Iowa lemon law
Discover exactly what is in the Iowa lemon law...
The Iowa lemon law
encompasses personal vehicles except for mopeds, motorcycles, motor homes and
vehicles over 10,000 lbs. GVW.
The Iowa lemon law applies only to cars purchased after 1991, and to warranty repairs and replacements for motor vehicles which develop defects within the first two years or 24,000 miles after the purchase.
Before we show you the entire Iowa lemon law, you might want to click here to check out our introduction to lemon laws.
Here is the Iowa lemon law in its entirety:
Iowa Lemon Law
322G.1 Legislative intent.
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 this chapter. However, this chapter does not limit the rights
or remedies which are otherwise available to a consumer under any other law.
322G.2 Definitions.
As used in this chapter, unless the context otherwise requires:
1. "Collateral charges" means those additional charges to a consumer
wholly incurred as a result of the acquisition of the motor vehicle. For the
purposes of this chapter, collateral charges include, but are not limited to,
charges for manufacturer-installed or agent-installed items, earned finance
charges, use taxes, and title charges.
2. "Condition" means a general problem that may be attributable to
a defect in more than one part.
3. "Consumer" 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.
4. "Days" means calendar days.
5. "Department" means the attorney general.
6. "Incidental charges" 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.
7. "Lease price" means the aggregate of the following:
a. Lessor's actual purchase costs.
b. Collateral charges, if applicable.
c. Any fee paid to another to obtain the lease.
d. Any insurance or other costs expended by the lessor for the benefit of the
lessee.
e. 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.
f. An amount equal to five percent of the lessor's actual purchase cost.
8. "Lemon law rights period" 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.
9. "Lessee" 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.
10. "Lessee cost" means the aggregate of the deposit and rental payments
previously paid to the lessor for the leased vehicle.
11. "Lessor" 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.
12. "Manufacturer" 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.
13. "Motor vehicle" means a self-propelled vehicle purchased or leased
in this state, except as provided in section 322G.15, and primarily designed
for the transportation of persons or property over public streets and highways,
but does not include mopeds, motorcycles, motor homes, or vehicles over ten
thousand pounds gross vehicle weight rating.
14. "Nonconformity" 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.
15. "Person" means person as defined in section 714.16.
16. "Program" means an informal dispute settlement procedure established
by a manufacturer which mediates and arbitrates motor vehicle warranty disputes
arising in this state.
17. "Purchase price" 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.
18. "Reasonable offset for use" 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.
19. "Replacement motor vehicle" 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.
20. "Substantially impair" 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.
21. "Warranty" 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.
322G.3 Duties of manufacturer.
1. 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 this chapter. 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 this chapter.
2. 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.
3. 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.
4. 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.
5. 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:
a. 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.
b. 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.
322G.4 Nonconformity of motor vehicles.
1. 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 this subsection, the requirement that the manufacturer be given a final attempt
to cure the nonconformity does not apply.
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.
2. 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.
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: 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 this chapter,
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 which the manufacturer
refunded to the consumer, lessee, or lessor under this section, if the manufacturer
provides to the department of revenue a written request for a refund and evidence
that the use tax was paid when the vehicle was purchased and that the manufacturer
refunded the use tax to the consumer, lessee, or lessor.
3. 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:
a. 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 subsection 1, and such nonconformity
continues to exist.
b. 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 subsection 1, and
such nonconformity continues to exist.
c. 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.
The terms of this subsection 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.
4. A manufacturer, or its authorized service agent, shall not refuse to examine
or repair any nonconformity for the purpose of avoiding liability under this
chapter.
322G.5 Affirmative defenses.
Any of the following is an affirmative defense to a claim under this chapter:
1. The alleged nonconformity or nonconformities do not substantially impair
the motor vehicle.
2. 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.
3. The claim by the consumer was not filed in good faith.
4. Any other defense allowed by law which may be raised against the claim.
322G.6 Informal dispute settlement procedures -- operations and certification.
1. At the time of the consumer's purchase or lease of the vehicle, a manufacturer
who has established a program certified pursuant to this section 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.
2. 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 this chapter and rules adopted under this chapter.
3. A certified program shall allow an oral presentation by a party, or by a
party's employee, agent, or representative.
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.
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.
4. 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 this
section, 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.
5. A certified program shall, in rendering decisions, take into account the
provisions of this chapter 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
section 322G.4, subsection 3, including a final attempt by the manufacturer
to repair the motor vehicle, if undertaken as provided for in section 322G.4,
subsection 1, and the consumer is entitled to a replacement vehicle or a refund
under section 322G.4, subsection 2, the decision shall be limited to relief
as allowed under section 322G.4, subsection 2. In an action brought by a consumer
under this chapter, the decision of a certified program is admissible in evidence.
6. 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.
7. 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 this chapter. All records for each dispute shall be available for the audit.
Such audit, upon completion, shall be forwarded to the attorney general.
8. 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.
9. 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.
10. 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.
11. 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 this chapter, and has informed the consumer how and where to file a claim
with the program pursuant to subsection 1, the provisions of section 322G.4,
subsection 2, do not apply to any consumer who has not first resorted to the
program.
322G.7 Informal dispute settlement procedure -- certification uniformity.
To facilitate uniform application, interpretation, and enforcement of this section
and section 322G.6, and in implementing rules adopted pursuant to section 322G.14,
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 this subsection may include any of the following:
1. 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 section
322G.6.
2. Sharing and exchanging information, documents, and records pertaining to
program operations.
3. Sharing personnel to perform joint reviews, surveys, and investigations of
program operations.
4. Preparing joint reports evaluating program operations.
5. Granting joint certifications and certification renewals.
6. Issuing joint denials or revocations of certification.
7. Holding a joint administrative hearing.
8. Formulating, in accordance with chapter 17A, 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
section 322G.6.
322G.8 Consumer remedies.
1. If a consumer resorts to a manufacturer's certified program and a decision
is not rendered within the time periods allowed in this chapter, or a manufacturer
has no certified program and the consumer has notified the manufacturer pursuant
to section 322G.4, subsection 1, the consumer may file an action in district
court under this chapter within one year from the expiration of the lemon law
rights period or an extension of the period pursuant to section 322G.4, subsection
3.
2. 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 this chapter 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 subsection 4. For purposes of this
subsection, "not satisfied with the performance of the decision" 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.
3. In an action under either subsection 1 or 2, the court shall award a consumer
who prevails the amount of any pecuniary loss, including relief the consumer
is entitled to under section 322G.4, subsection 2, 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 subsection 7.
4. 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 this chapter.
5. 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.
6. 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.
7. 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 section
322G.4, subsection 2, 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.
8. 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.
9. This chapter does not prohibit a consumer from pursuing other rights or remedies
under any other law.
322G.9 Compliance and disciplinary action.
The attorney general may enforce and ensure compliance with the provisions of
this chapter and rules adopted pursuant to section 322G.14, 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 this chapter or rules adopted pursuant to section
322G.14. A manufacturer may request a hearing pursuant to chapter 17A, the administrative
procedure Act, if the manufacturer contests the fine levied against it. The
proceeds from any fine levied and collected pursuant to this section shall be
placed in the attorney general's motor vehicle fraud and odometer law enforcement
fund for implementation and enforcement of this chapter.
322G.10 Unfair or deceptive trade practice.
A violation by a manufacturer of this chapter is an unfair or deceptive trade
practice in violation of section 714.16, subsection 2, paragraph "a".
322G.11 Dealer liability.
This chapter, except for the requirements of section 322G.12, 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 this chapter, except as provided in this
section. 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 this chapter, 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 this section is liable to the
injured dealer for full reimbursement plus reasonable costs and any attorney's
fees.
322G.12 Resale of returned vehicles.
A manufacturer who accepts the return of a motor vehicle pursuant to a settlement,
determination, or decision under this chapter 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 section 321.46. 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 section 321.46. For purposes of chapter 423, a manufacturer's
acceptance of the return of a motor vehicle, as described in this section, shall
not be considered "use", as defined in section 423.1. 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 this chapter 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 this paragraph and include
the "REBUILT" or "SALVAGE" designation on the registration
receipt and certificate of title in lieu of the designation required by this
paragraph.
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 this chapter 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 this
section, "settlement" 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
section 322G.4.
322G.13 Certain agreements void.
Any agreement entered into by a consumer that waives, limits, or disclaims the
rights set forth in this chapter is void as contrary to public policy.
322G.14 Rulemaking authority.
1. The attorney general shall adopt rules as necessary to implement this chapter.
2. In prescribing rules and forms under this chapter, the attorney general may
cooperate with agencies that perform similar functions in other states with
a view to effectuating the policy of this chapter 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.
322G.15 Applicability.
1. This chapter takes effect July 1, 1991, and applies to motor vehicles originally
purchased or leased by consumers on or after that date.
2. This chapter applies to motor vehicles originally purchased or leased in
this state and, except for section 322G.3, subsections 1 and 2, and section
322G.6, subsection 1, 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 this chapter.
That is the text of the entire Iowa lemon law.
