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Iowa State Lemon Law Statutes
Iowa Lemon Law Statutes
Chapter 322G.1-15
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.
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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:
1. Lessor's actual purchase costs.
2. Collateral charges, if applicable.
3. Any fee paid to another to obtain the lease.
4. Any insurance or other costs expended by the lessor for the benefit of
the lessee.
5. 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.
6. 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:
1. 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.
2. 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, 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:
1. 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.
2. 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.
3. 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.
Sec. 3, Section 322G12, Code 1999, is amended to read as follows:
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 requirement 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 pursuant to this chapter. 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
supercedes 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.
PARAGRAPH DIVIDED. 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.
Sec. 4. EFFECTIVE DATE. This Act takes effect January 1, 2001.
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.
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