CHAPTER 13. MOTOR VEHICLE PROTECTION
IC 24-5-13
Chapter 13. Motor Vehicle Protection
IC 24-5-13-1
Application of chapter
Sec. 1. This chapter applies to all motor vehicles that are sold,leased, transferred, or replaced by a dealer or manufacturer inIndiana.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-2
"Business day" defined
Sec. 2. As used in this chapter, "business day" means a day otherthan 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
"Buyer" defined
Sec. 3. As used in this chapter, "buyer" means any person who,for purposes other than resale or sublease, enters into an agreementor contract within Indiana for the transfer, lease, or purchase of amotor vehicle covered under this chapter.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-3.4
"Lease" defined
Sec. 3.4. As used in this chapter, "lease" means a contract in theform of a lease or bailment for the use of a motor vehicle by a personfor more than four (4) months, whether or not the lessee has theoption to purchase or otherwise become the owner of the property atthe expiration of the lease.
As added by P.L.24-1989, SEC.25.
IC 24-5-13-3.7
"Lessor" defined
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 awritten lease agreement; or
(2) holds the lessor's rights under an agreement described insubdivision (1).
As added by P.L.24-1989, SEC.26.
IC 24-5-13-4
"Manufacturer" defined
Sec. 4. As used in this chapter, "manufacturer" means any personwho 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 motorvehicles.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-5
"Motor vehicle" and "vehicle" defined
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 (asdefined in IC 9-13-2-78);
(3) is intended primarily for use and operation on publichighways; and
(4) is required to be registered or licensed before use oroperation.
The term does not include conversion vans, motor homes, farmtractors, and other machines used in the actual production,harvesting, and care of farm products, road building equipment, trucktractors, road tractors, motorcycles, mopeds, snowmobiles, orvehicles designed primarily for offroad 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
"Nonconformity" defined
Sec. 6. As used in this chapter, "nonconformity" means anyspecific or generic defect or condition or any concurrent combinationof defects or conditions that:
(1) substantially impairs the use, market value, or safety of amotor vehicle; or
(2) renders the motor vehicle nonconforming to the terms of anapplicable manufacturer's warranty.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-7
"Term of protection" defined
Sec. 7. As used in this chapter, "term of protection" means aperiod of time that:
(1) begins:
(A) on the date of original delivery of a motor vehicle to abuyer; or
(B) in the case of a replacement vehicle provided by amanufacturer to a buyer under this chapter, on the date ofdelivery of the replacement vehicle to the buyer; and
(2) ends the earlier of:
(A) eighteen (18) months after the date identified undersubdivision (1); or
(B) the time the motor vehicle has been driven eighteenthousand (18,000) miles after the date identified undersubdivision (1).
As added by P.L.150-1988, SEC.1.
IC 24-5-13-8
Repair of nonconformities
Sec. 8. If a motor vehicle suffers from a nonconformity and thebuyer reports the nonconformity within the term of protection to themanufacturer of the vehicle, its agent, or its authorized dealer thenthe manufacturer of the motor vehicle or the manufacturer's agent orauthorized dealer shall make the repairs that are necessary to correctthe nonconformity, even if the repairs are made after expiration ofthe term of protection.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-9
Notification of claim; manufacturer's disclosure
Sec. 9. (a) A buyer must first notify the manufacturer of a claimunder this chapter if the manufacturer has made the disclosurerequired by subsection (b). However, if the manufacturer has notmade the required disclosure, the buyer is not required to notify themanufacturer of a claim under this chapter.
(b) The manufacturer shall clearly and conspicuously disclose tothe buyer, in the warranty or owner's manual, that written notificationof the nonconformity is required before the buyer may be eligible fora refund or replacement of the vehicle. The manufacturer shallinclude with the warranty or owner's manual the name and addressto which the buyer must send notification.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-10
Return of vehicle upon failure to correct nonconformity; refund;replacement
Sec. 10. If, after a reasonable number of attempts, themanufacturer, its agent, or authorized dealer is unable to correct thenonconformity, the manufacturer shall accept the return of thevehicle from the buyer and, at the buyer's option, either, within thirty(30) days, refund the amount paid by the buyer or provide areplacement vehicle of comparable value.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-11
Refund; computation of amount
Sec. 11. (a) If a refund is tendered under this chapter with respectto a vehicle that is not a leased vehicle, the refund must be the fullcontract price of the vehicle, including all credits and allowances forany trade-in vehicle and less a reasonable allowance for use.
(b) To determine a reasonable allowance for use under thissection, 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 thatthe vehicle traveled before the manufacturer's acceptance of itsreturn. (c) The refund must also include reimbursement for the followingincidental costs:
(1) All sales tax.
(2) The unexpended portion of the registration fee and excisetax 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 buyerand lienholder, if any, as their respective interests appear on therecords 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
Refund; leased motor vehicle; computation of amount
Sec. 11.5. (a) If a refund is tendered under this chapter withrespect to a leased motor vehicle, the refund shall be made asfollows:
(1) The lessee shall receive all deposit and lease payments paidby the lessee to the lessor, including all credits and allowancesfor any trade-in vehicles, less a reasonable allowance for use.
(2) The lessor shall receive:
(A) the lessor's purchase cost, including freight andaccessories;
(B) any fee paid to another to obtain the lease;
(C) any insurance premiums or other costs expended by thelessor 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 tothe lessor, including all credits and allowances for any trade-invehicle.
(b) To determine a reasonable allowance for use under thissection, multiply:
(1) the total lease obligation of the lessee at the inception of thelease; by
(2) a fraction having as its denominator one hundred thousand(100,000) and as its numerator the number of miles that thevehicle traveled before the lessor's acceptance of its return.
As added by P.L.24-1989, SEC.28.
IC 24-5-13-12
Replacement of vehicle
Sec. 12. (a) If a vehicle is replaced by a manufacturer under thischapter, the manufacturer shall reimburse the buyer for any fees forthe transfer of registration or any sales tax incurred by the buyer asa result of replacement.
(b) If a replaced vehicle was financed by the manufacturer, itssubsidiary, or agent, the manufacturer, subsidiary, or agent may not
require the buyer to enter into any refinancing agreement concerninga replacement vehicle that would create any financial obligationsupon the buyer less favorable than those of the original financingagreement.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-13
Reimbursement for towing and rental costs
Sec. 13. Whenever a vehicle is replaced or refunded under thischapter, the manufacturer shall reimburse the buyer for necessarytowing and rental costs actually incurred as a direct result of thenonconformity.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-14
Retention of vehicle pending replacement or refund
Sec. 14. A buyer has the option of retaining the use of any vehiclereturned under this chapter until the time that the buyer has beentendered a full refund or replacement vehicle of comparable value.The use of any vehicle retained by a buyer after its return to amanufacturer under this chapter must, in cases in which a refund istendered, be reflected in the reasonable allowance for use requiredby section 11 of this chapter.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-15
Attempts to correct nonconformity; reasonable number ofattempts; time period; extension
Sec. 15. (a) A reasonable number of attempts is considered tohave 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 anynonconformity 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) shallbe extended by any period of time during which repair services arenot available as a direct result of a strike. The manufacturer, itsagent, or authorized dealer shall provide or make provision for thefree use of a vehicle to any buyer whose vehicle is out of service byreason of repair during a strike.
(c) The burden is on the manufacturer to show that the reason foran extension under subsection (b) was the direct cause for the failureof the manufacturer, its agent, or authorized dealer to cure anynonconformity during the time of the event.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-16
Refusal to diagnose or repair; written repair orders Sec. 16. (a) A manufacturer, its agent, or authorized dealer maynot refuse to diagnose or repair any vehicle for the purpose ofavoiding liability under this chapter.
(b) A manufacturer, its agent, or authorized dealer shall providea buyer with a written repair order each time the buyer's vehicle isbrought in for examination or repair. The repair order must indicateall work performed on the vehicle including examination of thevehicle, 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
Affirmative defenses
Sec. 18. It is an affirmative defense to any claim under thischapter that:
(1) the nonconformity, defect, or condition does notsubstantially impair the use, value, or safety of the motorvehicle; or
(2) the nonconformity, defect, or condition is the result ofabuse, neglect, or unauthorized modification or alteration of themotor vehicle by the buyer.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-19
Informal procedures established by manufacturer
Sec. 19. This chapter does not apply to any buyer who has notfirst resorted to an informal procedure established by a manufactureror 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 certificationadopted by the attorney general, including but not limited tothe requirement of oral hearings, pursuant to IC 4-22-2; and
(2) the buyer has received adequate written notice from themanufacturer of the existence of the procedure.
Adequate written notice includes the incorporation of the informaldispute settlement procedure into the terms of the written warrantyto 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
Additional remedies
Sec. 20. This chapter does not limit the rights or remedies that areotherwise available to a buyer under any other applicable provisionof law.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-21
Civil enforcement actions
Sec. 21. A buyer may bring a civil action to enforce this chapterin any circuit or superior court.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-22
Costs and expenses in recovery actions
Sec. 22. A buyer who prevails in any action brought under thischapter is entitled to recover as part of the judgment a sum equal tothe aggregate amount of cost and expenses, including attorney's feesbased on actual time expended by the attorney, determined by thecourt to have been reasonably incurred by the buyer for or inconnection with the commencement and prosecution of the action.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-23
Limitations
Sec. 23. (a) An action brought under this chapter must becommenced within two (2) years following the date the buyer firstreports the nonconformity to the manufacturer, its agent, orauthorized dealer.
(b) When the buyer has commenced an informal disputesettlement procedure described in section 19 of this chapter, the two(2) year period specified in subsection (a) is tolled during the timethe informal dispute settlement procedure is being conducted.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-24
Dealer's liability
Sec. 24. Nothing in this chapter imposes any liability on a dealeror creates a cause of action by a consumer against a dealer, and amanufacturer may not, directly or indirectly, expose any franchiseddealer to liability under this chapter.
As added by P.L.150-1988, SEC.1.