Defects and noncompliance found before sale to purchaser
- Sec. 30116. Defects and
noncompliance found before sale to purchaser
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- ACTIONS REQUIRED OF
MANUFACTURERS AND DISTRIBUTORS If, after a
manufacturer or distributor sells a motor vehicle
or motor vehicle equipment to a distributor or
dealer and before the distributor or dealer sells
the vehicle or equipment, it is decided that the
vehicle or equipment contains a defect related to
motor vehicle safety or does not comply with
applicable motor vehicle safety standards
prescribed under this chapter
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- the manufacturer or
distributor immediately shall repurchase
the vehicle or equipment at the price
paid by the distributor or dealer, plus
transportation charges and reasonable
reimbursement of at least one percent a
month of the price paid prorated from the
date of notice of noncompliance or defect
to the date of repurchase; or
- if a vehicle, the
manufacturer or distributor immediately
shall give to the distributor or dealer
at the manufacturer's or distributor's
own expense, the part or equipment needed
to make the vehicle comply with the
standards or correct the defect.
- DISTRIBUTOR OR DEALER
INSTALLATION The distributor or dealer shall
install the part or equipment referred to in
subsection (a)(2) of this section. If the
distributor or dealer installs the part or
equipment with reasonable diligence after it is
received, the manufacturer shall reimburse the
distributor or dealer for the reasonable value of
the installation and a reasonable reimbursement
of at least one percent a month of the
manufacturer's or distributor's selling price
prorated from the date of notice of noncompliance
or defect to the date the motor vehicle complies
with applicable motor vehicle safety standards
prescribed under this chapter or the defect is
corrected.
- ESTABLISHING AMOUNT DUE AND
CIVIL ACTIONS. The parties shall establish
the value of installation and the amount of
reimbursement under this section. If the parties
do not agree, or if a manufacturer or distributor
refuses to comply with subsection (a) or (b) of
this section, the distributor or dealer
purchasing the motor vehicle or motor vehicle
equipment may bring a civil action. The action
may be brought in a United States district court
for the judicial district in which the
manufacturer or distributor resides, is found, or
has an agent, to recover damages, court costs,
and a reasonable attorney's fee. An action under
this section must be brought not later than 3
years after the claim accrues.
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