As Introduced 1
123rd General Assembly 4
Regular Session H. B. No. 21 5
1999-2000 6
REPRESENTATIVES MOTTLEY-BATEMAN-NETZLEY-VESPER-BENDER- 8
PRINGLE-BOYD-PATTON-MEAD-CORBIN-BUCHY-LUCAS-PERZ-SULZER- 9
OPFER-ROBERTS-ALLEN-D.MILLER-OGG-THOMAS-CORE-TERWILLEGER- 10
BRITTON-JOLIVETTE-ROMAN-HEALY-JONES-HOUSEHOLDER- 11
KRUPINSKI-SALERNO-EVANS-CALVERT 12
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A B I L L
To amend sections 1345.71 to 1345.76 and 1345.99 and 15
to enact sections 1345.731, 1345.78, and 4505.112 16
of the Revised Code to make the Nonconforming New 17
Motor Vehicle law apply to motor vehicles leased 18
for a period of one month or more, to require the 19
certificate of title to a vehicle returned under 20
that law to be marked as a "buyback" vehicle, and 21
to make other changes in that law. 22
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 24
Section 1. That sections 1345.71, 1345.72, 1345.73, 26
1345.74, 1345.75, 1345.76, and 1345.99 be amended and sections 27
1345.731, 1345.78, and 4505.112 of the Revised Code be enacted to 28
read as follows:
Sec. 1345.71. As used in sections 1345.71 to 1345.77 37
1345.78 of the Revised Code: 38
(A) "Consumer" means the ANY OF THE FOLLOWING: 40
(1) THE purchaser, other than for purposes of resale, of a 43
motor vehicle, any;
(2) ANY LESSEE OF A MOTOR VEHICLE IN A CONTRACTUAL 45
ARRANGEMENT UNDER WHICH A CHARGE IS MADE FOR THE USE OF THE 46
VEHICLE AT A PERIODIC RATE FOR A TERM OF THIRTY DAYS OR MORE, AND 48
TITLE TO THE VEHICLE IS IN A PERSON OTHER THAN THE USER; 49
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(3) ANY person to whom the motor vehicle is transferred 53
during the duration of the express warranty that is applicable to 54
the motor vehicle, and any;
(4) ANY other person who is entitled by the terms of the 57
warranty to enforce the warranty. 58
(B) "Manufacturer" and "distributor" have the same 60
meanings as in section 4517.01 of the Revised Code, and 62
"manufacturer" includes a remanufacturer as defined in that
section. 63
(C) "Express warranty" and "warranty" mean the written 65
warranty of the manufacturer or distributor of a new motor 66
vehicle concerning the condition and fitness for use of the 67
vehicle, including any terms or conditions precedent to the 68
enforcement of obligations under that warranty. 69
(D) "Motor vehicle" means any passenger car or 71
noncommercial motor vehicle as defined in section 4501.01 of the 72
Revised Code, or those parts of any motor home, as defined in 73
section 4501.01 of the Revised Code, that are not part of the 74
permanently installed facilities for cold storage, cooking and 75
consuming of food, and for sleeping, but does not mean any 76
manufactured home as defined in division (O) of section 4501.01 77
of the Revised Code or recreational vehicle as defined in 78
division (Q) of that section. 79
(E) "Nonconformity" means any defect or condition which 81
THAT substantially impairs the use, value, or safety of a motor 82
vehicle TO THE CONSUMER and does not conform to the express 83
warranty of the manufacturer or distributor. 85
(F) "Full purchase price" means BOTH OF THE FOLLOWING: 87
(1) IN THE CASE OF A SALE, the contract price for the 89
motor vehicle, including charges for transportation, 91
UNDERCOATING, dealer-installed OPTIONS AND accessories, dealer 92
services, dealer preparation, and delivery and collateral 93
charges; all finance, credit insurance, warranty, and service 94
contract charges incurred by the buyer CONSUMER; and all sales 95
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tax, license and registration fees, and other government charges. 96
(2) IN THE CASE OF A LEASE, THE CAPITALIZED COST 99
REDUCTION, SECURITY DEPOSIT, TAXES, TITLE FEES, ALL MONTHLY LEASE 100
PAYMENTS, THE RESIDUAL VALUE OF THE VEHICLE, AND ALL FINANCE, 101
CREDIT INSURANCE, WARRANTY, AND SERVICE CONTRACT CHARGES INCURRED 102
BY THE CONSUMER.
(G) "BUYBACK" MEANS A MOTOR VEHICLE THAT HAS BEEN REPLACED 106
OR REPURCHASED BY A MANUFACTURER AS THE RESULT OF A COURT 108
JUDGMENT, A DETERMINATION OF AN INFORMAL DISPUTE SETTLEMENT 109
MECHANISM, OR A SETTLEMENT AGREED TO BY A CONSUMER REGARDLESS OF 110
WHETHER IT IS IN THE CONTEXT OF A COURT OR AN INFORMAL DISPUTE
SETTLEMENT MECHANISM OR OTHERWISE, IN THIS OR ANY OTHER STATE, 112
WHEREIN THE CONSUMER HAS ASSERTED THAT THE MOTOR VEHICLE DOES NOT 113
CONFORM TO THE WARRANTY, HAS PRESENTED DOCUMENTATION TO ESTABLISH 114
THAT A NONCONFORMITY EXISTS PURSUANT TO SECTION 1345.72 OR 115
1345.73 OF THE REVISED CODE, AND HAS REQUESTED REPLACEMENT OR 116
REPURCHASE OF THE VEHICLE. 117
(H) "REASONABLY ACCESSIBLE REPAIR FACILITY" MEANS ANY 120
FACILITY WITHIN A TWENTY-MILE RADIUS FROM THE CONSUMER'S
RESIDENCE THAT IS AUTHORIZED TO ACCEPT AND PERFORM WARRANTY WORK 121
ON BEHALF OF THE MANUFACTURER OF A MOTOR VEHICLE, PROVIDED THAT, 122
IF THERE IS NO SUCH REPAIR FACILITY LOCATED WITHIN TWENTY MILES 123
OF THE CONSUMER'S RESIDENCE, "REASONABLY ACCESSIBLE REPAIR 124
FACILITY" MEANS THE AUTHORIZED REPAIR FACILITY LOCATED CLOSEST TO 125
THE CONSUMER'S RESIDENCE.
Sec. 1345.72. (A) If a new motor vehicle does not conform 134
to any applicable express warranty and the consumer reports the 135
nonconformity to the manufacturer, its agent, or its authorized 136
dealer during the period of one year following the date of 137
original delivery or during the first eighteen thousand miles of 138
operation, whichever is earlier, the manufacturer, its agent, or 139
its authorized dealer shall make any repairs as are necessary to 140
conform the vehicle to such express warranty, notwithstanding the 141
fact that the repairs are made after the expiration of the 142
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appropriate time period. 143
(B) If the manufacturer, its agent, or its authorized 145
dealer is unable to conform the motor vehicle to any applicable 146
express warranty by repairing or correcting any defect or 147
condition that substantially impairs the use, safety, or value of 148
the motor vehicle to the consumer NONCONFORMITY after a 149
reasonable number of repair attempts, the manufacturer shall, at 150
the consumer's option, and subject to division (D) of this 151
section, EITHER SHALL replace the motor vehicle with a new motor 152
vehicle acceptable to the consumer or SHALL accept return of the 154
vehicle from the consumer and refund each of the following: 155
(1) The full purchase price including, but not limited to, 157
charges for undercoating, transportation, and installed options; 158
(2) All collateral charges, including but not limited to, 160
sales tax, license and registration fees, and similar government 161
charges; 162
(3) All finance charges incurred by the consumer; 164
(4) All incidental damages, including, BUT NOT LIMITED TO, 167
any reasonable fees charged by the lender OR LESSOR for making or 168
canceling the loan OR LEASE, AND ANY EXPENSES INCURRED BY THE 169
CONSUMER AS A RESULT OF THE NONCONFORMITY, SUCH AS CHARGES FOR 170
TOWING, VEHICLE RENTAL, MEALS, AND LODGING. 171
(C) Nothing in this section imposes any liability on a new 173
motor vehicle dealer or creates a cause of action by a buyer 174
against a new motor vehicle dealer. 175
(D) Sections 1345.71 to 1345.77 1345.78 of the Revised 177
Code do not affect the obligation of a consumer under a loan or 178
retail installment sales contract or the interest of any secured 179
party, except as follows: 180
(1) If the consumer elects to take a refund, the 182
manufacturer shall forward the total sum required under division 183
(B) of this section by an instrument jointly payable to the 184
consumer and any lienholder that appears on the face of the 185
certificate of title OR THE LESSOR. Prior to disbursing the 186
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funds to the consumer, the lienholder OR LESSOR may deduct the 187
balance owing to it, including any reasonable fees charged for 188
canceling the loan OR THE LEASE and refunded pursuant to division 190
(B) of this section, and shall immediately remit the balance if 191
any, to the consumer and cancel the lien OR THE LEASE. 192
(2) If the consumer elects to take a new motor vehicle, 194
the manufacturer shall notify any lienholder noted on the 195
certificate of title under section 4505.13 of the Revised Code OR 196
THE LESSOR. If both the lienholder OR THE LESSOR and the 197
consumer consent to finance OR LEASE the new motor vehicle 198
obtained through the exchange in division (B) of this section, 200
the lienholder OR THE LESSOR shall release the lien on OR 201
SURRENDER THE TITLE TO the nonconforming motor vehicle after it 202
has obtained a lien on OR TITLE TO the new motor vehicle. If the 203
existing lienholder OR LESSOR does not finance OR LEASE the new 204
motor vehicle, it has no obligation to discharge the note or 206
cancel the lien on OR SURRENDER THE TITLE TO the nonconforming
motor vehicle until the original indebtedness is OR THE LEASE 208
TERMS ARE satisfied.
Sec. 1345.73. It shall be presumed that a reasonable 217
number of attempts have been undertaken by the manufacturer, its 218
dealer, or its authorized agent to conform a motor vehicle to any 219
applicable express warranty if, during the period of one year 220
following the date of original delivery or during the first 221
eighteen thousand miles of operation, whichever is earlier, any 222
of the following apply: 223
(A) Substantially the same nonconformity has been subject 225
to repair three or more times and EITHER continues to exist OR 227
RECURS;
(B) The vehicle is out of service by reason of repair for 229
a cumulative total of thirty or more calendar days; 230
(C) There have been eight or more attempts to repair any 232
nonconformity that substantially impairs the use and value of the 233
motor vehicle to the consumer; 234
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(D) There has been at least one attempt to repair a 236
nonconformity that results in a condition that is likely to cause 237
death or serious bodily injury if the vehicle is driven, and the 238
nonconformity EITHER continues to exist OR RECURS. 239
Sec. 1345.731. (A) A CONSUMER SHALL NOTIFY THE 242
MANUFACTURER OF THE NEED TO REPAIR A NONCONFORMITY UNDER ANY OF
THE FOLLOWING SITUATIONS: 243
(1) AFTER A SECOND ATTEMPT TO REPAIR SUBSTANTIALLY THE 245
SAME NONCONFORMITY THAT HAS EITHER CONTINUED TO EXIST OR 246
RECURRED;
(2) WHEN THE VEHICLE HAS BEEN OUT OF SERVICE BY REASON OF 248
REPAIR FOR A CUMULATIVE TOTAL OF TWENTY OR MORE CALENDAR DAYS; 249
(3) AFTER A SEVENTH ATTEMPT TO REPAIR ANY NONCONFORMITY; 251
(4) AFTER ONE ATTEMPT TO REPAIR A NONCONFORMITY THAT IS 253
LIKELY TO CAUSE DEATH OR SERIOUS BODILY INJURY IF THE VEHICLE IS 254
DRIVEN, AND THE NONCONFORMITY EITHER CONTINUES TO EXIST OR 255
RECURS.
(B) WITHIN FOUR BUSINESS DAYS OF RECEIVING A NOTICE UNDER 257
DIVISION (A) OF THIS SECTION, THE MANUFACTURER SHALL NOTIFY THE 259
CONSUMER THAT THE MANUFACTURER WILL ATTEMPT ONE FINAL REPAIR OF
THE VEHICLE AT A REASONABLY ACCESSIBLE REPAIR FACILITY DESIGNATED 260
IN THE NOTICE TO THE CONSUMER. 261
(C) THE MANUFACTURER SHALL CONFORM THE MOTOR VEHICLE TO 264
THE WARRANTY WITHIN NINE BUSINESS DAYS OF DELIVERY OF THE VEHICLE 265
TO THE DESIGNATED REPAIR FACILITY. AT THE TIME THE NONCONFORMING
MOTOR VEHICLE IS DELIVERED TO THE DESIGNATED REPAIR FACILITY THE 266
MANUFACTURER SHALL OFFER AND MAKE AVAILABLE A MOTOR VEHICLE FOR 267
USE BY THE CONSUMER DURING THE TIME REQUIRED BY THE MANUFACTURER 268
TO CONFORM THE MOTOR VEHICLE TO THE WARRANTY. 269
(D) THE FAILURE OF A MANUFACTURER TO COMPLY WITH DIVISION 271
(B) OF THIS SECTION IS A WAIVER OF THE OPPORTUNITY AFFORDED A 273
MANUFACTURER UNDER THIS SECTION FOR A FINAL ATTEMPT TO CURE THE 274
NONCONFORMITY. THE FAILURE OF A MANUFACTURER TO CURE THE
NONCONFORMITY WITHIN THE TIME PRESCRIBED BY DIVISION (C) OF THIS 276
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SECTION IS A WAIVER OF THE OPPORTUNITY AFFORDED A MANUFACTURER 277
UNDER THIS SECTION FOR A FINAL ATTEMPT TO CURE THE NONCONFORMITY. 278
(E) THE OPPORTUNITY AFFORDED A MANUFACTURER UNDER THIS 280
SECTION FOR A FINAL ATTEMPT TO CURE THE NONCONFORMITY DOES NOT 281
CREATE A NEW CAUSE OF ACTION FOR THE MANUFACTURER AND DOES NOT 282
LIMIT THE CONSUMER'S RIGHTS UNDER SECTIONS 1345.71 TO 1345.78 OF 283
THE REVISED CODE. ABSENT A WAIVER UNDER DIVISION (D) OF THIS 285
SECTION, THE ACTIONS OF A MANUFACTURER UNDER THIS SECTION 286
CONSTITUTE GROUNDS FOR AN AUTOMATIC STAY OF ANY PENDING 287
ARBITRATION OR COURT ACTION UNTIL SUCH TIME AS THE OPPORTUNITY
FOR THE MANUFACTURER'S FINAL ATTEMPT TO CURE THE NONCONFORMITY 288
HAS BEEN PROVIDED. 289
Sec. 1345.74. (A) At the time of purchase, the 298
manufacturer, either directly or through its agent or its 299
authorized dealer, shall provide to the consumer a written 300
statement on a separate piece of paper, in ten-point type, all
capital letters, in substantially the following form: IMPORTANT: 301
IF THIS VEHICLE IS DEFECTIVE, YOU MAY BE ENTITLED UNDER STATE LAW 302
TO A REPLACEMENT OR TO COMPENSATION. 303
IN THE CASE OF A LEASED MOTOR VEHICLE, THE WRITTEN 305
STATEMENT DESCRIBED IN THIS DIVISION SHALL BE PROVIDED TO THE 306
CONSUMER BY THE MANUFACTURER, EITHER DIRECTLY OR THROUGH THE 307
LESSOR, AT THE TIME OF EXECUTION OF THE LEASE AGREEMENT. 308
(B) THE MANUFACTURER SHALL PROVIDE NOTICE TO THE CONSUMER 311
OF THE MANUFACTURER'S OPPORTUNITY TO MAKE A FINAL REPAIR ATTEMPT
AS DESCRIBED IN SECTION 1345.731 OF THE REVISED CODE. IN 313
ACCORDANCE WITH CHAPTER 119. OF THE REVISED CODE, THE ATTORNEY 315
GENERAL SHALL ADOPT RULES TO SPECIFY THE CONTENT OF THE NOTICE
AND THE MANNER FOR PROVIDING THE NOTICE. FAILURE TO COMPLY WITH 317
THE NOTICE REQUIREMENTS OF THIS SECTION OR THE RULES ADOPTED 318
UNDER THIS SECTION CONSTITUTE A WAIVER OF THE MANUFACTURER'S 320
OPPORTUNITY FOR A FINAL REPAIR ATTEMPT TO CURE THE NONCONFORMITY. 321
(C) The manufacturer or authorized dealer shall provide to 323
the consumer, each time the motor vehicle of the consumer is 325
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returned from being serviced or repaired, a fully itemized 326
written statement indicating all work performed on the vehicle, 327
including, but not limited to, parts and labor as described in
the rules adopted pursuant to section 1345.77 of the Revised 328
Code.
Sec. 1345.75. (A) Any purchaser of a new motor vehicle 337
who suffers any loss due to nonconformity of the motor vehicle as 338
a result of failure by the manufacturer, its agent, or its 339
authorized dealer to comply with section 1345.72 of the Revised 340
Code, CONSUMER may bring a civil action in a court of common 341
pleas or other court of competent jurisdiction AGAINST ANY 343
MANUFACTURER IF THE MANUFACTURER FAILS TO COMPLY WITH SECTION 345
1345.72 OF THE REVISED CODE and, in addition to other THE relief 346
TO WHICH THE CONSUMER IS ENTITLED UNDER THAT SECTION, shall be 347
entitled to recover reasonable attorney's fees and all court 348
costs.
(B) The remedies in sections 1345.71 to 1345.77 1345.78 of 350
the Revised Code are in addition to remedies otherwise available 351
to consumers under law. 352
(C) Any action brought under division (A) of this section 354
shall be commenced within two FOUR years of the expiration of the 356
express warranty term DATE OF ORIGINAL DELIVERY OF THE MOTOR
VEHICLE. Any period of limitation of actions under any federal 358
or Ohio laws with respect to any consumer shall be tolled for the 359
period that begins on the date that a complaint is filed with an 360
informal dispute resolution mechanism established pursuant to 361
section 1345.77 of the Revised Code and ends on the date of the 362
decision by the informal dispute resolution mechanism. 363
(D) It is an affirmative defense to any claim under this 365
section that a nonconformity is the result of abuse, neglect, or 366
the unauthorized modification or alteration of a motor vehicle by 367
anyone other than the manufacturer, its agent, or its authorized 368
dealer. 369
Sec. 1345.76. (A) If a motor vehicle has been returned 379
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under the provisions of sections 1345.71 to 1345.77 of the 380
Revised Code or a similar law of another state, whether as a 382
result of legal action or of an informal dispute settlement
proceeding, the vehicle A BUYBACK may not be resold OR LEASED in 385
this state unless each of the following applies:
(1) The manufacturer provides the same express warranty 387
that was provided to the original purchaser CONSUMER, except that 389
the term of the warranty shall be only for ONLY twelve thousand 390
miles or twelve months after the date of resale, whichever is 392
earlier;
(2) The manufacturer provides to the consumer, either 394
directly or through its agent or its authorized dealer, and prior 395
to obtaining the signature of the consumer on any document, a 396
written statement on a separate piece of paper, in ten-point 397
type, all capital letters, in substantially the following form: 398
IMPORTANTBECAUSE IT DID NOT CONFORM TO 405
THE MANUFACTURER'S EXPRESS WARRANTY AND THE NONCONFORMITY WAS NOT 406
CURED WITHIN A REASONABLE AMOUNT OF TIME AS PROVIDED BY OHIO LAW