IC 24-5-13
Chapter 13. Motor Vehicle Protection
IC 24-5-13-1
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.
IC 24-5-13-2
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.
IC 24-5-13-3
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.
IC 24-5-13-3.4
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.
IC 24-5-13-3.7
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; or
(2) holds the lessor's rights under an agreement described in subdivision
(1).
As added by P.L.24-1989,
SEC.26.
IC 24-5-13-4
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.
IC 24-5-13-5
Sec. 5.
As used in this chapter, "motor vehicle"
or "vehicle"
means any self-propelled vehicle that:
(1) has a
declared gross vehicle weight of less than ten thousand (10,000) pounds;
(2) is sold to:
(A) a buyer in
Indiana and registered in Indiana; or
(B) a buyer in
Indiana who is not an Indiana resident (as defined in IC 9-13-2-78);
(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
off-road use.
As added by P.L.150-1988,
SEC.1.
Amended by P.L.141-1990,
SEC.1;
P.L.2-1991,
SEC.84.
IC 24-5-13-6
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:
(1)
substantially 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.
IC 24-5-13-7
Sec. 7. As used in this chapter, "term of protection"
means a period of time that:
(1) begins:
(A) on the date
of original delivery of a motor vehicle to a buyer; or
(B) 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 of:
(A) eighteen
(18) months after the date identified under subdivision (1); or
(B) 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.
IC 24-5-13-8
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.
IC 24-5-13-9
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.
IC 24-5-13-10
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.
IC 24-5-13-11
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.
IC 24-5-13-11.5
&BTN.In (2) SBI beginning with less.&ETN.
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 receive:
(A) the lessor's
purchase cost, including freight and accessories;
(B) any fee paid
to another to obtain the lease;
(C) any insurance premiums or other costs expended by the lessor for the
benefit of the lessee;
(D) sales tax
paid by the lessor; and
(E) 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 vehicle.
(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.
IC 24-5-13-12
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.
IC 24-5-13-13
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.
IC 24-5-13-15
Sec. 15. (a)
A reasonable number of attempts is considered to have been undertaken to
correct a nonconformity if:
(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.
IC 24-5-13-16
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.)
IC 24-5-13-18
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.
IC 24-5-13-19
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:
(A) complying in
all respects with 16 C.F.R. 703; and
(B) 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.
IC 24-5-13-20
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.
IC 24-5-13-21
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.
IC 24-5-13-22
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.
IC 24-5-13-23
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.
IC 24-5-13-24
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.
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