322G.4 - NONCONFORMITY OF MOTOR VEHICLES.

        322G.4  NONCONFORMITY OF MOTOR VEHICLES.         1.  After three attempts have been made to repair the same      nonconformity that substantially impairs the motor vehicle, or after      one attempt to repair a nonconformity that is likely to cause death      or serious bodily injury, the consumer may give written notification,      which shall be by certified or registered mail or by overnight      service, to the manufacturer of the need to repair the nonconformity      in order to allow the manufacturer a final attempt to cure the      nonconformity.  The manufacturer shall, within ten days after receipt      of such notification, notify and provide the consumer with the      opportunity to have the vehicle repaired at a reasonably accessible      repair facility and after delivery of the vehicle to the designated      repair facility by the consumer, the manufacturer shall, within ten      days, conform the motor vehicle to the warranty.  If the manufacturer      fails to notify and provide the consumer with the opportunity to have      the vehicle repaired at a reasonably accessible repair facility or      perform the repairs within the time periods prescribed in this      subsection, the requirement that the manufacturer be given a final      attempt to cure the nonconformity does not apply.         After twenty or more cumulative days when the motor vehicle has      been out of service by reason of repair of one or more      nonconformities, the consumer may give written notification to the      manufacturer which shall be by certified or registered mail or by      overnight service.  Commencing upon the date such notification is      received, the manufacturer has ten cumulative days when the vehicle      has been out of service by reason of repair of one or more      nonconformities to conform the motor vehicle to the warranty.         2.  If the manufacturer, or its authorized service agent, has not      conformed the motor vehicle to the warranty by repairing or      correcting one or more nonconformities that substantially impair the      motor vehicle after a reasonable number of attempts, the manufacturer      shall, within forty days of receipt of payment by the manufacturer of      a reasonable offset for use by the consumer, replace the motor      vehicle with a replacement motor vehicle acceptable to the consumer,      or repurchase the motor vehicle from the consumer or lessor and      refund to the consumer or lessor the full purchase or lease price,      less a reasonable offset for use.  The replacement or refund shall      include payment of all collateral and reasonably incurred incidental      charges.  The consumer has an unconditional right to choose a refund      rather than a replacement.  If the consumer elects to receive a      refund, and the refund exceeds the amount of the payment for a      reasonable offset for use, the requirement that the consumer pay the      reasonable offset for use in advance does not apply, and the      manufacturer shall deduct that amount from the refund due to the      consumer.  If the consumer elects a replacement motor vehicle, the      manufacturer shall provide the consumer a substitute motor vehicle to      use until such time as the replacement vehicle is delivered to the      consumer.  At the time of the refund or replacement, the consumer,      lienholder, or lessor shall furnish to the manufacturer clear title      to and possession of the original motor vehicle.         Refunds shall be made to the consumer and lienholder of record, if      any, as their interests appear.  If applicable, refunds shall be made      to the lessor and lessee as follows:  the lessee shall receive the      lessee's cost less a reasonable offset for use, and the lessor shall      receive the lease price less the aggregate deposit and rental      payments previously paid to the lessor for the leased vehicle.  If it      is determined that the lessee is entitled to a refund pursuant to      this chapter, the consumer's lease agreement with the lessor is      terminated upon payment of the refund and no penalty for early      termination shall be assessed.  The department of revenue shall      refund to the manufacturer any use tax or fee for new registration      which the manufacturer refunded to the consumer, lessee, or lessor      under this section, if the manufacturer provides to the department of      revenue a written request for a refund and evidence that the use tax      or fee for new registration was paid when the vehicle was purchased      and that the manufacturer refunded the use tax or fee for new      registration to the consumer, lessee, or lessor.         3.  It is presumed that a reasonable number of attempts have been      undertaken to conform a motor vehicle to the warranty if, during the      lemon law rights period, any of the following occur:         a.  The same nonconformity that substantially impairs the      motor vehicle has been subject to examination or repair at least      three times by the manufacturer or its authorized service agent, plus      a final attempt by the manufacturer to repair the motor vehicle if      undertaken as provided for in subsection 1, and such nonconformity      continues to exist.         b.  A nonconformity that is likely to cause death or serious      bodily injury has been subject to examination or repair at least one      time by the manufacturer or its authorized service agent, plus a      final attempt by the manufacturer to repair the motor vehicle if      undertaken as provided for in subsection 1, and such nonconformity      continues to exist.         c.  The motor vehicle has been out of service by reason of      repair by the manufacturer, or its authorized service agent, of one      or more nonconformities that substantially impair the motor vehicle      for a cumulative total of thirty or more days, exclusive of down time      for routine maintenance prescribed by the owner's manual.  The      thirty-day period may be extended by any period of time during which      repair services are not available to the consumer because of war,      invasion, strike, fire, flood, or natural disaster.         The terms of this subsection shall be extended for a period of up      to two years after the date of the original delivery of a motor      vehicle to a consumer, or the first twenty-four thousand miles of      operation attributable to a consumer, whichever occurs first, if a      nonconformity has been reported but has not been cured by the      manufacturer, or its authorized service agent, before the expiration      of the lemon law rights period.         4.  A manufacturer, or its authorized service agent, shall not      refuse to examine or repair any nonconformity for the purpose of      avoiding liability under this chapter.  
         Section History: Recent Form
         91 Acts, ch 153, §4; 2003 Acts, ch 145, §286; 2008 Acts, ch 1113,      §107         Referred to in § 321.105A, 322G.6, 322G.8, 322G.12