Texas § OC.2301.604 - REPLACEMENT OF OR REFUND FOR VEHICLE

§ OC.2301.604. REPLACEMENT OF OR REFUND FOR VEHICLE

REPLACEMENT OF OR REFUND FOR VEHICLE. (a) A manufacturer, converter, or distributor that is unable to conform a motor vehicle to an applicable express warranty by repairing or correcting a defect or condition that creates a serious safety hazard or substantially impairs the use or market value of the motor vehicle after a reasonable number of attempts shall reimburse the owner for reasonable incidental costs resulting from loss of use of the motor vehicle because of the nonconformity or defect and: (1) replace the motor vehicle with a comparable motor vehicle; or (2) accept return of the vehicle from the owner and refund to the owner the full purchase price, less a reasonable allowance for the owner's use of the vehicle, and any other allowances or refunds payable to the owner. (b) A refund made for a vehicle for which there is a lienholder shall be made to the owner and lienholder in proportion to each person's interest in the vehicle. (c) As necessary to promote the public interest, the board by rule: (1) shall define the incidental costs that are eligible for reimbursement; (2) shall specify other requirements necessary to determine an eligible cost; and (3) may set a maximum amount that is eligible for reimbursement, either by type of eligible cost or by a total for all costs. Added by Acts 2001, 77th Leg., ch. 1421, Sec. 5, eff. June 1, 2003.