216E.3 - ASSISTIVE DEVICE REPLACEMENT OR REFUND.
216E.3 ASSISTIVE DEVICE REPLACEMENT OR REFUND.
1. If an assistive device does not conform to an applicable
express warranty and the consumer reports the nonconformity to the
manufacturer, the assistive device lessor, or any of the
manufacturer's authorized assistive device dealers, and makes the
assistive device available for repair before one year after first
delivery of the device to the consumer or within the period of the
express warranty if the warranty is longer than one year, a
reasonable attempt to repair the nonconformity shall be made.
2. If, after a reasonable attempt to repair, the nonconformity is
not repaired, the manufacturer shall carry out the requirements of
either paragraph "a" or "b" upon the request of a consumer.
a. The manufacturer shall provide for a refund by doing one
of the following:
(1) If the assistive device was purchased by the consumer, accept
return of the assistive device and refund to the consumer and to any
holder of perfected security interest in the consumer's assistive
device, as the holder's interest may appear, the full purchase price
plus any finance charge paid by the consumer at the point of sale and
collateral costs, less a reasonable allowance for use.
(2) If the assistive device was leased by the consumer, accept
return of the assistive device, refund to the assistive device lessor
and to any holder of a perfected security interest in the assistive
device, as the holder's interest may appear, the current value of the
written lease and refund to the consumer the amount that the consumer
paid under the written lease plus any collateral costs, less a
reasonable allowance for use. The manufacturer shall have a cause of
action against the dealer or lessor for reimbursement of any amount
that the manufacturer pays to a consumer which exceeds the net price
received by the manufacturer for the assistive device.
b. The manufacturer shall provide a comparable new assistive
device or offer a refund to the consumer if the consumer does any one
of the following:
(1) Offers to transfer possession of the assistive device to the
manufacturer. No later than thirty days after that offer, the
manufacturer shall provide the consumer with the comparable new
assistive device or a refund. When the manufacturer provides the new
assistive device or refund, the consumer shall return the assistive
device having the nonconformity to the manufacturer, along with any
endorsements necessary to transfer legal possession to the
manufacturer.
(2) Offers to return the assistive device to the manufacturer.
No later than thirty days after the offer, the manufacturer shall
provide a refund to the consumer. When the manufacturer provides a
refund, the consumer shall return the assistive device having the
nonconformity to the manufacturer.
(3) Offers to transfer possession of a leased assistive device to
the manufacturer. No later than thirty days after the offer, the
manufacturer shall provide a refund to the assistive device lessor.
When the manufacturer provides the refund, the assistive device
lessor shall provide to the manufacturer any endorsements necessary
to transfer legal possession to the manufacturer.
3. Under the provisions of this section, the current value of the
written lease equals the total amount for which that lease obligates
the consumer during the period of the lease remaining after its early
termination, plus the assistive device lessor's early termination
costs and the value of the assistive device at the lease expiration
date if the lease sets forth that value, less the assistive device
lessor's early termination savings.
4. Under the provisions of this section, a reasonable allowance
for use shall not exceed the amount obtained by multiplying the total
amount for which the written lease obligates the consumer by a
fraction, the denominator of which is one thousand eight hundred
twenty-five and the numerator of which is the number of days that the
consumer used the assistive device before first reporting the
nonconformity to the manufacturer, assistive device lessor, or
assistive device dealer.
5. A person shall not enforce a lease against a consumer after
the consumer receives a refund. Section History: Recent Form
98 Acts, ch 1042, §3