SENATE BILL No. 194
DIGEST OF INTRODUCED BILL
Citations Affected: IC 24-5-13.3.
Synopsis: Right to rescind purchase of used motor vehicle. Permits the
purchaser of a used motor vehicle purchased from a dealer to rescind
the purchase of the vehicle within 72 hours after purchase under certain
circumstances if the vehicle has a defect that substantially impairs the
use, market value, or safety of the vehicle. Makes technical corrections.
Effective: July 1, 2013.
January 7, 2013, read first time and referred to Committee on Commerce, Economic
Development & Technology.
First Regular Session 118th General Assembly (2013)
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SENATE BILL No. 194
A BILL FOR AN ACT to amend the Indiana Code concerning trade
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 24-5-13.3; (13)IN0194.1.1. -->
SECTION 1. IC 24-5-13.3 IS ADDED TO THE INDIANA CODE
AS A NEW
CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]:
Chapter 13.3. Right to Rescind Purchase of Used Motor Vehicle
Sec. 1. As used in this chapter, "dealer" has the meaning set
forth in IC 9-13-2-42(a).
Sec. 2. As used in this chapter, "motor vehicle" means a vehicle
(1) self-propelled; and
(2) required to be titled by the bureau of motor vehicles under
Sec. 3. As used in this chapter, "nonconformity" has the
meaning set forth in IC 24-5-13-6.
Sec. 4. As used in this chapter, "purchaser" means a person who
enters into a contract within Indiana for the purchase of a used
motor vehicle from a dealer for purposes other than:
(1) resale; or
Sec. 5. As used in this chapter, "used motor vehicle" means a
motor vehicle that has been:
(1) titled under IC 9-17 or under the motor vehicle title law of
another state; and
(2) transferred by a dealer to an ultimate purchaser.
Sec. 6. Except as provided in section 7 of this chapter, if:
(1) a purchaser purchases a used motor vehicle from a dealer;
(2) the used motor vehicle is subject to a nonconformity; and
(3) less than seventy-two (72) hours after purchasing the used
motor vehicle, the purchaser:
(A) returns the used motor vehicle to the dealer's place of
(B) notifies the dealer of the existence of the
(C) informs the dealer that the purchaser wishes to rescind
the purchase of the used motor vehicle;
the purchase of the used motor vehicle is rescinded, and the dealer
shall make restitution to the purchaser under section 8 of this
Sec. 7. Section 6 of this chapter does not authorize a purchaser
to rescind the purchase of a used motor vehicle on the grounds that
the used motor vehicle is subject to a particular nonconformity if
before the purchaser purchased the used motor vehicle, the dealer
plainly disclosed the existence of the nonconformity to the
purchaser in a writing attached to the used motor vehicle or in a
separate writing stating that:
(1) the used motor vehicle is being sold "as is" or "with all
(2) all warranties applying to the used motor vehicle are
negated or excluded;
in accordance with IC 26-1-2-316.
Sec. 8. (a) Restitution to the purchaser by the dealer under this
chapter shall be by means of:
(1) a refund of the full contract price for the purchaser's
purchase of the used motor vehicle, including all credits and
allowances for any vehicle that was traded in for the used
motor vehicle; or
(2) the replacement of the used motor vehicle returned by the
purchaser with another motor vehicle of value comparable to
the value of the returned used motor vehicle.
(b) A refund under this chapter shall be made to the purchaser
and any lienholder, as the respective interests appear on the
records of ownership.
(c) A purchaser who prevails in an action under this chapter
shall be allowed to select the means under subsection (a) by which
the dealer will make restitution to the purchaser.
Sec. 9. This chapter does not limit the rights or remedies that
are otherwise available to a purchaser under any other applicable
law, including under IC 24-5-13.
Sec. 10. (a) A purchaser may bring a civil action to enforce this
chapter in a circuit or superior court in the county in which the
(b) A purchaser may not initiate an action under this chapter
more than two (2) years after the date on which the purchaser:
(1) returned the used motor vehicle to the dealer's place of
(2) informed the dealer of the rescission of the purchase of the
used motor vehicle.
(c) A purchaser who prevails in an action under this chapter is
entitled to recover as part of the judgment the total amount of costs
and expenses, including attorney's fees based on actual time
expended by the attorney, determined by the court to have been
reasonably incurred by the purchaser for or in connection with the