Sec. 2301.604.  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.