Chapter 13. Motor Vehicle Protection
IC 24-5-13-1
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
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
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
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
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
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
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
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
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
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
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 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
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
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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
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
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
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
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
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
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
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
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
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
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
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
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.