Indiana Lemon Law
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IC 24-5-13
Chapter 13. Motor Vehicle Protection
IC 24-5-13-1
Sec. 1. This chapter applies to all motor vehicles that are sold, leased,
transferred, or replaced by a dealer or manufacturer in Indiana.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-2
Sec. 2. As used in this chapter, "business day" means a day other than
Sunday or a legal holiday (as defined in IC 1-1-9-1).
As added by P.L.150-1988, SEC.1.
IC 24-5-13-3
Sec. 3. As used in this chapter, "buyer" means any person who, for purposes
other than resale or sublease, enters into an agreement or contract within
Indiana for the transfer, lease, or purchase of a motor vehicle covered under
this chapter.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-3.4
Sec. 3.4. As used in this chapter, "lease" means a contract in the form of a
lease or bailment for the use of a motor vehicle by a person for more than four
(4) months, whether or not the lessee has the option to purchase or otherwise
become the owner of the property at the expiration of the lease.
As added by P.L.24-1989, SEC.25.
IC 24-5-13-3.7
Sec. 3.7. As used in this chapter, "lessor" means a person who:
(1) holds title to a motor vehicle leased to a lessee under a written
lease agreement; or
(2) holds the lessor's rights under an agreement described in
subdivision (1).
As added by P.L.24-1989, SEC.26.
IC 24-5-13-4
Sec. 4. As used in this chapter, "manufacturer" means any person who is
engaged in the business of manufacturing motor vehicles, or, in the case of
motor vehicles not manufactured in the United States, any person who is engaged
in the business of importing motor vehicles.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-5
Sec. 5. As used in this chapter, "motor vehicle" or "vehicle" means any
self-propelled vehicle that:
(1) has a declared gross vehicle weight of less than ten thousand
(10,000) pounds;
(2) is sold to:
(A) a buyer in Indiana and registered in Indiana; or
(B) a buyer in Indiana who is not an Indiana resident (as defined in
IC 9-13-2-78);
(3) is intended primarily for use and operation on public highways; and
(4) is required to be registered or licensed before use or operation.
The term does not include conversion vans, motor homes, farm tractors, and other
machines used in the actual production, harvesting, and care of farm products,
road building equipment, truck tractors, road tractors, motorcycles, mopeds,
snowmobiles, or vehicles designed primarily for offroad use.
As added by P.L.150-1988, SEC.1. Amended by P.L.141-1990, SEC.1; P.L.2-1991,
SEC.84.
IC 24-5-13-6
Sec. 6. As used in this chapter, "nonconformity" means any specific or
generic defect or condition or any concurrent combination of defects or
conditions that:
(1) substantially impairs the use, market value, or safety of a motor
vehicle; or
(2) renders the motor vehicle nonconforming to the terms of an
applicable manufacturer's warranty.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-7
Sec. 7. As used in this chapter, "term of protection" means a period of time
that:
(1) begins:
(A) on the date of original delivery of a motor vehicle to a buyer;
or
(B) in the case of a replacement vehicle provided by a manufacturer
to a buyer under this chapter, on the date of delivery of the replacement
vehicle to the buyer; and
(2) ends the earlier of:
(A) eighteen (18) months after the date identified under subdivision
(1); or
(B) the time the motor vehicle has been driven eighteen thousand
(18,000) miles after the date identified under subdivision (1).
As added by P.L.150-1988, SEC.1.
IC 24-5-13-8
Sec. 8. If a motor vehicle suffers from a nonconformity and the buyer
reports the nonconformity within the term of protection to the manufacturer of
the vehicle, its agent, or its authorized dealer then the manufacturer of the
motor vehicle or the manufacturer's agent or authorized dealer shall make the
repairs that are necessary to correct the nonconformity, even if the repairs are
made after expiration of the term of protection.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-9
Sec. 9. (a) A buyer must first notify the manufacturer of a claim under this
chapter if the manufacturer has made the disclosure required by subsection (b).
However, if the manufacturer has not made the required disclosure, the buyer is
not required to notify the manufacturer of a claim under this chapter.
(b) The manufacturer shall clearly and conspicuously disclose to the buyer,
in the warranty or owner's manual, that written notification of the
nonconformity is required before the buyer may be eligible for a refund or
replacement of the vehicle. The manufacturer shall include with the warranty or
owner's manual the name and address to which the buyer must send notification.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-10
Sec. 10. If, after a reasonable number of attempts, the manufacturer, its
agent, or authorized dealer is unable to correct the nonconformity, the
manufacturer shall accept the return of the vehicle from the buyer and, at the
buyer's option, either, within thirty (30) days, refund the amount paid by the
buyer or provide a replacement vehicle of comparable value.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-11
Sec. 11. (a) If a refund is tendered under this chapter with respect to a
vehicle that is not a leased vehicle, the refund must be the full contract price
of the vehicle, including all credits and allowances for any trade-in vehicle
and less a reasonable allowance for use.
(b) To determine a reasonable allowance for use under this section,
multiply:
(1) the total contract price of the vehicle; by
(2) a fraction having as its denominator one hundred thousand (100,000)
and having as its numerator the number of miles that the vehicle traveled before
the manufacturer's acceptance of its return.
(c) The refund must also include reimbursement for the following incidental
costs:
(1) All sales tax.
(2) The unexpended portion of the registration fee and excise tax that
has been prepaid for any calendar year.
(3) All finance charges actually expended.
(4) The cost of all options added by the authorized dealer.
(d) Refunds made under this section shall be made to the buyer and
lienholder, if any, as their respective interests appear on the records of
ownership.
As added by P.L.150-1988, SEC.1. Amended by P.L.24-1989, SEC.27.
IC 24-5-13-11.5
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Sec. 11.5. (a) If a refund is tendered under this chapter with respect to a
leased motor vehicle, the refund shall be made as follows:
(1) The lessee shall receive all deposit and lease payments paid by the
lessee to the lessor, including all credits and allowances for any trade-in
vehicles, less a reasonable allowance for use.
(2) The lessor shall receive:
(A) the lessor's purchase cost, including freight and accessories;
(B) any fee paid to another to obtain the lease;
(C) any insurance premiums or other costs expended by the lessor for
the benefit of the lessee;
(D) sales tax paid by the lessor; and
(E) five percent (5%) of the amount described in subdivision (2)(A);
less the total of all deposit and lease payments paid by the lessee to the
lessor, including all credits and allowances for any trade-in vehicle.
(b) To determine a reasonable allowance for use under this section,
multiply:
(1) the total lease obligation of the lessee at the inception of the
lease; by
(2) a fraction having as its denominator one hundred thousand (100,000)
and as its numerator the number of miles that the vehicle traveled before the
lessor's acceptance of its return.
As added by P.L.24-1989, SEC.28.
IC 24-5-13-12
Sec. 12. (a) If a vehicle is replaced by a manufacturer under this chapter,
the manufacturer shall reimburse the buyer for any fees for the transfer of
registration or any sales tax incurred by the buyer as a result of replacement.
(b) If a replaced vehicle was financed by the manufacturer, its subsidiary,
or agent, the manufacturer, subsidiary, or agent may not require the buyer to
enter into any refinancing agreement concerning a replacement vehicle that would
create any financial obligations upon the buyer less favorable than those of the
original financing agreement.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-13
Sec. 13. Whenever a vehicle is replaced or refunded under this chapter, the
manufacturer shall reimburse the buyer for necessary towing and rental costs
actually incurred as a direct result of the nonconformity.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-14
Sec. 14. A buyer has the option of retaining the use of any vehicle returned
under this chapter until the time that the buyer has been tendered a full refund
or replacement vehicle of comparable value. The use of any vehicle retained by a
buyer after its return to a manufacturer under this chapter must, in cases in
which a refund is tendered, be reflected in the reasonable allowance for use
required by section 11 of this chapter.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-15
Sec. 15. (a) A reasonable number of attempts is considered to have been
undertaken to correct a nonconformity if:
(1) the nonconformity has been subject to repair at least four (4) times
by the manufacturer or its agents or authorized dealers, but the nonconformity
continues to exist; or
(2) the vehicle is out of service by reason of repair of any
nonconformity for a cumulative total of at least thirty (30) business days, and
the nonconformity continues to exist.
(b) The thirty (30) business day period in subsection (a)(2) shall be
extended by any period of time during which repair services are not available as
a direct result of a strike. The manufacturer, its agent, or authorized dealer
shall provide or make provision for the free use of a vehicle to any buyer whose
vehicle is out of service by reason of repair during a strike.
(c) The burden is on the manufacturer to show that the reason for an
extension under subsection (b) was the direct cause for the failure of the
manufacturer, its agent, or authorized dealer to cure any nonconformity during
the time of the event.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-16
Sec. 16. (a) A manufacturer, its agent, or authorized dealer may not refuse
to diagnose or repair any vehicle for the purpose of avoiding liability under
this chapter.
(b) A manufacturer, its agent, or authorized dealer shall provide a buyer
with a written repair order each time the buyer's vehicle is brought in for
examination or repair. The repair order must indicate all work performed on the
vehicle including examination of the vehicle, parts, and labor.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-17 Repealed
(Repealed by P.L.65-1992, SEC.4.)
IC 24-5-13-18
Sec. 18. It is an affirmative defense to any claim under this chapter that:
(1) the nonconformity, defect, or condition does not substantially
impair the use, value, or safety of the motor vehicle; or
(2) the nonconformity, defect, or condition is the result of abuse,
neglect, or unauthorized modification or alteration of the motor vehicle by the
buyer.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-19
Sec. 19. This chapter does not apply to any buyer who has not first resorted
to an informal procedure established by a manufacturer or in which a
manufacturer participates if:
(1) the procedure is certified by the attorney general as:
(A) complying in all respects with 16 C.F.R. 703; and
(B) complying with any other rules concerning certification adopted
by the attorney general, including but not limited to the requirement of oral
hearings, pursuant to IC 4-22-2; and
(2) the buyer has received adequate written notice from the manufacturer
of the existence of the procedure.
Adequate written notice includes the incorporation of the informal dispute
settlement procedure into the terms of the written warranty to which the motor
vehicle does not conform.
As added by P.L.150-1988, SEC.1. Amended by P.L.24-1989, SEC.29.
IC 24-5-13-20
Sec. 20. This chapter does not limit the rights or remedies that are
otherwise available to a buyer under any other applicable provision of law.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-21
Sec. 21. A buyer may bring a civil action to enforce this chapter in any
circuit or superior court.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-22
Sec. 22. A buyer who prevails in any action brought under this chapter is
entitled to recover as part of the judgment a sum equal to the aggregate amount
of cost and expenses, including attorney's fees based on actual time expended by
the attorney, determined by the court to have been reasonably incurred by the
buyer for or in connection with the commencement and prosecution of the action.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-23
Sec. 23. (a) An action brought under this chapter must be commenced within
two (2) years following the date the buyer first reports the nonconformity to
the manufacturer, its agent, or authorized dealer.
(b) When the buyer has commenced an informal dispute settlement procedure
described in section 19 of this chapter, the two (2) year period specified in
subsection (a) is tolled during the time the informal dispute settlement
procedure is being conducted.
As added by P.L.150-1988, SEC.1.
IC 24-5-13-24
Sec. 24. Nothing in this chapter imposes any liability on a dealer or
creates a cause of action by a consumer against a dealer, and a manufacturer may
not, directly or indirectly, expose any franchised dealer to liability under
this chapter.
As added by P.L.150-1988, SEC.1.
