Title 49 › Subtitle SUBTITLE VI— - MOTOR VEHICLE AND DRIVER PROGRAMS › Part PART A— - GENERAL › Chapter CHAPTER 301— - MOTOR VEHICLE SAFETY › Subchapter SUBCHAPTER II— - STANDARDS AND COMPLIANCE › § 30116
If a manufacturer or distributor sells a vehicle or part to a dealer and, before the dealer sells it to a buyer, the vehicle or part is found to have a safety defect or not meet safety standards, the manufacturer or distributor must act right away. They must either buy it back from the dealer at the price the dealer paid (plus transport costs) and pay at least 1% per month of that price, prorated from the date they were told about the problem until repurchase, or, for vehicles, give the dealer the part needed to fix the problem at the maker’s expense. The dealer must install the part. If the dealer installs it promptly, the maker must pay the dealer a fair amount for installation and at least 1% per month of the maker’s selling price, prorated from the notice date until the vehicle is fixed. The maker and dealer should agree on those amounts. If they cannot agree or the maker refuses to comply, the dealer may sue in federal court where the maker is located to recover damages, court costs, and a reasonable lawyer’s fee. The dealer must bring the lawsuit within 3 years after the claim starts.
Full Legal Text
Transportation — Source: USLM XML via OLRC
Legislative History
Reference
Citation
49 U.S.C. § 30116
Title 49 — Transportation
Last Updated
Apr 6, 2026
Release point: 119-73