
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document affected by Public Law 106-569 Section 603(b)(3)]
[CITE: 42USC5414]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
     CHAPTER 70--MANUFACTURED HOME CONSTRUCTION AND SAFETY STANDARDS
 
Sec. 5414. Notification and correction of defects by 
        manufacturer
        

(a) Notice to purchaser within reasonable time after discovery of defect

    Every manufacturer of manufactured homes shall furnish notification 
of any defect in any manufactured home produced by such manufacturer 
which he determines, in good faith, relates to a Federal manufactured 
home construction or safety standard or contains a defect which 
constitutes an imminent safety hazard to the purchaser of such 
manufactured home, within a reasonable time after such manufacturer has 
discovered such defect.

(b) Notification by mail

    The notification required by subsection (a) of this section shall be 
accomplished--
        (1) by mail to the first purchaser (not including any dealer or 
    distributor of such manufacturer) of the manufactured home 
    containing the defect, and to any subsequent purchaser to whom any 
    warranty on such manufactured home has been transferred;
        (2) by mail to any other person who is a registered owner of 
    such manufactured home and whose name and address has been 
    ascertained pursuant to procedures established under subsection (f) 
    of this section; and
        (3) by mail or other more expeditious means to the dealer or 
    dealers of such manufacturer to whom such manufactured home was 
    delivered.

(c) Form and requisites of notification

    The notification required by subsection (a) of this section shall 
contain a clear description of such defect or failure to comply, an 
evaluation of the risk to manufactured home occupants' safety reasonably 
related to such defect, and a statement of the measures needed to repair 
the defect. The notification shall also inform the owner whether the 
defect is a construction or safety defect which the manufacturer will 
have corrected at no cost to the owner of the manufactured home under 
subsection (g) of this section or otherwise, or is a defect which must 
be corrected at the expense of the owner.

(d) Copy to Secretary of all notices, bulletins, and communications sent 
        by manufacturer to dealers and purchasers concerning defects; 
        disclosure to public by Secretary

    Every manufacturer of manufactured homes shall furnish to the 
Secretary a true or representative copy of all notices, bulletins, and 
other communications to the dealers of such manufacturer or purchasers 
of manufactured homes of such manufacturer regarding any defect in any 
such manufactured home produced by such manufacturer. The Secretary 
shall disclose to the public so much of the information contained in 
such notices or other information obtained under section 5413 of this 
title as he deems will assist in carrying out the purposes of this 
chapter, but he shall not disclose any information which contains or 
relates to a trade secret, or which, if disclosed, would put such 
manufacturer at a substantial competitive disadvantage, unless he 
determines that it is necessary to carry out the purposes of this 
chapter.

(e) Notice by Secretary to manufacturers of noncompliance with standards 
        or defective nature of manufactured home; contents of notice; 
        presentation by manufacturer of views; notice to purchasers of 
        defects

    If the Secretary determines that any manufactured home--
        (1) does not comply with an applicable Federal manufactured home 
    construction and safety standard prescribed pursuant to section 5403 
    of this title; or
        (2) contains a defect which constitutes an imminent safety 
    hazard,

then he shall immediately notify the manufacturer of such manufactured 
home of such defect or failure to comply. The notice shall contain the 
findings of the Secretary and shall include all information upon which 
the findings are based. The Secretary shall afford such manufacturer an 
opportunity to present his views and evidence in support thereof, to 
establish that there is no failure of compliance. If after such 
presentation by the manufacturer the Secretary determines that such 
manufactured home does not comply with applicable Federal manufactured 
home construction or safety standards, or contains a defect which 
constitutes an imminent safety hazard, the Secretary shall direct the 
manufacturer to furnish the notification specified in subsections (a) 
and (b) of this section.

(f) Maintenance by manufacturers of record of names and addresses of 
        first purchasers of manufactured homes; procedures for 
        ascertaining names and addresses of subsequent purchasers; 
        establishment and reasonableness of procedures for maintaining 
        records

    Every manufacturer of manufactured homes shall maintain a record of 
the name and address of the first purchaser of each manufactured home 
(for purposes other than resale), and, to the maximum extent feasible, 
shall maintain procedures for ascertaining the name and address of any 
subsequent purchaser thereof and shall maintain a record of names and 
addresses so ascertained. Such records shall be kept for each home 
produced by a manufacturer. The Secretary may establish by order 
procedures to be followed by manufacturers in establishing and 
maintaining such records, including procedures to be followed by 
distributors and dealers to assist manufacturers to secure the 
information required by this subsection. Such procedures shall be 
reasonable for the particular type of manufactured home for which they 
are prescribed.

(g) Correction of defects by manufacturer; conditions; procedures; 
        contract or legal rights of purchasers or other persons 
        unaffected

    A manufacturer required to furnish notification of a defect under 
subsection (a) or (e) of this section shall also bring the manufactured 
home into compliance with applicable standards and correct the defect or 
have the defect corrected within a reasonable period of time at no 
expense to the owner, but only if--
        (1) the defect presents an unreasonable risk of injury or death 
    to occupants of the affected manufactured home or homes;
        (2) the defect can be related to an error in design or assembly 
    of the manufactured home by the manufacturer.

The Secretary may direct the manufacturer to make such corrections after 
providing an opportunity for oral and written presentation of views by 
interested persons. Nothing in this section shall limit the rights of 
the purchaser or any other person under any contract or applicable law.

(h) Submission to Secretary by manufacturer of plan for notifying owners 
        of defects and repair of defects; approval of manufacturer's 
        remedy plan; effectuation and implementation of remedy plan

    The manufacturer shall submit his plan for notifying owners of the 
defect and for repairing such defect (if required under subsection (g) 
of this section) to the Secretary for his approval before implementing 
such plan. Whenever a manufacturer is required under subsection (g) of 
this section to correct a defect, the Secretary shall approve with or 
without modification, after consultation with the manufacturer of the 
manufactured home involved, such manufacturer's remedy plan including 
the date when, and the method by which, the notification and remedy 
required pursuant to this section shall be effectuated. Such date shall 
be the earliest practicable one but shall not be more than sixty days 
after the date of discovery or determination of the defect or failure to 
comply, unless the Secretary grants an extension of such period for good 
cause shown and publishes a notice of such extension in the Federal 
Register. Such manufacturer is bound to implement such remedy plan as 
approved by the Secretary.

(i) Defective or inadequately repaired manufactured homes; replacement 
        with new or equivalent home or refund of purchase price

    Where a defect or failure to comply in a manufactured home cannot be 
adequately repaired within sixty days from the date of discovery or 
determination of the defect, the Secretary may require that the 
manufactured home be replaced with a new or equivalent home without 
charge, or that the purchase price be refunded in full, less a 
reasonable allowance for depreciation based on actual use if the home 
has been in the possession of the owner for more than one year.

(Pub. L. 93-383, title VI, Sec. 615, Aug. 22, 1974, 88 Stat. 709; Pub. 
L. 96-399, title III, Sec. 308(c)(4), Oct. 8, 1980, 94 Stat. 1641; Pub. 
L. 97-35, title III, Sec. 339B(c), Aug. 13, 1981, 95 Stat. 417.)

                          Codification

    References to ``mobile homes'', wherever appearing in text, changed 
to ``manufactured homes'' in view of the amendment of title VI of the 
Housing and Community Development Act of 1974 (this chapter) by section 
308(c)(4) of Pub. L. 96-399 requiring the substitution of ``manufactured 
home'' for ``mobile home'' wherever appearing in title VI of the Housing 
and Community Development Act of 1974, and section 339B(c) of Pub. L. 
97-35 (set out as a note under section 1703 of Title 12, Banks and 
Banking) providing that the terms ``mobile home'' and ``manufactured 
home'' shall be deemed to include the terms ``mobile homes'' and 
``manufactured homes'', respectively.


                               Amendments

    1980--Subsecs. (a) to (i). Pub. L. 96-399 substituted ``manufactured 
home'' for ``mobile home'' wherever appearing.

                  Section Referred to in Other Sections

    This section is referred to in sections 5409, 5422 of this title.
