§ 4087 — Transportation damages

(a) Notwithstanding the terms, provisions, or conditions of any agreement or franchise, the manufacturer is liable for all damages to motor vehicles before delivery to a carrier or transporter.
(b) If a new motor vehicle dealer determines the method of transportation, the risk of loss passes to the dealer upon delivery of the vehicle to the carrier.
(c) In every other instance, the risk of loss remains with the manufacturer until such time as the new motor vehicle dealer or his or her designee accepts the vehicle from the carrier.
(d)(1) On any new motor vehicle, a manufacturer or distributor shall disclose in writing to a dealer and a dealer shall disclose in writing to the ultimate purchaser any uncorrected damage or any corrected damage to the vehicle, as measured by retail repair costs, if the corrected damage exceeds the following percentage of the manufacturer’s suggested retail price, as defined in 15 U.S.C. §§ 1231-1233:
(A) five percent up to the first $10,000.00; and
(B) two percent on any amount over $10,000.00.
(2) Damage to glass, tires, wheels, and bumpers shall be excluded from the calculation required in this subsection when replaced by identical manufacturer’s original equipment. (Added 1981, No. 157 (Adj. Sess.), § 1, eff. April 14, 1982; amended 1989, No. 31; 1989, No. 147 (Adj. Sess.), § 1, eff. April 23, 1990; 2009, No. 57, § 1, eff. June 1, 2009.)