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 in
Indiana.
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 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
"Buyer" defined
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
"Lease" defined
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
"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 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
"Manufacturer" defined
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
"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 (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 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 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
"Term of protection" defined
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
Repair of nonconformities
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
Notification of claim; manufacturer's disclosure
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
Return of vehicle upon failure to correct nonconformity; refund;
replacement
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
Refund; computation of amount
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
Refund; leased motor vehicle; computation of amount
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
Replacement of vehicle
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
Reimbursement for towing and rental costs
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
Retention of vehicle pending replacement or refund
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
Attempts to correct nonconformity; reasonable number of
attempts; time period; extension
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
Refusal to diagnose or repair; written repair orders
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
Affirmative defenses
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
Informal procedures established by manufacturer
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
Additional remedies
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
Civil enforcement actions
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
Costs and expenses in recovery actions
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
Limitations
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
Dealer's liability
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.