As Passed by the House 1
123rd General Assembly 4
Regular Session Sub. H. B. No. 21 5
1999-2000 6
REPRESENTATIVES MOTTLEY-BATEMAN-NETZLEY-VESPER-BENDER-PRINGLE- 8
BOYD-PATTON-MEAD-CORBIN-BUCHY-LUCAS-PERZ-SULZER-OPFER-ROBERTS- 9
ALLEN-D.MILLER-OGG-THOMAS-CORE-TERWILLEGER-BRITTON-JOLIVETTE- 10
ROMAN-HEALY-JONES-HOUSEHOLDER-KRUPINSKI-SALERNO-EVANS-CALVERT- 11
CAREY-HAINES-OLMAN-CLANCY-JACOBSON-METELSKY-SUTTON-DAMSCHRODER- 12
PADGETT-JERSE-WILLAMOWSKI-SCHURING-HOLLISTER-BEATTY-BARNES- 13
BRADING-HOOPS-KREBS 14
_________________________________________________________________ 15
A B I L L
To amend sections 1345.71 to 1345.76 and 1345.99 and 17
to enact sections 1345.731, 1345.78, and 4505.112 18
of the Revised Code to make the Nonconforming New 19
Motor Vehicle law apply to motor vehicles leased 20
for a period of one month or more, to require the 21
certificate of title to a vehicle returned under 22
that law to be marked as a "buyback" vehicle, and 23
to make other changes in that law. 24
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 26
Section 1. That sections 1345.71, 1345.72, 1345.73, 28
1345.74, 1345.75, 1345.76, and 1345.99 be amended and sections 29
1345.731, 1345.78, and 4505.112 of the Revised Code be enacted to 30
read as follows:
Sec. 1345.71. As used in sections 1345.71 to 1345.77 39
1345.78 of the Revised Code: 41
(A) "Consumer" means the ANY OF THE FOLLOWING: 43
(1) THE purchaser, other than for purposes of resale, of a 46
motor vehicle, any;
(2) ANY LESSEE OF A MOTOR VEHICLE IN A CONTRACTUAL 48
ARRANGEMENT UNDER WHICH A CHARGE IS MADE FOR THE USE OF THE 49
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VEHICLE AT A PERIODIC RATE FOR A TERM OF THIRTY DAYS OR MORE, AND 51
TITLE TO THE VEHICLE IS IN THE NAME OF A PERSON OTHER THAN THE
USER; 52
(3) ANY person to whom the motor vehicle is transferred 56
during the duration of the express warranty that is applicable to 57
the motor vehicle, and any;
(4) ANY other person who is entitled by the terms of the 60
warranty to enforce the warranty. 61
(B) "Manufacturer" and "distributor" have the same 63
meanings as in section 4517.01 of the Revised Code, and 65
"manufacturer" includes a remanufacturer as defined in that
section. 66
(C) "Express warranty" and "warranty" mean the written 68
warranty of the manufacturer or distributor of a new motor 69
vehicle concerning the condition and fitness for use of the 70
vehicle, including any terms or conditions precedent to the 71
enforcement of obligations under that warranty. 72
(D) "Motor vehicle" means any passenger car or 74
noncommercial motor vehicle as defined in section 4501.01 of the 75
Revised Code, or those parts of any motor home, as defined in 76
section 4501.01 of the Revised Code, that are not part of the 77
permanently installed facilities for cold storage, cooking and 78
consuming of food, and for sleeping, but does not mean any mobile 80
home as defined in division (O) of section 4501.01 of the Revised 81
Code, OR recreational vehicle as defined in division (Q) of that 82
section, or ANY manufactured home as defined in division (C)(4) 84
of section 3781.06 of the Revised Code.
(E) "Nonconformity" means any defect or condition which 86
THAT substantially impairs the use, value, or safety of a motor 87
vehicle TO THE CONSUMER and does not conform to the express 88
warranty of the manufacturer or distributor. 90
(F) "Full purchase price" means BOTH OF THE FOLLOWING: 92
(1) IN THE CASE OF A SALE, the contract price for the 94
motor vehicle, including charges for transportation, 96
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UNDERCOATING, dealer-installed OPTIONS AND accessories, dealer 97
services, dealer preparation, and delivery and collateral 99
charges; all finance, credit insurance, warranty, and service 100
contract charges incurred by the buyer CONSUMER; and all sales 101
tax, license and registration fees, and other government charges. 103
(2) IN THE CASE OF A LEASE, THE CAPITALIZED COST 106
REDUCTION, SECURITY DEPOSIT, TAXES, TITLE FEES, ALL MONTHLY LEASE 107
PAYMENTS, THE RESIDUAL VALUE OF THE VEHICLE, AND ALL FINANCE, 108
CREDIT INSURANCE, WARRANTY, AND SERVICE CONTRACT CHARGES INCURRED 109
BY THE CONSUMER.
(G) "BUYBACK" MEANS A MOTOR VEHICLE THAT HAS BEEN REPLACED 112
OR REPURCHASED BY A MANUFACTURER AS THE RESULT OF A COURT 114
JUDGMENT, A DETERMINATION OF AN INFORMAL DISPUTE SETTLEMENT 115
MECHANISM, OR A SETTLEMENT AGREED TO BY A CONSUMER REGARDLESS OF 116
WHETHER IT IS IN THE CONTEXT OF A COURT, AN INFORMAL DISPUTE
SETTLEMENT MECHANISM, OR OTHERWISE, IN THIS OR ANY OTHER STATE, 118
IN WHICH THE CONSUMER HAS ASSERTED THAT THE MOTOR VEHICLE DOES 119
NOT CONFORM TO THE WARRANTY, HAS PRESENTED DOCUMENTATION TO 120
ESTABLISH THAT A NONCONFORMITY EXISTS PURSUANT TO SECTION 1345.72 121
OR 1345.73 OF THE REVISED CODE, AND HAS REQUESTED REPLACEMENT OR 122
REPURCHASE OF THE VEHICLE. 123
(H) "REASONABLY ACCESSIBLE REPAIR FACILITY" MEANS ANY 126
FACILITY WITHIN A TWENTY-MILE RADIUS FROM THE CONSUMER'S
RESIDENCE THAT IS AUTHORIZED TO ACCEPT AND PERFORM WARRANTY WORK 127
ON BEHALF OF THE MANUFACTURER OF A MOTOR VEHICLE, PROVIDED THAT, 128
IF THERE IS NO REPAIR FACILITY LOCATED WITHIN TWENTY MILES OF THE 129
CONSUMER'S RESIDENCE THAT IS AUTHORIZED TO ACCEPT AND PERFORM 130
WARRANTY WORK ON BEHALF OF THE MANUFACTURER, "REASONABLY 131
ACCESSIBLE REPAIR FACILITY" MEANS THE AUTHORIZED REPAIR FACILITY 132
LOCATED CLOSEST TO THE CONSUMER'S RESIDENCE. 133
(I) "MOBILE HOME," "MOTOR HOME," "NONCOMMERCIAL MOTOR 135
VEHICLE," "PASSENGER CAR," AND "RECREATIONAL VEHICLE" HAVE THE 136
SAME MEANINGS AS IN SECTION 4501.01 OF THE REVISED CODE. 137
Sec. 1345.72. (A) If a new motor vehicle does not conform 146
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to any applicable express warranty and the consumer reports the 147
nonconformity to the manufacturer, its agent, or its authorized 148
dealer during the period of one year following the date of 149
original delivery or during the first eighteen thousand miles of 150
operation, whichever is earlier, the manufacturer, its agent, or 151
its authorized dealer shall make any repairs as are necessary to 152
conform the vehicle to such express warranty, notwithstanding the 153
fact that the repairs are made after the expiration of the 154
appropriate time period. 155
(B) If the manufacturer, its agent, or its authorized 157
dealer is unable to conform the motor vehicle to any applicable 158
express warranty by repairing or correcting any defect or 159
condition that substantially impairs the use, safety, or value of 160
the motor vehicle to the consumer NONCONFORMITY after a 161
reasonable number of repair attempts, the manufacturer shall, at 162
the consumer's option, and subject to division (D) of this 163
section, EITHER SHALL replace the motor vehicle with a new motor 164
vehicle acceptable to the consumer or SHALL accept return of the 166
vehicle from the consumer and refund each of the following: 167
(1) The full purchase price including, but not limited to, 169
charges for undercoating, transportation, and installed options; 170
(2) All collateral charges, including but not limited to, 172
sales tax, license and registration fees, and similar government 173
charges; 174
(3) All finance charges incurred by the consumer; 176
(4) All incidental damages, including, BUT NOT LIMITED TO, 179
any reasonable fees charged by the lender OR LESSOR for making or 180
canceling the loan OR LEASE, AND ANY EXPENSES INCURRED BY THE 181
CONSUMER AS A RESULT OF THE NONCONFORMITY, SUCH AS CHARGES FOR 182
TOWING, VEHICLE RENTAL, MEALS, AND LODGING. 183
(C) Nothing in this section imposes any liability on a new 185
motor vehicle dealer or creates a cause of action by a buyer 186
against a new motor vehicle dealer. 187
(D) Sections 1345.71 to 1345.77 1345.78 of the Revised 189
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Code do not affect the obligation of a consumer under a loan or 190
retail installment sales contract or the interest of any secured 191
party, except as follows: 192
(1) If the consumer elects to take a refund, the 194
manufacturer shall forward the total sum required under division 195
(B) of this section by an instrument jointly payable to the 196
consumer and any lienholder that appears on the face of the 197
certificate of title OR THE LESSOR. Prior to disbursing the 198
funds to the consumer, the lienholder OR LESSOR may deduct the 199
balance owing to it, including any reasonable fees charged for 200
canceling the loan OR THE LEASE and refunded pursuant to division 202
(B) of this section, and shall immediately remit the balance if 203
any, to the consumer and cancel the lien OR THE LEASE. 204
(2) If the consumer elects to take a new motor vehicle, 206
the manufacturer shall notify any lienholder noted on the 207
certificate of title under section 4505.13 of the Revised Code OR 208
THE LESSOR. If both the lienholder OR THE LESSOR and the 209
consumer consent to finance OR LEASE the new motor vehicle 210
obtained through the exchange in division (B) of this section, 212
the lienholder OR THE LESSOR shall release the lien on OR 213
SURRENDER THE TITLE TO the nonconforming motor vehicle after it 214
has obtained a lien on OR TITLE TO the new motor vehicle. If the 215
existing lienholder OR LESSOR does not finance OR LEASE the new 216
motor vehicle, it has no obligation to discharge the note or 218
cancel the lien on OR SURRENDER THE TITLE TO the nonconforming
motor vehicle until the original indebtedness is OR THE LEASE 220
TERMS ARE satisfied.
Sec. 1345.73. It shall be presumed that a reasonable 229
number of attempts have been undertaken by the manufacturer, its 230
dealer, or its authorized agent to conform a motor vehicle to any 231
applicable express warranty if, during the period of one year 232
following the date of original delivery or during the first 233
eighteen thousand miles of operation, whichever is earlier, any 234
of the following apply: 235
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(A) Substantially the same nonconformity has been subject 237
to repair three or more times and EITHER continues to exist OR 239
RECURS;
(B) The vehicle is out of service by reason of repair for 241
a cumulative total of thirty or more calendar days; 242
(C) There have been eight or more attempts to repair any 244
nonconformity that substantially impairs the use and value of the 245
motor vehicle to the consumer; 246
(D) There has been at least one attempt to repair a 248
nonconformity that results in a condition that is likely to cause 249
death or serious bodily injury if the vehicle is driven, and the 250
nonconformity EITHER continues to exist OR RECURS. 251
Sec. 1345.731. (A) A CONSUMER SHALL NOTIFY THE 254
MANUFACTURER OF THE NEED TO REPAIR A NONCONFORMITY UNDER ANY OF
THE FOLLOWING SITUATIONS: 255
(1) AFTER A SECOND ATTEMPT TO REPAIR SUBSTANTIALLY THE 257
SAME NONCONFORMITY THAT HAS EITHER CONTINUED TO EXIST OR 258
RECURRED;
(2) WHEN THE VEHICLE HAS BEEN OUT OF SERVICE BY REASON OF 260
REPAIR FOR A CUMULATIVE TOTAL OF TWENTY OR MORE CALENDAR DAYS; 261
(3) AFTER A SEVENTH ATTEMPT TO REPAIR ANY NONCONFORMITY. 263
(B) WITHIN FOUR BUSINESS DAYS OF RECEIVING A NOTICE UNDER 265
DIVISION (A) OF THIS SECTION, THE MANUFACTURER SHALL NOTIFY THE 267
CONSUMER THAT THE MANUFACTURER WILL ATTEMPT ONE FINAL REPAIR OF
THE VEHICLE AT A REASONABLY ACCESSIBLE REPAIR FACILITY DESIGNATED 268
IN THE NOTICE TO THE CONSUMER. 269
(C) THE MANUFACTURER SHALL CONFORM THE MOTOR VEHICLE TO 272
THE WARRANTY WITHIN NINE BUSINESS DAYS OF DELIVERY OF THE VEHICLE 273
TO THE DESIGNATED REPAIR FACILITY. AT THE TIME THE NONCONFORMING
MOTOR VEHICLE IS DELIVERED TO THE DESIGNATED REPAIR FACILITY THE 274
MANUFACTURER SHALL OFFER AND MAKE AVAILABLE A MOTOR VEHICLE FOR 275
USE BY THE CONSUMER DURING THE TIME REQUIRED BY THE MANUFACTURER 276
TO CONFORM THE MOTOR VEHICLE TO THE WARRANTY. 277
(D) THE FAILURE OF A MANUFACTURER TO COMPLY WITH DIVISION 279
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(B) OF THIS SECTION IS A WAIVER OF THE OPPORTUNITY AFFORDED A 281
MANUFACTURER UNDER THIS SECTION FOR A FINAL ATTEMPT TO CURE THE 282
NONCONFORMITY. THE FAILURE OF A MANUFACTURER TO CURE THE
NONCONFORMITY WITHIN THE TIME PRESCRIBED BY DIVISION (C) OF THIS 284
SECTION IS A WAIVER OF THE OPPORTUNITY AFFORDED A MANUFACTURER 285
UNDER THIS SECTION FOR A FINAL ATTEMPT TO CURE THE NONCONFORMITY. 286
(E) THE OPPORTUNITY AFFORDED A MANUFACTURER UNDER THIS 288
SECTION FOR A FINAL ATTEMPT TO CURE THE NONCONFORMITY DOES NOT 289
CREATE A NEW CAUSE OF ACTION FOR THE MANUFACTURER AND DOES NOT 290
LIMIT THE CONSUMER'S RIGHTS UNDER SECTIONS 1345.71 TO 1345.78 OF 291
THE REVISED CODE. ABSENT A WAIVER UNDER DIVISION (D) OF THIS 293
SECTION, THE ACTIONS OF A MANUFACTURER UNDER THIS SECTION 294
CONSTITUTE GROUNDS FOR AN AUTOMATIC STAY OF ANY PENDING 295
ARBITRATION OR COURT ACTION UNTIL SUCH TIME AS THE OPPORTUNITY
FOR THE MANUFACTURER'S FINAL ATTEMPT TO CURE THE NONCONFORMITY 296
HAS BEEN PROVIDED. 297
Sec. 1345.74. (A) At the time of purchase, the 306
manufacturer, either directly or through its agent or its 307
authorized dealer, shall provide to the consumer a written 308
statement on a separate piece of paper, in ten-point type, all
capital letters, in substantially the following form: IMPORTANT: 309
IF THIS VEHICLE IS DEFECTIVE, YOU MAY BE ENTITLED UNDER STATE LAW 310
TO A REPLACEMENT OR TO COMPENSATION. 311
IN THE CASE OF A LEASED MOTOR VEHICLE, THE WRITTEN 313
STATEMENT DESCRIBED IN THIS DIVISION SHALL BE PROVIDED TO THE 314
CONSUMER BY THE MANUFACTURER, EITHER DIRECTLY OR THROUGH THE 315
LESSOR, AT THE TIME OF EXECUTION OF THE LEASE AGREEMENT. 316
(B) THE MANUFACTURER SHALL PROVIDE NOTICE TO THE CONSUMER 319
OF THE MANUFACTURER'S OPPORTUNITY TO MAKE A FINAL REPAIR ATTEMPT
AS DESCRIBED IN SECTION 1345.731 OF THE REVISED CODE. IN 321
ACCORDANCE WITH CHAPTER 119. OF THE REVISED CODE, THE ATTORNEY 323
GENERAL SHALL ADOPT RULES TO SPECIFY THE CONTENT OF THE NOTICE
AND THE MANNER FOR PROVIDING THE NOTICE. FAILURE TO COMPLY WITH 325
THE NOTICE REQUIREMENTS OF THIS SECTION OR THE RULES ADOPTED 326
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UNDER THIS SECTION CONSTITUTE A WAIVER OF THE MANUFACTURER'S 328
OPPORTUNITY FOR A FINAL REPAIR ATTEMPT TO CURE THE NONCONFORMITY. 329
(C) The manufacturer or authorized dealer shall provide to 331
the consumer, each time the motor vehicle of the consumer is 333
returned from being serviced or repaired, a fully itemized 334
written statement indicating all work performed on the vehicle, 335
including, but not limited to, parts and labor as described in
the rules adopted pursuant to section 1345.77 of the Revised 336
Code.
Sec. 1345.75. (A) Any purchaser of a new motor vehicle 345
who suffers any loss due to nonconformity of the motor vehicle as 346
a result of failure by the manufacturer, its agent, or its 347
authorized dealer to comply with section 1345.72 of the Revised 348
Code, CONSUMER may bring a civil action in a court of common 349
pleas or other court of competent jurisdiction AGAINST ANY 351
MANUFACTURER IF THE MANUFACTURER FAILS TO COMPLY WITH SECTION 353
1345.72 OF THE REVISED CODE and, in addition to other THE relief 354
TO WHICH THE CONSUMER IS ENTITLED UNDER THAT SECTION, shall be 355
entitled to recover reasonable attorney's fees and all court 356
costs.
(B) The remedies in sections 1345.71 to 1345.77 1345.78 of 358
the Revised Code are in addition to remedies otherwise available 359
to consumers under law. 360
(C) Any action brought under division (A) of this section 362
shall be commenced within two FOUR years of the expiration of the 364
express warranty term DATE OF ORIGINAL DELIVERY OF THE MOTOR
VEHICLE. Any period of limitation of actions under any federal 366
or Ohio laws with respect to any consumer shall be tolled for the 367
period that begins on the date that a complaint is filed with an 368
informal dispute resolution mechanism established pursuant to 369
section 1345.77 of the Revised Code and ends on the date of the 370
decision by the informal dispute resolution mechanism. 371
(D) It is an affirmative defense to any claim under this 373
section that a nonconformity is the result of abuse, neglect, or 374
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the unauthorized modification or alteration of a motor vehicle by 375
anyone other than the manufacturer, its agent, or its authorized 376
dealer. 377
Sec. 1345.76. (A) If a motor vehicle has been returned 387
under the provisions of sections 1345.71 to 1345.77 of the 388
Revised Code or a similar law of another state, whether as a 390
result of legal action or of an informal dispute settlement
proceeding, the vehicle A BUYBACK may not be resold OR LEASED in 393
this state unless each of the following applies:
(1) The manufacturer provides the same express warranty 395
that was provided to the original purchaser CONSUMER, except that 397
the term of the warranty shall be only for ONLY twelve thousand 398
miles or twelve months after the date of resale, whichever is 400
earlier;
(2) The manufacturer provides to the consumer, either 402
directly or through its agent or its authorized dealer, and prior 403
to obtaining the signature of the consumer on any document, a 404
written statement on a separate piece of paper, in ten-point 405
type, all capital letters, in substantially the following form: 406
IMPORTANTBECAUSE IT DID NOT CONFORM TO 413
THE MANUFACTURER'S EXPRESS WARRANTY AND THE NONCONFORMITY WAS NOT 414
CURED WITHIN A REASONABLE AMOUNT OF TIME AS PROVIDED BY OHIO LAW