49 U.S.C. § 30116 — Defects and noncompliance found before sale to purchaser

submitted 32 years ago by Pub. L. 103-272 to r/title-49-TRANSPORTATION · 387 words · no verdicts yet

in plain englishAI-generated · not legal advice

If a vehicle or part turns out unsafe or noncompliant before a dealer sells it, the maker must fix it. The maker either buys the item back with interest or supplies free replacement parts. Dealers who can't agree on costs, or face refusal, can sue within three years.

(a) Actions Required of Manufacturers and Distributors If a manufacturer or distributor sells a vehicle or equipment to a distributor or dealer, and before that dealer resells it someone discovers a safety defect or a failure to meet safety standards, the manufacturer or distributor must either: (1) immediately buy back the vehicle or equipment at the price the distributor or dealer paid, plus transportation costs and at least 1% of that price per month, counted from the date of the defect notice to the date of repurchase; or (2) if it's a vehicle, immediately give the distributor or dealer, at the manufacturer's own expense, the part needed to fix the defect or bring it into compliance. (b) Distributor or Dealer Installation The distributor or dealer must install the part described in (a)(2). If they install it promptly and carefully once received, the manufacturer must reimburse them for the reasonable cost of installation, plus at least 1% of the manufacturer's or distributor's selling price per month, counted from the notice date to the date the vehicle is fixed. (c) Establishing Amount Due and Civil Actions The parties work out the installation's value and the reimbursement amount together. If they can't agree, or if the manufacturer or distributor refuses to follow subsection (a) or (b), the distributor or dealer can sue in the U.S. district court where the manufacturer or distributor lives, is found, or has an agent — to recover damages, court costs, and a reasonable attorney's fee. This lawsuit must be filed within 3 years of when the claim arose.

the actual law source: uscode.house.gov ↗public domain

(a)Actions Required of Manufacturers and Distributors.—

If, after a manufacturer or distributor sells a motor vehicle or motor vehicle equipment to a distributor or dealer and before the distributor or dealer sells the vehicle or equipment, it is decided that the vehicle or equipment contains a defect related to motor vehicle safety or does not comply with applicable motor vehicle safety standards prescribed under this chapter—

(1)

the manufacturer or distributor immediately shall repurchase the vehicle or equipment at the price paid by the distributor or dealer, plus transportation charges and reasonable reimbursement of at least one percent a month of the price paid prorated from the date of notice of noncompliance or defect to the date of repurchase; or

(2)

if a vehicle, the manufacturer or distributor immediately shall give to the distributor or dealer at the manufacturer’s or distributor’s own expense, the part or equipment needed to make the vehicle comply with the standards or correct the defect.

(b)Distributor or Dealer Installation.—

The distributor or dealer shall install the part or equipment referred to in subsection (a)(2) of this section. If the distributor or dealer installs the part or equipment with reasonable diligence after it is received, the manufacturer shall reimburse the distributor or dealer for the reasonable value of the installation and a reasonable reimbursement of at least one percent a month of the manufacturer’s or distributor’s selling price prorated from the date of notice of noncompliance or defect to the date the motor vehicle complies with applicable motor vehicle safety standards prescribed under this chapter or the defect is corrected.

(c)Establishing Amount Due and Civil Actions.—

The parties shall establish the value of installation and the amount of reimbursement under this section. If the parties do not agree, or if a manufacturer or distributor refuses to comply with subsection (a) or (b) of this section, the distributor or dealer purchasing the motor vehicle or motor vehicle equipment may bring a civil action. The action may be brought in a United States district court for the judicial district in which the manufacturer or distributor resides, is found, or has an agent, to recover damages, court costs, and a reasonable attorney’s fee. An action under this section must be brought not later than 3 years after the claim accrues.

Source credit: (Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 947.)

history & why it existsrecord from the source credit

1994Enacted · Pub. L. 103-272 · 108 Stat. 947

A history note hasn’t been published yet. The record shows enactment by Pub. L. 103-272 on 1994-07-05.

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