Subpart F--Dealer and Distributor Responsibilities
Sec. 3282.251 Scope and purpose.
(a) This subpart sets out the responsibilities which shall be met by distributors and dealers with respect to manufactured homes manufactured after the effective date of the standards for sale to purchasers in the United States. It prohibits the sale, lease, or offer for sale or lease of manufactured homes known by the distributor or dealer not to be in conformance with the standards, and it includes responsibilities for maintaining certain records and assisting in the gathering of certain information.
(b) The purpose of this subpart is to inform distributors and
dealers when they may sell manufactured homes, when they are prohibited from selling manufactured homes, and what they may do in order to prepare a manufactured home for sale if it is not in conformance with the standards.
(c) For purposes of this part, any manufacturer or distributor who sells, leases, or offers for sale or lease a manufactured home to a purchaser shall be a dealer for purposes of that transaction.
Sec. 3282.252 Prohibition of sale.
(a) No distributor or dealer shall make use of any means of
transportation affecting interstate or foreign commerce or the mails to sell, lease, or offer for sale or lease in the United States any manufactured home manufactured on or after the effective date of an applicable standard unless:
(1) There is affixed to the manufactured home a label certifying that the manufactured home conforms to applicable standards as required by Sec. 3282.205(c), and
(2) The distributor or dealer, acting as a reasonable distributor or dealer, does not know that the manufactured home does not conform to any applicable standards.
(b) This prohibition applies to any affected manufactured homes until the completion of the entire sales transaction. A sales transaction with a purchaser is considered completed when all the goods and services that the dealer agreed to provide at the time the contract was entered into have been provided. Completion of a retail sale will be
at the time the dealer completes set-up of the manufactured home if the dealer has agreed to provide the set-up, or at the time the dealer delivers the home to a transporter, if the dealer has not agreed to transport or set up the manufactured home, or to the site if the dealer has not agreed to provide set-up.
(c) This prohibition of sale does not apply to manufactured homes which are placed in production prior to the effective date of the standards, and it does not apply to ``used'' manufactured homes which are being sold or offered for sale after the first purchase in good faith for purposes other than the resale.
Sec. 3282.253 Removal of prohibition of sale.
(a) If a distributor or dealer has a manufactured home in its
possession or a manufactured home with respect to which the sales transaction has not been completed, and the distributor or dealer, acting as a reasonable distributor or dealer, knows as a result of notification by the manufacturer or otherwise that the manufactured home
contains a failure to conform or imminent safety hazard, the distributor or dealer may seek the remedies available to him under Sec. 3282.415.
(b) When, in accordance with Sec. 3282.415, a manufacturer corrects a failure to conform to the applicable standard or an imminent safety hazard, the distributor or dealer, acting as a reasonable distributor or dealer, may accept the remedies provided by the manufacturer as having corrected the failure to conform or imminent safety hazard. The distributor or dealer, therefore, may sell, lease, or offer for sale or lease any manufactured home so corrected by the manufacturer.
(c) When a distributor or dealer is authorized by a manufacturer to correct a failure to conform to the applicable standard or an imminent safety hazard and completes the correction in accordance with the
manufacturer's instructions, the distributor or dealer may sell, or lease or offer for sale or lease the manufactured home in question, provided that the distributor or dealer, acting as a reasonable distributor or dealer knows that the manufactured home conforms to the standards. A distributor or dealer and a manufacturer, at the
manufacturer's option, may agree in advance that the distributor or dealer is authorized to make such corrections as the manufacturer believes are within the expertise of the dealer.
(d) If the corrections made under paragraphs (b) and (c) of this section do not bring the manufactured home into conformance or correct the imminent safety hazard, the provisions of Sec. 3282.415 will continue in effect prior to completion of the sales transaction.
Sec. 3282.254 Distributor and dealer alterations.
(a) If a distributor or dealer alters a manufactured home in such a way as to create an imminent safety hazard or to create a condition which causes a failure to conform with applicable Federal standards, the manufactured home affected may not be sold, leased, or offered for sale
(b) After correction by the distributor or dealer of the failure to conform or imminent safety hazard, the corrected manufactured home may be sold, leased, or offered for sale or lease.
(c) Distributors and dealers shall maintain complete records of all alterations made under paragraphs (a) and (b) of this section.
Sec. 3282.255 Completion of information card.
(a) Whenever a distributor or dealer sells a manufactured home subject to the standards to a purchaser, the distributor or dealer shall fill out the card with information provided by the purchaser and shall send the card to the manufacturer. (See Sec. 3282.211.)
(b) Whenever a distributor or dealer sells a manufactured home to an owner which was originally manufactured under the standards, the distributor or dealer shall similarly use one of the detachable cards which was originally provided with the manufactured home. If such a card is no longer available, the distributor or dealer shall obtain the
information which the card would require and send it to the manufacturer of the manufactured home in an appropriate format.
Sec. 3282.256 Distributor or dealer complaint handling.
(a) When a distributor or dealer believes that a manufactured home in its possession which it has not yet sold to a purchaser contains an imminent safety hazard, serious defect, defect, or noncompliance, the distributor or dealer shall refer the matter to the manufacturer for
remedial action under Sec. 3282.415. If the distributor or dealer is not satisfied with the action taken by the manufacturer, it may refer the matter to the SAA in the state in which the manufactured home is located, or to the Secretary if there is no such SAA.
(b) Where a distributor or dealer receives a consumer complaint or other information concerning a manufactured home sold by the distributor or dealer, indicating the possible existence of an imminent safety hazard, serious defect, defect, or noncompliance in the manufactured
home, the distributor or dealer shall refer the matter to the
Sec. 3282.7 Definitions.
The terms Department, HUD, and Secretary are defined in 24 CFR part 5.
(a) Act means the National Manufactured Housing Construction and Safety Standards Act of 1974, title VI of the Housing and Community Development Act of 1974 (42 U.S.C. 5401 et seq.)
(b) Add-on means any structure (except a structure designed or produced as an integral part of a manufactured home) which, when attached to the basic manufactured home unit, increases the area, either living or storage, of the manufactured home.
(c) Alteration means the replacement, addition, and modification, or removal of any equipment or installation after sale by a manufacturer to a dealer or distributor but prior to sale by a dealer to a purchaser which may affect the construction, fire safety, occupancy, plumbing,
heat-producing or electrical system. It includes any modification made in the manufactured home which may affect the compliance of the home with the standards, but it does not include the repair or replacement of a component or appliance requiring plug-in to an electrical receptacle
where the replaced item is of the same configuration and rating as the one being replaced. It also does not include the addition of an appliance requiring plug-in to an electrical receptacle, which appliance was not provided with the manufactured home by the manufacturer, if the
rating of the appliance does not exceed the rating of the receptacle to which it is connected.
(d) Certification label see label.
(e) Certification report means the report prepared by an IPIA (see definition z) for each manufactured home manufacturing plant under Sec. 3282.203 in which the IPIA provides a complete description of the initial comprehensive inspection of the plant, an evaluation of the
quality assurance program under the approved quality assurance manual, and the identity of the DAPIA (see definition z) which approved the designs and quality assurance manual used in the plant. Where appropriate under Sec. 3282.362(b)(5), the certification report may be
made by a DAPIA.
(f) Component means any part, material or appliance which is built in as an integral part of the manufactured home during the manufacturing process.
(g) Cost information means information submitted by a manufacturer under section 607 of the Act with respect to alleged cost increases resulting from action by the Secretary, in such form as to permit the public and the Secretary to make an informed judgment on the validity of
the manufacturer's statements. Such term includes both the
manufacturer's cost and the cost to retail purchasers.
(h) Date of manufacture means the date on which the label required by Sec. 3282.205(c) is affixed to the manufactured home.
(i) Dealer means any person engaged in the sale, leasing, or distribution of new manufactured homes primarily to persons who in good faith purchase or lease a manufactured home for purposes other than resale.
(j) Defect means a failure to comply with an applicable Federal manufactured home safety and construction standard that renders the manufactured home or any part or component thereof not fit for the ordinary use for which it was intended, but does not result in an unreasonable risk of injury or death to occupants of the affected manufactured home. See related definitions of imminent safety hazard (definition q), noncompliance (definition x), and serious defect (definition ff).
(k) Design means drawings, specifications, sketches and the related engineering calculations, tests and data in support of the configurations, structures and systems to be incorporated in manufactured homes manufactured in a plant.
(l) Director means the Director of the Manufactured Housing Standards Division.
(m) Distributor means any person engaged in the sale and
distribution of manufactured homes for resale.
(n) Failure to conform means an imminent safety hazard related to the standards, a serious defect, defect, or noncompliance and is used as a substitute for all of those terms.
(p) Imminent safety hazard means a hazard that presents an imminent and unreasonable risk of death or severe personal injury that may or may not be related to failure to comply with an applicable Federal manufactured home construction or safety standard. See related definitions of defect (definition j), noncompliance (paragraph x) and
serious defect (paragraph ff).
(q) Joint monitoring team means a monitoring inspection team composed of personnel provided by the various State Administrative Agencies, or by HUD or its contract agent, operating under a contract with HUD for the purpose of monitoring, or otherwise aiding in the enforcement of the Federal standards.
(r) Label or certification label means the approved form of
certification by the manufacturer that, under Sec. 3282.362(c)(2)(i), is permanently affixed to each transportable section of each manufactured home manufactured for sale to a purchaser in the United States.
(s) (Same as Sec. 3280.2(a)(13).)
(t) Manufacturer means any person engaged in manufacturing or assembling manufactured homes, including any person engaged in importing manufactured homes for resale.
(u) (Same as Sec. 3280.2(a)(16).)
(v) Manufactured home construction means all activities relating to the assembly and manufacture of a manufactured home including but not limited to those relating to durability, quality, and safety.
(w) Manufactured home safety means the performance of a manufactured home in such a manner that the public is protected against any unreasonable risk of the occurrence of accidents due to the design or construction of such manufactured home, or any unreasonable risk of death or injury to the user or to the public if such accidents do occur.
(x) Noncompliance means a failure of a manufactured home to comply with a Federal manufactured home construction or safety standard that does not constitute a defect, serious defect, or imminent safety hazard. See related definitions or defect (definition j), imminent safety hazard (definition q), and serious defect (definition ff).
(y) Owner means any person purchasing a manufactured home from any other person after the first purchase of the manufactured home, in good faith, for purposes other than resale.
(z) Primary Inspection Agency (PIA) means a state/or private organization that has been accepted by the Secretary in accordance with the requirement of subpart H of this part. There are two types of PIA:
(1) Design Approval PIA (DAPIA), which evaluates and approves or disapproves manufactured home designs and quality control procedures, and
(2) Production Inspection PIA (IPIA), which evaluates the ability of manufactured home manufacturing plants to follow approved quality control procedures and provides ongoing surveillance of the manufacturing process. Organizations may act as one or both of these types.
(aa) Purchaser means the first person purchasing a manufactured home in good faith for purposes other than resale.
(bb) Quality Assurance Manual means a manual, prepared by each manufacturer for its manufacturing plants and approved by a DAPIA which contains: a statement of the manufacturer's quality assurance program, a chart of the organization showing, by position, all personnel accountable for quality assurance, a list of tests and test equipment
required, a station-by-station description of the manufacturing process, a list of inspections required at each station, and a list by title of personnel in the manufacturer's organization to be held responsible for each
inspection. Where necessary, the quality assurance manual used in a particular plant shall contain information specific to that plant.
(cc) To red tag means to affix a notice to a manufactured home which has been found to contain an imminent safety hazard or a failure to conform with any applicable standard. A red tag is the notice so affixed to the manufactured home.
(ee) Secretary's agent means a party operating as an independent contractor under a contract with HUD.
(ff) Serious defect means any failure to comply with an applicable Federal manufactured home construction and safety standard that renders the manufactured home or any part thereof not fit for the ordinary use for which it was intended and which results in an unreasonable risk of
injury or death to occupants of the affected manufactured home.
(gg) Standards means the Federal manufactured home construction and safety standards promulgated under section 604 of the Act, 42 U.S.C. 5403, as part 3280 of these regulations.
(hh) State includes each of the several states, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Virgin Islands, the Canal Zone, and American Samoa.
(ii) State Administrative Agency (SAA) means an agency of a state which has been approved or conditionally approved to carry out the state plan for enforcement of the standards pursuant to section 623 of the Act, 42 U.S.C. 5422, and subpart G of this part.
(jj) State plan application means the application of any state organization which is submitted to the Secretary for approval as a State Administrative Agency under subpart G.
(kk) System means a set or arrangement of materials or components related or connected as to form an operating entity, i.e., heating, ventilating and air-conditioning systems, evaporative coolers.
(mm) United States District Courts means the Federal district courts of the United States and the United States courts of the Commonwealth of Puerto Rico, Guam, the Virgin Islands, the Canal Zone, and American Samoa.
(nn) (Same as Sec. 3280.2(a)(22).)