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Indiana
Lemon Law
Indiana
Code § 24-5-13-1 to § 24-5-13.5-14
24-5-13-1
This
chapter applies to all motor vehicles that
are sold, leased, transferred, or replaced by
a dealer or manufacturer in Indiana.
24-5-13-2
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).
24-5-13-3
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.
24-5-13-3.4
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.
24-5-13-3.7
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).
24-5-13-4
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.
24-5-13-5
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.
24-5-13-6
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.
24-5-13-7
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).
24-5-13-8
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.
24-5-13-9
(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.
24-5-13-10
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.
24-5-13-11
(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 lien holder, if any, as
their respective interests appear on the
records of ownership.
24-5-13-11.5
(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.
24-5-13-12
(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.
24-5-13-13
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.
24-5-13-14
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.
24-5-13-15
(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.
24-5-13-16
(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.
24-5-13-18
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.
24-5-13-19
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.
24-5-13-20
This
chapter does not limit the rights or remedies
that are otherwise available to a buyer under
any other applicable provision of law.
24-5-13-21
A
buyer may bring a civil action to enforce
this chapter in any circuit or superior
court.
24-5-13-22
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.
24-5-13-23
(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.
24-5-13-24
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.
24-5-13.5-1
This
chapter applies to all motor vehicles that
are sold, leased, transferred, or replaced by
a dealer or manufacturer in Indiana.
24-5-13.5-2
As
used in this chapter, "bureau"
refers to the bureau of motor vehicles
created by IC 9-14-1-1.
24-5-13.5-3
As
used in this chapter, "buyback
vehicle" means a motor vehicle that has
been replaced or repurchased by a
manufacturer or a nonresident manufacturer's
agent or an authorized dealer, either under
this chapter or IC 24-5-13 by judgment,
decree, arbitration award, settlement
agreement, or voluntary agreement in Indiana
or another state, but does not include a
motor vehicle that was repurchased pursuant
to a guaranteed repurchase or satisfaction
program advertised by the manufacturer and
was not alleged or found to have a
nonconformity as defined in IC 24-5-13-6.
24-5-13.5-4
As
used in this chapter, "buyer" means
a person who, for purposes other than resale
or sublease, enters into an agreement or a
contract within Indiana for the transfer,
lease, or purchase of a buyback vehicle.
24-5-13.5-5
As
used in this chapter, "dealer"
means a person engaged in the business of
buying, selling, leasing, or exchanging motor
vehicles. A person is a "dealer"
under this section if the person sells,
leases, or advertises the sale or lease of
more than four (4) motor vehicles within a
twelve (12) month period.
24-5-13.5-6
As
used in this chapter,
"manufacturer" has the meaning set
forth in IC 24-5-13-4.
24-5-13.5-7
As
used in this chapter, "motor
vehicle" has the meaning set forth in IC
24-5-13-5.
24-5-13.5-8
As
used in this chapter,
"nonconformity" has the meaning set
forth in IC 24-5-13-6.
24-5-13.5-9
As
used in this chapter, "warranty"
means:
(1)
a written warranty issued by the
manufacturer; or
(2)
an 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 that relates to the
nature of the material or workmanship and
affirms or promises that such material or
workmanship is free of defects or will meet a
specified level of performance.
24-5-13.5-10
A
buyback motor vehicle may not be resold in
Indiana unless the following conditions have
been met:
(1)
The manufacturer provides the same express
warranty the manufacturer provided to the
original purchaser, except that the term of
the warranty need only last for twelve
thousand (12,000) miles or twelve (12) months
after the date of resale.
(2)
The following disclosure language must be
conspicuously contained in a contract for the
sale or lease of a buyback vehicle to a
consumer or contained in a form affixed to
the contract:
IMPORTANT
This
vehle was previously sold as new. It was
subsequently returned to the manufacturer or
authorized dealer in exchange for a
replacement vehle or a refund because it did
not conform to the manufacturer's express
warranty and the nonconformity was not cured
within a reasonable time as provided by
Indiana law.
(3)
The manufacturer provides the dealer a
separate document with a written statement
identifying the vehicle conditions that
formed the basis for the previous owner's or
lessee's dissatisfaction and the steps taken
to deal with that dissatisfaction in 10-point
all capital type.
24-5-13.5-11
Before
reselling a buyback motor vehicle in Indiana,
a dealer must provide to the buyer the
express warranty required by section 10(1) of
this chapter and the written statement of
disclosure required by section 10(3) of this
chapter and obtain the buyer's acknowledgment
of this disclosure at the time of sale or
lease as evidenced by the buyer's signature
on the statement of disclosure.
24-5-13.5-12
A
manufacturer who accepts return of a motor
vehicle that is considered a buyback vehicle
under this chapter shall do the following:
(1)
Before transferring ownership of the buyback
vehicle, stamp the words "Manufacturer
Buyback A Disclosure on File" on the
face of the original certificate of title.
(2)
Not more than thirty-one (31) days after
receipt of the certificate of title, apply to
the bureau for a certificate of title in the
name of the manufacturer and provide to the
bureau a copy of the disclosure document
required by section 10(3) of this chapter.
24-5-13.5-13
(a)
A person who fails to comply with section 10,
11, or 12 of this chapter is liable for the
following:
(1)
Actual damages or the value of the
consideration, at the election of the buyer.
(2)
The costs of an action to recover damages and
reasonable attorney's fees.
(3)
Not more than three (3) times the value of
the actual damages or the consideration as
exemplary damages.
(4)
Other equitable relief, including
restitution, as is considered proper in
addition to damages and costs.
(b)
Actual damages under this section include the
following:
(1)
The difference between the actual market
value of the vehicle at the time of purchase
and the contract price of the vehicle.
(2)
Towing, repair, and storage expenses.
(3)
Rental of substitute transportation.
(4)
Food and lodging expenses.
(5)
Lost wages.
source:
Center for Auto Safety http://www.autosafety.org/
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