<?xml version="1.0" encoding="UTF-8"?><slim:Document xmlns:slim="urn:legix:slim" xmlns:xhtml="http://www.w3.org/1999/xhtml" xmlns:atipl="http://www.arbortext.com/namespace/PageLayout" class="codeChapter" id="chp322G" name="322G"><slim:About class="header"><slim:Property type="string" name="version"/></slim:About><slim:TOC><slim:Item idref="sec322G.1" title="322G.1   Legislative intent."/><slim:Item idref="sec322G.2" title="322G.2   Definitions."/><slim:Item idref="sec322G.3" title="322G.3   Duties of manufacturer."/><slim:Item idref="sec322G.4" title="322G.4   Nonconformity of motor vehicles."/><slim:Item idref="sec322G.5" title="322G.5   Affirmative defenses."/><slim:Item idref="sec322G.6" title="322G.6   Informal dispute settlement procedures — operations and certification."/><slim:Item idref="sec322G.7" title="322G.7   Informal dispute settlement procedure — certification uniformity."/><slim:Item idref="sec322G.8" title="322G.8   Consumer remedies."/><slim:Item idref="sec322G.9" title="322G.9   Compliance and disciplinary action."/><slim:Item idref="sec322G.10" title="322G.10   Unfair or deceptive trade practice."/><slim:Item idref="sec322G.11" title="322G.11   Dealer liability."/><slim:Item idref="sec322G.12" title="322G.12   Resale of returned vehicles."/><slim:Item idref="sec322G.13" title="322G.13   Certain agreements void."/><slim:Item idref="sec322G.14" title="322G.14   Rulemaking authority."/><slim:Item idref="sec322G.15" title="322G.15   Applicability."/></slim:TOC><slim:Body><slim:Level class="codeChapter" id="chp322G"><slim:Heading class="heading"><xhtml:span class="identifier">322G</xhtml:span><xhtml:span class="headnote">DEFECTIVE MOTOR VEHICLES<xhtml:span class="blank-line"/> (LEMON LAW)</xhtml:span></slim:Heading><slim:Section class="codeSection" id="sec322G.1"><xhtml:div class="heading"><xhtml:span class="identifier">322G.1</xhtml:span><xhtml:span class="headnote">Legislative intent.</xhtml:span></xhtml:div><xhtml:p class="para">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 <xhtml:span class="iowaCodeRef">this chapter</xhtml:span>. However, <xhtml:span class="iowaCodeRef">this chapter</xhtml:span> does not limit the rights or remedies which are otherwise available to a consumer under any other law.</xhtml:p><xhtml:div class="history"><xhtml:div class="historyItem"><xhtml:p class="p"><xhtml:span class="iowaActsRef">91 Acts, ch 153, §1</xhtml:span></xhtml:p></xhtml:div></xhtml:div></slim:Section><slim:Section class="codeSection" id="sec322G.2"><xhtml:div class="heading"><xhtml:span class="identifier">322G.2</xhtml:span><xhtml:span class="headnote">Definitions.</xhtml:span></xhtml:div><xhtml:p class="para">As used in <xhtml:span class="iowaCodeRef">this chapter</xhtml:span>, unless the context otherwise requires:</xhtml:p><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">1</xhtml:span></xhtml:div><xhtml:p class="para"><xhtml:span class="term">“Collateral charges”</xhtml:span> means those additional charges to a consumer wholly incurred as a result of the acquisition of the motor vehicle. For the purposes of <xhtml:span class="iowaCodeRef">this chapter</xhtml:span>, collateral charges include, but are not limited to, charges for manufacturer-installed or agent-installed items, earned finance charges, use taxes, and title charges.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">2</xhtml:span></xhtml:div><xhtml:p class="para"><xhtml:span class="term">“Condition”</xhtml:span> means a general problem that may be attributable to a defect in more than one part.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">3</xhtml:span></xhtml:div><xhtml:p class="para"><xhtml:span class="term">“Consumer”</xhtml:span> 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.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">4</xhtml:span></xhtml:div><xhtml:p class="para"><xhtml:span class="term">“Days”</xhtml:span> means calendar days.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">5</xhtml:span></xhtml:div><xhtml:p class="para"><xhtml:span class="term">“Department”</xhtml:span> means the attorney general.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">6</xhtml:span></xhtml:div><xhtml:p class="para"><xhtml:span class="term">“Incidental charges”</xhtml:span> 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.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">7</xhtml:span></xhtml:div><xhtml:p class="para"><xhtml:span class="term">“Lease price”</xhtml:span> means the aggregate of the following:</xhtml:p><xhtml:div class="letteredPara"><xhtml:div class="heading"><xhtml:span class="identifier">a</xhtml:span></xhtml:div><xhtml:p class="para">Lessor’s actual purchase costs.</xhtml:p></xhtml:div><xhtml:div class="letteredPara"><xhtml:div class="heading"><xhtml:span class="identifier">b</xhtml:span></xhtml:div><xhtml:p class="para">Collateral charges, if applicable.</xhtml:p></xhtml:div><xhtml:div class="letteredPara"><xhtml:div class="heading"><xhtml:span class="identifier">c</xhtml:span></xhtml:div><xhtml:p class="para">Any fee paid to another to obtain the lease.</xhtml:p></xhtml:div><xhtml:div class="letteredPara"><xhtml:div class="heading"><xhtml:span class="identifier">d</xhtml:span></xhtml:div><xhtml:p class="para">Any insurance or other costs expended by the lessor for the benefit of the lessee.</xhtml:p></xhtml:div><xhtml:div class="letteredPara"><xhtml:div class="heading"><xhtml:span class="identifier">e</xhtml:span></xhtml:div><xhtml:p class="para">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.</xhtml:p></xhtml:div><xhtml:div class="letteredPara"><xhtml:div class="heading"><xhtml:span class="identifier">f</xhtml:span></xhtml:div><xhtml:p class="para">An amount equal to five percent of the lessor’s actual purchase cost.</xhtml:p></xhtml:div></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">8</xhtml:span></xhtml:div><xhtml:p class="para"><xhtml:span class="term">“Lemon law rights period”</xhtml:span> 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.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">9</xhtml:span></xhtml:div><xhtml:p class="para"><xhtml:span class="term">“Lessee”</xhtml:span> 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.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">10</xhtml:span></xhtml:div><xhtml:p class="para"><xhtml:span class="term">“Lessee cost”</xhtml:span> means the aggregate of the deposit and rental payments previously paid to the lessor for the leased vehicle.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">11</xhtml:span></xhtml:div><xhtml:p class="para"><xhtml:span class="term">“Lessor”</xhtml:span> 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.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">12</xhtml:span></xhtml:div><xhtml:p class="para"><xhtml:span class="term">“Manufacturer”</xhtml:span> 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.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">13</xhtml:span></xhtml:div><xhtml:p class="para"><xhtml:span class="term">“Motor vehicle”</xhtml:span> means a self-propelled vehicle purchased or leased in this state, except as provided in <xhtml:span class="iowaCodeRef">section 322G.15</xhtml:span>, and primarily designed for the transportation of persons or property over public streets and highways, but does not include mopeds, motorcycles, autocycles, motor homes, or vehicles over fifteen thousand pounds gross vehicle weight rating.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">14</xhtml:span></xhtml:div><xhtml:p class="para"><xhtml:span class="term">“Nonconformity”</xhtml:span> 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.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">15</xhtml:span></xhtml:div><xhtml:p class="para"><xhtml:span class="term">“Person”</xhtml:span> means person as defined in <xhtml:span class="iowaCodeRef">section 714.16</xhtml:span>.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">16</xhtml:span></xhtml:div><xhtml:p class="para"><xhtml:span class="term">“Program”</xhtml:span> means an informal dispute settlement procedure established by a manufacturer which mediates and arbitrates motor vehicle warranty disputes arising in this state.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">17</xhtml:span></xhtml:div><xhtml:p class="para"><xhtml:span class="term">“Purchase price”</xhtml:span> 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.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">18</xhtml:span></xhtml:div><xhtml:p class="para"><xhtml:span class="term">“Reasonable offset for use”</xhtml:span> 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 thousand.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">19</xhtml:span></xhtml:div><xhtml:p class="para"><xhtml:span class="term">“Replacement motor vehicle”</xhtml:span> 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 acquisition.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">20</xhtml:span></xhtml:div><xhtml:p class="para"><xhtml:span class="term">“Substantially impair”</xhtml:span> means to render the motor vehicle unfit, unreliable, or unsafe for warranted or ordinary use, or to significantly diminish the value of the motor vehicle.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">21</xhtml:span></xhtml:div><xhtml:p class="para"><xhtml:span class="term">“Warranty”</xhtml:span> 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.</xhtml:p></xhtml:div><xhtml:div class="history"><xhtml:div class="historyItem"><xhtml:span class="iowaActsRef">91 Acts, ch 153, §2</xhtml:span>; <xhtml:span class="iowaActsRef">95 Acts, ch 45, §6</xhtml:span>; <xhtml:span class="iowaActsRef">2014 Acts, ch 1072, §1, 2</xhtml:span>; <xhtml:span class="iowaActsRef">2016 Acts, ch 1098, §30</xhtml:span></xhtml:div></xhtml:div></slim:Section><slim:Section class="codeSection" id="sec322G.3"><xhtml:div class="heading"><xhtml:span class="identifier">322G.3</xhtml:span><xhtml:span class="headnote">Duties of manufacturer.</xhtml:span></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">1</xhtml:span></xhtml:div><xhtml:p class="para">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 <xhtml:span class="iowaCodeRef">this chapter</xhtml:span>. 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 <xhtml:span class="iowaCodeRef">this chapter</xhtml:span>.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">2</xhtml:span></xhtml:div><xhtml:p class="para">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 general.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">3</xhtml:span></xhtml:div><xhtml:p class="para">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.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">4</xhtml:span></xhtml:div><xhtml:p class="para">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.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">5</xhtml:span></xhtml:div><xhtml:p class="para">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:</xhtml:p><xhtml:div class="letteredPara"><xhtml:div class="heading"><xhtml:span class="identifier">a</xhtml:span></xhtml:div><xhtml:p class="para">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.</xhtml:p></xhtml:div><xhtml:div class="letteredPara"><xhtml:div class="heading"><xhtml:span class="identifier">b</xhtml:span></xhtml:div><xhtml:p class="para">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.</xhtml:p></xhtml:div></xhtml:div><xhtml:div class="history"><xhtml:div class="historyItem"><xhtml:p class="p"><xhtml:span class="iowaActsRef">91 Acts, ch 153, §3</xhtml:span></xhtml:p></xhtml:div></xhtml:div></slim:Section><slim:Section class="codeSection" id="sec322G.4"><xhtml:div class="heading"><xhtml:span class="identifier">322G.4</xhtml:span><xhtml:span class="headnote">Nonconformity of motor vehicles.</xhtml:span></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">1</xhtml:span></xhtml:div><xhtml:div class="letteredPara"><xhtml:div class="heading"><xhtml:span class="identifier">a</xhtml:span></xhtml:div><xhtml:p class="para">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 <xhtml:span class="iowaCodeRef">this subsection</xhtml:span>, the requirement that the manufacturer be given a final attempt to cure the nonconformity does not apply.</xhtml:p></xhtml:div><xhtml:div class="letteredPara"><xhtml:div class="heading"><xhtml:span class="identifier">b</xhtml:span></xhtml:div><xhtml:p class="para">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.</xhtml:p></xhtml:div></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">2</xhtml:span></xhtml:div><xhtml:div class="letteredPara"><xhtml:div class="heading"><xhtml:span class="identifier">a</xhtml:span></xhtml:div><xhtml:p class="para">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.</xhtml:p></xhtml:div><xhtml:div class="letteredPara"><xhtml:div class="heading"><xhtml:span class="identifier">b</xhtml:span></xhtml:div><xhtml:p class="para">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:<xhtml:span class="em-space"/>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 <xhtml:span class="iowaCodeRef">this chapter</xhtml:span>, 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 shall refund to the manufacturer any use tax or fee for new registration which the manufacturer refunded to the consumer, lessee, or lessor under <xhtml:span class="iowaCodeRef">this section</xhtml:span>, if the manufacturer provides to the department of revenue a written request for a refund and evidence that the use tax or fee for new registration was paid when the vehicle was purchased and that the manufacturer refunded the use tax or fee for new registration to the consumer, lessee, or lessor.</xhtml:p></xhtml:div></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">3</xhtml:span></xhtml:div><xhtml:div class="letteredPara"><xhtml:div class="heading"><xhtml:span class="identifier">a</xhtml:span></xhtml:div><xhtml:p class="para">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:</xhtml:p><xhtml:div class="subpara"><xhtml:div class="heading"><xhtml:span class="identifier">1</xhtml:span></xhtml:div><xhtml:p class="para">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 <xhtml:span class="iowaCodeRef">subsection 1</xhtml:span>, and such nonconformity continues to exist.</xhtml:p></xhtml:div><xhtml:div class="subpara"><xhtml:div class="heading"><xhtml:span class="identifier">2</xhtml:span></xhtml:div><xhtml:p class="para">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 <xhtml:span class="iowaCodeRef">subsection 1</xhtml:span>, and such nonconformity continues to exist.</xhtml:p></xhtml:div><xhtml:div class="subpara"><xhtml:div class="heading"><xhtml:span class="identifier">3</xhtml:span></xhtml:div><xhtml:p class="para">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.</xhtml:p></xhtml:div></xhtml:div><xhtml:div class="letteredPara"><xhtml:div class="heading"><xhtml:span class="identifier">b</xhtml:span></xhtml:div><xhtml:p class="para">The terms of <xhtml:span class="iowaCodeRef">this subsection</xhtml:span> 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.</xhtml:p></xhtml:div></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">4</xhtml:span></xhtml:div><xhtml:p class="para">A manufacturer, or its authorized service agent, shall not refuse to examine or repair any nonconformity for the purpose of avoiding liability under <xhtml:span class="iowaCodeRef">this chapter</xhtml:span>.</xhtml:p></xhtml:div><xhtml:div class="history"><xhtml:div class="historyItem"><xhtml:span class="iowaActsRef">91 Acts, ch 153, §4</xhtml:span>; <xhtml:span class="iowaActsRef">2003 Acts, ch 145, §286</xhtml:span>; <xhtml:span class="iowaActsRef">2008 Acts, ch 1113, §107</xhtml:span>; <xhtml:span class="iowaActsRef">2010 Acts, ch 1061, §180</xhtml:span></xhtml:div></xhtml:div></slim:Section><slim:Section class="codeSection" id="sec322G.5"><xhtml:div class="heading"><xhtml:span class="identifier">322G.5</xhtml:span><xhtml:span class="headnote">Affirmative defenses.</xhtml:span></xhtml:div><xhtml:p class="para">Any of the following is an affirmative defense to a claim under <xhtml:span class="iowaCodeRef">this chapter</xhtml:span>:</xhtml:p><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">1</xhtml:span></xhtml:div><xhtml:p class="para">The alleged nonconformity or nonconformities do not substantially impair the motor vehicle.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">2</xhtml:span></xhtml:div><xhtml:p class="para">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 service agent.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">3</xhtml:span></xhtml:div><xhtml:p class="para">The claim by the consumer was not filed in good faith.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">4</xhtml:span></xhtml:div><xhtml:p class="para">Any other defense allowed by law which may be raised against the claim.</xhtml:p></xhtml:div><xhtml:div class="history"><xhtml:div class="historyItem"><xhtml:p class="p"><xhtml:span class="iowaActsRef">91 Acts, ch 153, §5</xhtml:span></xhtml:p></xhtml:div></xhtml:div></slim:Section><slim:Section class="codeSection" id="sec322G.6"><xhtml:div class="heading"><xhtml:span class="identifier">322G.6</xhtml:span><xhtml:span class="headnote">Informal dispute settlement procedures — operations and certification.</xhtml:span></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">1</xhtml:span></xhtml:div><xhtml:p class="para">At the time of the consumer’s purchase or lease of the vehicle, a manufacturer who has established a program certified pursuant to <xhtml:span class="iowaCodeRef">this section</xhtml:span> 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.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">2</xhtml:span></xhtml:div><xhtml:p class="para">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 <xhtml:span class="iowaCodeRef">this chapter</xhtml:span> and rules adopted under <xhtml:span class="iowaCodeRef">this chapter</xhtml:span>.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">3</xhtml:span></xhtml:div><xhtml:div class="letteredPara"><xhtml:div class="heading"><xhtml:span class="identifier">a</xhtml:span></xhtml:div><xhtml:p class="para">A certified program shall allow an oral presentation by a party, or by a party’s employee, agent, or representative.</xhtml:p></xhtml:div><xhtml:div class="letteredPara"><xhtml:div class="heading"><xhtml:span class="identifier">b</xhtml:span></xhtml:div><xhtml:p class="para">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.</xhtml:p></xhtml:div><xhtml:div class="letteredPara"><xhtml:div class="heading"><xhtml:span class="identifier">c</xhtml:span></xhtml:div><xhtml:p class="para">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.</xhtml:p></xhtml:div></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">4</xhtml:span></xhtml:div><xhtml:p class="para">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 <xhtml:span class="iowaCodeRef">this section</xhtml:span>, 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.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">5</xhtml:span></xhtml:div><xhtml:p class="para">A certified program shall, in rendering decisions, take into account the provisions of <xhtml:span class="iowaCodeRef">this chapter</xhtml:span> 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 <xhtml:span class="iowaCodeRef">section 322G.4, subsection 3</xhtml:span>, including a final attempt by the manufacturer to repair the motor vehicle, if undertaken as provided for in <xhtml:span class="iowaCodeRef">section 322G.4, subsection 1</xhtml:span>, and the consumer is entitled to a replacement vehicle or a refund under <xhtml:span class="iowaCodeRef">section 322G.4, subsection 2</xhtml:span>, the decision shall be limited to relief as allowed under <xhtml:span class="iowaCodeRef">section 322G.4, subsection 2</xhtml:span>. In an action brought by a consumer under <xhtml:span class="iowaCodeRef">this chapter</xhtml:span>, the decision of a certified program is admissible in evidence.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">6</xhtml:span></xhtml:div><xhtml:p class="para">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.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">7</xhtml:span></xhtml:div><xhtml:p class="para">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 <xhtml:span class="iowaCodeRef">this chapter</xhtml:span>. All records for each dispute shall be available for the audit. Such audit, upon completion, shall be forwarded to the attorney general.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">8</xhtml:span></xhtml:div><xhtml:p class="para">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.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">9</xhtml:span></xhtml:div><xhtml:p class="para">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.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">10</xhtml:span></xhtml:div><xhtml:p class="para">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.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">11</xhtml:span></xhtml:div><xhtml:p class="para">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 <xhtml:span class="iowaCodeRef">this chapter</xhtml:span>, and has informed the consumer how and where to file a claim with the program pursuant to <xhtml:span class="iowaCodeRef">subsection 1</xhtml:span>, the provisions of <xhtml:span class="iowaCodeRef">section 322G.4, subsection 2</xhtml:span>, do not apply to any consumer who has not first resorted to the program.</xhtml:p></xhtml:div><xhtml:div class="history"><xhtml:div class="historyItem"><xhtml:span class="iowaActsRef">91 Acts, ch 153, §6</xhtml:span>; <xhtml:span class="iowaActsRef">2010 Acts, ch 1061, §180</xhtml:span></xhtml:div></xhtml:div></slim:Section><slim:Section class="codeSection" id="sec322G.7"><xhtml:div class="heading"><xhtml:span class="identifier">322G.7</xhtml:span><xhtml:span class="headnote">Informal dispute settlement procedure — certification uniformity.</xhtml:span></xhtml:div><xhtml:p class="para">To facilitate uniform application, interpretation, and enforcement of <xhtml:span class="iowaCodeRef">this section</xhtml:span> and <xhtml:span class="iowaCodeRef">section 322G.6</xhtml:span>, and in implementing rules adopted pursuant to <xhtml:span class="iowaCodeRef">section 322G.14</xhtml:span>, 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 <xhtml:span class="iowaCodeRef">this section</xhtml:span> may include any of the following:</xhtml:p><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">1</xhtml:span></xhtml:div><xhtml:p class="para">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 <xhtml:span class="iowaCodeRef">section 322G.6</xhtml:span>.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">2</xhtml:span></xhtml:div><xhtml:p class="para">Sharing and exchanging information, documents, and records pertaining to program operations.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">3</xhtml:span></xhtml:div><xhtml:p class="para">Sharing personnel to perform joint reviews, surveys, and investigations of program operations.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">4</xhtml:span></xhtml:div><xhtml:p class="para">Preparing joint reports evaluating program operations.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">5</xhtml:span></xhtml:div><xhtml:p class="para">Granting joint certifications and certification renewals.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">6</xhtml:span></xhtml:div><xhtml:p class="para">Issuing joint denials or revocations of certification.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">7</xhtml:span></xhtml:div><xhtml:p class="para">Holding a joint administrative hearing.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">8</xhtml:span></xhtml:div><xhtml:p class="para">Formulating, in accordance with <xhtml:span class="iowaCodeRef">chapter 17A</xhtml:span>, 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 <xhtml:span class="iowaCodeRef">section 322G.6</xhtml:span>.</xhtml:p></xhtml:div><xhtml:div class="history"><xhtml:div class="historyItem"><xhtml:span class="iowaActsRef">91 Acts, ch 153, §7</xhtml:span>; <xhtml:span class="iowaActsRef">2019 Acts, ch 59, §99</xhtml:span></xhtml:div></xhtml:div></slim:Section><slim:Section class="codeSection" id="sec322G.8"><xhtml:div class="heading"><xhtml:span class="identifier">322G.8</xhtml:span><xhtml:span class="headnote">Consumer remedies.</xhtml:span></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">1</xhtml:span></xhtml:div><xhtml:p class="para">If a consumer resorts to a manufacturer’s certified program and a decision is not rendered within the time periods allowed in <xhtml:span class="iowaCodeRef">this chapter</xhtml:span>, or a manufacturer has no certified program and the consumer has notified the manufacturer pursuant to <xhtml:span class="iowaCodeRef">section 322G.4, subsection 1</xhtml:span>, the consumer may file an action in district court under <xhtml:span class="iowaCodeRef">this chapter</xhtml:span> within one year from the expiration of the lemon law rights period or an extension of the period pursuant to <xhtml:span class="iowaCodeRef">section 322G.4, subsection 3</xhtml:span>.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">2</xhtml:span></xhtml:div><xhtml:p class="para">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 <xhtml:span class="iowaCodeRef">this chapter</xhtml:span> 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 <xhtml:span class="iowaCodeRef">subsection 4</xhtml:span>. For purposes of <xhtml:span class="iowaCodeRef">this subsection</xhtml:span>, <xhtml:span class="term">“not satisfied with the performance of the decision”</xhtml:span> 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.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">3</xhtml:span></xhtml:div><xhtml:p class="para">In an action under either <xhtml:span class="iowaCodeRef">subsection 1 or 2</xhtml:span>, the court shall award a consumer who prevails the amount of any pecuniary loss, including relief the consumer is entitled to under <xhtml:span class="iowaCodeRef">section 322G.4, subsection 2</xhtml:span>, 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 <xhtml:span class="iowaCodeRef">subsection 7</xhtml:span>.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">4</xhtml:span></xhtml:div><xhtml:p class="para">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 <xhtml:span class="iowaCodeRef">this chapter</xhtml:span>.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">5</xhtml:span></xhtml:div><xhtml:p class="para">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.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">6</xhtml:span></xhtml:div><xhtml:p class="para">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.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">7</xhtml:span></xhtml:div><xhtml:p class="para">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 <xhtml:span class="iowaCodeRef">section 322G.4, subsection 2</xhtml:span>, 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.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">8</xhtml:span></xhtml:div><xhtml:p class="para">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.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">9</xhtml:span></xhtml:div><xhtml:p class="para"><xhtml:span class="iowaCodeRef">This chapter</xhtml:span> does not prohibit a consumer from pursuing other rights or remedies under any other law.</xhtml:p></xhtml:div><xhtml:div class="history"><xhtml:div class="historyItem"><xhtml:p class="p"><xhtml:span class="iowaActsRef">91 Acts, ch 153, §8</xhtml:span></xhtml:p></xhtml:div></xhtml:div></slim:Section><slim:Section class="codeSection" id="sec322G.9"><xhtml:div class="heading"><xhtml:span class="identifier">322G.9</xhtml:span><xhtml:span class="headnote">Compliance and disciplinary action.</xhtml:span></xhtml:div><xhtml:p class="para">The attorney general may enforce and ensure compliance with the provisions of <xhtml:span class="iowaCodeRef">this chapter</xhtml:span> and rules adopted pursuant to <xhtml:span class="iowaCodeRef">section 322G.14</xhtml:span>, 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 <xhtml:span class="iowaCodeRef">this chapter</xhtml:span> or rules adopted pursuant to <xhtml:span class="iowaCodeRef">section 322G.14</xhtml:span>. A manufacturer may request a hearing pursuant to <xhtml:span class="iowaCodeRef">chapter 17A</xhtml:span>, the administrative procedure Act, if the manufacturer contests the fine levied against it. The proceeds from any fine levied and collected pursuant to <xhtml:span class="iowaCodeRef">this section</xhtml:span> shall be placed in the attorney general’s motor vehicle fraud and odometer law enforcement fund for implementation and enforcement of <xhtml:span class="iowaCodeRef">this chapter</xhtml:span>.</xhtml:p><xhtml:div class="history"><xhtml:div class="historyItem"><xhtml:p class="p"><xhtml:span class="iowaActsRef">91 Acts, ch 153, §9</xhtml:span></xhtml:p></xhtml:div></xhtml:div></slim:Section><slim:Section class="codeSection" id="sec322G.10"><xhtml:div class="heading"><xhtml:span class="identifier">322G.10</xhtml:span><xhtml:span class="headnote">Unfair or deceptive trade practice.</xhtml:span></xhtml:div><xhtml:p class="para">A violation by a manufacturer of <xhtml:span class="iowaCodeRef">this chapter</xhtml:span> is an unfair or deceptive trade practice in violation of <xhtml:span class="iowaCodeRef">section 714.16, subsection 2</xhtml:span>, paragraph <xhtml:span class="i">“a”</xhtml:span>.</xhtml:p><xhtml:div class="history"><xhtml:div class="historyItem"><xhtml:p class="p"><xhtml:span class="iowaActsRef">91 Acts, ch 153, §10</xhtml:span></xhtml:p></xhtml:div></xhtml:div></slim:Section><slim:Section class="codeSection" id="sec322G.11"><xhtml:div class="heading"><xhtml:span class="identifier">322G.11</xhtml:span><xhtml:span class="headnote">Dealer liability.</xhtml:span></xhtml:div><xhtml:p class="para"><xhtml:span class="iowaCodeRef">This chapter</xhtml:span>, except for the requirements of <xhtml:span class="iowaCodeRef">section 322G.12</xhtml:span>, 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 <xhtml:span class="iowaCodeRef">this chapter</xhtml:span>, except as provided in <xhtml:span class="iowaCodeRef">this section</xhtml:span>. 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 <xhtml:span class="iowaCodeRef">this chapter</xhtml:span>, 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 <xhtml:span class="iowaCodeRef">this section</xhtml:span> is liable to the injured dealer for full reimbursement plus reasonable costs and any attorney’s fees.</xhtml:p><xhtml:div class="history"><xhtml:div class="historyItem"><xhtml:p class="p"><xhtml:span class="iowaActsRef">91 Acts, ch 153, §11</xhtml:span>; <xhtml:span class="iowaActsRef">95 Acts, ch 45, §7</xhtml:span></xhtml:p></xhtml:div></xhtml:div></slim:Section><slim:Section class="codeSection" id="sec322G.12"><xhtml:div class="heading"><xhtml:span class="identifier">322G.12</xhtml:span><xhtml:span class="headnote">Resale of returned vehicles.</xhtml:span></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">1</xhtml:span></xhtml:div><xhtml:p class="para">A manufacturer who accepts the return of a motor vehicle pursuant to a settlement, determination, or decision under <xhtml:span class="iowaCodeRef">this chapter</xhtml:span> 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 <xhtml:span class="iowaCodeRef">section 321.46</xhtml:span>. 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 <xhtml:span class="iowaCodeRef">section 321.46</xhtml:span> and the fee for new registration under <xhtml:span class="iowaCodeRef">section 321.105A</xhtml:span>.  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 <xhtml:span class="iowaCodeRef">this chapter</xhtml:span> 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 <xhtml:span class="iowaCodeRef">this subsection</xhtml:span> and include the “REBUILT” or “SALVAGE” designation on the registration receipt and certificate of title in lieu of the designation required by <xhtml:span class="iowaCodeRef">this subsection</xhtml:span>.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">2</xhtml:span></xhtml:div><xhtml:p class="para">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 <xhtml:span class="iowaCodeRef">this chapter</xhtml:span> 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 <xhtml:span class="iowaCodeRef">this section</xhtml:span>,<xhtml:span class="term">“settlement”</xhtml:span> 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 <xhtml:span class="iowaCodeRef">section 322G.4</xhtml:span>.</xhtml:p></xhtml:div><xhtml:div class="history"><xhtml:div class="historyItem"><xhtml:span class="iowaActsRef">91 Acts, ch 153, §12</xhtml:span>; <xhtml:span class="iowaActsRef">95 Acts, ch 45, §8</xhtml:span>; <xhtml:span class="iowaActsRef">2000 Acts, ch 1047, §3, 4</xhtml:span>; <xhtml:span class="iowaActsRef">2008 Acts, ch 1113, §108</xhtml:span>; <xhtml:span class="iowaActsRef">2020 Acts, ch 1062, §44</xhtml:span></xhtml:div></xhtml:div></slim:Section><slim:Section class="codeSection" id="sec322G.13"><xhtml:div class="heading"><xhtml:span class="identifier">322G.13</xhtml:span><xhtml:span class="headnote">Certain agreements void.</xhtml:span></xhtml:div><xhtml:p class="para">Any agreement entered into by a consumer that waives, limits, or disclaims the rights set forth in <xhtml:span class="iowaCodeRef">this chapter</xhtml:span> is void as contrary to public policy.</xhtml:p><xhtml:div class="history"><xhtml:div class="historyItem"><xhtml:p class="p"><xhtml:span class="iowaActsRef">91 Acts, ch 153, §13</xhtml:span></xhtml:p></xhtml:div></xhtml:div></slim:Section><slim:Section class="codeSection" id="sec322G.14"><xhtml:div class="heading"><xhtml:span class="identifier">322G.14</xhtml:span><xhtml:span class="headnote">Rulemaking authority.</xhtml:span></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">1</xhtml:span></xhtml:div><xhtml:p class="para">The attorney general shall adopt rules as necessary to implement <xhtml:span class="iowaCodeRef">this chapter</xhtml:span>.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">2</xhtml:span></xhtml:div><xhtml:p class="para">In prescribing rules and forms under <xhtml:span class="iowaCodeRef">this chapter</xhtml:span>, the attorney general may cooperate with agencies that perform similar functions in other states with a view to effectuating the policy of <xhtml:span class="iowaCodeRef">this chapter</xhtml:span> 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.</xhtml:p></xhtml:div><xhtml:div class="history"><xhtml:div class="historyItem"><xhtml:p class="p"><xhtml:span class="iowaActsRef">91 Acts, ch 153, §14</xhtml:span></xhtml:p></xhtml:div></xhtml:div></slim:Section><slim:Section class="codeSection" id="sec322G.15"><xhtml:div class="heading"><xhtml:span class="identifier">322G.15</xhtml:span><xhtml:span class="headnote">Applicability.</xhtml:span></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">1</xhtml:span></xhtml:div><xhtml:p class="para"><xhtml:span class="iowaCodeRef">This chapter</xhtml:span> takes effect July 1, 1991, and applies to motor vehicles originally purchased or leased by consumers on or after that date.</xhtml:p></xhtml:div><xhtml:div class="subsection"><xhtml:div class="heading"><xhtml:span class="identifier">2</xhtml:span></xhtml:div><xhtml:p class="para"><xhtml:span class="iowaCodeRef">This chapter</xhtml:span> applies to motor vehicles originally purchased or leased in this state and, except for <xhtml:span class="iowaCodeRef">section 322G.3, subsections 1 and 2</xhtml:span>, and <xhtml:span class="iowaCodeRef">section 322G.6, subsection 1</xhtml:span>, 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 <xhtml:span class="iowaCodeRef">this chapter</xhtml:span>.</xhtml:p></xhtml:div><xhtml:div class="history"><xhtml:div class="historyItem"><xhtml:p class="p"><xhtml:span class="iowaActsRef">91 Acts, ch 153, §15</xhtml:span>; <xhtml:span class="iowaActsRef">95 Acts, ch 45, §9</xhtml:span>; <xhtml:span class="iowaActsRef">96 Acts, ch 1079, §10</xhtml:span></xhtml:p></xhtml:div></xhtml:div></slim:Section></slim:Level></slim:Body></slim:Document>