Text: HF00529 Text: HF00531 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 HOUSE FILE 530
1 2
1 3 AN ACT
1 4 CONCERNING ASSISTIVE DEVICES BY REQUIRING A WARRANTY, AND PRO-
1 5 VIDING FOR REPLACEMENT OF ASSISTIVE DEVICES AND CONSUMER
1 6 REMEDIES.
1 7
1 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 9
1 10 Section 1. NEW SECTION. 216E.1 DEFINITIONS.
1 11 As used in this chapter, unless the context otherwise
1 12 provides:
1 13 1. "Assistive device" means any item, piece of equipment,
1 14 or product system which is purchased, or whose transfer is
1 15 accepted in this state, and which is used to increase,
1 16 maintain, or improve the functional capabilities of
1 17 individuals with disabilities concerning a major life activity
1 18 as defined in section 225C.46. "Assistive device" does not
1 19 mean any medical device, surgical device, or organ implanted
1 20 or transplanted into or attached directly to an individual.
1 21 "Assistive device" does not mean any device for which a
1 22 certificate of title is issued by the state department of
1 23 transportation but does mean any item, piece of equipment, or
1 24 product system otherwise meeting the definition of "assistive
1 25 device" that is incorporated, attached, or included as a
1 26 modification in or to such a certificated device.
1 27 2. "Assistive device dealer" means a person who is in the
1 28 business of selling assistive devices.
1 29 3. "Assistive device lessor" means a person who leases
1 30 assistive devices to consumers, or who holds the lessor's
1 31 rights, under a written lease.
1 32 4. "Collateral costs" means expenses incurred by a
1 33 consumer in connection with the repair of a nonconformity,
1 34 including the cost of shipping, sales tax, and of obtaining an
1 35 alternative assistive device.
2 1 5. "Consumer" means any one of the following:
2 2 a. The purchaser of an assistive device, if the assistive
2 3 device was purchased from an assistive device dealer or
2 4 manufacturer for purposes other than resale.
2 5 b. A person to whom the assistive device is transferred
2 6 for purposes other than resale, if the transfer occurs before
2 7 the expiration of an express warranty applicable to the
2 8 assistive device.
2 9 c. A person who may enforce the warranty.
2 10 d. A person who leases an assistive device from an
2 11 assistive device lessor under a written lease.
2 12 6. "Demonstrator" means an assistive device used primarily
2 13 for the purpose of demonstration to the public.
2 14 7. "Early termination costs" means any expense or
2 15 obligation that an assistive device lessor incurs as a result
2 16 of both the termination of a written lease before the
2 17 termination date set forth in the lease and the return of an
2 18 assistive device to the manufacturer. "Early termination
2 19 cost" includes a penalty for prepayment under a finance
2 20 arrangement.
2 21 8. "Early termination savings" means any expense or
2 22 obligation that an assistive device lessor avoids as a result
2 23 of both the termination of a written lease before the
2 24 termination date set forth in the lease and the return of an
2 25 assistive device to a manufacturer which shall include an
2 26 interest charge that the assistive device lessor would have
2 27 paid to finance the assistive device or, if the assistive
2 28 device lessor does not finance the assistive device, the
2 29 difference between the total payments remaining for the period
2 30 of the lease term remaining after the early termination and
2 31 the present value of those remaining payments at the date of
2 32 the early termination.
2 33 9. "Loaner" means an assistive device, provided free of
2 34 charge to the consumer, for use by the consumer, that need not
2 35 be new or be identical to, or have functional capabilities
3 1 equal to or greater than, those of the original assistive
3 2 device, but that meets all of the following conditions:
3 3 a. The loaner is in good working order.
3 4 b. The loaner performs, at a minimum, the most essential
3 5 functions of the original assistive device, in light of the
3 6 disabilities of the consumer.
3 7 c. Any differences between the loaner and the original
3 8 assistive device do not create a threat to the consumer's
3 9 health or safety.
3 10 10. "Manufacturer" means a person who manufactures or
3 11 assembles assistive devices and agents of that person,
3 12 including an importer, a distributor, a factory branch,
3 13 distributor branch, and any warrantors of the assistive
3 14 device, but does not include an assistive device dealer or
3 15 assistive device lessor.
3 16 11. "Nonconformity" means any defect, malfunction, or
3 17 condition which substantially impairs the use, value, or
3 18 safety of an assistive device or any of its component parts,
3 19 but does not include a condition, defect, or malfunction that
3 20 is the result of abuse, neglect, or unauthorized modification
3 21 or alteration of the assistive device by the consumer.
3 22 12. "Reasonable attempt to repair" means any of the
3 23 following occurring within the terms of an express warranty
3 24 applicable to a new assistive device or within one year after
3 25 first delivery of the assistive device to a consumer,
3 26 whichever is sooner:
3 27 a. The manufacturer, assistive device lessor, or any of
3 28 the manufacturer's authorized assistive device dealers accept
3 29 return of the new assistive device for repair at least two
3 30 times.
3 31 b. The manufacturer, assistive device lessor, or any of
3 32 the manufacturer's authorized assistive device dealers place
3 33 the assistive device out of service for an aggregate of at
3 34 least thirty cumulative days because of warranty
3 35 nonconformities.
4 1 Sec. 2. NEW SECTION. 216E.2 EXPRESS WARRANTIES.
4 2 1. A manufacturer or assistive device lessor who sells or
4 3 leases an assistive device to a consumer, either directly or
4 4 through an assistive device dealer, shall furnish the consumer
4 5 with an express warranty for the assistive device, warranting
4 6 the assistive device to be free of any nonconformity. The
4 7 duration of the express warranty shall be not less than one
4 8 year after first delivery of the assistive device to the
4 9 consumer. If a manufacturer fails to furnish an express
4 10 warranty as required by this section, the assistive device
4 11 shall be covered by an express warranty as if the manufacturer
4 12 had furnished an express warranty to the consumer as required
4 13 by this section.
4 14 2. An express warranty does not take effect until the
4 15 consumer takes possession of the new assistive device.
4 16 Sec. 3. NEW SECTION. 216E.3 ASSISTIVE DEVICE REPLACEMENT
4 17 OR REFUND.
4 18 1. If an assistive device does not conform to an
4 19 applicable express warranty and the consumer reports the
4 20 nonconformity to the manufacturer, the assistive device
4 21 lessor, or any of the manufacturer's authorized assistive
4 22 device dealers, and makes the assistive device available for
4 23 repair before one year after first delivery of the device to
4 24 the consumer or within the period of the express warranty if
4 25 the warranty is longer than one year, a reasonable attempt to
4 26 repair the nonconformity shall be made.
4 27 2. If, after a reasonable attempt to repair, the
4 28 nonconformity is not repaired, the manufacturer shall carry
4 29 out the requirements of either paragraph "a" or "b" upon the
4 30 request of a consumer.
4 31 a. The manufacturer shall provide for a refund by doing
4 32 one of the following:
4 33 (1) If the assistive device was purchased by the consumer,
4 34 accept return of the assistive device and refund to the
4 35 consumer and to any holder of perfected security interest in
5 1 the consumer's assistive device, as the holder's interest may
5 2 appear, the full purchase price plus any finance charge paid
5 3 by the consumer at the point of sale and collateral costs,
5 4 less a reasonable allowance for use.
5 5 (2) If the assistive device was leased by the consumer,
5 6 accept return of the assistive device, refund to the assistive
5 7 device lessor and to any holder of a perfected security
5 8 interest in the assistive device, as the holder's interest may
5 9 appear, the current value of the written lease and refund to
5 10 the consumer the amount that the consumer paid under the
5 11 written lease plus any collateral costs, less a reasonable
5 12 allowance for use. The manufacturer shall have a cause of
5 13 action against the dealer or lessor for reimbursement of any
5 14 amount that the manufacturer pays to a consumer which exceeds
5 15 the net price received by the manufacturer for the assistive
5 16 device.
5 17 b. The manufacturer shall provide a comparable new
5 18 assistive device or offer a refund to the consumer if the
5 19 consumer does any one of the following:
5 20 (1) Offers to transfer possession of the assistive device
5 21 to the manufacturer. No later than thirty days after that
5 22 offer, the manufacturer shall provide the consumer with the
5 23 comparable new assistive device or a refund. When the
5 24 manufacturer provides the new assistive device or refund, the
5 25 consumer shall return the assistive device having the
5 26 nonconformity to the manufacturer, along with any endorsements
5 27 necessary to transfer legal possession to the manufacturer.
5 28 (2) Offers to return the assistive device to the
5 29 manufacturer. No later than thirty days after the offer, the
5 30 manufacturer shall provide a refund to the consumer. When the
5 31 manufacturer provides a refund, the consumer shall return the
5 32 assistive device having the nonconformity to the manufacturer.
5 33 (3) Offers to transfer possession of a leased assistive
5 34 device to the manufacturer. No later than thirty days after
5 35 the offer, the manufacturer shall provide a refund to the
6 1 assistive device lessor. When the manufacturer provides the
6 2 refund, the assistive device lessor shall provide to the
6 3 manufacturer any endorsements necessary to transfer legal
6 4 possession to the manufacturer.
6 5 3. Under the provisions of this section, the current value
6 6 of the written lease equals the total amount for which that
6 7 lease obligates the consumer during the period of the lease
6 8 remaining after its early termination, plus the assistive
6 9 device lessor's early termination costs and the value of the
6 10 assistive device at the lease expiration date if the lease
6 11 sets forth that value, less the assistive device lessor's
6 12 early termination savings.
6 13 4. Under the provisions of this section, a reasonable
6 14 allowance for use shall not exceed the amount obtained by
6 15 multiplying the total amount for which the written lease
6 16 obligates the consumer by a fraction, the denominator of which
6 17 is one thousand eight hundred twenty-five and the numerator of
6 18 which is the number of days that the consumer used the
6 19 assistive device before first reporting the nonconformity to
6 20 the manufacturer, assistive device lessor, or assistive device
6 21 dealer.
6 22 5. A person shall not enforce a lease against a consumer
6 23 after the consumer receives a refund.
6 24 Sec. 4. NEW SECTION. 216E.4 MANUFACTURER'S DUTY TO
6 25 PROVIDE REIMBURSEMENT OR A LOANER FOR TEMPORARY REPLACEMENT OF
6 26 ASSISTIVE DEVICES – PENALTIES.
6 27 1. Whenever an assistive device covered by a
6 28 manufacturer's express warranty is tendered by a consumer to
6 29 the dealer from whom the assistive device was purchased or
6 30 exchanged for the repair of any defect, malfunction, or
6 31 nonconformity to which the warranty is applicable, the
6 32 manufacturer shall provide the consumer, at the consumer's
6 33 choice, for the duration of the repair period, either a rental
6 34 assistive device reimbursement of up to twenty dollars per
6 35 day, or a loaner, without cost to the consumer, if a loaner is
7 1 reasonably available or obtainable by the manufacturer,
7 2 assistive device lessor, or assistive device dealer, if any of
7 3 the following applies:
7 4 a. The repair period exceeds ten working days, including
7 5 the day on which the device is tendered to the manufacturer or
7 6 an assistive device dealer designated by the manufacturer for
7 7 repairs. If the assistive device dealer does not tender the
7 8 assistive device to the manufacturer in a timely enough manner
7 9 for the manufacturer to make the repairs within ten days, the
7 10 manufacturer shall have a cause of action against the
7 11 assistive device dealer for reimbursement of any penalties
7 12 that the manufacturer must pay.
7 13 b. The nonconformity is the same for which the assistive
7 14 device has been tendered to the assistive device dealer for
7 15 repair on at least two previous occasions.
7 16 2. The provisions of this section regarding a
7 17 manufacturer's duty shall apply for the period of the
7 18 applicable express warranty, or until the date any repair
7 19 required by the warranty is completed and the assistive device
7 20 is returned to the consumer with the nonconformity eliminated,
7 21 whichever is later, even if the assistive device is returned
7 22 after the end of the warranty period.
7 23 Sec. 5. NEW SECTION. 216E.5 NONCONFORMITY DISCLOSURE
7 24 REQUIREMENT.
7 25 An assistive device returned by a consumer or assistive
7 26 device lessor in this state or any other state for
7 27 nonconformity shall not be sold or leased again in this state
7 28 unless full written disclosure of the reason for return is
7 29 made to any prospective buyer or lessee by the manufacturer,
7 30 assistive device dealer, or assistive device lessor.
7 31 Sec. 6. NEW SECTION. 216E.6 REMEDIES.
7 32 1. This chapter shall not limit rights or remedies
7 33 available to a consumer under any other law.
7 34 2. Any waiver of rights by a consumer under this chapter
7 35 is void.
8 1 3. In addition to pursuing any other remedy, a consumer
8 2 may bring an action to recover any damages caused by a
8 3 violation of this chapter. The court shall award a consumer
8 4 who prevails in such an action no more than three times the
8 5 amount of any pecuniary loss, together with costs and
8 6 reasonable attorney fees, and any equitable relief that the
8 7 court determines is appropriate.
8 8 Sec. 7. NEW SECTION. 216E.7 EXEMPTIONS.
8 9 This chapter does not apply to a hearing aid sold, leased,
8 10 or transferred to a consumer by an audiologist licensed under
8 11 chapter 147, or a hearing aid dealer licensed under chapter
8 12 154A, if the audiologist or dealer provides either an express
8 13 warranty for the hearing aid or provides for service and
8 14 replacement of the hearing aid.
8 15
8 16
8 17
8 18 RON J. CORBETT
8 19 Speaker of the House
8 20
8 21
8 22
8 23 MARY E. KRAMER
8 24 President of the Senate
8 25
8 26 I hereby certify that this bill originated in the House and
8 27 is known as House File 530, Seventy-seventh General Assembly.
8 28
8 29
8 30
8 31 ELIZABETH ISAACSON
8 32 Chief Clerk of the House
8 33 Approved , 1998
8 34
8 35
9 1
9 2 TERRY E. BRANSTAD
9 3 Governor
Text: HF00529 Text: HF00531 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
© 1998 Cornell College and League of Women Voters of Iowa
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