42 U.S.C. § 5414 — Notification and correction of defects by

Page 6564 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 5414 at the time of such purchase or in printed matter placed in the manufactured home. (h) Disclosure of confidential information and trade secrets All information reported to or otherwise ob- tained by the Secretary or his representative pursuant to subsection (b), (c), (f), or (g) which contains or relates to a trade secret, or which, if disclosed, would put the person furnishing such information at a substantial competitive dis- advantage, shall be considered confidential, ex- cept that such information may be disclosed to other officers or employees concerned with car- rying out this chapter or when relevant in any proceeding under this chapter. Nothing in this section shall authorize the withholding of infor- mation by the Secretary or any officer or em- ployee under his control from the duly author- ized committees of the Congress. (Pub. L. 93–383, title VI, § 614, Aug. 22, 1974, 88 Stat. 707; Pub. L. 96–399, title III, § 308(c)(4), Oct. 8, 1980, 94 Stat. 1641; Pub. L. 97–35, title III, § 339B(c), Aug. 13, 1981, 95 Stat. 417; Pub. L. 106–569, title VI, § 603(b)(2), Dec. 27, 2000, 114 Stat. 2999.) Editorial Notes 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 ap- pearing in title VI of the Housing and Community De- velopment 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 2000—Subsec. (f). Pub. L. 106–569 substituted ‘‘re- tailer’’ for ‘‘dealer’’ wherever appearing. 1980—Subsecs. (a), (c)(5), (f), (g). Pub. L. 96–399 sub- stituted ‘‘manufactured home’’ for ‘‘mobile home’’ wherever appearing. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2000 AMENDMENT Amendment by Pub. L. 106–569 effective Dec. 27, 2000, except that amendment has no effect on any order or interpretative bulletin issued under this chapter and published as a proposed rule pursuant to 5 U.S.C. 553 on or before Dec. 27, 2000, see section 612 of Pub. L. 106–569, set out as a note under section 5401 of this title. EFFECTIVE DATE Section effective upon the expiration of 180 days fol- lowing Aug. 22, 1974, see section 627 of Pub. L. 93–383, set out as a note under section 5401 of this title. § 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 manufac- turer which he determines, in good faith, relates to a Federal manufactured home construction or safety standard or contains a defect which con- stitutes an imminent safety hazard to the pur- chaser of such manufactured home, within a rea- sonable time after such manufacturer has dis- covered such defect. (b) Notification by mail The notification required by subsection (a) shall be accomplished— (1) by mail to the first purchaser (not includ- ing any retailer or distributor of such manu- facturer) of the manufactured home con- taining the defect, and to any subsequent pur- chaser to whom any warranty on such manu- factured home has been transferred; (2) by mail to any other person who is a reg- istered owner of such manufactured home and whose name and address has been ascertained pursuant to procedures established under sub- section (f); and (3) by mail or other more expeditious means to the retailer or retailers of such manufac- turer to whom such manufactured home was delivered. (c) Form and requisites of notification The notification required by subsection (a) shall contain a clear description of such defect or failure to comply, an evaluation of the risk to manufactured home occupants’ safety reason- ably 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) 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 retailers and purchasers concerning de- fects; disclosure to public by Secretary Every manufacturer of manufactured homes shall furnish to the Secretary a true or rep- resentative copy of all notices, bulletins, and other communications to the retailers of such manufacturer or purchasers of manufactured homes of such manufacturer regarding any de- fect in any such manufactured home produced by such manufacturer. The Secretary shall dis- close 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 infor- mation which contains or relates to a trade se- cret, or which, if disclosed, would put such man- ufacturer at a substantial competitive disadvan- tage, unless he determines that it is necessary to carry out the purposes of this chapter. (e) Notice by Secretary to manufacturers of non- compliance with standards or defective na- ture of manufactured home; contents of no- tice; presentation by manufacturer of views; notice to purchasers of defects If the Secretary determines that any manufac- tured home— Page 6565 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 5414 (1) does not comply with an applicable Fed- eral 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 manufac- turer 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 manufac- turer 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 manufac- tured home construction or safety standards, or contains a defect which constitutes an immi- nent safety hazard, the Secretary shall direct the manufacturer to furnish the notification specified in subsections (a) and (b) of this sec- tion. (f) Maintenance by manufacturers of record of names and addresses of first purchasers of manufactured homes; procedures for ascertaining names and addresses of subse- quent purchasers; establishment and reason- ableness 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 ad- dress 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 proce- dures to be followed by distributors and retail- ers to assist manufacturers to secure the infor- mation required by this subsection. Such proce- dures shall be reasonable for the particular type of manufactured home for which they are pre- scribed. (g) Correction of defects by manufacturer; condi- tions; procedures; contract or legal rights of purchasers or other persons unaffected A manufacturer required to furnish notifica- tion of a defect under subsection (a) or (e) shall also bring the manufactured home into compli- ance with applicable standards and correct the defect or have the defect corrected within a rea- sonable 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 oppor- tunity 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 re- pair of defects; approval of manufacturer’s remedy plan; effectuation and implementa- tion 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)) to the Secretary for his approval before imple- menting such plan. Whenever a manufacturer is required under subsection (g) to correct a defect, the Secretary shall approve with or without modification, after consultation with the manu- facturer of the manufactured home involved, such manufacturer’s remedy plan including the date when, and the method by which, the notifi- cation and remedy required pursuant to this sec- tion 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 de- termination of the defect or failure to comply, unless the Secretary grants an extension of such period for good cause shown and publishes a no- tice 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 manufac- tured homes; replacement with new or equiv- alent home or refund of purchase price Where a defect or failure to comply in a manu- factured 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, § 615, Aug. 22, 1974, 88 Stat. 709; Pub. L. 96–399, title III, § 308(c)(4), Oct. 8, 1980, 94 Stat. 1641; Pub. L. 97–35, title III, § 339B(c), Aug. 13, 1981, 95 Stat. 417; Pub. L. 106–569, title VI, § 603(b)(3), Dec. 27, 2000, 114 Stat. 2999.) Editorial Notes 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 ap- pearing in title VI of the Housing and Community De- velopment 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 2000—Subsec. (b)(1). Pub. L. 106–569, § 603(b)(3)(A), sub- stituted ‘‘retailer’’ for ‘‘dealer’’. Subsec. (b)(3). Pub. L. 106–569, § 603(b)(3)(B), sub- stituted ‘‘retailer or retailers’’ for ‘‘dealer or dealers’’. Page 6566 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 5415 Subsecs. (d), (f). Pub. L. 106–569, § 603(b)(3)(C), sub- stituted ‘‘retailers’’ for ‘‘dealers ’’. 1980—Subsecs. (a) to (i). Pub. L. 96–399 substituted ‘‘manufactured home’’ for ‘‘mobile home’’ wherever ap- pearing. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2000 AMENDMENT Amendment by Pub. L. 106–569 effective Dec. 27, 2000, except that amendment has no effect on any order or interpretative bulletin issued under this chapter and published as a proposed rule pursuant to 5 U.S.C. 553 on or before Dec. 27, 2000, see section 612 of Pub. L. 106–569, set out as a note under section 5401 of this title. EFFECTIVE DATE Section effective upon the expiration of 180 days fol- lowing Aug. 22, 1974, see section 627 of Pub. L. 93–383, set out as a note under section 5401 of this title. § 5415. Certification by manufacturer of con- formity of manufactured home with stand- ards; form and placement of certification Every manufacturer of manufactured homes shall furnish to the distributor or retailer at the time of delivery of each such manufactured home produced by such manufacturer certifi- cation that such manufactured home conforms to all applicable Federal construction and safety standards. Such certification shall be in the form of a label or tag permanently affixed to each such manufactured home. (Pub. L. 93–383, title VI, § 616, Aug. 22, 1974, 88 Stat. 711; Pub. L. 96–399, title III, § 308(c)(4), Oct. 8, 1980, 94 Stat. 1641; Pub. L. 97–35, title III, § 339B(c), Aug. 13, 1981, 95 Stat. 417; Pub. L. 106–569, title VI, § 603(b)(4), Dec. 27, 2000, 114 Stat. 2999.) Editorial Notes 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 ap- pearing in title VI of the Housing and Community De- velopment 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 2000—Pub. L. 106–569 substituted ‘‘retailer’’ for ‘‘deal- er’’. 1980—Pub. L. 96–399 substituted ‘‘manufactured home’’ for ‘‘mobile home’’ wherever appearing. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2000 AMENDMENT Amendment by Pub. L. 106–569 effective Dec. 27, 2000, except that amendment has no effect on any order or interpretative bulletin issued under this chapter and published as a proposed rule pursuant to 5 U.S.C. 553 on or before Dec. 27, 2000, see section 612 of Pub. L. 106–569, set out as a note under section 5401 of this title. EFFECTIVE DATE Section effective upon the expiration of 180 days fol- lowing Aug. 22, 1974, see section 627 of Pub. L. 93–383, set out as a note under section 5401 of this title. § 5416. Consumer’s manual; contents The Secretary shall develop guidelines for a consumer’s manual to be provided to manufac- tured home purchasers by the manufacturer. These manuals should identify and explain the purchasers’ responsibilities for operation, main- tenance, and repair of their manufactured homes. (Pub. L. 93–383, title VI, § 617, Aug. 22, 1974, 88 Stat. 711; Pub. L. 96–399, title III, § 308(c)(4), Oct. 8, 1980, 94 Stat. 1641; Pub. L. 97–35, title III, § 339B(c), Aug. 13, 1981, 95 Stat. 417.) Editorial Notes 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 ap- pearing in title VI of the Housing and Community De- velopment 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—Pub. L. 96–399 substituted ‘‘manufactured home’’ for ‘‘mobile home’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective upon the expiration of 180 days fol- lowing Aug. 22, 1974, see section 627 of Pub. L. 93–383, set out as a note under section 5401 of this title. § 5417. Effect upon antitrust laws Nothing contained in this chapter shall be deemed to exempt from the antitrust laws of the United States any conduct that would otherwise be unlawful under such laws, or to prohibit under the antitrust laws of the United States any conduct that would be lawful under such laws. As used in this section, the term ‘‘anti- trust laws’’ includes, but is not limited to, the Act of July 2, 1890, as amended; the Act of Octo- ber 14, 1914, as amended; the Federal Trade Com- mission Act (15 U.S.C. 41 et seq.); and sections 73 and 74 of the Act of August 27, 1894, as amended. (Pub. L. 93–383, title VI, § 618, Aug. 22, 1974, 88 Stat. 711.) Editorial Notes REFERENCES IN TEXT Act of July 2, 1890, as amended, referred to in text, is act July 2, 1890, ch. 647, 26 Stat. 209, known as the Sher- man Act, which is classified to sections 1 to 7 of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see Short Title note set out under section 1 of Title 15 and Tables. Act of October 14, 1914, as amended, referred to in text, is act Oct. 15, 1914, ch. 323, 38 Stat. 730, known as the Clayton Act which is classified generally to sec- tions 12, 13, 14 to 19, 21, and 22 to 27 of Title 15, and sec- tions 52 and 53 of Title 29, Labor. For further details and complete classification of this Act to the Code, see References in Text note set out under section 12 of Title 15 and Tables.