42 U.S.C. § 5413 — Inspections and investigations for promul-

Page 6562 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 5412 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. § 5412. Noncompliance with standards or defec- tive nature of manufactured home; adminis- trative or judicial determination; repurchase by manufacturer or repair by distributor or retailer; reimbursement of expenses, etc., by manufacturer; injunctive relief against man- ufacturer for failure to comply; jurisdiction and venue; damages; period of limitation (a) If the Secretary or a court of appropriate jurisdiction determines that any manufactured home does not conform to applicable Federal manufactured home construction and safety standards, or that it contains a defect which constitutes an imminent safety hazard, after the sale of such manufactured home by a manufac- turer to a distributor or a retailer and prior to the sale of such manufactured home by such dis- tributor or retailer to a purchaser— (1) the manufacturer shall immediately re- purchase such manufactured home from such distributor or retailer at the price paid by such distributor or retailer, plus all transpor- tation charges involved and a reasonable reim- bursement of not less than 1 per centum per month of such price paid prorated from the date of receipt by certified mail of notice of such nonconformance to the date of repur- chase by the manufacturer; or (2) the manufacturer, at his own expense, shall immediately furnish the purchasing dis- tributor or retailer the required conforming part or parts or equipment for installation by the distributor or retailer on or in such manu- factured home, and for the installation in- volved the manufacturer shall reimburse such distributor or retailer for the reasonable value of such installation plus a reasonable reim- bursement of not less than 1 per centum per month of the manufacturer’s or distributor’s selling price prorated from the date of receipt by certified mail of notice of such non- conformance to the date such vehicle is brought into conformance with applicable Federal standards, so long as the distributor or retailer proceeds with reasonable diligence with the installation after the required part or equipment is received. The value of such reasonable reimbursements as specified in paragraphs (1) and (2) of this sub- section shall be fixed by mutual agreement of the parties, or, failing such agreement, by the court pursuant to the provisions of subsection (b). (b) If any manufacturer fails to comply with the requirements of subsection (a), then the dis- tributor or retailer, as the case may be, to whom such manufactured home has been sold may bring an action seeking a court injunction com- pelling compliance with such requirements on the part of such manufacturer. Such action may be brought in any district court in the United States in the district in which such manufac- turer resides, or is found, or has an agent, with- out regard to the amount in controversy, and the person bringing the action shall also be enti- tled to recover any damage sustained by him, as well as all court costs plus reasonable attorneys’ fees. Any action brought pursuant to this sec- tion shall be forever barred unless commenced within three years after the cause of action shall have accrued. (Pub. L. 93–383, title VI, § 613, Aug. 22, 1974, 88 Stat. 706; Pub. L. 96–399, title III, § 308(c)(4), Oct. 8, 1980, 94 Stat. 1641; Pub. L. 106–569, title VI, § 603(b)(1), Dec. 27, 2000, 114 Stat. 2999.) Editorial Notes AMENDMENTS 2000—Subsecs. (a), (b). Pub. L. 106–569 substituted ‘‘re- tailer’’ for ‘‘dealer’’ wherever appearing. 1980—Subsecs. (a), (b). 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. § 5413. Inspections and investigations for promul- gation or enforcement of standards or execu- tion of other duties (a) Authority of Secretary; results furnished to Attorney General and Secretary of the Treas- ury for appropriate action The Secretary is authorized to conduct such inspections and investigations as may be nec- essary to promulgate or enforce Federal manu- factured home construction and safety stand- ards established under this chapter or otherwise to carry out his duties under this chapter. He shall furnish the Attorney General and, when appropriate, the Secretary of the Treasury any information obtained indicating noncompliance with such standards for appropriate action. (b) Designation by Secretary of persons to enter and inspect factories, etc.; presentation of credentials; reasonableness and scope of in- spection (1) For purposes of enforcement of this chap- ter, persons duly designated by the Secretary, upon presenting appropriate credentials to the owner, operator, or agent in charge, are author- ized— (A) to enter, at reasonable times and with- out advance notice, any factory, warehouse, or establishment in which manufactured homes are manufactured, stored, or held, for sale; and (B) to inspect, at reasonable times and with- in reasonable limits and in a reasonable man- ner, any such factory, warehouse, or establish- ment, and to inspect such books, papers, records, and documents as are set forth in sub- section (c). Each such inspection shall be com- Page 6563 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 5413 menced and completed with reasonable promptness. (2) The Secretary is authorized to contract with State and local governments and private inspection organizations to carry out his func- tions under this subsection. (c) Powers of Secretary For the purpose of carrying out the provisions of this chapter, the Secretary is authorized— (1) to hold such hearings, take such testi- mony, sit and act at such times and places, ad- minister such oaths, and require, by subpena or otherwise, the attendance and testimony of such witnesses and the production of such books, papers, correspondence, memorandums, contracts, agreements, or other records, as the Secretary or such officer or employee deems advisable. Witnesses summoned pursuant to this subsection shall be paid the same fees and mileage that are paid witnesses in the courts of the United States; (2) to examine and copy any documentary evidence of any person having materials or in- formation relevant to any function of the Sec- retary under this chapter; (3) to require, by general or special orders, any person to file, in such form as the Sec- retary may prescribe, reports or answers in writing to specific questions relating to any function of the Secretary under this chapter. Such reports and answers shall be made under oath or otherwise, and shall be filed with the Secretary within such reasonable period as the Secretary may prescribe; (4) to request from any Federal agency any information he deems necessary to carry out his functions under this chapter, and each such agency is authorized and directed to co- operate with the Secretary and to furnish such information upon request made by the Sec- retary, and the head of any Federal agency is authorized to detail, on a reimbursable basis, any personnel of such agency to assist in car- rying out the duties of the Secretary under this chapter; and (5) to make available to the public any infor- mation which may indicate the existence of a defect which relates to manufactured home construction or safety or of the failure of a manufactured home to comply with applicable manufactured home construction and safety standards. The Secretary shall disclose so much of other information obtained under this subsection to the public as he determines will assist in carrying out this chapter; but he shall not (under the authority of this sen- tence) make available or disclosure to the pub- lic any information which contains or relates to a trade secret or any information the dis- closure of which would put the person fur- nishing such information at a substantial competitive disadvantage, unless he deter- mines that it is necessary to carry out the purpose of this chapter. (d) Refusal to obey subpena or order of Sec- retary; order of compliance by district court; failure to obey order of compliance punish- able as contempt Any of the district courts of the United States within the jurisdiction of which an inquiry is carried on may, in the case of contumacy or re- fusal to obey a subpena or order of the Secretary issued under paragraph (1) or paragraph (3) of subsection (c) of this section, issue an order re- quiring compliance therewith; and any failure to obey such order of the court may be punished by such court as a contempt thereof. (e) Submission by manufacturer of building plans for manufactured homes; certification by manufacturer of conformity of building plans to standards Each manufacturer of manufactured homes shall submit the building plans for every model of such manufactured homes to the Secretary or his designee for the purpose of inspection under this section. The manufacturer must certify that each such building plan meets the Federal construction and safety standards in force at that time before the model involved is produced. (f) Records, reports and information from manu- facturers, distributors and retailers of manu- factured homes; inspection and examination of relevant books, papers, records and docu- ments by designated person Each manufacturer, distributor, and retailer of manufactured homes shall establish and maintain such records, make such reports, and provide such information as the Secretary may reasonably require to enable him to determine whether such manufacturer, distributor, or re- tailer has acted or is acting in compliance with this chapter and Federal manufactured home construction and safety standards prescribed pursuant to this chapter and shall, upon request of a person duly designated by the Secretary, permit such person to inspect appropriate books, papers, records, and documents relevant to determining whether such manufacturer, dis- tributor, or retailer has acted or is acting in compliance with this chapter and manufactured home construction and safety standards pre- scribed pursuant to this chapter. (g) Performance and technical data from manu- facturer; persons required to receive notifi- cation of data Each manufacturer of manufactured homes shall provide to the Secretary such performance data and other technical data related to per- formance and safety as may be required to carry out the purposes of this chapter. These shall in- clude records of tests and test results which the Secretary may require to be performed. The Sec- retary is authorized to require the manufacturer to give notification of such performance and technical data to— (1) each prospective purchaser of a manufac- tured home before its first sale for purposes other than resale, at each location where any such manufacturer’s manufactured homes are offered for sale by a person with whom such manufacturer has a contractual, proprietary, or other legal relationship and in a manner de- termined by the Secretary to be appropriate, which may include, but is not limited to, printed matter (A) available for retention by such prospective purchaser, and (B) sent by mail to such prospective purchaser upon his request; and (2) the first person who purchases a manu- factured home for purposes other than resale, 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—