
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 49USC30116]

 
                        TITLE 49--TRANSPORTATION
 
             SUBTITLE VI--MOTOR VEHICLE AND DRIVER PROGRAMS
 
                             PART A--GENERAL
 
                    CHAPTER 301--MOTOR VEHICLE SAFETY
 
                 SUBCHAPTER II--STANDARDS AND COMPLIANCE
 
Sec. 30116. Defects and noncompliance found before sale to 
        purchaser
        
    (a) Actions Required of Manufacturers and Distributors.--If, after a 
manufacturer or distributor sells a motor vehicle or motor vehicle 
equipment to a distributor or dealer and before the distributor or 
dealer sells the vehicle or equipment, it is decided that the vehicle or 
equipment contains a defect related to motor vehicle safety or does not 
comply with applicable motor vehicle safety standards prescribed under 
this chapter--
        (1) the manufacturer or distributor immediately shall repurchase 
    the vehicle or equipment at the price paid by the distributor or 
    dealer, plus transportation charges and reasonable reimbursement of 
    at least one percent a month of the price paid prorated from the 
    date of notice of noncompliance or defect to the date of repurchase; 
    or
        (2) if a vehicle, the manufacturer or distributor immediately 
    shall give to the distributor or dealer at the manufacturer's or 
    distributor's own expense, the part or equipment needed to make the 
    vehicle comply with the standards or correct the defect.

    (b) Distributor or Dealer Installation.--The distributor or dealer 
shall install the part or equipment referred to in subsection (a)(2) of 
this section. If the distributor or dealer installs the part or 
equipment with reasonable diligence after it is received, the 
manufacturer shall reimburse the distributor or dealer for the 
reasonable value of the installation and a reasonable reimbursement of 
at least one percent a month of the manufacturer's or distributor's 
selling price prorated from the date of notice of noncompliance or 
defect to the date the motor vehicle complies with applicable motor 
vehicle safety standards prescribed under this chapter or the defect is 
corrected.
    (c) Establishing Amount Due and Civil Actions.--The parties shall 
establish the value of installation and the amount of reimbursement 
under this section. If the parties do not agree, or if a manufacturer or 
distributor refuses to comply with subsection (a) or (b) of this 
section, the distributor or dealer purchasing the motor vehicle or motor 
vehicle equipment may bring a civil action. The action may be brought in 
a United States district court for the judicial district in which the 
manufacturer or distributor resides, is found, or has an agent, to 
recover damages, court costs, and a reasonable attorney's fee. An action 
under this section must be brought not later than 3 years after the 
claim accrues.

(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 947.)

                                          Historical and Revision Notes
-------------------------------------------------------------------------------
---------------------------------
           Revised  Section                    Source (U.S. Code)              
 Source (Statutes at Large)
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---------------------------------
30116(a)..............................  15:1400(a) (less (2) (last 97    Sept. 
9, 1966, Pub. L. 89-563, Sec.
                                         words)).                         111, 
80 Stat. 724.
30116(b)..............................  15:1400(a)(2) (last 97 words).
30116(c)..............................  15:1400(b), (c).
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---------------------------------

    In subsection (a)(1), the words ``as the case may be'', ``from such 
distributor or dealer'', ``all . . . involved'', and ``by the 
manufacturer or distributor'' are omitted as surplus.
    In subsection (a)(2), the words ``manufacturer's or distributor's'' 
are substituted for ``his'' for clarity. The words ``or parts'' are 
omitted because of 1:1. The words ``the vehicle comply with the 
standards or correct the defect'' are substituted for ``conforming'' for 
clarity.
    In subsection (b), the words ``the part or equipment referred to in 
subsection (a)(2) of this section'' are added because of the 
restatement. The words ``If the distributor or dealer installs the part 
or equipment with reasonable diligence after it is received, the 
manufacturer shall reimburse the distributor or dealer'' are substituted 
for ``and for the installation involved the manufacturer shall reimburse 
such distributor or dealer . . . Provided, however, That the distributor 
or dealer proceeds with reasonable diligence with the installation after 
the required part, parts or equipment are received'' to eliminate 
unnecessary words. The words ``on or in such vehicle'' are omitted as 
surplus. The words ``notice of noncompliance or defect'' are substituted 
for ``notice of such nonconformance'', and the words ``complies with 
applicable motor vehicle safety standards prescribed under this chapter 
or the defect is corrected'' are substituted for ``is brought into 
conformance with applicable Federal standards'', to eliminate 
unnecessary words and for consistency in the revised title.
    In subsection (c), the words ``the amount of reimbursement'' are 
substituted for ``such reasonable reimbursements'' for clarity and 
because of the restatement. The words ``by mutual agreement'' are 
omitted as surplus. The words ``If the parties do not agree'' are 
substituted for ``or failing such agreement'', and the words ``by the 
court pursuant to the provisions of subsection (b) of this section'' are 
omitted, because of the restatement. The words ``the requirements of'', 
``then'', ``as the case may be'', and ``without respect to the amount in 
controversy'' are omitted as surplus. The words ``civil action'' are 
substituted for ``suit'' because of rule 2 of the Federal Rules of Civil 
Procedure (28 App. U.S.C.). The words ``against such manufacturer or 
distributor'' are omitted as surplus. The word ``judicial'' is added for 
consistency. The words ``to recover damages, court costs, and a 
reasonable attorney's fee'' are substituted for ``and shall recover the 
damage by him sustained, as well as all court costs plus reasonable 
attorneys' fees'', and the words ``must be brought'' are substituted for 
``shall be forever barred unless commenced'', to eliminate unnecessary 
words. The word ``claim'' is substituted for ``cause of action'' for 
consistency.
