Indiana Lemon Law statute
.IC 24-5-13
Chapter 13. Motor Vehicle Protection
IC 24-5-13-1
Sec. 1. This chapter applies to all motor vehicles that are sold, leased,
transferred, or replaced by a dealer or manufacturer in Indiana.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-2
Sec. 2. As used in this chapter, "business day" means a day
other than Sunday or a legal holiday (as defined in IC 1-1-9-1).
As added by P.L.150-1988, SEC.1.
IC 24-5-13-3
Sec. 3. As used in this chapter, "buyer" means any person who,
for purposes other than resale or sublease, enters into an agreement or
contract within Indiana for the transfer, lease, or purchase of a motor
vehicle covered under this chapter.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-3.4
Sec. 3.4. As used in this chapter, "lease" means a contract
in the form of a lease or bailment for the use of a motor vehicle by a
person for more than four (4) months, whether or not the lessee has the
option to purchase or otherwise become the owner of the property at the
expiration of the lease.
As added by P.L.24-1989, SEC.25.
IC 24-5-13-3.7
Sec. 3.7. As used in this chapter, "lessor" means a person who:
(1) holds title to a motor vehicle leased to a lessee under a written lease
agreement; or
(2) holds the lessor's rights under an agreement described in subdivision
(1).
As added by P.L.24-1989, SEC.26.
IC 24-5-13-4
Sec. 4. As used in this chapter, "manufacturer" means any person
who is engaged in the business of manufacturing motor vehicles, or, in
the case of motor vehicles not manufactured in the United States, any
person who is engaged in the business of importing motor vehicles.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-5
Sec. 5. As used in this chapter, "motor vehicle" or "vehicle"
means any self-propelled vehicle that:
(1) has a declared gross vehicle weight of less than ten thousand (10,000)
pounds; (2) is sold to:
(A) a buyer in Indiana and registered in Indiana; or
(B) a buyer in Indiana who is not an Indiana resident (as defined in IC
9-13-2-78);
(3) is intended primarily for use and operation on public highways; and
(4) is required to be registered or licensed before use or operation.
The term does not include conversion vans, motor homes, farm tractors,
and other machines used in the actual production, harvesting, and care
of farm products, road building equipment, truck tractors, road tractors,
motorcycles, mopeds, snowmobiles, or vehicles designed primarily for offroad
use.
As added by P.L.150-1988, SEC.1. Amended by P.L.141-1990, SEC.1; P.L.2-1991, SEC.84.
IC 24-5-13-6
Sec. 6. As used in this chapter, "nonconformity" means any specific
or generic defect or condition or any concurrent combination of defects
or conditions that:
(1) substantially impairs the use, market value, or safety of a motor vehicle;
or
(2) renders the motor vehicle nonconforming to the terms of an applicable
manufacturer's warranty.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-7
Sec. 7. As used in this chapter, "term of protection" means
a period of time that:
(1) begins:
(A) on the date of original delivery of a motor vehicle to a buyer; or
(B) in the case of a replacement vehicle provided by a manufacturer to
a buyer under this chapter, on the date of delivery of the replacement
vehicle to the buyer; and
(2) ends the earlier of:
(A) eighteen (18) months after the date identified under subdivision (1);
or
(B) the time the motor vehicle has been driven eighteen thousand (18,000)
miles after the date identified under subdivision (1).
As added by P.L.150-1988, SEC.1.
IC 24-5-13-8
Sec. 8. If a motor vehicle suffers from a nonconformity and the buyer
reports the nonconformity within the term of protection to the manufacturer
of the vehicle, its agent, or its authorized dealer then the manufacturer
of the motor vehicle or the manufacturer's agent or authorized dealer
shall make the repairs that are necessary to correct the nonconformity,
even if the repairs are made after expiration of the term of protection.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-9
Sec. 9. (a) A buyer must first notify the manufacturer of a claim under
this chapter if the manufacturer has made the disclosure required by subsection
(b). However, if the manufacturer has not made the required disclosure,
the buyer is not required to notify the manufacturer of a claim under
this chapter.
(b) The manufacturer shall clearly and conspicuously disclose to the buyer,
in the warranty or owner's manual, that written notification of the nonconformity
is required before the buyer may be eligible for a refund or replacement
of the vehicle. The manufacturer shall include with the warranty or owner's
manual the name and address to which the buyer must send notification.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-10
Sec. 10. If, after a reasonable number of attempts, the manufacturer,
its agent, or authorized dealer is unable to correct the nonconformity,
the manufacturer shall accept the return of the vehicle from the buyer
and, at the buyer's option, either, within thirty (30) days, refund the
amount paid by the buyer or provide a replacement vehicle of comparable
value.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-11
Sec. 11. (a) If a refund is tendered under this chapter with respect to
a vehicle that is not a leased vehicle, the refund must be the full contract
price of the vehicle, including all credits and allowances for any trade-in
vehicle and less a reasonable allowance for use.
(b) To determine a reasonable allowance for use under this section, multiply:
(1) the total contract price of the vehicle; by
(2) a fraction having as its denominator one hundred thousand (100,000)
and having as its numerator the number of miles that the vehicle traveled
before the manufacturer's acceptance of its return.
(c) The refund must also include reimbursement for the following incidental
costs:
(1) All sales tax.
(2) The unexpended portion of the registration fee and excise tax that
has been prepaid for any calendar year.
(3) All finance charges actually expended.
(4) The cost of all options added by the authorized dealer.
(d) Refunds made under this section shall be made to the buyer and lienholder,
if any, as their respective interests appear on the records of ownership.
As added by P.L.150-1988, SEC.1. Amended by P.L.24-1989, SEC.27.
IC 24-5-13-11.5
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Sec. 11.5. (a) If a refund is tendered under this chapter with respect
to a leased motor vehicle, the refund shall be made as follows:
(1) The lessee shall receive all deposit and lease payments paid by the
lessee to the lessor, including all credits and allowances for any trade-in
vehicles, less a reasonable allowance for use.
(2) The lessor shall receive:
(A) the lessor's purchase cost, including freight and accessories;
(B) any fee paid to another to obtain the lease;
(C) any insurance premiums or other costs expended by the lessor for the
benefit of the lessee;
(D) sales tax paid by the lessor; and
(E) five percent (5%) of the amount described in subdivision (2)(A);
less the total of all deposit and lease payments paid by the lessee to
the lessor, including all credits and allowances for any trade-in vehicle.
(b) To determine a reasonable allowance for use under this section, multiply:
(1) the total lease obligation of the lessee at the inception of the lease;
by
(2) a fraction having as its denominator one hundred thousand (100,000)
and as its numerator the number of miles that the vehicle traveled before
the lessor's acceptance of its return.
As added by P.L.24-1989, SEC.28.
IC 24-5-13-12
Sec. 12. (a) If a vehicle is replaced by a manufacturer under this chapter,
the manufacturer shall reimburse the buyer for any fees for the transfer
of registration or any sales tax incurred by the buyer as a result of
replacement.
(b) If a replaced vehicle was financed by the manufacturer, its subsidiary,
or agent, the manufacturer, subsidiary, or agent may not require the buyer
to enter into any refinancing agreement concerning a replacement vehicle
that would create any financial obligations upon the buyer less favorable
than those of the original financing agreement.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-13
Sec. 13. Whenever a vehicle is replaced or refunded under this chapter,
the manufacturer shall reimburse the buyer for necessary towing and rental
costs actually incurred as a direct result of the nonconformity.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-14
Sec. 14. A buyer has the option of retaining the use of any vehicle returned
under this chapter until the time that the buyer has been tendered a full
refund or replacement vehicle of comparable value. The use of any vehicle
retained by a buyer after its return to a manufacturer under this chapter
must, in cases in which a refund is tendered, be reflected in the reasonable
allowance for use required by section 11 of this chapter.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-15
Sec. 15. (a) A reasonable number of attempts is considered to have been
undertaken to correct a nonconformity if:
(1) the nonconformity has been subject to repair at least four (4) times
by the manufacturer or its agents or authorized dealers, but the nonconformity
continues to exist; or
(2) the vehicle is out of service by reason of repair of any nonconformity
for a cumulative total of at least thirty (30) business days, and the
nonconformity continues to exist.
(b) The thirty (30) business day period in subsection (a)(2) shall be extended
by any period of time during which repair services are not available as
a direct result of a strike. The manufacturer, its agent, or authorized
dealer shall provide or make provision for the free use of a vehicle to
any buyer whose vehicle is out of service by reason of repair during a
strike.
(c) The burden is on the manufacturer to show that the reason for an extension
under subsection (b) was the direct cause for the failure of the manufacturer,
its agent, or authorized dealer to cure any nonconformity during the time
of the event.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-16
Sec. 16. (a) A manufacturer, its agent, or authorized dealer may not refuse
to diagnose or repair any vehicle for the purpose of avoiding liability
under this chapter.
(b) A manufacturer, its agent, or authorized dealer shall provide a buyer
with a written repair order each time the buyer's vehicle is brought in
for examination or repair. The repair order must indicate all work performed
on the vehicle including examination of the vehicle, parts, and labor.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-17 Repealed
(Repealed by P.L.65-1992, SEC.4.)
IC 24-5-13-18
Sec. 18. It is an affirmative defense to any claim under this chapter
that:
(1) the nonconformity, defect, or condition does not substantially impair
the use, value, or safety of the motor vehicle; or
(2) the nonconformity, defect, or condition is the result of abuse, neglect,
or unauthorized modification or alteration of the motor vehicle by the
buyer.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-19
Sec. 19. This chapter does not apply to any buyer who has not first resorted
to an informal procedure established by a manufacturer or in which a manufacturer
participates if:
(1) the procedure is certified by the attorney general as:
(A) complying in all respects with 16 C.F.R. 703; and
(B) complying with any other rules concerning certification adopted by
the attorney general, including but not limited to the requirement of
oral hearings, pursuant to IC 4-22-2; and
(2) the buyer has received adequate written notice from the manufacturer
of the existence of the procedure.
Adequate written notice includes the incorporation of the informal dispute
settlement procedure into the terms of the written warranty to which the
motor vehicle does not conform.
As added by P.L.150-1988, SEC.1. Amended by P.L.24-1989, SEC.29.
IC 24-5-13-20
Sec. 20. This chapter does not limit the rights or remedies that are otherwise
available to a buyer under any other applicable provision of law.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-21
Sec. 21. A buyer may bring a civil action to enforce this chapter in any
circuit or superior court.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-22
Sec. 22. A buyer who prevails in any action brought under this chapter
is entitled to recover as part of the judgment a sum equal to the aggregate
amount of cost and expenses, including attorney's fees based on actual
time expended by the attorney, determined by the court to have been reasonably
incurred by the buyer for or in connection with the commencement and prosecution
of the action.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-23
Sec. 23. (a) An action brought under this chapter must be commenced within
two (2) years following the date the buyer first reports the nonconformity
to the manufacturer, its agent, or authorized dealer.
(b) When the buyer has commenced an informal dispute settlement procedure
described in section 19 of this chapter, the two (2) year period specified
in subsection (a) is tolled during the time the informal dispute settlement
procedure is being conducted.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-24
Sec. 24. Nothing in this chapter imposes any liability on a dealer or
creates a cause of action by a consumer against a dealer, and a manufacturer
may not, directly or indirectly, expose any franchised dealer to liability
under this chapter.
As added by P.L.150-1988, SEC.1.
