Sec. 1. This chapter applies to all motor
vehicles that are sold, leased, transferred, or replaced by a dealer
or manufacturer in Indiana. As added by P.L.150-1988, SEC.1.
Sec. 2. As used in this chapter, "business
day" means a day other than Sunday or a legal holiday (as defined
in IC 1-1-9-1). As added by P.L.150-1988, SEC.1.
Sec. 3. As used in this chapter, "buyer"
means any person who, for purposes other than resale or sublease,
enters into an agreement or contract within Indiana for the transfer,
lease, or purchase of a motor vehicle covered under this chapter. As added by P.L.150-1988, SEC.1.
Sec. 3.4. As used in this chapter, "lease"
means a contract in the form of a lease or bailment for the use
of a motor vehicle by a person for more than four (4) months, whether
or not the lessee has the option to purchase or otherwise become
the owner of the property at the expiration of the lease. As added by P.L.24-1989, SEC.25.
Sec. 3.7. As used in this chapter, "lessor"
means a person who:
(1) holds title
to a motor vehicle leased to a lessee under a written lease agreement;
(2) holds the lessor's
rights under an agreement described in subdivision (1). As added by P.L.24-1989, SEC.26.
Sec. 4. As used in this chapter, "manufacturer"
means any person who is engaged in the business of manufacturing
motor vehicles, or, in the case of motor vehicles not manufactured
in the United States, any person who is engaged in the business
of importing motor vehicles. As added by P.L.150-1988, SEC.1.
Sec. 5. As used in this chapter, "motor
vehicle" or "vehicle" means any self-propelled vehicle
(1) has a declared
gross vehicle weight of less than ten thousand (10,000) pounds;
(2) is sold to:
a buyer in Indiana and registered in Indiana; or
a buyer in Indiana who is not an Indiana resident (as defined in
(3) is intended
primarily for use and operation on public highways; and
(4) is required
to be registered or licensed before use or operation.
The term does not include conversion vans, motor homes, farm tractors,
and other machines used in the actual production, harvesting, and
care of farm products, road building equipment, truck tractors,
road tractors, motorcycles, mopeds, snowmobiles, or vehicles designed
primarily for offroad use. As added by P.L.150-1988, SEC.1. Amended by P.L.141-1990, SEC.1;
Sec. 6. As used in this chapter, "nonconformity"
means any specific or generic defect or condition or any concurrent
combination of defects or conditions that:
impairs the use, market value, or safety of a motor vehicle; or
(2) renders the
motor vehicle nonconforming to the terms of an applicable manufacturer's
warranty. As added by P.L.150-1988, SEC.1.
Sec. 7. As used in this chapter, "term
of protection" means a period of time that:
on the date of original delivery of a motor vehicle to a buyer;
in the case of a replacement vehicle provided by a manufacturer
to a buyer under this chapter, on the date of delivery of the replacement
vehicle to the buyer; and
(2) ends the earlier
eighteen (18) months after the date identified under subdivision
the time the motor vehicle has been driven eighteen thousand (18,000)
miles after the date identified under subdivision (1). As added by P.L.150-1988, SEC.1.
Sec. 8. If a motor vehicle suffers from
a nonconformity and the buyer reports the nonconformity within the
term of protection to the manufacturer of the vehicle, its agent,
or its authorized dealer then the manufacturer of the motor vehicle
or the manufacturer's agent or authorized dealer shall make the
repairs that are necessary to correct the nonconformity, even if
the repairs are made after expiration of the term of protection. As added by P.L.150-1988, SEC.1.
Sec. 9. (a) A buyer must first notify the
manufacturer of a claim under this chapter if the manufacturer has
made the disclosure required by subsection (b). However, if the
manufacturer has not made the required disclosure, the buyer is
not required to notify the manufacturer of a claim under this chapter.
(b) The manufacturer shall clearly and conspicuously
disclose to the buyer, in the warranty or owner's manual, that written
notification of the nonconformity is required before the buyer may
be eligible for a refund or replacement of the vehicle. The manufacturer
shall include with the warranty or owner's manual the name and address
to which the buyer must send notification. As added by P.L.150-1988, SEC.1.
Sec. 10. If, after a reasonable number of
attempts, the manufacturer, its agent, or authorized dealer is unable
to correct the nonconformity, the manufacturer shall accept the
return of the vehicle from the buyer and, at the buyer's option,
either, within thirty (30) days, refund the amount paid by the buyer
or provide a replacement vehicle of comparable value. As added by P.L.150-1988, SEC.1.
Sec. 11. (a) If a refund is tendered under
this chapter with respect to a vehicle that is not a leased vehicle,
the refund must be the full contract price of the vehicle, including
all credits and allowances for any trade-in vehicle and less a reasonable
allowance for use.
(b) To determine a reasonable allowance
for use under this section, multiply:
(1) the total contract
price of the vehicle; by
(2) a fraction having
as its denominator one hundred thousand (100,000) and having as
its numerator the number of miles that the vehicle traveled before
the manufacturer's acceptance of its return.
(c) The refund must also include reimbursement
for the following incidental costs:
(1) All sales tax.
(2) The unexpended
portion of the registration fee and excise tax that has been prepaid
for any calendar year.
(3) All finance
charges actually expended.
(4) The cost of
all options added by the authorized dealer.
(d) Refunds made under this section shall
be made to the buyer and lienholder, if any, as their respective
interests appear on the records of ownership. As added by P.L.150-1988, SEC.1. Amended by P.L.24-1989, SEC.27.
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Sec. 11.5. (a) If a refund is tendered under
this chapter with respect to a leased motor vehicle, the refund
shall be made as follows:
(1) The lessee shall
receive all deposit and lease payments paid by the lessee to the
lessor, including all credits and allowances for any trade-in vehicles,
less a reasonable allowance for use.
(2) The lessor shall
the lessor's purchase cost, including freight and accessories;
any fee paid to another to obtain the lease;
any insurance premiums or other costs expended by the lessor for
the benefit of the lessee;
sales tax paid by the lessor; and
five percent (5%) of the amount described in subdivision (2)(A);
less the total of all deposit and lease payments paid by the lessee
to the lessor, including all credits and allowances for any trade-in
(b) To determine a reasonable allowance
for use under this section, multiply:
(1) the total lease
obligation of the lessee at the inception of the lease; by
(2) a fraction having
as its denominator one hundred thousand (100,000) and as its numerator
the number of miles that the vehicle traveled before the lessor's
acceptance of its return. As added by P.L.24-1989, SEC.28.
Sec. 12. (a) If a vehicle is replaced by
a manufacturer under this chapter, the manufacturer shall reimburse
the buyer for any fees for the transfer of registration or any sales
tax incurred by the buyer as a result of replacement.
(b) If a replaced vehicle was financed by
the manufacturer, its subsidiary, or agent, the manufacturer, subsidiary,
or agent may not require the buyer to enter into any refinancing
agreement concerning a replacement vehicle that would create any
financial obligations upon the buyer less favorable than those of
the original financing agreement. As added by P.L.150-1988, SEC.1.
Sec. 13. Whenever a vehicle is replaced
or refunded under this chapter, the manufacturer shall reimburse
the buyer for necessary towing and rental costs actually incurred
as a direct result of the nonconformity. As added by P.L.150-1988, SEC.1. IC 24-5-13-14
Sec. 14. A buyer has the option of retaining
the use of any vehicle returned under this chapter until the time
that the buyer has been tendered a full refund or replacement vehicle
of comparable value. The use of any vehicle retained by a buyer
after its return to a manufacturer under this chapter must, in cases
in which a refund is tendered, be reflected in the reasonable allowance
for use required by section 11 of this chapter. As added by P.L.150-1988, SEC.1.
Sec. 15. (a) A reasonable number of attempts
is considered to have been undertaken to correct a nonconformity
(1) the nonconformity
has been subject to repair at least four (4) times by the manufacturer
or its agents or authorized dealers, but the nonconformity continues
to exist; or
(2) the vehicle
is out of service by reason of repair of any nonconformity for a
cumulative total of at least thirty (30) business days, and the
nonconformity continues to exist.
(b) The thirty (30) business day period
in subsection (a)(2) shall be extended by any period of time during
which repair services are not available as a direct result of a
strike. The manufacturer, its agent, or authorized dealer shall
provide or make provision for the free use of a vehicle to any buyer
whose vehicle is out of service by reason of repair during a strike.
(c) The burden is on the manufacturer to
show that the reason for an extension under subsection (b) was the
direct cause for the failure of the manufacturer, its agent, or
authorized dealer to cure any nonconformity during the time of the
event. As added by P.L.150-1988, SEC.1.
Sec. 16. (a) A manufacturer, its agent,
or authorized dealer may not refuse to diagnose or repair any vehicle
for the purpose of avoiding liability under this chapter.
(b) A manufacturer, its agent, or authorized
dealer shall provide a buyer with a written repair order each time
the buyer's vehicle is brought in for examination or repair. The
repair order must indicate all work performed on the vehicle including
examination of the vehicle, parts, and labor. As added by P.L.150-1988, SEC.1.
IC 24-5-13-17 Repealed
(Repealed by P.L.65-1992, SEC.4.)
Sec. 18. It is an affirmative defense to
any claim under this chapter that:
(1) the nonconformity,
defect, or condition does not substantially impair the use, value,
or safety of the motor vehicle; or
(2) the nonconformity,
defect, or condition is the result of abuse, neglect, or unauthorized
modification or alteration of the motor vehicle by the buyer. As added by P.L.150-1988, SEC.1.
Sec. 19. This chapter does not apply to
any buyer who has not first resorted to an informal procedure established
by a manufacturer or in which a manufacturer participates if:
(1) the procedure
is certified by the attorney general as:
complying in all respects with 16 C.F.R. 703; and
complying with any other rules concerning certification adopted
by the attorney general, including but not limited to the requirement
of oral hearings, pursuant to IC 4-22-2; and
(2) the buyer has
received adequate written notice from the manufacturer of the existence
of the procedure.
Adequate written notice includes the incorporation of the informal
dispute settlement procedure into the terms of the written warranty
to which the motor vehicle does not conform. As added by P.L.150-1988, SEC.1. Amended by P.L.24-1989, SEC.29.
Sec. 20. This chapter does not limit the
rights or remedies that are otherwise available to a buyer under
any other applicable provision of law. As added by P.L.150-1988, SEC.1.
Sec. 21. A buyer may bring a civil action
to enforce this chapter in any circuit or superior court. As added by P.L.150-1988, SEC.1.
Sec. 22. A buyer who prevails in any action
brought under this chapter is entitled to recover as part of the
judgment a sum equal to the aggregate amount of cost and expenses,
including attorney's fees based on actual time expended by the attorney,
determined by the court to have been reasonably incurred by the
buyer for or in connection with the commencement and prosecution
of the action. As added by P.L.150-1988, SEC.1.
Sec. 23. (a) An action brought under this
chapter must be commenced within two (2) years following the date
the buyer first reports the nonconformity to the manufacturer, its
agent, or authorized dealer.
(b) When the buyer has commenced an informal
dispute settlement procedure described in section 19 of this chapter,
the two (2) year period specified in subsection (a) is tolled during
the time the informal dispute settlement procedure is being conducted. As added by P.L.150-1988, SEC.1.
Sec. 24. Nothing in this chapter imposes
any liability on a dealer or creates a cause of action by a consumer
against a dealer, and a manufacturer may not, directly or indirectly,
expose any franchised dealer to liability under this chapter. As added by P.L.150-1988, SEC.1.