service bulletin issued by the manufacturer
regarding the year and model of the motor vehicle as it pertains to
any material, feature, component, or the performance of the motor
vehicle.
322G.4
Nonconformity of motor vehicles.
1.
After three attempts have been made to repair the same nonconformity
that substantially impairs the motor vehicle, or after one attempt
to repair a nonconformity that is likely to cause death or serious
bodily injury, the consumer may give written notification, which
shall be by certified or registered mail or by overnight service, to
the manufacturer of the need to repair the nonconformity in order to
allow the manufacturer a final attempt to cure the nonconformity.
The manufacturer shall, within ten days after receipt of such
notification, notify and provide the consumer with the opportunity
to have the vehicle repaired at a reasonably accessible repair
facility and after delivery of the vehicle to the designated repair
facility by the consumer, the manufacturer shall, within ten days,
conform the motor vehicle to the warranty. If the manufacturer fails
to notify and provide the consumer with the opportunity to have the
vehicle repaired at a reasonably accessible repair facility or
perform the repairs within the time periods prescribed in this
subsection, the requirement that the manufacturer be given a final
attempt to cure the nonconformity does not apply.
After twenty or
more cumulative days when the motor vehicle has been out of service
by reason of repair of one or more nonconformities, the consumer may
give written notification to the manufacturer which shall be by
certified or registered mail or by overnight service. Commencing
upon the date such notification is received, the manufacturer has
ten cumulative days when the vehicle has been out of service by
reason of repair of one or more nonconformities to conform the motor
vehicle to the warranty.
2.
If the manufacturer, or its authorized service agent, has not
conformed the motor vehicle to the warranty by repairing or
correcting one or more nonconformities that substantially impair the
motor vehicle after a reasonable number of attempts, the
manufacturer shall, within forty days of receipt of payment by the
manufacturer of a reasonable offset for use by the consumer, replace
the motor vehicle with a replacement motor vehicle acceptable to the
consumer, or repurchase the motor vehicle from the consumer or
lessor and refund to the consumer or lessor the full purchase or
lease price, less a reasonable offset for use. The replacement or
refund shall include payment of all collateral and reasonably
incurred incidental charges. The consumer has an unconditional right
to choose a refund rather than a replacement. If the consumer elects
to receive a refund, and the refund exceeds the amount of the
payment for a reasonable offset for use, the requirement that the
consumer pay the reasonable offset for use in advance does not
apply, and the manufacturer shall deduct that amount from the refund
due to the consumer. If the consumer elects a replacement motor
vehicle, the manufacturer shall provide the consumer a substitute
motor vehicle to use until such time as the replacement vehicle is
delivered to the consumer. At the time of the refund or replacement,
the consumer, lien holder, or lessor shall furnish to the
manufacturer clear title to and possession of the original motor
vehicle.
Refunds shall
be made to the consumer and lien holder of record, if any, as their
interests appear. If applicable, refunds shall be made to the lessor
and lessee as follows: the lessee shall receive the lessee's cost
less a reasonable offset for use, and the lessor shall receive the
lease price less the aggregate deposit and rental payments
previously paid to the lessor for the leased vehicle. If it is
determined that the lessee is entitled to a refund pursuant to this
chapter, the consumer's lease agreement with the lessor is
terminated upon payment of the refund and no penalty for early
termination shall be assessed. The department of revenue and finance
shall refund to the manufacturer any use tax which the manufacturer
refunded to the consumer, lessee, or lessor under this section, if
the manufacturer provides to the department of revenue and finance a
written request for a refund and evidence that the use tax was paid
when the vehicle was purchased and that the manufacturer refunded
the use tax to the consumer, lessee, or lessor.
3.
It is presumed that a reasonable number of attempts have been
undertaken to conform a motor vehicle to the warranty if, during the
lemon law rights period, any of the following occur:
a.
The same nonconformity that substantially impairs the motor vehicle
has been subject to examination or repair at least three times by
the manufacturer or its authorized service agent, plus a final
attempt by the manufacturer to repair the motor vehicle if
undertaken as provided for in subsection 1, and such nonconformity
continues to exist.
b.
A nonconformity that is likely to cause death or serious bodily
injury has been subject to examination or repair at least one time
by the manufacturer or its authorized service agent, plus a final
attempt by the manufacturer to repair the motor vehicle if
undertaken as provided for in subsection 1, and such nonconformity
continues to exist.
c.
The motor vehicle has been out of service by reason of repair by the
manufacturer, or its authorized service agent, of one or more
nonconformities that substantially impair the motor vehicle for a
cumulative total of thirty or more days, exclusive of down time for
routine maintenance prescribed by the owner's manual. The thirty-day
period may be extended by any period of time during which repair
services are not available to the consumer because of war, invasion,
strike, fire, flood, or natural disaster.
The terms of
this subsection shall be extended for a period of up to two years
after the date of the original delivery of a motor vehicle to a
consumer, or the first twenty-four thousand miles of operation
attributable to a consumer, whichever occurs first, if a
nonconformity has been reported but has not been cured by the
manufacturer, or its authorized service agent, before the expiration
of the lemon law rights period.
4.
A manufacturer, or its authorized service agent, shall not refuse to
examine or repair any nonconformity for the purpose of avoiding
liability under this chapter.
322G.5
Affirmative defenses.
Any of the
following is an affirmative defense to a claim under this chapter:
1.
The alleged nonconformity or nonconformities do not substantially
impair the motor vehicle.
2.
A nonconformity is the result of an accident, abuse, neglect, or
unauthorized modification or alteration of the motor vehicle by a
person other than the manufacturer or its authorized service agent.
3.
The claim by the consumer was not filed in good faith.
4.
Any other defense allowed by law which may be raised against the
claim.
322G.6
Informal dispute settlement procedures
Operations and
certification.
1.
At the time of the consumer's purchase or lease of the vehicle, a
manufacturer who has established a program certified pursuant to
this section shall, at a minimum, clearly and conspicuously disclose
to the consumer in written materials accompanying the vehicle how
and where to file a claim with the program.
2.
A certified program shall be funded and competently staffed at a
level sufficient to ensure fair and expeditious resolution of all
disputes, and shall not charge consumers any fee for use of the
program. The manufacturer shall take all steps necessary to ensure
that a certified program and its staff and decision makers are
sufficiently insulated from the manufacturer so that the performance
of the staff and the decisions of the decision makers are not
influenced by the manufacturer. Such steps, at a minimum, shall
ensure that the manufacturer does not make decisions on whether a
consumer's dispute proceeds to the decision maker. Staff and
decision makers of a certified program shall be trained in the
provisions of this chapter and rules adopted under this chapter.
3.
A certified program shall allow an oral presentation by a party, or
by a party's employee, agent, or representative.
Within five
days following the consumer's notification to the certified program
of the dispute, the program shall inform each party of their right
to make an oral presentation.
Meetings of a
certified program to hear and decide disputes shall be open to
observers, including either party to the dispute, on reasonable and
nondiscriminatory terms.
4.
A certified program shall render a decision no later than sixty days
from the day of the consumer's notification of the dispute, provided
that a significant number of decisions are rendered within forty
days. For the purposes of this section, notification is deemed to
have occurred when a certified program has received the consumer's
name and address; the current date and the date of the original
delivery of the motor vehicle to a consumer; the year, make, model,
and identification number of the motor vehicle; and a description of
the nonconformity. If the consumer has not previously notified the
manufacturer of the nonconformity, the sixty-day period is extended
for an additional seven days.
5.
A certified program shall, in rendering decisions, take into account
the provisions of this chapter and all legal and equitable factors
germane to a fair and just decision. The decision shall disclose to
the consumer and the manufacturer the reasons for the decision, and
the manufacturer's required actions, if applicable. If the decision
is in favor of the consumer, the consumer shall have up to
twenty-five days from the date of receipt of the certified program's
decision to indicate acceptance of the decision. The decision shall
prescribe a reasonable period of time, not to exceed thirty days
from the date the consumer notifies the manufacturer of acceptance
of the decision, within which the manufacturer must fulfill the
terms of the decision. If the manufacturer has had a reasonable
number of attempts to conform a motor vehicle to the warranty as set
forth in section 322G.4, subsection 3, including a final attempt by
the manufacturer to repair the motor vehicle, if undertaken as
provided for in section 322G.4, subsection 1, and the consumer is
entitled to a replacement vehicle or a refund under section 322G.4,
subsection 2, the decision shall be limited to relief as allowed
under section 322G.4, subsection 2. In an action brought by a
consumer under this chapter, the decision of a certified program is
admissible in evidence.
6.
A certified program shall establish written procedures which explain
operation of the certified program. Copies of the written procedures
shall be made available to any person upon request and shall be sent
to the consumer upon notification of the dispute.
7.
A certified program shall retain all records for each dispute for at
least four years after the final disposition of the dispute. A
certified program shall have an independent audit conducted annually
to determine whether the manufacturer and its performance and the
program and its implementation are in compliance with this chapter.
All records for each dispute shall be available for the audit. Such
audit, upon completion, shall be forwarded to the attorney general.
8.
Any manufacturer licensed to sell motor vehicles in this state may
apply to the attorney general for certification of its program. A
manufacturer seeking certification of its program in this state
shall submit to the attorney general an application for
certification on a form prescribed by the attorney general.
9.
A program certified in this state or a program established by a
manufacturer applying for certification in this state shall submit
to the attorney general a copy of each settlement approved by the
program or decision made by the decision maker within thirty days
after the settlement is reached or the decision is rendered. The
decision or settlement shall contain information prescribed by the
attorney general.
10.
The attorney general shall review the operations of any certified
program at least once annually. The attorney general shall prepare
annual and periodic reports evaluating the operation of certified
programs serving consumers in this state or programs established by
motor vehicle manufacturers applying for certification in this
state. The reports shall indicate whether certification should be
granted, renewed, denied, or revoked.
11.
If a manufacturer has established a program which the attorney
general has certified as substantially complying with the provisions
of and the rules adopted under this chapter, and has informed the
consumer how and where to file a claim with the program pursuant to
subsection 1, the provisions of section 322G.4, subsection 2, do not
apply to any consumer who has not first resorted to the program.
322G.7
Informal dispute settlement procedure
Certification
uniformity.
To facilitate
uniform application, interpretation, and enforcement of this section
and section 322G.6, and in implementing rules adopted pursuant to
section 322G.14, the attorney general may cooperate with agencies
that perform similar functions in any other states that enact these
or similar sections. The cooperation authorized by this subsection
may include any of the following:
1.
Establishing a central depository for copies of all applications and
accompanying materials submitted by manufacturers for certification,
and all reports prepared, notices issued, and determinations made by
the attorney general under section 322G.6.
2.
Sharing and exchanging information, documents, and records
pertaining to program operations.
3.
Sharing personnel to perform joint reviews, surveys, and
investigations of program operations.
4.
Preparing joint reports evaluating program operations.
5.
Granting joint certifications and certification renewals.
6.
Issuing joint denials or revocations of certification.
7.
Holding a joint administrative hearing.
8.
Formulating, in accordance with chapter 17A, the administrative
procedure Act, rules or proposed rules on matters such as
guidelines, forms, statements of policy, interpretative opinions,
and any other information necessary to implement section 322G.6.
322G.8
Consumer remedies.
1.
If a consumer resorts to a manufacturer's certified program and a
decision is not rendered within the time periods allowed in this
chapter, or a manufacturer has no certified program and the consumer
has notified the manufacturer pursuant to section 322G.4, subsection
1, the consumer may file an action in district court under this
chapter within one year from the expiration of the lemon law rights
period or an extension of the period pursuant to section 322G.4,
subsection 3.
2.
If a consumer resorts to a manufacturer's certified program and is
not satisfied with the performance of the manufacturer as ordered in
the decision, or the manufacturer does not perform as directed by
the decision within the time period specified in the decision, the
consumer may file an action in district court under this chapter
within six months after the date prescribed in the decision by which
the manufacturer must fulfill the terms of the decision. If the
consumer declines to accept the decision of the manufacturer's
certified program, the consumer may appeal the decision pursuant to
subsection 4. For purposes of this subsection, "not satisfied with
the performance of the decision" means, following the consumer's
acceptance of the decision, the consumer indicates that the
manufacturer failed to comply with the terms of the decision within
the time specified in the decision or failed to cure the
nonconformity within the time specified in the decision if further
repairs were ordered.
3.
In an action under either subsection 1 or 2, the court shall award a
consumer who prevails the amount of any pecuniary loss, including
relief the consumer is entitled to under section 322G.4, subsection
2, reasonable attorney's fees, and costs. In addition, if the court
affirms the decision of the certified program, the court may award
any additional amounts allowed under subsection 7.
4.
A certified program's decision is final unless appealed by either
party. A petition to the district court to appeal a decision must be
made within fifty days after receipt of the decision or within
twenty-five days from the date the consumer indicates acceptance of
the decision to the manufacturer, whichever occurs first. Within
seven days after the petition has been filed, the appealing party
must send, by certified, registered, or express mail, a copy of the
petition to the attorney general. If the attorney general receives
no notice of the petition within sixty days after the manufacturer's
receipt of a decision in favor of the consumer, and the consumer has
indicated acceptance of the decision within the twenty-five days of
receipt of the decision, but the manufacturer has neither complied
with, nor petitioned to appeal the decision, the attorney general
may apply to the court to impose a fine up to one thousand dollars
per day against the manufacturer until the amount stands at twice
the purchase price of the motor vehicle, unless the manufacturer
provides clear and convincing evidence that the delay or failure was
beyond its control or was acceptable to the consumer as evidenced by
a written statement signed by the consumer. If the manufacturer
fails to provide such evidence or fails to pay the fine, the
attorney general shall initiate proceedings against the manufacturer
for failure to pay the fine. The proceeds from the fine imposed
shall be placed in the attorney general's motor vehicle fraud and
odometer law enforcement fund for implementation and enforcement of
this chapter.
5.
If the manufacturer fails to comply with a decision which has been
timely accepted by the consumer or fails to file a timely petition
for appeal, the court shall affirm the board's decision upon
application by the consumer.
6.
An appeal of a decision by a certified program to the court by a
consumer or a manufacturer shall be tried de novo, and may be based
upon stipulated facts. In a written petition to appeal a decision by
the board, the appealing party must state the action requested and
the grounds relied upon for appeal.
7.
If a decision of the certified program in favor of the consumer is
affirmed or upheld by the court, recovery by the consumer shall
include the pecuniary value of the award, including relief the
consumer is entitled to under section 322G.4, subsection 2,
attorney's fees incurred in obtaining confirmation of the award, and
all costs and continuing damages in an amount of twenty-five dollars
per day for all days beyond the twenty-five-day period following the
manufacturer's receipt of the consumer's acceptance of the certified
program's decision. If a court determines that a manufacturer filed
a petition for appeal to be tried de novo in bad faith or brought
such an appeal solely for the purpose of harassment, the court shall
double, and may triple, the amount of the total award, after
consideration of all circumstances.
8.
Appellate review of a court decision in favor of the consumer may be
conditioned upon payment by the manufacturer of the consumer's
attorney's fees and giving security for costs and expenses resulting
from the review period.
9.
This chapter does not prohibit a consumer from pursuing other rights
or remedies under any other law.
322G.9
Compliance and disciplinary action.
The attorney
general may enforce and ensure compliance with the provisions of
this chapter and rules adopted pursuant to section 322G.14, may
issue subpoenas requiring the attendance of witnesses and the
production of evidence, and may petition any court having
jurisdiction to compel compliance with the subpoenas. The attorney
general may levy and collect an administrative fine in an amount not
to exceed one thousand dollars for each violation against any
manufacturer found to be in violation of this chapter or rules
adopted pursuant to section 322G.14. A manufacturer may request a
hearing pursuant to chapter 17A, the administrative procedure Act,
if the manufacturer contests the fine levied against it. The
proceeds from any fine levied and collected pursuant to this section
shall be placed in the attorney general's motor vehicle fraud and
odometer law enforcement fund for implementation and enforcement of
this chapter.
322G.10
Unfair or deceptive trade practice.
A violation by
a manufacturer of this chapter is an unfair or deceptive trade
practice in violation of section 714.16, subsection 2, paragraph
"a".
322G.11
Dealer liability.
This chapter,
except for the requirements of section 322G.12, does not impose any
liability on a franchised motor vehicle dealer or create a cause of
action by a consumer against a dealer. A dealer shall not be made a
party defendant in any action involving or relating to this chapter,
except as provided in this section. The manufacturer shall not
charge back or require reimbursement by the dealer for any costs,
including but not limited to any refunds or vehicle replacements,
incurred by the manufacturer pursuant to this chapter, in the
absence of a finding by a court that the related repairs had been
carried out by the dealer in a manner substantially inconsistent
with the manufacturer's published instructions. A manufacturer who
is found by a court to have improperly charged back a dealer because
of a violation of this section is liable to the injured dealer for
full reimbursement plus reasonable costs and any attorney's fees.
322G.12
Resale of returned vehicles.
Subsequent to
December 31, 1991, a manufacturer who accepts the return of a motor
vehicle pursuant to a settlement, determination, or decision under
this chapter shall notify the state department of transportation and
report the vehicle identification number of that motor vehicle
within ten days after the acceptance. The state department of
transportation shall note the fact that the motor vehicle was
returned pursuant to this chapter on the title for the motor
vehicle. A person shall not knowingly lease; or sell, either at
wholesale or retail; or transfer a title to a motor vehicle returned
by reason of a settlement, determination, or decision pursuant to
this chapter or a similar statute of any other state unless the
nature of the nonconformity is clearly and conspicuously disclosed
to the prospective transferee, lessee, or buyer. The attorney
general shall prescribe by rule the form, content, and procedure
pertaining to such a disclosure statement, recognizing the need of
manufacturers to implement a uniform disclosure form. The
manufacturer shall make a reasonable effort to ensure that such
disclosure is made to the first subsequent retail buyer or lessee.
For purposes of this subsection, "settlement" includes an agreement
entered into between the manufacturer and the consumer that occurs
after the dispute has been submitted to a state-operated dispute
resolution program or to a manufacturer-established program
certified in this or any other state, but does not include
agreements reached in informal proceedings prior to the first
written or oral presentation to the state-operated or
state-certified dispute resolution program by either party.
"Settlement" also includes an agreement entered into between a
manufacturer and a consumer that occurs after the dispute has been
submitted to a dispute resolution program that is not state-operated
or state-certified.
322G.13
Certain agreements void.
Any agreement
entered into by a consumer that waives, limits, or disclaims the
rights set forth in this chapter is void as contrary to public
policy.
322G.14
Rulemaking authority.
1.
The attorney general shall adopt rules as necessary to implement
this chapter.
2.
In prescribing rules and forms under this chapter, the attorney
general may cooperate with agencies that perform similar functions
in other states with a view to effectuating the policy of this
chapter to achieve maximum uniformity in the form and content of
certification, regulation, and procedural evaluation of
manufacturer-established programs, required record keeping, required
reporting wherever practicable, and required notices to consumers.
322G.15
Applicability.
This chapter
applies to motor vehicles originally purchased or leased in this
state by consumers on or after July 1, 1991. Except for section
322G.3, subsections 1 and 2, and section 322G.6, subsection 1, this
chapter applies to motor vehicles originally purchased or leased in
other states, if the consumer is a resident of this state at the
time the consumer's rights are asserted under this chapter.
Section 322G.14, which concerns rulemaking, shall take effect May 9,
1991. |