Law on protection of the rights of car and motorcycle consumers

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(Approved by the Islamic Consultative Assembly on 3/4/86, No. 526/49525)

Article 1- The following terms are used in the detailed meanings related to:
1- Vehicle: Any type of motor vehicle produced locally or foreign-made, for use on public roads to carry passengers and/or cargo up to the allowed capacity.
2- Supplier: Any person or legal entity who, directly or through a sales broker, sells his/her new production and/or imported vehicles.
3- Sales broker: Any person or legal entity who sells a vehicle with the consent of the supplier.

4- Authorized dealership: Any person or legal entity who, with the consent of the supplier, is responsible for the sale and after-sales service of the vehicle during the warranty period.
5. Consumer: Any person or legal entity who owns a vehicle for personal or public use.
6- Vehicle price: is the amount specified in the transfer contract or in the sales slip by the supplier.

Article 2 – The supplier is obliged to comply with the notification standards regarding the safety, quality, condition of the vehicle and its compliance with the guarantee provided to the consumer.
Note 1- The warranty period cannot be less than one year from the time of delivery of the vehicle to the consumer or thirty thousand kilometers whichever comes first.
Note 2: The commitment period or the period of supplying parts and providing standard technical services is equal to ten years from the time of official delivery of the last vehicle to the consumers.

Article 3-
Note 1 * – The supplier’s obligations are fulfilled directly or through a sales broker or an authorized agency. The supplier is obliged to establish an after-sales service network or authorized dealers to repair and distribute spare parts and provide the necessary training in proportion to the number of vehicles offered in the country and can not force the consumer to refer to a specific dealership.
Note 2 * – In case of disagreement between the parties subject to the above article, the issue of dispute at the request of the parties first in the relevant dispute resolution board, consisting of vehicle supplier representatives, official expert of the judiciary branch, and law enforcement expert headed by the official expert of the judiciary is presented and vote will be cast with majority rule. In case of an objection of any of the parties to the issued verdict, the request can be pursued in a competent court.

Article 4
Note 1- In case of a dispute between the parties, its settlement through the Dispute Resolution Board is the subject of Note (2) of Article (3) of this law.
Note 2: The supplier does not have the right to hand over or use the returned vehicle before the defect is repaired. The transfer of the aforementioned vehicle is allowed after the elimination of the previous defect by explicitly announcing the said defects in the transfer documents.

Article 5 – The suppliers, the sales agents, and the authorized repair agents are obliged to mention the repaired or replaced parts in writing and deliver them to the consumer.
Note * – The use of non-standard or non-approved parts by the supplier and authorized repair agents is prohibited.

Article 6- If it is impossible for the supplier to fulfill its obligations due to unexpected events (unpredictable and irreversible), these obligations will be suspended. The suspension period is added to the warranty period.

Article 7- Any direct or indirect agreement between the supplier, the sales intermediary, or the consumer, according to which all or part of the obligations of the supplier under this law or the warranty issued, or it is left to the sales intermediary or any other title is void and ineffective against the consumer.
Note * – Concluding any kind of contract in which the rights and obligations of the parties to the contract and the subjects of this law are not observed is invalid according to Article 10 of the Civil Code and a similar case is invalid.

Article 8- Any defects and physical and financial damages caused to the consumer and third parties that are caused by the consumer during the warranty period due to replacement or installation of parts and peripheral systems or receiving services outside the official and authorized network of the supplier, is not covered by this regulation and it does not create any rights for the consumer and third parties against the supplier.

Article 9- The supplier is obliged to state the obligations of this law in writing in the warranty papers and at the time of delivery of the vehicle, to explicitly announce the subject of this law to the consumer.

Article 10- The executive by-law of this law (especially regarding the criteria for establishing an authorized repair agency in the country for the number of vehicles offered) shall be prepared by the Ministry of Industries and Mines within three months from the date of approval and shall be approved by the Cabinet.

Article 11- The Ministry of Industries and Mines is obliged to supervise the implementation of this law in order to protect the rights of consumers and to present a semi-annual (every six months) report to the Industries and Mines Commission of the Islamic house of representatives.

The above law, consists of eleven articles and eight notes, was approved by the Islamic house of representatives in a public session on Wednesday, June 13, 2007, and was approved by the Guardian Council on June 20, 2007.

Speaker of the Islamic house of representatives – Gholam Ali Haddad Adel