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49 U.S.C. § 30116 — Defects and noncompliance found before sale to purchaser
Federal law — U.S. Code and appendices · legal_authorities
**(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
Source: Supplied U.S. Code snapshot — release unconfirmed · 49 U.S.C. § 30116
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Source location: Title 49, Chapter 301, § 30116; chapter-301-motor-vehicle-safety.md
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**(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.
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Federal law — U.S. Code and appendices · legal_authorities
### Statutory Notes
Section 1394, Pub. L. 89–563, title I, § 105, Sept. 9, 1966, 80 Stat. 720, related to judicial review of orders establishing standards, presentation of additional evidence before Secretary, and certified copy of transcript of record. See sections 30103 and 30161 of Title 49, Transportation.
Section 1395, Pub. L. 89–563, title I, § 106, Sept. 9, 1966, 80 Stat. 721, related to research, testing, development, and training in traffic and vehicle safety.
Section 1396, Pub. L. 89–563, title I, § 107, Sept. 9, 1966, 80 Stat. 721, related to cooperation of Secretary with governmental and private agencies in developing motor vehicle safety standards and methods for determining compliance with such standards. See sections 30111 and 30166 of Title 49.
Section 1397, Pub. L. 89–563, title I, § 108, Sept. 9, 1966, 80 Stat. 722; Pub. L. 93–492, title I, § 103(a), title II, § 203, Oct. 27, 1974, 88 Stat. 1477, 1485; Pub. L. 100–562, § 2(a)–(d), Oct. 31, 1988, 102 Stat. 2818, 2824, prohibited manufacture, sale, delivery, or importation of substandard vehicles and rendering inoperative certain devices, elements of design, or motor vehicle equipment. See sections 30103, 30112, 30114, 30115, 30117 to 30122, 30125, 30126, 30141 to 30147, 30166, and 30167 of Title 49.
Section 1398, Pub. L. 89–563, title I, § 109, Sept. 9, 1966, 80 Stat. 723; Pub. L. 93–492, title I, § 103(b), Oct. 27, 1974, 88 Stat. 1478, related to civil penalties for violations of former [section 1397 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section1397&num=0&edition=prelim) and Secretary’s authority to compromise such penalties. See [section 30165 of Title 49](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title49-section30165&num=0&edition=
Source: Supplied U.S. Code snapshot — release unconfirmed · 15 U.S.C. § 1411 to 1420
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Federal law — U.S. Code and appendices · legal_authorities
Page 768
TITLE 49—TRANSPORTATION
§ 30116
provided by an incomplete motor vehicle manu-
facturer, the intermediate or final stage manu-
facturer shall notify the incomplete motor vehi-
cle manufacturer in writing within a reasonable
time of affixing the certification label. A viola-
tion of this subsection shall not be subject to a
civil penalty under section 30165.
(Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 947;
Pub. L. 106–414, § 9, Nov. 1, 2000, 114 Stat. 1805.)
HISTORICAL AND REVISION NOTES
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
30115 ..........
15:1397(a)(1)(C), (E)
(related to
15:1403).
Sept. 9, 1966, Pub. L. 89–563,
§ 108(a)(1)(C), (E) (related
to § 114), 80 Stat. 722; Oct.
27, 1974, Pub. L. 93–492,
§ 103(a)(1)(A),
(2)(B),
88
Stat. 1477, 1478.
15:1403.
Sept. 9, 1966, Pub. L. 89–563,
§ 114, 80 Stat. 726.
The words ‘‘fail to issue a certificate required by sec-
tion 1403 of this title’’ in 15:1397(a)(1)(C) and the text of
15:1397(a)(1)(E) (related to 15:1403) are omitted as sur-
plus. The word ‘‘certify’’ is substituted for ‘‘furnish . . .
the certification’’ in 15:1403 to eliminate unnecessary
words. The words ‘‘the time of’’ and ‘‘of such vehicle or
equipment by such manufacturer or distributor’’ are
omitted as surplus. The words ‘‘prescribed under this
chapter’’ are added for clarity. The word ‘‘reasonable’’
is substituted for ‘‘due’’ in 15:1397(a)(1)(C) for consist-
ency in the revised title. The words ‘‘to the effect that
a motor vehicle or item of motor vehicle equipment
conforms to all applicable Federal motor vehicle safety
standards’’ are omitted because of the restatement.
The words ‘‘shown by’’ are substituted for ‘‘in the form
of’’ in 15:1403 for clarity.
Editorial Notes
AMENDMENTS
2000—Pu
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