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):
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.
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