§2764. Assistive device replacement or refund

A. If the manufacturer, dealer, or lessor either refuses to accept a device which a consumer makes available for repairs or makes a reasonable attempt to repair, but the nonconformity is not actually repaired, the manufacturer shall be required to provide a refund or replacement of the device, whichever is requested by the consumer/agency, as follows:

(1) If the consumer/agency requests a refund for a device which was purchased, the manufacturer shall refund to the consumer and to any holder of a perfected security interest in the consumer's assistive device, as their interest may appear, the full purchase price plus any finance charge or sales tax paid by the consumer at the point of sale and any collateral costs incurred by the consumer, less a reasonable allowance for use. When the manufacturer provides the refund, the consumer/agency shall return the assistive device having the nonconformity to the manufacturer, along with any endorsements necessary to transfer legal possession to the manufacturer.

(2) If the consumer/agency requests a refund for a device which was leased, the manufacturer shall refund to the assistive device lessor and to any holder of a perfected security interest in the assistive device, as their interest may appear, the current value of the written lease and refund to the consumer the amount that the consumer paid under the written lease plus any collateral costs, less a reasonable allowance for use. The manufacturer shall have a cause of action against the dealer or lessor for reimbursement of any amount that it pays to a consumer which exceeds the net price received by the manufacturer for the assistive device. When the manufacturer provides the refund, the assistive device lessor shall provide to the manufacturer any endorsements necessary to transfer legal possession to the manufacturer.

(3) If the consumer elects to receive a comparable new assistive device, the manufacturer shall provide the consumer/agency with the comparable new assistive device no later than thirty days after the consumer or lessor offers to transfer possession of the assistive device having the nonconformity to the manufacturer. Once the manufacturer provides the new assistive device, the consumer/agency or lessor shall return the nonconforming assistive device to the manufacturer, along with any endorsements necessary to transfer legal possession to the manufacturer.

B. Under the provisions of this Section, the current value of the written lease equals the total amount for which the consumer is obligated under the remainder of the lease, after its early termination, plus the assistive device dealer's early termination costs and the value of the assistive device at the lease expiration date, if it is set forth in the lease, less the assistive device lessor's early termination savings.

C. Under the provisions of this Section, a reasonable allowance for use may not exceed the amount obtained by multiplying the total amount for which the written lease obligates the consumer by a formulated fraction. The numerator of this fraction shall be the number of days that the consumer used the assistive device before first properly reporting the nonconformity to the manufacturer, assistive device lessor, or assistive dealer. The denominator of this fraction shall be one thousand eight hundred twenty-five.

D. No person may enforce the lease against the consumer after the consumer receives a refund.

Acts 1993, No. 907, §1, eff. June 23, 1993; Acts 1999, No. 1048, §1, eff. July 9, 1999.