§ 31-5.2-3 - Replacement of nonconforming vehicle.
SECTION 31-5.2-3
§ 31-5.2-3 Replacement of nonconformingvehicle. – (a) If the manufacturer, its agent, or its authorized dealer or lessor does notconform the motor vehicle to any applicable express or implied warranty bycuring any nonconformity after a reasonable number of attempts, themanufacturer shall accept return of the vehicle from the consumer or lesseeand, at the consumer's or lessee's option, refund the full contract price orlease price of the vehicle including all credits and allowances for anytrade-in vehicle, less a reasonable allowance for use, or replace it with acomparable new motor vehicle in good working order.
(2) A manufacturer replacing a motor vehicle shall havethirty (30) calendar days from the date of return of the motor vehicle underthe provisions of this chapter to deliver a comparable motor vehicle. If,within that thirty (30) days, no comparable motor vehicle has been delivered,the manufacturer shall refund the full contract price or lease price less areasonable allowance for use.
(3) In instances in which a vehicle is replaced by amanufacturer under the provisions of this chapter, the manufacturer shallreimburse the consumer or lessee for any fees for the transfer of registrationor any sales tax incurred by the consumer or lessee as a result of thatreplacement.
(ii) In instances in which a vehicle which was financed bythe manufacturer or its subsidiary or agent is replaced under the provisions ofthis chapter, the manufacturer, subsidiary, or agent shall not require theconsumer or lessee to enter into any refinancing agreement with an interestrate or other financial terms which are less favorable to the consumer orlessee than those stated in the original financing agreement.
(iii) In instances in which a refund is tendered under theprovisions of this chapter, the manufacturer shall also reimburse the consumeror lessee for incidental costs including sales tax, registration fee, financecharges, and any cost of nonremovable options added by an authorized dealer orlessor.
(iv) Whenever a vehicle is replaced or refunded under theprovisions of this chapter, in instances in which towing services and rentalvehicles of comparable year and size were not made available at no cost to theconsumer or lessee, the manufacturer shall also reimburse the consumer orlessee for towing and reasonable rental costs that were a direct result ofvehicle nonconformity.
(4) Refunds shall be made to the consumer or lessee and tothe lienholder, if any, as their interests may appear.
(5) A reasonable allowance for use shall be obtained bymultiplying the total contract price or lessee cost of the vehicle by afraction having as its denominator one hundred thousand (100,000) and having asits numerator the number of miles that the vehicle traveled prior to theconsumer's first report of the nonconformity to the manufacturer, its agent, orits dealer or lessor plus the number of miles that it traveled during anysubsequent period when the vehicle was not out of service by reason of repair.
(6) A consumer or lessee shall have the option of retainingthe use of any vehicle returned under the provisions of this chapter until suchtime as the consumer or lessee has been tendered a full refund or replacementvehicle acceptable to the consumer or lessee. The use of any vehicle retainedby a consumer or lessee after its return to a manufacturer under the provisionsof this chapter shall, in instances in which a refund is tendered, be reflectedin the above-mentioned reasonable allowance for use.
(b) If applicable, refunds shall be made to the lessor andlessee as their interests may appear on the records of ownership as follows:the lessee shall receive the lessee cost and the lessor shall receive the leaseprice less the aggregate deposit and rental payments previously paid to thelessor for the leased vehicle. If it is determined that the lessee is entitledto a refund pursuant to this chapter, the consumer's lease agreement with thelessor shall be terminated upon payment of the refund and no penalty for earlytermination shall be assessed.