49-U.S.C.-30116

49-U.S.C.-30116

§30116 – Defects and Noncompliance Found Before Sale to Purchaser

Pathway

Title 49 > Subtitle VI > Part A > Chapter 301 > Subchapter II > Section 30116

Details

  • Reference: Section 30116
  • Legend: §30116 – Defects and Noncompliance Found Before Sale to Purchaser
  • USCode Year: 2013

Provision Content

(a) 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—

(1) 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

(2) if a vehicle, the manufacturer or distributor immediately shall give to the distributor or dealer at the manufacturers or distributors own expense, the part or equipment needed to make the vehicle comply with the standards or correct the defect.

(b) 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 manufacturers or distributors 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.

(c) 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 attorneys fee. An action under this section must be brought not later than 3 years after the claim accrues.

(Pub. L. 103–272, §1(e), July 5, 1994, 108 Stat. 947.)

Historical and Revision Notes
Revised
Section
Source (U.S. Code) Source (Statutes at Large)
30116(a) 15:1400(a) (less (2) (last 97 words)). Sept. 9, 1966, Pub. L. 89–563, §111, 80 Stat. 724.
30116(b) 15:1400(a)(2) (last 97 words).
30116(c) 15:1400(b), (c).

In subsection (a)(1), the words as the case may be, from such distributor or dealer, all . . . involved, and by the manufacturer or distributor are omitted as surplus.

In subsection (a)(2), the words manufacturers or distributors are substituted for his for clarity. The words or parts are omitted because of 1:1. The words the vehicle comply with the standards or correct the defect are substituted for conforming for clarity.

In subsection (b), the words the part or equipment referred to in subsection (a)(2) of this section are added because of the restatement. The words 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 are substituted for and for the installation involved the manufacturer shall reimburse such distributor or dealer . . . Provided, however, That the distributor or dealer proceeds with reasonable diligence with the installation after the required part, parts or equipment are received to eliminate unnecessary words. The words on or in such vehicle are omitted as surplus. The words notice of noncompliance or defect are substituted for notice of such nonconformance, and the words complies with applicable motor vehicle safety standards prescribed under this chapter or the defect is corrected are substituted for is brought into conformance with applicable Federal standards, to eliminate unnecessary words and for consistency in the revised title.

In subsection (c), the words the amount of reimbursement are substituted for such reasonable reimbursements for clarity and because of the restatement. The words by mutual agreement are omitted as surplus. The words If the parties do not agree are substituted for or failing such agreement, and the words by the court pursuant to the provisions of subsection (b) of this section are omitted, because of the restatement. The words the requirements of, then, as the case may be, and without respect to the amount in controversy are omitted as surplus. The words civil action are substituted for suit because of rule 2 of the Federal Rules of Civil Procedure (28 App. U.S.C.). The words against such manufacturer or distributor are omitted as surplus. The word judicial is added for consistency. The words to recover damages, court costs, and a reasonable attorneys fee are substituted for and shall recover the damage by him sustained, as well as all court costs plus reasonable attorneys’ fees, and the words must be brought are substituted for shall be forever barred unless commenced, to eliminate unnecessary words. The word claim is substituted for cause of action for consistency.

U.S. Encyclopedia of Law Coverage

49-U.S.C.-30115 in the Legal Encyclopedia: Transportation

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49-U.S.C.-30114 in the Legal Encyclopedia: Transport Programs

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49-U.S.C.-30113 in the Legal Encyclopedia: Standards

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Subtitle VI – Motor Vehicle and Driver Programs in the Legal Encyclopedia: Motor Vehicle Programs

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40-U.S.C.-17505 in the Legal Encyclopedia: Motor Vehicle

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