§481J-6  Failure to honor warranty. 
(a)  If the dealer or its agent fails to correct a defect or malfunction as
required by the warranty specified in section 481J-2 after a reasonable period
of time, the dealer shall accept return of the used motor vehicle from the
consumer and refund the full purchase price, including general excise tax, less
a reasonable allowance for any damage not attributable to normal wear or usage,
and with an adjustment for any modifications which either increase or decrease
the market value of the vehicle.  A reasonable allowance for use shall be
fifteen cents for each mile the used motor vehicle has been operated between
its sale and its return.



(b)  It shall be presumed that a dealer has had
a reasonable opportunity to correct a defect or malfunction in a used motor
vehicle if the dealer fails to repair the same defect or malfunction within
three attempts, or if the used motor vehicle is out of service for more than a
cumulative total of ten business days after the consumer has returned it to the
dealer for repair.



(c)  A used motor vehicle shall not be
considered out of service for purposes of the ten-business-day period described
in subsection (b) for any day in which a part necessary to repair a defect or
malfunction complained of is not in the dealer's possession; provided that the
dealer has ordered the part by reasonable means on the same day on which the
dealer knew or should have known that the part was necessary, except that in no
event shall a part's unavailability operate to toll the ten-business-day period
for more than twenty-one days.  The applicable warranty period shall be
extended by the number of days a part is unavailable.



(d)  In determining the purchase price to be
refunded, the purchase price shall be deemed equal to the sum of the actual
cash difference paid for the used motor vehicle, plus return of any vehicles
traded in at the time of purchase.  If the dealer elects to not return any
vehicles traded in by the consumer, or is unable to return such vehicles in
substantially the same condition as received from the consumer, the dealer
shall pay the consumer the wholesale value of any such traded-in vehicles as
listed in the National Automobile Dealers' Association Used Car Guide, or such
other guide as may be specified in rules adopted by the director of commerce
and consumer affairs pursuant to chapter 91, as adjusted for mileage,
improvements, and any major physical or mechanical defects in the vehicle at
the time of trade-in.



(e)  The dealer selling the used motor vehicle
shall deliver to the consumer a written notice either attached to or within the
contract of sale containing conspicuous language indicating that if the
consumer should be entitled to a refund pursuant to this section, the value of
any vehicle traded in by the consumer will be determined by the method
described in subsection (d), rather than the value listed in the sales
contract.



(f)  Refunds shall be made to the consumer and
lienholder, if any, as their interests may appear on the records of ownership
kept by the county director of finance.



(g)  Alternatively, the dealer may elect to
offer to replace the used motor vehicle with a comparably priced vehicle, with
such adjustment in price as the parties may agree to.  The consumer shall not be
obligated to accept a replacement vehicle, but may instead elect to receive the
refund provided under this section. [L 1994, c 224, pt of §1; am L 2008, c 19,
§25]