42 U.S.C. § 5414 : US Code - Section 5414: Notification and correction of defects by manufacturer

Search 42 U.S.C. § 5414 : US Code - Section 5414: Notification and correction of defects by manufacturer

(a) Notice to purchaser within reasonable time after discovery of
defect
Every manufacturer of manufactured homes shall furnish
notification of any defect in any manufactured home produced by
such manufacturer which he determines, in good faith, relates to a
Federal manufactured home construction or safety standard or
contains a defect which constitutes an imminent safety hazard to
the purchaser of such manufactured home, within a reasonable time
after such manufacturer has discovered such defect.
(b) Notification by mail
The notification required by subsection (a) of this section shall
be accomplished -
(1) by mail to the first purchaser (not including any retailer
or distributor of such manufacturer) of the manufactured home
containing the defect, and to any subsequent purchaser to whom
any warranty on such manufactured home has been transferred;
(2) by mail to any other person who is a registered owner of
such manufactured home and whose name and address has been
ascertained pursuant to procedures established under subsection
(f) of this section; and
(3) by mail or other more expeditious means to the retailer or
retailers of such manufacturer to whom such manufactured home was
delivered.
(c) Form and requisites of notification
The notification required by subsection (a) of this section shall
contain a clear description of such defect or failure to comply, an
evaluation of the risk to manufactured home occupants' safety
reasonably related to such defect, and a statement of the measures
needed to repair the defect. The notification shall also inform the
owner whether the defect is a construction or safety defect which
the manufacturer will have corrected at no cost to the owner of the
manufactured home under subsection (g) of this section or
otherwise, or is a defect which must be corrected at the expense of
the owner.
(d) Copy to Secretary of all notices, bulletins, and communications
sent by manufacturer to retailers and purchasers concerning
defects; disclosure to public by Secretary
Every manufacturer of manufactured homes shall furnish to the
Secretary a true or representative copy of all notices, bulletins,
and other communications to the retailers of such manufacturer or
purchasers of manufactured homes of such manufacturer regarding any
defect in any such manufactured home produced by such manufacturer.
The Secretary shall disclose to the public so much of the
information contained in such notices or other information obtained
under section 5413 of this title as he deems will assist in
carrying out the purposes of this chapter, but he shall not
disclose any information which contains or relates to a trade
secret, or which, if disclosed, would put such manufacturer at a
substantial competitive disadvantage, unless he determines that it
is necessary to carry out the purposes of this chapter.
(e) Notice by Secretary to manufacturers of noncompliance with
standards or defective nature of manufactured home; contents of
notice; presentation by manufacturer of views; notice to
purchasers of defects
If the Secretary determines that any manufactured home -
(1) does not comply with an applicable Federal manufactured
home construction and safety standard prescribed pursuant to
section 5403 of this title; or
(2) contains a defect which constitutes an imminent safety
hazard,
then he shall immediately notify the manufacturer of such
manufactured home of such defect or failure to comply. The notice
shall contain the findings of the Secretary and shall include all
information upon which the findings are based. The Secretary shall
afford such manufacturer an opportunity to present his views and
evidence in support thereof, to establish that there is no failure
of compliance. If after such presentation by the manufacturer the
Secretary determines that such manufactured home does not comply
with applicable Federal manufactured home construction or safety
standards, or contains a defect which constitutes an imminent
safety hazard, the Secretary shall direct the manufacturer to
furnish the notification specified in subsections (a) and (b) of
this section.
(f) Maintenance by manufacturers of record of names and addresses
of first purchasers of manufactured homes; procedures for
ascertaining names and addresses of subsequent purchasers;
establishment and reasonableness of procedures for maintaining
records
Every manufacturer of manufactured homes shall maintain a record
of the name and address of the first purchaser of each manufactured
home (for purposes other than resale), and, to the maximum extent
feasible, shall maintain procedures for ascertaining the name and
address of any subsequent purchaser thereof and shall maintain a
record of names and addresses so ascertained. Such records shall be
kept for each home produced by a manufacturer. The Secretary may
establish by order procedures to be followed by manufacturers in
establishing and maintaining such records, including procedures to
be followed by distributors and retailers to assist manufacturers
to secure the information required by this subsection. Such
procedures shall be reasonable for the particular type of
manufactured home for which they are prescribed.
(g) Correction of defects by manufacturer; conditions; procedures;
contract or legal rights of purchasers or other persons
unaffected
A manufacturer required to furnish notification of a defect under
subsection (a) or (e) of this section shall also bring the
manufactured home into compliance with applicable standards and
correct the defect or have the defect corrected within a reasonable
period of time at no expense to the owner, but only if -
(1) the defect presents an unreasonable risk of injury or death
to occupants of the affected manufactured home or homes;
(2) the defect can be related to an error in design or assembly
of the manufactured home by the manufacturer.
The Secretary may direct the manufacturer to make such corrections
after providing an opportunity for oral and written presentation of
views by interested persons. Nothing in this section shall limit
the rights of the purchaser or any other person under any contract
or applicable law.
(h) Submission to Secretary by manufacturer of plan for notifying
owners of defects and repair of defects; approval of
manufacturer's remedy plan; effectuation and implementation of
remedy plan
The manufacturer shall submit his plan for notifying owners of
the defect and for repairing such defect (if required under
subsection (g) of this section) to the Secretary for his approval
before implementing such plan. Whenever a manufacturer is required
under subsection (g) of this section to correct a defect, the
Secretary shall approve with or without modification, after
consultation with the manufacturer of the manufactured home
involved, such manufacturer's remedy plan including the date when,
and the method by which, the notification and remedy required
pursuant to this section shall be effectuated. Such date shall be
the earliest practicable one but shall not be more than sixty days
after the date of discovery or determination of the defect or
failure to comply, unless the Secretary grants an extension of such
period for good cause shown and publishes a notice of such
extension in the Federal Register. Such manufacturer is bound to
implement such remedy plan as approved by the Secretary.
(i) Defective or inadequately repaired manufactured homes;
replacement with new or equivalent home or refund of purchase
price
Where a defect or failure to comply in a manufactured home cannot
be adequately repaired within sixty days from the date of discovery
or determination of the defect, the Secretary may require that the
manufactured home be replaced with a new or equivalent home without
charge, or that the purchase price be refunded in full, less a
reasonable allowance for depreciation based on actual use if the
home has been in the possession of the owner for more than one
year.