§ 322G.12 — Resale of returned vehicles

Iowa § 322G.12

• Jurisdiction: Iowa
• Title VIII: TRANSPORTATION
• Ch. 322G: DEFECTIVE MOTOR VEHICLES (LEMON LAW)

Text

1. A manufacturer who accepts the return of a motor vehicle pursuant to a settlement,
determination, or decision under this chapter shall notify the state department of
transportation, report the vehicle identification number of that motor vehicle within ten days
after the acceptance, and obtain a new certificate of title for the vehicle in the manufacturer’s
name pursuant to section 321.46. In obtaining a new certificate of title, the manufacturer
shall title the vehicle in the county of the transferor’s residence and shall be exempt from
the registration fee requirements of section 321.46 and the fee for new registration under
section 321.105A. The new certificate of title, and all subsequent registration receipts and
certificates of title issued for the motor vehicle, shall contain a designation indicating that the
motor vehicle was returned to the manufacturer pursuant to this chapter or a similar law of
another state. The state department of transportation shall determine the manner in which
the designation is to be indicated on registration receipts and certificates of title and may
determine that a “REBUILT” or “SALVAGE” designation supersedes the designation required
9 DEFECTIVE MOTOR VEHICLES (LEMON LAW), §322G.15
by this subsection and include the “REBUILT” or “SALVAGE” designation on the registration
receipt and certificate of title in lieu of the designation required by this subsection.
2. A person shall not knowingly lease, sell, either at wholesale or retail, or transfer a title
to a motor vehicle returned by reason of a settlement, determination, or decision pursuant
to this chapter or a similar law of another state unless the nature of the nonconformity is
clearly and conspicuously disclosed to the prospective transferee, lessee, or buyer. The
attorney general shall prescribe by rule the form, content, and procedure pertaining to such
a disclosure statement, recognizing the need of manufacturers to implement a uniform
disclosure form. The manufacturer shall make a reasonable effort to ensure that such
disclosure is made to the first subsequent retail buyer or lessee. For purposes of this
section,“settlement” includes an agreement entered into between the manufacturer and the
consumer that occurs after the thirtieth day following the manufacturer’s receipt of the
consumer’s written notification pursuant to section 322G.4.