Iowa Lemon Law - Chapter 322G.1-15
322G.1 Legislative intent.
The general assembly recognizes that a motor vehicle is a major
consumer acquisition and that a defective motor vehicle undoubtedly
creates a hardship for the consumer. The general assembly further
recognizes that a duly franchised motor vehicle dealer is an authorized
service agent of the manufacturer. It is the intent of the general
assembly that a good faith motor vehicle warranty complaint by a
consumer be resolved by the manufacturer within a specified period
of time. It is further the intent of the general assembly to provide
the statutory procedures whereby a consumer may receive a replacement
motor vehicle, or a full refund, for a motor vehicle which cannot
be brought into conformity with the warranty provided for in this
chapter. However, this chapter does not limit the rights or remedies
which are otherwise available to a consumer under any other law.
As used in this chapter, unless the context otherwise requires:
1. "Collateral charges" means those additional
charges to a consumer wholly incurred as a result of the acquisition
of the motor vehicle. For the purposes of this chapter, collateral
charges include, but are not limited to, charges for manufacturer-installed
or agent-installed items, earned finance charges, use taxes, and
2. "Condition" means a general problem that
may be attributable to a defect in more than one part.
3. "Consumer" means the purchaser or lessee,
other than for purposes of lease or resale, of a new or previously
untitled motor vehicle, or any other person entitled by the terms
of the warranty to enforce the obligations of the warranty during
the duration of the lemon law rights period.
4. "Days" means calendar days.
5. "Department" means the attorney general.
6. "Incidental charges" means those reasonable
costs incurred by the consumer, including, but not limited to, towing
charges and the costs of obtaining alternative transportation, which
are the direct result of the nonconformity or nonconformities which
are the subject of the claim. Incidental charges do not include
loss of use, loss of income, or personal injury claims.
7. "Lease price" means the aggregate of
a. Lessor's actual purchase costs.
b. Collateral charges, if applicable.
c. Any fee paid to another to obtain the
d. Any insurance or other costs expended
by the lessor for the benefit of the lessee.
e. An amount equal to state and local
use taxes, not otherwise included as collateral charges, paid by
the lessor when the vehicle was initially purchased.
f. An amount equal to five percent of
the lessor's actual purchase cost.
8. "Lemon law rights period" means the term
of the manufacturer's written warranty, the period ending 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 expires first.
9. "Lessee" means any consumer who leases
a motor vehicle for one year or more pursuant to a written lease
agreement which provides that the lessee is responsible for repairs
to the motor vehicle.
10. "Lessee cost" means the aggregate of
the deposit and rental payments previously paid to the lessor for
the leased vehicle.
11. "Lessor" means a person who holds the
title to a motor vehicle leased to a lessee under a written lease
agreement or who holds the lessor's rights under the agreement.
12. "Manufacturer" means a person engaged
in the business of constructing or assembling new motor vehicles
or installing on previously assembled vehicle chassis special bodies
or equipment which, when installed, form an integral part of the
new motor vehicle, or a person engaged in the business of importing
new motor vehicles into the United States for the purpose of selling
or distributing the new motor vehicles to new motor vehicle dealers.
13. "Motor vehicle" means a self-propelled
vehicle purchased or leased in this state, except as provided in
section 322G.15, and primarily designed for the transportation of
persons or property over public streets and highways, but does not
include mopeds, motorcycles, motor homes, or vehicles over ten thousand
pounds gross vehicle weight rating.
14. "Nonconformity" means a defect, malfunction,
or condition in a motor vehicle such that the vehicle fails to conform
to the warranty, but does not include a defect, malfunction, or
condition that results from an accident, abuse, neglect, modification,
or alteration of the motor vehicle by persons other than the manufacturer
or its authorized service agent.
15. "Person" means person as defined in
16. "Program" means an informal dispute
settlement procedure established by a manufacturer which mediates
and arbitrates motor vehicle warranty disputes arising in this state.
17. "Purchase price" means the cash price
paid for the motor vehicle appearing in the sales agreement or contract,
including any net allowance given for a trade-in vehicle.
18. "Reasonable offset for use" means the
number of miles attributable to a consumer up to the date of the
third attempt to repair the same nonconformity which is the subject
of the claim, or the first attempt to repair a nonconformity that
is likely to cause death or serious bodily injury, or the twentieth
cumulative day when the vehicle is out of service by reason of repair
of one or more nonconformities, whichever occurs first, multiplied
by the purchase price of the vehicle, or in the event of a leased
vehicle, the lessor's actual lease price plus an amount equal to
two percent of the purchase price, and divided by one hundred twenty
19. "Replacement motor vehicle" means a
motor vehicle which is identical or reasonably equivalent to the
motor vehicle to be replaced, and as the motor vehicle to be replaced
would have existed without the nonconformity at the time of original
20. "Substantially impair" means to render
the motor vehicle unfit, unreliable, or unsafe for warranted or
ordinary use, or to significantly diminish the value of the motor
21. "Warranty" means any written warranty
issued by the manufacturer; or any affirmation of fact or promise
made by the manufacturer, excluding statements made by the dealer,
in connection with the sale or lease of a motor vehicle to a consumer,
which relates to the nature of the material or workmanship and affirms
or promises that the material or workmanship is free of defects
or will meet a specified level of performance.
322G.3 Duties of manufacturer.
1. At the time of the consumer's purchase or lease
of the vehicle, the manufacturer shall provide to the consumer a
written statement that explains the consumer's rights and obligations
under this chapter. The written statement shall be prepared by the
attorney general and shall contain a telephone number that the consumer
can use to obtain information from the attorney general regarding
the rights and obligations provided under this chapter.
2. At the time of the consumer's purchase or lease
of the vehicle, the manufacturer shall provide to the consumer the
address and phone number for the zone, district, or regional office
of the manufacturer for this state where a claim may be filed by
the consumer. This information shall be provided to the consumer
in a clear and conspicuous manner. Within thirty days of the introduction
of a new model year for each make and model of motor vehicle sold
in this state, the manufacturer shall notify the attorney general
of such introduction. The manufacturer shall also inform the attorney
general that a copy of the owner's manual and applicable written
warranties shall be provided upon request and provide information
as to where the request should be made. The manufacturer shall inform
the attorney general where such a request should be directed and
shall provide the copy of the owner's manual and applicable written
warranties within five business days of a request by the attorney
3. A manufacturer or the authorized service agent
of the manufacturer shall make repairs as necessary to conform the
vehicle to the warranty if a motor vehicle does not conform to the
warranty and the consumer reports the nonconformity to the manufacturer
or authorized service agent during the lemon law rights period.
Such repairs shall be made irrespective of whether they can be made
prior to the expiration of the lemon law rights period.
4. A manufacturer or the authorized service agent
of the manufacturer, shall provide to the consumer, each time the
motor vehicle is returned after being examined or repaired under
the warranty, a fully itemized, legible statement or repair order
indicating any diagnosis made, and all work performed on the motor
vehicle including, but not limited to, a general description of
the problem reported by the consumer or an identification of the
defect or condition, parts and labor, the date and the odometer
reading when the motor vehicle was submitted for examination or
repair, and the date when the repair or examination was completed.
5. Upon request from the consumer, the manufacturer,
or the authorized service agent of the manufacturer, shall provide
a copy of either or both of the following:
a. Any report or printout of any diagnostic
computer operation compiled by the manufacturer or authorized service
agent regarding an inspection or diagnosis of the motor vehicle.
b. A copy of any technical service bulletin
issued by the manufacturer regarding the year and model of the motor
vehicle as it pertains to any material, feature, component, or the
performance of the motor vehicle.
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 and finance
shall refund to the manufacturer any use tax which the manufacturer
refunded to the consumer, lessee, or lessor under this section,
if the manufacturer provides to the department of revenue and finance
a written request for a refund and evidence that the use tax was
paid when the vehicle was purchased and that the manufacturer refunded
the use tax 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.
322G.5 Affirmative defenses.
Any of the following is an affirmative defense to a claim under
1. The alleged nonconformity or nonconformities
do not substantially impair the motor vehicle.
2. A nonconformity is the result of an accident,
abuse, neglect, or unauthorized modification or alteration of the
motor vehicle by a person other than the manufacturer or its authorized
3. The claim by the consumer was not filed in good
4. Any other defense allowed by law which may be
raised against the claim.
322G.6 Informal dispute settlement procedures---operations and
1. At the time of the consumer's purchase or lease
of the vehicle, a manufacturer who has established a program certified
pursuant to this section shall, at a minimum, clearly and conspicuously
disclose to the consumer in written materials accompanying the vehicle
how and where to file a claim with the program.
2. A certified program shall be funded and competently
staffed at a level sufficient to ensure fair and expeditious resolution
of all disputes, and shall not charge consumers any fee for use
of the program. The manufacturer shall take all steps necessary
to ensure that a certified program and its staff and decision makers
are sufficiently insulated from the manufacturer so that the performance
of the staff and the decisions of the decision makers are not influenced
by the manufacturer. Such steps, at a minimum, shall ensure that
the manufacturer does not make decisions on whether a consumer's
dispute proceeds to the decision maker. Staff and decision makers
of a certified program shall be trained in the provisions of this
chapter and rules adopted under this chapter.
3. A certified program shall allow an oral presentation
by a party, or by a party's employee, agent, or representative.
Within five days following the consumer's notification to the certified
program of the dispute, the program shall inform each party of their
right to make an oral presentation.
Meetings of a certified program to hear and decide disputes shall
be open to observers, including either party to the dispute, on
reasonable and nondiscriminatory terms.
4. A certified program shall render a decision
no later than sixty days from the day of the consumer's notification
of the dispute, provided that a significant number of decisions
are rendered within forty days. For the purposes of this section,
notification is deemed to have occurred when a certified program
has received the consumer's name and address; the current date and
the date of the original delivery of the motor vehicle to a consumer;
the year, make, model, and identification number of the motor vehicle;
and a description of the nonconformity. If the consumer has not
previously notified the manufacturer of the nonconformity, the sixty-day
period is extended for an additional seven days.
5. A certified program shall, in rendering decisions,
take into account the provisions of this chapter and all legal and
equitable factors germane to a fair and just decision. The decision
shall disclose to the consumer and the manufacturer the reasons
for the decision, and the manufacturer's required actions, if applicable.
If the decision is in favor of the consumer, the consumer shall
have up to twenty-five days from the date of receipt of the certified
program's decision to indicate acceptance of the decision. The decision
shall prescribe a reasonable period of time, not to exceed thirty
days from the date the consumer notifies the manufacturer of acceptance
of the decision, within which the manufacturer must fulfill the
terms of the decision. If the manufacturer has had a reasonable
number of attempts to conform a motor vehicle to the warranty as
set forth in section 322G.4, subsection 3, including a final attempt
by the manufacturer to repair the motor vehicle, if undertaken as
provided for in section 322G.4, subsection 1, and the consumer is
entitled to a replacement vehicle or a refund under section 322G.4,
subsection 2, the decision shall be limited to relief as allowed
under section 322G.4, subsection 2. In an action brought by a consumer
under this chapter, the decision of a certified program is admissible
6. A certified program shall establish written
procedures which explain operation of the certified program. Copies
of the written procedures shall be made available to any person
upon request and shall be sent to the consumer upon notification
of the dispute.
7. A certified program shall retain all records
for each dispute for at least four years after the final disposition
of the dispute. A certified program shall have an independent audit
conducted annually to determine whether the manufacturer and its
performance and the program and its implementation are in compliance
with this chapter. All records for each dispute shall be available
for the audit. Such audit, upon completion, shall be forwarded to
the attorney general.
8. Any manufacturer licensed to sell motor vehicles
in this state may apply to the attorney general for certification
of its program. A manufacturer seeking certification of its program
in this state shall submit to the attorney general an application
for certification on a form prescribed by the attorney general.
9. A program certified in this state or a program
established by a manufacturer applying for certification in this
state shall submit to the attorney general a copy of each settlement
approved by the program or decision made by the decision maker within
thirty days after the settlement is reached or the decision is rendered.
The decision or settlement shall contain information prescribed
by the attorney general.
10. The attorney general shall review the operations
of any certified program at least once annually. The attorney general
shall prepare annual and periodic reports evaluating the operation
of certified programs serving consumers in this state or programs
established by motor vehicle manufacturers applying for certification
in this state. The reports shall indicate whether certification
should be granted, renewed, denied, or revoked.
11. If a manufacturer has established a program
which the attorney general has certified as substantially complying
with the provisions of and the rules adopted under this chapter,
and has informed the consumer how and where to file a claim with
the program pursuant to subsection 1, the provisions of section
322G.4, subsection 2, do not apply to any consumer who has not first
resorted to the program.
322G.7 Informal dispute settlement procedure---certification uniformity.
To facilitate uniform application, interpretation, and enforcement
of this section and section 322G.6, and in implementing rules adopted
pursuant to section 322G.14, the attorney general may cooperate
with agencies that perform similar functions in any other states
that enact these or similar sections. The cooperation authorized
by this subsection may include any of the following:
1. Establishing a central depository for copies
of all applications and accompanying materials submitted by manufacturers
for certification, and all reports prepared, notices issued, and
determinations made by the attorney general under section 322G.6.
2. Sharing and exchanging information, documents,
and records pertaining to program operations.
3. Sharing personnel to perform joint reviews,
surveys, and investigations of program operations.
4. Preparing joint reports evaluating program operations.
5. Granting joint certifications and certification
6. Issuing joint denials or revocations of certification.
7. Holding a joint administrative hearing.
8. Formulating, in accordance with chapter 17A,
the administrative procedure Act, rules or proposed rules on matters
such as guidelines, forms, statements of policy, interpretative
opinions, and any other information necessary to implement section
322G.8 Consumer remedies.
1. If a consumer resorts to a manufacturer's certified
program and a decision is not rendered within the time periods allowed
in this chapter, or a manufacturer has no certified program and
the consumer has notified the manufacturer pursuant to section 322G.4,
subsection 1, the consumer may file an action in district court
under this chapter within one year from the expiration of the lemon
law rights period or an extension of the period pursuant to section
322G.4, subsection 3.
2. If a consumer resorts to a manufacturer's certified
program and is not satisfied with the performance of the manufacturer
as ordered in the decision, or the manufacturer does not perform
as directed by the decision within the time period specified in
the decision, the consumer may file an action in district court
under this chapter within six months after the date prescribed in
the decision by which the manufacturer must fulfill the terms of
the decision. If the consumer declines to accept the decision of
the manufacturer's certified program, the consumer may appeal the
decision pursuant to subsection 4. For purposes of this subsection,
"not satisfied with the performance of the decision" means,
following the consumer's acceptance of the decision, the consumer
indicates that the manufacturer failed to comply with the terms
of the decision within the time specified in the decision or failed
to cure the nonconformity within the time specified in the decision
if further repairs were ordered.
3. In an action under either subsection 1 or 2,
the court shall award a consumer who prevails the amount of any
pecuniary loss, including relief the consumer is entitled to under
section 322G.4, subsection 2, reasonable attorney's fees, and costs.
In addition, if the court affirms the decision of the certified
program, the court may award any additional amounts allowed under
4. A certified program's decision is final unless
appealed by either party. A petition to the district court to appeal
a decision must be made within fifty days after receipt of the decision
or within twenty-five days from the date the consumer indicates
acceptance of the decision to the manufacturer, whichever occurs
first. Within seven days after the petition has been filed, the
appealing party must send, by certified, registered, or express
mail, a copy of the petition to the attorney general. If the attorney
general receives no notice of the petition within sixty days after
the manufacturer's receipt of a decision in favor of the consumer,
and the consumer has indicated acceptance of the decision within
the twenty-five days of receipt of the decision, but the manufacturer
has neither complied with, nor petitioned to appeal the decision,
the attorney general may apply to the court to impose a fine up
to one thousand dollars per day against the manufacturer until the
amount stands at twice the purchase price of the motor vehicle,
unless the manufacturer provides clear and convincing evidence that
the delay or failure was beyond its control or was acceptable to
the consumer as evidenced by a written statement signed by the consumer.
If the manufacturer fails to provide such evidence or fails to pay
the fine, the attorney general shall initiate proceedings against
the manufacturer for failure to pay the fine. The proceeds from
the fine imposed shall be placed in the attorney general's motor
vehicle fraud and odometer law enforcement fund for implementation
and enforcement of this chapter.
5. If the manufacturer fails to comply with a decision
which has been timely accepted by the consumer or fails to file
a timely petition for appeal, the court shall affirm the board's
decision upon application by the consumer.
6. An appeal of a decision by a certified program
to the court by a consumer or a manufacturer shall be tried de novo,
and may be based upon stipulated facts. In a written petition to
appeal a decision by the board, the appealing party must state the
action requested and the grounds relied upon for appeal.
7. If a decision of the certified program in favor
of the consumer is affirmed or upheld by the court, recovery by
the consumer shall include the pecuniary value of the award, including
relief the consumer is entitled to under section 322G.4, subsection
2, attorney's fees incurred in obtaining confirmation of the award,
and all costs and continuing damages in an amount of twenty-five
dollars per day for all days beyond the twenty-five-day period following
the manufacturer's receipt of the consumer's acceptance of the certified
program's decision. If a court determines that a manufacturer filed
a petition for appeal to be tried de novo in bad faith or brought
such an appeal solely for the purpose of harassment, the court shall
double, and may triple, the amount of the total award, after consideration
of all circumstances.
8. Appellate review of a court decision in favor
of the consumer may be conditioned upon payment by the manufacturer
of the consumer's attorney's fees and giving security for costs
and expenses resulting from the review period.
9. This chapter does not prohibit a consumer from
pursuing other rights or remedies under any other law.
322G.9 Compliance and disciplinary action.
The attorney general may enforce and ensure compliance with the
provisions of this chapter and rules adopted pursuant to section
322G.14, may issue subpoenas requiring the attendance of witnesses
and the production of evidence, and may petition any court having
jurisdiction to compel compliance with the subpoenas. The attorney
general may levy and collect an administrative fine in an amount
not to exceed one thousand dollars for each violation against any
manufacturer found to be in violation of this chapter or rules adopted
pursuant to section 322G.14. A manufacturer may request a hearing
pursuant to chapter 17A, the administrative procedure Act, if the
manufacturer contests the fine levied against it. The proceeds from
any fine levied and collected pursuant to this section shall be
placed in the attorney general's motor vehicle fraud and odometer
law enforcement fund for implementation and enforcement of this
322G.10 Unfair or deceptive trade practice.
A violation by a manufacturer of this chapter is an unfair or deceptive
trade practice in violation of section 714.16, subsection 2, paragraph
322G.11 Dealer liability.
This chapter, except for the requirements of section 322G.12, does
not impose any liability on a franchised motor vehicle dealer or
create a cause of action by a consumer against a dealer. A dealer
shall not be made a party defendant in any action involving or relating
to this chapter, except as provided in this section. The manufacturer
shall not charge back or require reimbursement by the dealer for
any costs, including but not limited to any refunds or vehicle replacements,
incurred by the manufacturer pursuant to this chapter, in the absence
of a finding by a court that the related repairs had been carried
out by the dealer in a manner substantially inconsistent with the
manufacturer's published instructions. A manufacturer who is found
by a court to have improperly charged back a dealer because of a
violation of this section is liable to the injured dealer for full
reimbursement plus reasonable costs and any attorney's fees.
322G.12 Resale of returned vehicles.
A manufacturer who accepts the return of a motor vehicle pursuant
to a settlement, determination, or decision under this chapter shall
notify the state department of transportation, report the vehicle
identification number of that motor vehicle within ten days after
the acceptance, and obtain a new certificate of title for the vehicle
in the manufacturer's name pursuant to section 321.46. In obtaining
a new certificate of title, the manufacturer shall title the vehicle
in the county of the transferor's residence and shall be exempt
from the registration fee requirements of section 321.46. For purposes
of chapter 423, a manufacturer's acceptance of the return of a motor
vehicle, as described in this section, shall not be considered "use",
as defined in section 423.1. The new certificate of title, and all
subsequent registration receipts and certificates of title issued
for the motor vehicle, shall contain a designation indicating that
the motor vehicle was returned to the manufacturer pursuant to this
chapter or a similar law of another state. The state department
of transportation shall determine the manner in which the designation
is to be indicated on registration receipts and certificates of
title and may determine that a "REBUILT" or "SALVAGE" designation
supersedes the designation required by this paragraph and include
the "REBUILT" or "SALVAGE" designation on the registration receipt
and certificate of title in lieu of the designation required by
A person shall not knowingly lease, sell, either at wholesale
or retail, or transfer a title to a motor vehicle returned by reason
of a settlement, determination, or decision pursuant to this chapter
or a similar law of another state unless the nature of the nonconformity
is clearly and conspicuously disclosed to the prospective transferee,
lessee, or buyer. The attorney general shall prescribe by rule the
form, content, and procedure pertaining to such a disclosure statement,
recognizing the need of manufacturers to implement a uniform disclosure
form. The manufacturer shall make a reasonable effort to ensure
that such disclosure is made to the first subsequent retail buyer
or lessee. For purposes of this section, "settlement" includes an
agreement entered into between the manufacturer and the consumer
that occurs after the thirtieth day following the manufacturer's
receipt of the consumer's written notification pursuant to section
322G.13 Certain agreements void.
Any agreement entered into by a consumer that waives, limits, or
disclaims the rights set forth in this chapter is void as contrary
to public policy.
322G.14 Rulemaking authority.
1. The attorney general shall adopt rules as necessary
to implement this chapter.
2. In prescribing rules and forms under this chapter,
the attorney general may cooperate with agencies that perform similar
functions in other states with a view to effectuating the policy
of this chapter to achieve maximum uniformity in the form and content
of certification, regulation, and procedural evaluation of manufacturer-established
programs, required recordkeeping, required reporting wherever practicable,
and required notices to consumers.
1. This chapter takes effect July 1, 1991, and applies to motor
vehicles originally purchased or leased by consumers on or after
2. This chapter applies to motor vehicles originally purchased
or leased in this state and, except for section 322G.3, subsections
1 and 2, and section 322G.6, subsection 1, applies to motor vehicles
originally purchased or leased in other states, if the consumer
is a resident of this state at the time the consumer's rights are
asserted under this chapter.
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