As Passed by the Senate 1
123rd General Assembly 4
Regular Session Am. 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-SENATORS OELSLAGER-WATTS-DRAKE-SPADA- 14
MUMPER-WACHTMANN-RAY 15
_________________________________________________________________ 17
A B I L L
To amend sections 1345.71 to 1345.76 and 1345.99 and 19
to enact sections 1345.78 and 4505.112 of the 20
Revised Code to make the Nonconforming New Motor 21
Vehicle law apply to motor vehicles leased for a 22
period of one month or more, to require the 23
certificate of title to a vehicle returned under 24
that law to be marked as a "buyback" vehicle, and 25
to make other changes in that law. 26
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 28
Section 1. That sections 1345.71, 1345.72, 1345.73, 30
1345.74, 1345.75, 1345.76, and 1345.99 be amended and sections 31
1345.78 and 4505.112 of the Revised Code be enacted to read as 32
follows:
Sec. 1345.71. As used in sections 1345.71 to 1345.77 41
1345.78 of the Revised Code: 43
(A) "Consumer" means the ANY OF THE FOLLOWING: 45
(1) THE purchaser, other than for purposes of resale, of a 48
motor vehicle, any;
(2) ANY LESSEE OF A MOTOR VEHICLE IN A CONTRACTUAL 50
2
ARRANGEMENT UNDER WHICH A CHARGE IS MADE FOR THE USE OF THE 51
VEHICLE AT A PERIODIC RATE FOR A TERM OF THIRTY DAYS OR MORE, AND 53
TITLE TO THE VEHICLE IS IN THE NAME OF A PERSON OTHER THAN THE
USER; 54
(3) ANY person to whom the motor vehicle is transferred 58
during the duration of the express warranty that is applicable to 59
the motor vehicle, and any;
(4) ANY other person who is entitled by the terms of the 62
warranty to enforce the warranty. 63
(B) "Manufacturer" and "distributor" have the same 65
meanings as in section 4517.01 of the Revised Code, and 67
"manufacturer" includes a remanufacturer as defined in that
section. 68
(C) "Express warranty" and "warranty" mean the written 70
warranty of the manufacturer or distributor of a new motor 71
vehicle concerning the condition and fitness for use of the 72
vehicle, including any terms or conditions precedent to the 73
enforcement of obligations under that warranty. 74
(D) "Motor vehicle" means any passenger car or 76
noncommercial motor vehicle as defined in section 4501.01 of the 77
Revised Code, or those parts of any motor home, as defined in 78
section 4501.01 of the Revised Code, that are not part of the 79
permanently installed facilities for cold storage, cooking and 80
consuming of food, and for sleeping, but does not mean any mobile 82
home as defined in division (O) of section 4501.01 of the Revised 83
Code, OR recreational vehicle as defined in division (Q) of that 84
section, or ANY manufactured home as defined in division (C)(4) 86
of section 3781.06 of the Revised Code.
(E) "Nonconformity" means any defect or condition which 88
THAT substantially impairs the use, value, or safety of a motor 89
vehicle TO THE CONSUMER and does not conform to the express 90
warranty of the manufacturer or distributor. 92
(F) "Full purchase price" means BOTH OF THE FOLLOWING: 94
(1) IN THE CASE OF A SALE, the contract price for the 96
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motor vehicle, including charges for transportation, 98
UNDERCOATING, dealer-installed OPTIONS AND accessories, dealer 99
services, dealer preparation, and delivery and collateral 101
charges; all finance, credit insurance, warranty, and service 102
contract charges incurred by the buyer CONSUMER; and all sales 103
tax, license and registration fees, and other government charges. 105
(2) IN THE CASE OF A LEASE, THE CAPITALIZED COST 108
REDUCTION, SECURITY DEPOSIT, TAXES, TITLE FEES, ALL MONTHLY LEASE 109
PAYMENTS, THE RESIDUAL VALUE OF THE VEHICLE, AND ALL FINANCE, 110
CREDIT INSURANCE, WARRANTY, AND SERVICE CONTRACT CHARGES INCURRED 111
BY THE CONSUMER.
(G) "BUYBACK" MEANS A MOTOR VEHICLE THAT HAS BEEN REPLACED 114
OR REPURCHASED BY A MANUFACTURER AS THE RESULT OF A COURT 116
JUDGMENT, A DETERMINATION OF AN INFORMAL DISPUTE SETTLEMENT 117
MECHANISM, OR A SETTLEMENT AGREED TO BY A CONSUMER REGARDLESS OF 118
WHETHER IT IS IN THE CONTEXT OF A COURT, AN INFORMAL DISPUTE
SETTLEMENT MECHANISM, OR OTHERWISE, IN THIS OR ANY OTHER STATE, 120
IN WHICH THE CONSUMER HAS ASSERTED THAT THE MOTOR VEHICLE DOES 121
NOT CONFORM TO THE WARRANTY, HAS PRESENTED DOCUMENTATION TO 122
ESTABLISH THAT A NONCONFORMITY EXISTS PURSUANT TO SECTION 1345.72 123
OR 1345.73 OF THE REVISED CODE, AND HAS REQUESTED REPLACEMENT OR 124
REPURCHASE OF THE VEHICLE. 125
(H) "MOBILE HOME," "MOTOR HOME," "NONCOMMERCIAL MOTOR 127
VEHICLE," "PASSENGER CAR," AND "RECREATIONAL VEHICLE" HAVE THE 128
SAME MEANINGS AS IN SECTION 4501.01 OF THE REVISED CODE. 129
Sec. 1345.72. (A) If a new motor vehicle does not conform 138
to any applicable express warranty and the consumer reports the 139
nonconformity to the manufacturer, its agent, or its authorized 140
dealer during the period of one year following the date of 141
original delivery or during the first eighteen thousand miles of 142
operation, whichever is earlier, the manufacturer, its agent, or 143
its authorized dealer shall make any repairs as are necessary to 144
conform the vehicle to such express warranty, notwithstanding the 145
fact that the repairs are made after the expiration of the 146
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appropriate time period. 147
(B) If the manufacturer, its agent, or its authorized 149
dealer is unable to conform the motor vehicle to any applicable 150
express warranty by repairing or correcting any defect or 151
condition that substantially impairs the use, safety, or value of 152
the motor vehicle to the consumer NONCONFORMITY after a 153
reasonable number of repair attempts, the manufacturer shall, at 154
the consumer's option, and subject to division (D) of this 155
section, EITHER SHALL replace the motor vehicle with a new motor 156
vehicle acceptable to the consumer or SHALL accept return of the 158
vehicle from the consumer and refund each of the following: 159
(1) The full purchase price including, but not limited to, 161
charges for undercoating, transportation, and installed options; 162
(2) All collateral charges, including but not limited to, 164
sales tax, license and registration fees, and similar government 165
charges; 166
(3) All finance charges incurred by the consumer; 168
(4) All incidental damages, including, BUT NOT LIMITED TO, 171
any reasonable fees charged by the lender OR LESSOR for making or 172
canceling the loan OR LEASE, AND ANY EXPENSES INCURRED BY THE 173
CONSUMER AS A RESULT OF THE NONCONFORMITY, SUCH AS CHARGES FOR 174
TOWING, VEHICLE RENTAL, MEALS, AND LODGING. 175
(C) Nothing in this section imposes any liability on a new 177
motor vehicle dealer or creates a cause of action by a buyer 178
against a new motor vehicle dealer. 179
(D) Sections 1345.71 to 1345.77 1345.78 of the Revised 181
Code do not affect the obligation of a consumer under a loan or 182
retail installment sales contract or the interest of any secured 183
party, except as follows: 184
(1) If the consumer elects to take a refund, the 186
manufacturer shall forward the total sum required under division 187
(B) of this section by an instrument jointly payable to the 188
consumer and any lienholder that appears on the face of the 189
certificate of title OR THE LESSOR. Prior to disbursing the 190
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funds to the consumer, the lienholder OR LESSOR may deduct the 191
balance owing to it, including any reasonable fees charged for 192
canceling the loan OR THE LEASE and refunded pursuant to division 194
(B) of this section, and shall immediately remit the balance if 195
any, to the consumer and cancel the lien OR THE LEASE. 196
(2) If the consumer elects to take a new motor vehicle, 198
the manufacturer shall notify any lienholder noted on the 199
certificate of title under section 4505.13 of the Revised Code OR 200
THE LESSOR. If both the lienholder OR THE LESSOR and the 201
consumer consent to finance OR LEASE the new motor vehicle 202
obtained through the exchange in division (B) of this section, 204
the lienholder OR THE LESSOR shall release the lien on OR 205
SURRENDER THE TITLE TO the nonconforming motor vehicle after it 206
has obtained a lien on OR TITLE TO the new motor vehicle. If the 207
existing lienholder OR LESSOR does not finance OR LEASE the new 208
motor vehicle, it has no obligation to discharge the note or 210
cancel the lien on OR SURRENDER THE TITLE TO the nonconforming
motor vehicle until the original indebtedness is OR THE LEASE 212
TERMS ARE satisfied.
Sec. 1345.73. It shall be presumed that a reasonable 221
number of attempts have been undertaken by the manufacturer, its 222
dealer, or its authorized agent to conform a motor vehicle to any 223
applicable express warranty if, during the period of one year 224
following the date of original delivery or during the first 225
eighteen thousand miles of operation, whichever is earlier, any 226
of the following apply: 227
(A) Substantially the same nonconformity has been subject 229
to repair three or more times and EITHER continues to exist OR 231
RECURS;
(B) The vehicle is out of service by reason of repair for 233
a cumulative total of thirty or more calendar days; 234
(C) There have been eight or more attempts to repair any 236
nonconformity that substantially impairs the use and value of the 237
motor vehicle to the consumer; 238
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(D) There has been at least one attempt to repair a 240
nonconformity that results in a condition that is likely to cause 241
death or serious bodily injury if the vehicle is driven, and the 242
nonconformity EITHER continues to exist OR RECURS. 243
Sec. 1345.74. (A) At the time of purchase, the 252
manufacturer, either directly or through its agent or its 253
authorized dealer, shall provide to the consumer a written 254
statement on a separate piece of paper, in ten-point type, all
capital letters, in substantially the following form: IMPORTANT: 255
IF THIS VEHICLE IS DEFECTIVE, YOU MAY BE ENTITLED UNDER STATE LAW 256
TO A REPLACEMENT OR TO COMPENSATION. 257
IN THE CASE OF A LEASED MOTOR VEHICLE, THE WRITTEN 259
STATEMENT DESCRIBED IN THIS DIVISION SHALL BE PROVIDED TO THE 260
CONSUMER BY THE MANUFACTURER, EITHER DIRECTLY OR THROUGH THE 261
LESSOR, AT THE TIME OF EXECUTION OF THE LEASE AGREEMENT. 262
(B) The manufacturer or authorized dealer shall provide to 264
the consumer, each time the motor vehicle of the consumer is 266
returned from being serviced or repaired, a fully itemized 267
written statement indicating all work performed on the vehicle, 268
including, but not limited to, parts and labor as described in
the rules adopted pursuant to section 1345.77 of the Revised 269
Code.
Sec. 1345.75. (A) Any purchaser of a new motor vehicle 278
who suffers any loss due to nonconformity of the motor vehicle as 279
a result of failure by the manufacturer, its agent, or its 280
authorized dealer to comply with section 1345.72 of the Revised 281
Code, CONSUMER may bring a civil action in a court of common 282
pleas or other court of competent jurisdiction AGAINST ANY 284
MANUFACTURER IF THE MANUFACTURER FAILS TO COMPLY WITH SECTION 286
1345.72 OF THE REVISED CODE and, in addition to other THE relief 287
TO WHICH THE CONSUMER IS ENTITLED UNDER THAT SECTION, shall be 288
entitled to recover reasonable attorney's fees and all court 289
costs.
(B) The remedies in sections 1345.71 to 1345.77 1345.78 of 291
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the Revised Code are in addition to remedies otherwise available 292
to consumers under law. 293
(C) Any action brought under division (A) of this section 295
shall be commenced within two FIVE years of the expiration of the 297
express warranty term DATE OF ORIGINAL DELIVERY OF THE MOTOR
VEHICLE. Any period of limitation of actions under any federal 299
or Ohio laws with respect to any consumer shall be tolled for the 300
period that begins on the date that a complaint is filed with an 301
informal dispute resolution mechanism established pursuant to 302
section 1345.77 of the Revised Code and ends on the date of the 303
decision by the informal dispute resolution mechanism. 304
(D) It is an affirmative defense to any claim under this 306
section that a nonconformity is the result of abuse, neglect, or 307
the unauthorized modification or alteration of a motor vehicle by 308
anyone other than the manufacturer, its agent, or its authorized 309
dealer. 310
Sec. 1345.76. (A) If a motor vehicle has been returned 320
under the provisions of sections 1345.71 to 1345.77 of the 321
Revised Code or a similar law of another state, whether as a 323
result of legal action or of an informal dispute settlement
proceeding, the vehicle A BUYBACK may not be resold OR LEASED in 326
this state unless each of the following applies:
(1) The manufacturer provides the same express warranty 328
that was provided to the original purchaser CONSUMER, except that 330
the term of the warranty shall be only for twelve THE GREATER OF 331
EITHER OF THE FOLLOWING: 332
(a) TWELVE thousand miles or twelve months after the date 336
of resale, whichever is earlier;
(b) THE REMAINING TERM OF ANY MANUFACTURER'S ORIGINAL 338
WARRANTY.
(2) The manufacturer provides to the consumer, either 340
directly or through its agent or its authorized dealer, and prior 341
to obtaining the signature of the consumer on any document, a 342
written statement on a separate piece of paper, in ten-point 343
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type, all capital letters, in substantially the following form: 344
IMPORTANTBECAUSE IT DID NOT CONFORM TO 351
THE MANUFACTURER'S EXPRESS WARRANTY AND THE NONCONFORMITY WAS NOT 352
CURED WITHIN A REASONABLE AMOUNT OF TIME AS PROVIDED BY OHIO LAW.