Iowa Code 322C.19 – Indemnification — warrantor and dealer
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1. a. Notwithstanding the terms of a manufacturer-dealer agreement, a warrantor shall indemnify and hold harmless the warrantor’s dealer against any loss or damage, to the extent the loss or damage is caused by willful misconduct of the warrantor.
b. A warrantor shall not deny a dealer indemnification for failure to discover, disclose, or remedy a defect in the design or manufacture of a new towable recreational vehicle. A warrantor may deny a dealer indemnification if the dealer fails to remedy a known and announced defect in accordance with the written instructions of the warrantor for whom the dealer is obligated to perform warranty services.
c. A warrantor shall provide to the dealer a copy of any pending lawsuit in which allegations are made against the warrantor of willful misconduct. The warrantor shall provide the copy to the dealer within ten days after receiving notice of the lawsuit.
Terms Used In Iowa Code 322C.19
- Days: means calendar days. See Iowa Code 322G.2
- dealer: means a person required to be licensed under this chapter who is authorized to sell and service towable recreational vehicles. See Iowa Code 322C.2
- Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. Source: FDIC
- Lawsuit: A legal action started by a plaintiff against a defendant based on a complaint that the defendant failed to perform a legal duty, resulting in harm to the plaintiff.
- Manufacturer-dealer agreement: means a written agreement or contract entered into between a manufacturer or distributor and a towable recreational vehicle dealer that specifies the rights and responsibilities of the parties and authorizes the dealer to sell and service new towable recreational vehicles. See Iowa Code 322C.2
- Towable recreational vehicle: includes a travel trailer, toy-hauler travel trailer, fifth-wheel travel trailer, toy-hauler fifth-wheel travel trailer, folding camping trailer, truck camper, and park model recreational vehicle. See Iowa Code 322C.2
- Vehicle: means any vehicle as defined in chapter 321. See Iowa Code 321H.2
- Warrantor: means a person, including a manufacturer, distributor, or supplier, that provides a written warranty to a consumer in connection with a new towable recreational vehicle or any part, accessory, or component of a new towable recreational vehicle. See Iowa Code 322C.2
- Warranty: means any written warranty issued by the manufacturer; or any affirmation of fact or promise made by the manufacturer, excluding statements made by the dealer, in connection with the sale or lease of a motor vehicle to a consumer, which relates to the nature of the material or workmanship and affirms or promises that the material or workmanship is free of defects or will meet a specified level of performance. See Iowa Code 322G.2
2. a. Notwithstanding the terms of a manufacturer-dealer agreement, a dealer shall indemnify and hold harmless the dealer’s warrantor against any loss or damage, to the extent that the loss or damage is caused by willful misconduct of the dealer.
b. A dealer shall provide to the warrantor a copy of any pending lawsuit in which allegations are made against the dealer of willful misconduct. The dealer shall provide the copy to the warrantor within ten days after receiving notice of the lawsuit.
3. Notwithstanding any provision of law to the contrary, this section continues to apply after a new towable recreational vehicle is titled.