Text: SF02123 Text: SF02125 Text: SF02100 - SF02199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 216E.1 DEFINITIONS.
1 2 As used in this chapter, unless the context otherwise
1 3 provides:
1 4 1. "Assistive device" means any item, piece of equipment,
1 5 or product system which is purchased, or whose transfer is
1 6 accepted in this state, and which is used to increase,
1 7 maintain, or improve the functional capabilities of
1 8 individuals with disabilities concerning a major life activity
1 9 as defined in section 225C.46. "Assistive device" does not
1 10 mean any medical device, surgical device, or organ implanted
1 11 or transplanted into or attached directly to an individual.
1 12 "Assistive device" does not mean any device for which a
1 13 certificate of title is issued by the state department of
1 14 transportation but does mean any item, piece of equipment, or
1 15 product system otherwise meeting the definition of "assistive
1 16 device" that is incorporated, attached, or included as a
1 17 modification in or to such a certificated device.
1 18 2. "Assistive device dealer" means a person who is in the
1 19 business of selling assistive devices.
1 20 3. "Assistive device lessor" means a person who leases
1 21 assistive devices to consumers, or who holds the lessor's
1 22 rights, under a written lease.
1 23 4. "Collateral costs" means expenses incurred by a
1 24 consumer in connection with the repair of a nonconformity,
1 25 including the cost of shipping, sales tax, and of obtaining an
1 26 alternative assistive device.
1 27 5. "Consumer" means any one of the following:
1 28 a. The purchaser of an assistive device, if the assistive
1 29 device was purchased from an assistive device dealer or
1 30 manufacturer for purposes other than resale.
1 31 b. A person to whom the assistive device is transferred
1 32 for purposes other than resale, if the transfer occurs before
1 33 the expiration of an express warranty applicable to the
1 34 assistive device.
1 35 c. A person who may enforce the warranty.
2 1 d. A person who leases an assistive device from an
2 2 assistive device lessor under a written lease.
2 3 6. "Demonstrator" means an assistive device used primarily
2 4 for the purpose of demonstration to the public.
2 5 7. "Early termination cost" means any expense or
2 6 obligation that an assistive device lessor incurs as a result
2 7 of both the termination of a written lease before the
2 8 termination date set forth in the lease and the return of an
2 9 assistive device to the manufacturer. "Early termination
2 10 cost" includes a penalty for prepayment under a finance
2 11 arrangement.
2 12 8. "Early termination savings" means any expense or
2 13 obligation that an assistive device lessor avoids as a result
2 14 of both the termination of a written lease before the
2 15 termination date set forth in the lease and the return of an
2 16 assistive device to a manufacturer which shall include an
2 17 interest charge that the assistive device lessor would have
2 18 paid to finance the assistive device or, if the assistive
2 19 device lessor does not finance the assistive device, the
2 20 difference between the total payments remaining for the period
2 21 of the lease term remaining after the early termination and
2 22 the present value of those remaining payments at the date of
2 23 the early termination.
2 24 9. "Loaner" means an assistive device, provided free of
2 25 charge to the consumer, for use by the consumer, that need not
2 26 be new or be identical to, or have functional capabilities
2 27 equal to or greater than, those of the original assistive
2 28 device, but that meets all of the following conditions:
2 29 a. The loaner is in good working order.
2 30 b. The loaner performs, at a minimum, the most essential
2 31 functions of the original assistive device, in light of the
2 32 disabilities of the consumer.
2 33 c. Any differences between the loaner and the original
2 34 assistive device do not create a threat to the consumer's
2 35 health or safety.
3 1 10. "Manufacturer" means a person who manufactures or
3 2 assembles assistive devices and agents of that person,
3 3 including an importer, a distributor, a factory branch,
3 4 distributor branch, and any warrantors of the assistive
3 5 device, but does not include an assistive device dealer or
3 6 assistive device lessor.
3 7 11. "Nonconformity" means any defect, malfunction, or
3 8 condition which substantially impairs the use, value, or
3 9 safety of an assistive device or any of its component parts,
3 10 but does not include a condition, defect, or malfunction that
3 11 is the result of abuse, neglect, or unauthorized modification
3 12 or alteration of the assistive device by the consumer.
3 13 12. "Reasonable attempt to repair" means any of the
3 14 following occurring within the term of an express warranty
3 15 applicable to a new assistive device or within one year after
3 16 first delivery of the assistive device to a consumer,
3 17 whichever is sooner:
3 18 a. The manufacturer, assistive device lessor, or any of
3 19 the manufacturer's authorized assistive device dealers accept
3 20 return of the new assistive device for repair at least two
3 21 times.
3 22 b. The manufacturer, assistive device lessor, or any of
3 23 the manufacturer's authorized assistive device dealers place
3 24 the assistive device out of service for an aggregate of at
3 25 least thirty cumulative days because of warranty non-
3 26 conformities.
3 27 Sec. 2. NEW SECTION. 216E.2 EXPRESS WARRANTIES.
3 28 1. A manufacturer or assistive device lessor who sells or
3 29 leases an assistive device to a consumer, either directly or
3 30 through an assistive device dealer, shall furnish the consumer
3 31 with an express warranty for the assistive device, warranting
3 32 the assistive device to be free of any nonconformity. The
3 33 duration of the express warranty shall be not less than one
3 34 year after first delivery of the assistive device to the
3 35 consumer. If a manufacturer fails to furnish an express
4 1 warranty as required by this section, the assistive device
4 2 shall be covered by an express warranty as if the manufacturer
4 3 had furnished an express warranty to the consumer as required
4 4 by this section.
4 5 2. An express warranty does not take effect until the
4 6 consumer takes possession of the new assistive device.
4 7 Sec. 3. NEW SECTION. 216E.3 ASSISTIVE DEVICE REPLACEMENT
4 8 OR REFUND.
4 9 1. If an assistive device does not conform to an
4 10 applicable express warranty and the consumer reports the
4 11 nonconformity to the manufacturer, the assistive device
4 12 lessor, or any of the manufacturer's authorized assistive
4 13 device dealers, and makes the assistive device available for
4 14 repair before one year after first delivery of the device to
4 15 the consumer or within the period of the express warranty if
4 16 the warranty is longer than one year, a reasonable attempt to
4 17 repair the nonconformity shall be made.
4 18 2. If, after a reasonable attempt to repair, the
4 19 nonconformity is not repaired, the manufacturer shall carry
4 20 out the requirements of either paragraph "a" or "b" upon the
4 21 request of a consumer.
4 22 a. The manufacturer shall provide for a refund by doing
4 23 one of the following:
4 24 (1) If the assistive device was purchased by the consumer,
4 25 accept return of the assistive device and refund to the
4 26 consumer and to any holder of perfected security interest in
4 27 the consumer's assistive device, as the holder's interest may
4 28 appear, the full purchase price plus any finance charge paid
4 29 by the consumer at the point of sale and collateral costs,
4 30 less a reasonable allowance for use.
4 31 (2) If the assistive device was leased by the consumer,
4 32 accept return of the assistive device, refund to the assistive
4 33 device lessor and to any holder of a perfected security
4 34 interest in the assistive device, as the holder's interest may
4 35 appear, the current value of the written lease and refund to
5 1 the consumer the amount that the consumer paid under the
5 2 written lease plus any collateral costs, less a reasonable
5 3 allowance for use. The manufacturer shall have a cause of
5 4 action against the dealer or lessor for reimbursement of any
5 5 amount that the manufacturer pays to a consumer which exceeds
5 6 the net price received by the manufacturer for the assistive
5 7 device.
5 8 b. The manufacturer shall provide a comparable new
5 9 assistive device or offer a refund to the consumer if the
5 10 consumer does any one of the following:
5 11 (1) Offers to transfer possession of the assistive device
5 12 to the manufacturer. No later than thirty days after that
5 13 offer, the manufacturer shall provide the consumer with the
5 14 comparable new assistive device or a refund. When the
5 15 manufacturer provides the new assistive device or refund, the
5 16 consumer shall return the assistive device having the
5 17 nonconformity to the manufacturer, along with any endorsements
5 18 necessary to transfer legal possession to the manufacturer.
5 19 (2) Offers to return the assistive device to the
5 20 manufacturer. No later than thirty days after the offer, the
5 21 manufacturer shall provide a refund to the consumer. When the
5 22 manufacturer provides a refund, the consumer shall return the
5 23 assistive device having the nonconformity to the manufacturer.
5 24 (3) Offers to transfer possession of a leased assistive
5 25 device to the manufacturer. No later than thirty days after
5 26 the offer, the manufacturer shall provide a refund to the
5 27 assistive device lessor. When the manufacturer provides the
5 28 refund, the assistive device lessor shall provide to the
5 29 manufacturer any endorsements necessary to transfer legal
5 30 possession to the manufacturer.
5 31 3. Under the provisions of this section, the current value
5 32 of the written lease equals the total amount for which that
5 33 lease obligates the consumer during the period of the lease
5 34 remaining after its early termination, plus the assistive
5 35 device lessor's early termination costs and the value of the
6 1 assistive device at the lease expiration date if the lease
6 2 sets forth that value, less the assistive device lessor's
6 3 early termination savings.
6 4 4. Under the provisions of this section, a reasonable
6 5 allowance for use shall not exceed the amount obtained by
6 6 multiplying the total amount for which the written lease
6 7 obligates the consumer by a fraction, the denominator of which
6 8 is one thousand eight hundred twenty-five and the numerator of
6 9 which is the number of days that the consumer used the
6 10 assistive device before first reporting the nonconformity to
6 11 the manufacturer, assistive device lessor, or assistive device
6 12 dealer.
6 13 5. A person shall not enforce a lease against a consumer
6 14 after the consumer receives a refund.
6 15 Sec. 4. NEW SECTION. 216E.4 MANUFACTURER'S DUTY TO
6 16 PROVIDE REIMBURSEMENT FOR TEMPORARY REPLACEMENT OF ASSISTIVE
6 17 DEVICES – PENALTIES.
6 18 1. Whenever an assistive device covered by a
6 19 manufacturer's express warranty is tendered by a consumer to
6 20 the dealer from whom the assistive device was purchased or
6 21 exchanged for the repair of any defect, malfunction, or
6 22 nonconformity to which the warranty is applicable, the
6 23 manufacturer shall provide the consumer, at the consumer's
6 24 choice, for the duration of the repair period, either a rental
6 25 assistive device reimbursement of up to twenty dollars per
6 26 day, or a loaner, without cost to the consumer, if a loaner is
6 27 reasonably available or obtainable by the manufacturer,
6 28 assistive device lessor, or assistive device dealer, if any of
6 29 the following applies:
6 30 a. The repair period exceeds ten working days, including
6 31 the day on which the device is tendered to the manufacturer or
6 32 an assistive device dealer designated by the manufacturer for
6 33 repairs. If the assistive device dealer does not tender the
6 34 assistive device to the manufacturer in a timely enough manner
6 35 for the manufacturer to make the repairs within ten days, the
7 1 manufacturer shall have a cause of action against the
7 2 assistive device dealer for reimbursement of any penalties
7 3 that the manufacturer must pay.
7 4 b. The nonconformity is the same for which the assistive
7 5 device has been tendered to the assistive device dealer for
7 6 repair on at least two previous occasions.
7 7 2. The provisions of this section regarding a
7 8 manufacturer's duty shall apply for the period of the
7 9 applicable express warranty, or until the date any repair
7 10 required by the warranty is completed and the assistive device
7 11 is returned to the consumer with the nonconformity eliminated,
7 12 whichever is later, even if the assistive device is returned
7 13 after the end of the warranty period.
7 14 Sec. 5. NEW SECTION. 216E.5 NONCONFORMITY DISCLOSURE
7 15 REQUIREMENT.
7 16 An assistive device returned by a consumer or assistive
7 17 device lessor in this state or any other state for
7 18 nonconformity shall not be sold or leased again in this state
7 19 unless full written disclosure of the reason for return is
7 20 made to any prospective buyer or lessee by the manufacturer,
7 21 assistive device dealer, or assistive device lessor.
7 22 Sec. 6. NEW SECTION. 216E.6 REMEDIES.
7 23 1. This chapter shall not limit rights or remedies
7 24 available to a consumer under any other law.
7 25 2. Any waiver of rights by a consumer under this chapter
7 26 is void.
7 27 3. In addition to pursuing any other remedy, a consumer
7 28 may bring an action to recover any damages caused by a
7 29 violation of this chapter. The court shall award a consumer
7 30 who prevails in such an action no more than three times the
7 31 amount of any pecuniary loss, together with costs and
7 32 reasonable attorney fees, and any equitable relief that the
7 33 court determines is appropriate.
7 34 Sec. 7. NEW SECTION. 216E.7 EXEMPTIONS.
7 35 This chapter does not apply to a hearing aid sold, leased,
8 1 or transferred to a consumer by an audiologist licensed under
8 2 chapter 147, or a hearing aid dealer licensed under chapter
8 3 154A, if the audiologist or dealer provides either an express
8 4 warranty for the hearing aid or provides for service and
8 5 replacement of the hearing aid.
8 6 EXPLANATION
8 7 This bill creates a new chapter regarding warranties for
8 8 assistive devices. The bill defines, for the purposes of this
8 9 chapter, "assistive devices", "consumer", "loaner",
8 10 "manufacturer", and other terms used in the chapter concerning
8 11 repair and cost.
8 12 The bill provides for an express warranty on assistive
8 13 devices of at least one year. The bill further provides for
8 14 the repair of a nonconforming assistive device and provides a
8 15 consumer with the ability to obtain a refund or a replacement
8 16 device if the nonconformity is not repaired. The bill also
8 17 provides that, if certain conditions are met, a manufacturer
8 18 must provide to a consumer either at least partial
8 19 reimbursement for inability to use an assistive device or a
8 20 free loaner assistive device if the device is being repaired.
8 21 The bill also provides that a resale of a device returned
8 22 for a nonconformity must disclose the reason for the return to
8 23 a new consumer of the device.
8 24 The bill does not limit a consumer's right to pursue other
8 25 remedies concerning an assistive device and provides for a
8 26 civil action to obtain damages for a violation of this new
8 27 Code chapter.
8 28 The bill provides that hearing aids sold, leased, or
8 29 transferred to a consumer from an audiologist or hearing aid
8 30 dealer are exempt from this new chapter if the audiologist or
8 31 dealer provides an express warranty or provides for service
8 32 and replacement of the hearing aid.
8 33 LSB 3898SS 77
8 34 ec/jw/5
Text: SF02123 Text: SF02125 Text: SF02100 - SF02199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
© 1998 Cornell College and League of Women Voters of Iowa
Comments about this site or page?
webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Tue Mar 31 03:40:03 CST 1998
URL: /DOCS/GA/77GA/Legislation/SF/02100/SF02124/980205.html
jhf