As Reported by the Senate Highways and Transportation Committee 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 1345.78 and 4505.112 of the 18
Revised Code to make the Nonconforming New Motor 19
Vehicle law apply to motor vehicles leased for a 20
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
1345.78 and 4505.112 of the Revised Code be enacted to read as 30
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
2
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
3
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) "MOBILE HOME," "MOTOR HOME," "NONCOMMERCIAL MOTOR 125
VEHICLE," "PASSENGER CAR," AND "RECREATIONAL VEHICLE" HAVE THE 126
SAME MEANINGS AS IN SECTION 4501.01 OF THE REVISED CODE. 127
Sec. 1345.72. (A) If a new motor vehicle does not conform 136
to any applicable express warranty and the consumer reports the 137
nonconformity to the manufacturer, its agent, or its authorized 138
dealer during the period of one year following the date of 139
original delivery or during the first eighteen thousand miles of 140
operation, whichever is earlier, the manufacturer, its agent, or 141
its authorized dealer shall make any repairs as are necessary to 142
conform the vehicle to such express warranty, notwithstanding the 143
fact that the repairs are made after the expiration of the 144
appropriate time period. 145
4
(B) If the manufacturer, its agent, or its authorized 147
dealer is unable to conform the motor vehicle to any applicable 148
express warranty by repairing or correcting any defect or 149
condition that substantially impairs the use, safety, or value of 150
the motor vehicle to the consumer NONCONFORMITY after a 151
reasonable number of repair attempts, the manufacturer shall, at 152
the consumer's option, and subject to division (D) of this 153
section, EITHER SHALL replace the motor vehicle with a new motor 154
vehicle acceptable to the consumer or SHALL accept return of the 156
vehicle from the consumer and refund each of the following: 157
(1) The full purchase price including, but not limited to, 159
charges for undercoating, transportation, and installed options; 160
(2) All collateral charges, including but not limited to, 162
sales tax, license and registration fees, and similar government 163
charges; 164
(3) All finance charges incurred by the consumer; 166
(4) All incidental damages, including, BUT NOT LIMITED TO, 169
any reasonable fees charged by the lender OR LESSOR for making or 170
canceling the loan OR LEASE, AND ANY EXPENSES INCURRED BY THE 171
CONSUMER AS A RESULT OF THE NONCONFORMITY, SUCH AS CHARGES FOR 172
TOWING, VEHICLE RENTAL, MEALS, AND LODGING. 173
(C) Nothing in this section imposes any liability on a new 175
motor vehicle dealer or creates a cause of action by a buyer 176
against a new motor vehicle dealer. 177
(D) Sections 1345.71 to 1345.77 1345.78 of the Revised 179
Code do not affect the obligation of a consumer under a loan or 180
retail installment sales contract or the interest of any secured 181
party, except as follows: 182
(1) If the consumer elects to take a refund, the 184
manufacturer shall forward the total sum required under division 185
(B) of this section by an instrument jointly payable to the 186
consumer and any lienholder that appears on the face of the 187
certificate of title OR THE LESSOR. Prior to disbursing the 188
funds to the consumer, the lienholder OR LESSOR may deduct the 189
5
balance owing to it, including any reasonable fees charged for 190
canceling the loan OR THE LEASE and refunded pursuant to division 192
(B) of this section, and shall immediately remit the balance if 193
any, to the consumer and cancel the lien OR THE LEASE. 194
(2) If the consumer elects to take a new motor vehicle, 196
the manufacturer shall notify any lienholder noted on the 197
certificate of title under section 4505.13 of the Revised Code OR 198
THE LESSOR. If both the lienholder OR THE LESSOR and the 199
consumer consent to finance OR LEASE the new motor vehicle 200
obtained through the exchange in division (B) of this section, 202
the lienholder OR THE LESSOR shall release the lien on OR 203
SURRENDER THE TITLE TO the nonconforming motor vehicle after it 204
has obtained a lien on OR TITLE TO the new motor vehicle. If the 205
existing lienholder OR LESSOR does not finance OR LEASE the new 206
motor vehicle, it has no obligation to discharge the note or 208
cancel the lien on OR SURRENDER THE TITLE TO the nonconforming
motor vehicle until the original indebtedness is OR THE LEASE 210
TERMS ARE satisfied.
Sec. 1345.73. It shall be presumed that a reasonable 219
number of attempts have been undertaken by the manufacturer, its 220
dealer, or its authorized agent to conform a motor vehicle to any 221
applicable express warranty if, during the period of one year 222
following the date of original delivery or during the first 223
eighteen thousand miles of operation, whichever is earlier, any 224
of the following apply: 225
(A) Substantially the same nonconformity has been subject 227
to repair three or more times and EITHER continues to exist OR 229
RECURS;
(B) The vehicle is out of service by reason of repair for 231
a cumulative total of thirty or more calendar days; 232
(C) There have been eight or more attempts to repair any 234
nonconformity that substantially impairs the use and value of the 235
motor vehicle to the consumer; 236
(D) There has been at least one attempt to repair a 238
6
nonconformity that results in a condition that is likely to cause 239
death or serious bodily injury if the vehicle is driven, and the 240
nonconformity EITHER continues to exist OR RECURS. 241
Sec. 1345.74. (A) At the time of purchase, the 250
manufacturer, either directly or through its agent or its 251
authorized dealer, shall provide to the consumer a written 252
statement on a separate piece of paper, in ten-point type, all
capital letters, in substantially the following form: IMPORTANT: 253
IF THIS VEHICLE IS DEFECTIVE, YOU MAY BE ENTITLED UNDER STATE LAW 254
TO A REPLACEMENT OR TO COMPENSATION. 255
IN THE CASE OF A LEASED MOTOR VEHICLE, THE WRITTEN 257
STATEMENT DESCRIBED IN THIS DIVISION SHALL BE PROVIDED TO THE 258
CONSUMER BY THE MANUFACTURER, EITHER DIRECTLY OR THROUGH THE 259
LESSOR, AT THE TIME OF EXECUTION OF THE LEASE AGREEMENT. 260
(B) The manufacturer or authorized dealer shall provide to 262
the consumer, each time the motor vehicle of the consumer is 264
returned from being serviced or repaired, a fully itemized 265
written statement indicating all work performed on the vehicle, 266
including, but not limited to, parts and labor as described in
the rules adopted pursuant to section 1345.77 of the Revised 267
Code.
Sec. 1345.75. (A) Any purchaser of a new motor vehicle 276
who suffers any loss due to nonconformity of the motor vehicle as 277
a result of failure by the manufacturer, its agent, or its 278
authorized dealer to comply with section 1345.72 of the Revised 279
Code, CONSUMER may bring a civil action in a court of common 280
pleas or other court of competent jurisdiction AGAINST ANY 282
MANUFACTURER IF THE MANUFACTURER FAILS TO COMPLY WITH SECTION 284
1345.72 OF THE REVISED CODE and, in addition to other THE relief 285
TO WHICH THE CONSUMER IS ENTITLED UNDER THAT SECTION, shall be 286
entitled to recover reasonable attorney's fees and all court 287
costs.
(B) The remedies in sections 1345.71 to 1345.77 1345.78 of 289
the Revised Code are in addition to remedies otherwise available 290
7
to consumers under law. 291
(C) Any action brought under division (A) of this section 293
shall be commenced within two FIVE years of the expiration of the 295
express warranty term DATE OF ORIGINAL DELIVERY OF THE MOTOR
VEHICLE. Any period of limitation of actions under any federal 297
or Ohio laws with respect to any consumer shall be tolled for the 298
period that begins on the date that a complaint is filed with an 299
informal dispute resolution mechanism established pursuant to 300
section 1345.77 of the Revised Code and ends on the date of the 301
decision by the informal dispute resolution mechanism. 302
(D) It is an affirmative defense to any claim under this 304
section that a nonconformity is the result of abuse, neglect, or 305
the unauthorized modification or alteration of a motor vehicle by 306
anyone other than the manufacturer, its agent, or its authorized 307
dealer. 308
Sec. 1345.76. (A) If a motor vehicle has been returned 318
under the provisions of sections 1345.71 to 1345.77 of the 319
Revised Code or a similar law of another state, whether as a 321
result of legal action or of an informal dispute settlement
proceeding, the vehicle A BUYBACK may not be resold OR LEASED in 324
this state unless each of the following applies:
(1) The manufacturer provides the same express warranty 326
that was provided to the original purchaser CONSUMER, except that 328
the term of the warranty shall be only for ONLY twelve thousand 329
miles or twelve months after the date of resale, whichever is 331
earlier;
(2) The manufacturer provides to the consumer, either 333
directly or through its agent or its authorized dealer, and prior 334
to obtaining the signature of the consumer on any document, a 335
written statement on a separate piece of paper, in ten-point 336
type, all capital letters, in substantially the following form: 337
IMPORTANTBECAUSE IT DID NOT CONFORM TO 344
THE MANUFACTURER'S EXPRESS WARRANTY AND THE NONCONFORMITY WAS NOT 345
8
CURED WITHIN A REASONABLE AMOUNT OF TIME AS PROVIDED BY OHIO LAW