§ 31-5.4-3 Failure to honor warranty.– (a) If the dealer or his or her agent fails to correct a malfunction or defectas required by the warranty specified in this section which substantiallyimpairs the value of the used motor vehicle to the consumer after a reasonableperiod of time, the dealer shall accept the return of the used motor vehiclefrom the consumer and refund to the consumer the full purchase price includingsales or compensating use tax, less a reasonable allowance for any damage notattributable to normal wear or usage, and an adjustment for any modificationswhich either increase or decrease the market value of the vehicle. Indetermining the purchase price to be refunded, the purchase price shall bedeemed equal to the sum of the actual cash difference paid for the used motorvehicle plus, if the dealer elects to not return any vehicles traded-in by theconsumer, the wholesale value of those traded-in vehicles as listed in theNational Auto Dealers' Association Used Car Guide, or any other guide that maybe specified in regulations promulgated by the administrator of the division ofmotor vehicles, as adjusted for mileage, improvements, and any major physicalor mechanical defects in the traded-in vehicle at the time of trade-in. Thecontract of sale for the used motor vehicle shall include conspicuous languageindicating that if the consumer should be entitled to a refund pursuant to thissection, the value of any vehicle traded-in by the consumer, if the dealerelects to not return it to the consumer, for purposes of determining the amountof the refund will be determined by reference to the National Auto Dealers'Association Used Car Guide wholesale value, or any other guide that may beapproved by the administrator of the division of motor vehicles, as adjustedfor mileage, improvements, and any major physical or mechanical defects, ratherthan the value listed in the sales contract. Refunds shall be made to theconsumer and lienholder, if any, as their interests may appear on the recordsof ownership kept by the division of motor vehicles. If the amount to berefunded to the lienholder will be insufficient to discharge the lien, thedealer shall notify the consumer in writing by registered or certified mailthat the consumer has thirty (30) days to pay the lienholder the amount which,together with the amount to be refunded by the dealer, will be sufficient todischarge the lien. The notice to the consumer shall contain conspicuouslanguage warning the consumer that failure to pay those funds to the lienholderwithin thirty (30) days will terminate the dealer's obligation to provide arefund. If the consumer fails to make the payment within thirty (30) days, thedealer shall have no further responsibility to provide a refund under thissection. Alternatively, the dealer may elect to offer to replace the used motorvehicle with a comparably priced vehicle, with any adjustment in price that theparties may agree to. The consumer shall not be obligated to accept areplacement vehicle, but may instead elect to receive the refund provided underthis section. It shall be an affirmative defense to any claim under thissection that:
(1) The malfunction or defect does not substantially impairthe used motor vehicle's value; or
(2) The malfunction or defect is the result of abuse,neglect, or unreasonable modifications or alterations of the used motor vehicle.
(b) It shall be presumed that a dealer has had a reasonableopportunity to correct a malfunction or defect in a used motor vehicle, if:
(1) The same malfunction or defect has been subject to repairthree (3) or more times by the selling dealer or his or her agent within thewarranty period, but the same malfunction or defect continues to exist; or
(2) The vehicle is out of service by reason of repair ormalfunction or defect for a cumulative total of fifteen (15) or more daysduring the warranty period. That period shall not include days when the dealeris unable to complete the repair because of the unavailability of necessaryrepair parts. The dealer shall be required to exercise due diligence inattempting to obtain necessary repair parts. If, however, a vehicle has beenout of service for a cumulative total of forty-five (45) days, even if aportion of that time is attributable to the unavailability of replacementparts, the consumer shall be entitled to the replacement or refund remediesprovided in this section.
(c) The term of any warranty, service contract, or repairinsurance shall be extended by any time period during which the used motorvehicle is in the possession of the dealer or his or her duly authorized agentfor the purpose of repairing the used motor vehicle under the terms andobligations of the warranty, service contract, or repair insurance.
(d) The term of any warranty, service contract, or repairinsurance, and the fifteen (15) days out-of-service period, shall be extendedby any time during which repair services are not available to the consumerbecause of a war, invasion or strike, fire, flood, or other natural disaster.
§ 31-5.4-3 Failure to honor warranty.– (a) If the dealer or his or her agent fails to correct a malfunction or defectas required by the warranty specified in this section which substantiallyimpairs the value of the used motor vehicle to the consumer after a reasonableperiod of time, the dealer shall accept the return of the used motor vehiclefrom the consumer and refund to the consumer the full purchase price includingsales or compensating use tax, less a reasonable allowance for any damage notattributable to normal wear or usage, and an adjustment for any modificationswhich either increase or decrease the market value of the vehicle. Indetermining the purchase price to be refunded, the purchase price shall bedeemed equal to the sum of the actual cash difference paid for the used motorvehicle plus, if the dealer elects to not return any vehicles traded-in by theconsumer, the wholesale value of those traded-in vehicles as listed in theNational Auto Dealers' Association Used Car Guide, or any other guide that maybe specified in regulations promulgated by the administrator of the division ofmotor vehicles, as adjusted for mileage, improvements, and any major physicalor mechanical defects in the traded-in vehicle at the time of trade-in. Thecontract of sale for the used motor vehicle shall include conspicuous languageindicating that if the consumer should be entitled to a refund pursuant to thissection, the value of any vehicle traded-in by the consumer, if the dealerelects to not return it to the consumer, for purposes of determining the amountof the refund will be determined by reference to the National Auto Dealers'Association Used Car Guide wholesale value, or any other guide that may beapproved by the administrator of the division of motor vehicles, as adjustedfor mileage, improvements, and any major physical or mechanical defects, ratherthan the value listed in the sales contract. Refunds shall be made to theconsumer and lienholder, if any, as their interests may appear on the recordsof ownership kept by the division of motor vehicles. If the amount to berefunded to the lienholder will be insufficient to discharge the lien, thedealer shall notify the consumer in writing by registered or certified mailthat the consumer has thirty (30) days to pay the lienholder the amount which,together with the amount to be refunded by the dealer, will be sufficient todischarge the lien. The notice to the consumer shall contain conspicuouslanguage warning the consumer that failure to pay those funds to the lienholderwithin thirty (30) days will terminate the dealer's obligation to provide arefund. If the consumer fails to make the payment within thirty (30) days, thedealer shall have no further responsibility to provide a refund under thissection. Alternatively, the dealer may elect to offer to replace the used motorvehicle with a comparably priced vehicle, with any adjustment in price that theparties may agree to. The consumer shall not be obligated to accept areplacement vehicle, but may instead elect to receive the refund provided underthis section. It shall be an affirmative defense to any claim under thissection that:
(1) The malfunction or defect does not substantially impairthe used motor vehicle's value; or
(2) The malfunction or defect is the result of abuse,neglect, or unreasonable modifications or alterations of the used motor vehicle.
(b) It shall be presumed that a dealer has had a reasonableopportunity to correct a malfunction or defect in a used motor vehicle, if:
(1) The same malfunction or defect has been subject to repairthree (3) or more times by the selling dealer or his or her agent within thewarranty period, but the same malfunction or defect continues to exist; or
(2) The vehicle is out of service by reason of repair ormalfunction or defect for a cumulative total of fifteen (15) or more daysduring the warranty period. That period shall not include days when the dealeris unable to complete the repair because of the unavailability of necessaryrepair parts. The dealer shall be required to exercise due diligence inattempting to obtain necessary repair parts. If, however, a vehicle has beenout of service for a cumulative total of forty-five (45) days, even if aportion of that time is attributable to the unavailability of replacementparts, the consumer shall be entitled to the replacement or refund remediesprovided in this section.
(c) The term of any warranty, service contract, or repairinsurance shall be extended by any time period during which the used motorvehicle is in the possession of the dealer or his or her duly authorized agentfor the purpose of repairing the used motor vehicle under the terms andobligations of the warranty, service contract, or repair insurance.
(d) The term of any warranty, service contract, or repairinsurance, and the fifteen (15) days out-of-service period, shall be extendedby any time during which repair services are not available to the consumerbecause of a war, invasion or strike, fire, flood, or other natural disaster.
§ 31-5.4-3 Failure to honor warranty.– (a) If the dealer or his or her agent fails to correct a malfunction or defectas required by the warranty specified in this section which substantiallyimpairs the value of the used motor vehicle to the consumer after a reasonableperiod of time, the dealer shall accept the return of the used motor vehiclefrom the consumer and refund to the consumer the full purchase price includingsales or compensating use tax, less a reasonable allowance for any damage notattributable to normal wear or usage, and an adjustment for any modificationswhich either increase or decrease the market value of the vehicle. Indetermining the purchase price to be refunded, the purchase price shall bedeemed equal to the sum of the actual cash difference paid for the used motorvehicle plus, if the dealer elects to not return any vehicles traded-in by theconsumer, the wholesale value of those traded-in vehicles as listed in theNational Auto Dealers' Association Used Car Guide, or any other guide that maybe specified in regulations promulgated by the administrator of the division ofmotor vehicles, as adjusted for mileage, improvements, and any major physicalor mechanical defects in the traded-in vehicle at the time of trade-in. Thecontract of sale for the used motor vehicle shall include conspicuous languageindicating that if the consumer should be entitled to a refund pursuant to thissection, the value of any vehicle traded-in by the consumer, if the dealerelects to not return it to the consumer, for purposes of determining the amountof the refund will be determined by reference to the National Auto Dealers'Association Used Car Guide wholesale value, or any other guide that may beapproved by the administrator of the division of motor vehicles, as adjustedfor mileage, improvements, and any major physical or mechanical defects, ratherthan the value listed in the sales contract. Refunds shall be made to theconsumer and lienholder, if any, as their interests may appear on the recordsof ownership kept by the division of motor vehicles. If the amount to berefunded to the lienholder will be insufficient to discharge the lien, thedealer shall notify the consumer in writing by registered or certified mailthat the consumer has thirty (30) days to pay the lienholder the amount which,together with the amount to be refunded by the dealer, will be sufficient todischarge the lien. The notice to the consumer shall contain conspicuouslanguage warning the consumer that failure to pay those funds to the lienholderwithin thirty (30) days will terminate the dealer's obligation to provide arefund. If the consumer fails to make the payment within thirty (30) days, thedealer shall have no further responsibility to provide a refund under thissection. Alternatively, the dealer may elect to offer to replace the used motorvehicle with a comparably priced vehicle, with any adjustment in price that theparties may agree to. The consumer shall not be obligated to accept areplacement vehicle, but may instead elect to receive the refund provided underthis section. It shall be an affirmative defense to any claim under thissection that:
(1) The malfunction or defect does not substantially impairthe used motor vehicle's value; or
(2) The malfunction or defect is the result of abuse,neglect, or unreasonable modifications or alterations of the used motor vehicle.
(b) It shall be presumed that a dealer has had a reasonableopportunity to correct a malfunction or defect in a used motor vehicle, if:
(1) The same malfunction or defect has been subject to repairthree (3) or more times by the selling dealer or his or her agent within thewarranty period, but the same malfunction or defect continues to exist; or
(2) The vehicle is out of service by reason of repair ormalfunction or defect for a cumulative total of fifteen (15) or more daysduring the warranty period. That period shall not include days when the dealeris unable to complete the repair because of the unavailability of necessaryrepair parts. The dealer shall be required to exercise due diligence inattempting to obtain necessary repair parts. If, however, a vehicle has beenout of service for a cumulative total of forty-five (45) days, even if aportion of that time is attributable to the unavailability of replacementparts, the consumer shall be entitled to the replacement or refund remediesprovided in this section.
(c) The term of any warranty, service contract, or repairinsurance shall be extended by any time period during which the used motorvehicle is in the possession of the dealer or his or her duly authorized agentfor the purpose of repairing the used motor vehicle under the terms andobligations of the warranty, service contract, or repair insurance.
(d) The term of any warranty, service contract, or repairinsurance, and the fifteen (15) days out-of-service period, shall be extendedby any time during which repair services are not available to the consumerbecause of a war, invasion or strike, fire, flood, or other natural disaster.
