49 U.S.C. § 30116

Current through P.L. 118-106 (published on www.congress.gov on 10/04/2024)
Section 30116 - Defects and noncompliance found before sale to purchaser
(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 manufacturer's or distributor's 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 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.
(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 attorney's fee. An action under this section must be brought not later than 3 years after the claim accrues.

49 U.S.C. § 30116

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

HISTORICAL AND REVISION NOTE
Revised SectionSource (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 "manufacturer's or distributor's" 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 attorney's 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.

United States district court
"United States district court" means a district court of the United States, a United States court for Guam, the Virgin Islands, and American Samoa, and the district court for the Northern Mariana Islands.
dealer
"dealer" means a person selling and distributing new motor vehicles or motor vehicle equipment primarily to purchasers that in good faith purchase the vehicles or equipment other than for resale.
defect
"defect" includes any defect in performance, construction, a component, or material of a motor vehicle or motor vehicle equipment.
distributor
"distributor" means a person primarily selling and distributing motor vehicles or motor vehicle equipment for resale.
manufacturer
"manufacturer" means a person-(A) manufacturing or assembling motor vehicles or motor vehicle equipment; or(B) importing motor vehicles or motor vehicle equipment for resale.
motor vehicle equipment
"motor vehicle equipment" means-(A) any system, part, or component of a motor vehicle as originally manufactured;(B) any similar part or component manufactured or sold for replacement or improvement of a system, part, or component, or as an accessory or addition to a motor vehicle; or(C) any device or an article or apparel, including a motorcycle helmet and excluding medicine or eyeglasses prescribed by a licensed practitioner, that-(i) is not a system, part, or component of a motor vehicle; and(ii) is manufactured, sold, delivered, or offered to be sold for use on public streets, roads, and highways with the apparent purpose of safeguarding users of motor vehicles against risk of accident, injury, or death.
motor vehicle safety
"motor vehicle safety" means the performance of a motor vehicle or motor vehicle equipment in a way that protects the public against unreasonable risk of accidents occurring because of the design, construction, or performance of a motor vehicle, and against unreasonable risk of death or injury in an accident, and includes nonoperational safety of a motor vehicle.
motor vehicle
"motor vehicle" means a vehicle driven or drawn by mechanical power and manufactured primarily for use on public streets, roads, and highways, but does not include a vehicle operated only on a rail line.