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The Indiana lemon laws can be found in Chapter 13 of the state statute. This law covers motorized vehicles registered in the State of Indiana, with the buyer and the dealer both residents of the State. The law gives relief to owners whose vehicles have chronic faults under warranty. Once the buyer reports a fault in the vehicle, then the manufacturer or his dealer has to make to necessary repairs as soon as possible. Unless otherwise stated, the owner need not notify the manufacturer about the defects in his vehicle. If after sincere efforts to repair the vehicle, the manufacturer or the dealer is unable to fully solve the problem, then the buyer can either choose to return the vehicle in exchange for the price paid by him or her, or accept delivery of a replacement vehicle of comparable price from the manufacturer. According to the provisions of the chapter, the manufacturer is said to have made sincere efforts to repair the vehicle, if he has tried it at least four (4) times, or due to repairs the vehicle is out of commission for at least thirty (30) working days. In case a refund is sought by the buyer who does not own a leased vehicle, then, the seller should tender the full contract price paid by the buyer at the time of purchase. Some reasonable deductions are permitted under this Law. In case the vehicle is on a lease agreement, then, the lessee is to be refunded his deposit money and all lease payments. The lessor on the other hand should be refunded his purchase cost, incl. all incidental charges that he bore in order to purchase the vehicle, including all taxes paid till date. In case of replacement of the vehicle is sought by the buyer, then the manufacturer has to make good to the buyer the transfer and registration fees as also all the taxes paid by him in this transaction. In the situation where the replaced vehicle is under finance from the manufacturer, he is obliged to transfer the scheme of finance to the new vehicle at his cost. It is to be noted that the buyer enjoys a specific lien on the faulty vehicle until such time that the manufacturer has, either tendered the refund amount, or has delivered a replacement vehicle. The manufacturer cannot refuse to entertain the buyer’s claims for repairs. Further the manufacturer or his authorized dealers are to provide the buyer with a written order of the repairs needed to the vehicle every time it is brought in. The order should be detailed in all aspects of costs. Defences available against the law A good defense available to the manufacturer is that the defect is not so serious that it will keep the vehicle from being used regularly, or that the said defect is the outcome of irregular use by the buyer. Non applicability of this section To make these provisions applicable, the buyer has to first exhaust all the options given to him by the manufacturer. He will further be denied this section if he has willfully neglected the manufacturer’s notice about the dispute settlement mechanism. Remedies available This chapter does not expressly bar other civil remedies in law. If the buyer is successful in his action, then, he in entitled to recover the costs of the suit. To be valid, the action has to be brought against the manufacturer and/or his dealer within two (2) years of first reporting of the fault to the manufacturer and/or his agent. Dealer's liability This chapter does not impose any liability for the fault in the vehicle on the dealer. It further bars the manufacturer from exposing his dealer to such suits. The US federal law governing lemons is officially called The Magnuson-Moss Warranty Act, however, most American states each have their own lemon law.
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