Archive for August, 2006
August 31, 2006 at 11:33 am · Filed under Lemon Laws
Items that are covered under Michigan Lemon Law
Four-wheel vehicles used for personal, family or household use, or fleets of less than 10, including pick-ups and vans, excluding buses, trucks and motor homes.
Michigan Lemon Law may apply if the following has occurred
4 repair attempts – 30 business days out of service
Length of time or miles before the Michigan Lemon Law runs out
Express warranty period or 1 year, whichever is first.
Lemon Law in Michigan
MCL 257.1401� NEW MOTOR VEHICLE WARRANTIES
Definitions.
Sec. 1. As used in this act:
(a) “Consumer” means any of the following, but does not include a lessee of a new motor vehicle:
(i) A person who purchases a new motor vehicle for personal, family, or household use and not for the purpose of selling or leasing the new motor vehicle to another person.
(ii) A person who purchases less than 10 new motor vehicles a year.
(iii) A person who purchases 10 or more new motor vehicles a year only if the vehicles are purchased for personal, family, or household use.
(iv) Any other person entitled to enforce the provisions of an express warranty pursuant to the terms of that warranty.
(b) “Manufacturer” means any person who manufactures, assembles, or is a distributor of new motor vehicles and includes an agent of a manufacturer but does not include a new motor vehicle dealer.
(c) “Manufacturer’s express warranty” means an express warranty as determined under the uniform commercial code, Act No.174 of the Public Acts of1962, being sections 440.1101 to 440.11102 of the Michigan Compiled Laws, offered by the manufacturer on a new motor vehicle.
(d) “Motor vehicle” means a motor vehicle as defined in section 33 of the Michigan vehicle code, Act No. 300 of the Public Acts of 1949, being section 257.33 of the Michigan Compiled Laws, that is designed as a passenger vehicle, but does not include a motor home, bus, truck other than a pickup truck or van, or any vehicle designed to travel on less than 4 wheels.
(e) “New motor vehicle” means a motor vehicle that is purchased in this state or purchased by a resident of this state and is covered by a manufacturer’s express warranty at the time of purchase.
(f) “New motor vehicle dealer” means a person who holds a dealer agreement for the sale of new motor vehicles, who is engaged in the business of purchasing, selling, exchanging, or dealing in new motor vehicles, and who has an established place of business in this state; and an agent thereof.
(g) “Person” means a natural person, or a sole proprietorship, partnership, corporation, association, unit or agency of government, trust, estate, or other legal entity.
(h) “Resident of this state” means as follows:
(i) For an individual, that the individual is a legal resident of this state.
(ii) For a sole proprietorship or partnership, that the sole proprietorship or partnership was created pursuant to the laws of this state and its main office is located in this state.
(iii) For a corporation, that the corporation is considered to be a domestic corporation and was created under the laws of this state.
(iv) For an association, that the association was created pursuant to the laws of this state and its main office is located in this state.
(v) For a unit or agency of government, that the unit or agency is located in this state.
(vi) For a trust, estate, or other legal entity, that the trust, estate, or other legal entity was created pursuant to the laws of this state and is located in this state.
History: 1986, Act 87, Eff. June 25, 1986.
MCL 257.1402. Repair of defect or condition; report.
Sec. 2. If a new motor vehicle has any defect or condition that impairs the use or value of the new motor vehicle to the consumer or which prevents the new motor vehicle from conforming to the manufacturer’s express warranty, the manufacturer or a new motor vehicle dealer of that type of motor vehicle shall repair the defect or condition as required under section 3 if the consumer initially reported the defect or condition to the manufacturer or the new motor vehicle dealer within 1 of the following time periods, whichever is earlier:
(a) During the term the manufacturer’s express warranty is in effect.
(b) Not later than 1 year from the date of delivery of the new motor vehicle to the original consumer.
History: 1986, Act 87, Eff. June 25, 1986.
MCL 257.1403. Replacement of motor vehicle or refund; allowance for use; reimbursement for towing costs and costs for rental vehicle; consent to replacement of security interest; presumption; performing repairs after expiration of warranty; extension of time for repair services.
Sec. 3. (1) If a defect or condition which was reported to the manufacturer or new motor vehicle dealer pursuant to section 2 continues to exist and the new motor vehicle has been subject to a reasonable number of repairs as determined under subsection (3), the manufacturer shall within 30 days have the option to either replace the new motor vehicle with a comparable replacement motor vehicle currently in production and acceptable to the consumer or accept return of the vehicle and refund to the consumer the full purchase price including the cost of any options or other modifications installed or made by or for the manufacturer, and the amount of all other charges made by or for the manufacturer, less a reasonable allowance for the consumer’s use of the vehicle not exceeding10 cents per mile driven at the time of the initial report of the same defect or conditions or10% of the purchase price of the vehicle, whichever is less, and less an amount equal to any appraised damage that is not attributable to normal use or to the defect or condition. A reasonable allowance for use is that amount directly attributable to use by the consumer and any previous consumer prior to his or her first report of a defect or condition that impairs the use or value of the new motor vehicle to the manufacturer, its agents, or the new motor vehicle dealer.Whenever a vehicle is replaced or refunded under the provisions of this section, in those instances in which towing services and rental vehicles were not made available without cost to the consumer, the manufacturer shall also reimburse the consumer for those towing costs and reasonable costs for a comparable rental vehicle that were incurred as a direct result of the defect or condition.
(2) The provisions of this act shall not affect the obligations of a consumer under a loan or sales contract or the secured interest of any secured party. The secured party shall consent to the replacement of the security interest with a corresponding security interest on a replacement motor vehicle which is accepted by the consumer in exchange for the motor vehicle having a defect or condition pursuant to subsection (1), if the replacement motor vehicle is comparable in value to the original motor vehicle. If for any reason the security interest in the new motor vehicle having a defect or condition pursuant to subsection (1) is not able to be replaced with a corresponding security interest on a new motor vehicle accepted by the consumer, the consumer shall accept a refund. Refunds required under this subsection or subsection (1) shall be made to the consumer and the secured party, if any, as their interests exist at the time the refund is to be made.
(3) It shall be presumed that a reasonable number of attempts have been undertaken to repair any defect or condition if 1 of the following occurs:
(a) The same defect or condition that substantially impairs the use or value of the new motor vehicle to the consumer has been subject to repair a total of 4 or more times by the manufacturer or new motor vehicle dealer and the defect or condition continues to exist. Any repair performed on the same defect made pursuant to subsection (4) shall be included in calculating the number of repairs under this section. The consumer or his or her representative, prior to availing himself or herself of a remedy provided under subsection (1), and any time after the third attempt to repair the same defect or condition, shall give written notification, by return receipt service, to the manufacturer of the need for repair of the defect or condition in order to allow the manufacturer an opportunity to cure the defect or condition. The manufacturer shall notify the consumer as soon as reasonably possible of a reasonably accessible repair facility. After delivery of the vehicle to the designated repair facility, the manufacturer shall have 5 business days to repair the defect or condition.
(b) The new motor vehicle is out of service because of repairs for a total of 30 or more days or parts of days during the term of the manufacturer’s express warranty, or within 1 year from the date of delivery to the original consumer, whichever is earlier. It shall be the responsibility of the consumer, or his or her representative, prior to availing himself or herself of a remedy provided under subsection (1), and after the vehicle has been out of service for at least 25 days in a repair facility, to give written notification by return receipt service to the manufacturer of the need for repair of the defect or condition in order to allow the manufacturer an opportunity to cure the defect or condition. The manufacturer shall notify the consumer as soon as reasonably possible of a reasonably accessible repair facility. After delivery of the vehicle to the designated repair facility, the manufacturer shall have 5 business days to repair the defect or condition.
(4) Any repairs required to be made under this act shall be made even if the repairs cannot be performed until after the expiration of the manufacturer’s express warranty.
(5) The term of an express warranty, and the1-year, 30-day, and 5-day periods of time provided for in this section shall be extended because repair services were not available to the consumer because of war; invasion; strike; or fire, flood, or other natural disaster.
History: 1986, Act 87, Eff. June 25, 1986.
257.1404 Other legal remedies not limited or prohibited.
Sec. 4. Nothing in this act shall be construed to limit or prohibit any other legal remedy of a consumer regarding a breach of a manufacturer’s express warranty or an implied warranty for a new motor vehicle.
History: 1986, Act 87, Eff. June 25, 1986.
257.1405 Informal dispute settlement procedure.
Sec. 5. If a manufacturer has established or participates in an informal dispute settlement procedure, the provisions of this act shall not apply to any consumer who has not first resorted to such procedure, if such procedure does all of the following:
(a) Complies with the Magnuson-Moss warranty–federal trade commission improvement act, Public Law 93-637, 88 Stat. 2183, and 16 C.F.R. 703 (1975). An informal dispute settlement procedure which the federal trade commission rules does not comply with 16 C.F.R. 703 (1975) shall be considered as not meeting the requirements of this subdivision.
(b) Requires that the manufacturer is bound by any decision reached if the consumer agrees to it.
(c) Provides that the consumer is not obligated to accept the decision and may pursue the remedies provided for under this act.
(d) Requires the manufacturer to initiate the process necessary to implement any final settlement not more than 30 days after the settlement has been reached.
History: 1986, Act 87, Eff. June 25, 1986.
257.1406 Defects or conditions to which act inapplicable.
Sec. 6 . This act does not apply to any defect or condition that is the result of either of the following:
(a) Any modification or modifications not installed or made by or for the manufacturer.
(b) Abuse or neglect of the new motor vehicle or damage due to an accident which occurred after the new motor vehicle was purchased by the consumer.
History: 1986, Act 87, Eff. June 25, 1986.
257.1407 Waiver of rights and remedies prohibited; recovery of costs, expenses, and attorneys’ fees.
Sec. 7. (1) Any rights and remedies provided a consumer under this act may not be waived.
(2) A consumer who prevails in any action brought under this act may be allowed by the court to recover as part of the judgment a sum equal to the aggregate amount of cost and expenses, including attorneys’ fees based on actual time expended by the attorney, determined by the court to have been reasonably incurred by the consumer for or in connection with the commencement and prosecution of such action, unless the court in its discretion shall determine that such an award of attorneys’ fees would be inappropriate.
History: 1986, Act 87, Eff. June 25, 1986
257.1408 Written statement to be included with title; type size; form.
Sec. 8. The secretary of state shall include with any title for a new motor vehicle a written statement, in 10-point boldface type, in substantially the following form:
“IMPORTANT: IF THIS VEHICLE IS DEFECTIVE YOU MAY BE ENTITLED UNDER STATE LAW TO REPLACEMENT OF IT OR A REFUND OF ITS PURCHASE PRICE. TO OBTAIN REPLACEMENT OR A REFUND YOU MUST FIRST REPORT THE DEFECT IN WRITING TO THE MANUFACTURER AND YOU MAY BE REQUIRED TO FIRST ARBITRATE THE DISPUTE. IN ORDER TO PROTECT YOUR RIGHTS UNDER THIS LAW, YOU SHOULD:
1. KEEP COPIES OF ALL CORRESPONDENCE TO AND FROM THE MANUFACTURER AND THE DEALER.
2. KEEP COPIES OF ALL WORK ORDERS FOR REPAIRS ON THE VEHICLE INCLUDING THE DATE(S) THE WORK WAS PERFORMED AND THE MILEAGE ON THE VEHICLE AT THE TIME OF REPAIR.
3. FOLLOW ALL REQUIREMENTS OF THE WARRANTY, INCLUDING ANY REQUIREMENT THAT THE REPAIRS MUST BE DONE BY AN AUTHORIZED DEALER SPECIFIED BY THE MANUFACTURER. IF YOU HAVE ANY QUESTIONS REGARDING YOUR RIGHTS UNDER THIS LAW, CONSULT AN ATTORNEY OR OTHER QUALIFIED INDIVIDUAL.”
History: 1986, Act 87, Eff. June 25, 1986.
257.1409 Applicability of act.
Sec. 9. This act shall apply to all new motor vehicles that are sold to the original consumer on or after the effective date of this act.
History: 1986, Act 87, Eff. June 25, 1986.
257.1410 Effect.
Sec. 10. This act shall take effect 60 days after its enactment.
History: 1986, Act 87, Eff. June 25, 1986.
August 31, 2006 at 11:33 am · Filed under Lemon Laws
Items that are covered under Minnesota Lemon Law
Passenger automobiles, pickup trucks, vans and recreational equipment, chassis, sold or leased to a consumer in this state, used at least 40% for personal, family or household purposes. (M)
Minnesota Lemon Law may apply if the following has occurred
1 unsuccessful repair of a completely failed braking or steering system likely to cause death or substantial bodily injury, 4 attempts or 30 business days out of service for other defects.
Length of time or miles before the Minnesota Lemon Law runs out
Express warranty period or 2 years, whichever occurs first.
Lemon Law in Minnesota
325F.665 New motor vehicle warranties; manufacturer’s duty to repair, refund, or replace.
1. Definitions. For the purposes of this section, the following terms have the meanings given them:
(a) “consumer” means the purchaser or lessee, other than for purposes of resale or sublease, of a new motor vehicle used for personal, family, or household purposes at least 40 percent of the time, a person to whom the new motor vehicle is transferred for the same purposes during the duration of an express warranty applicable to the motor vehicle;
(b) “manufacturer” means a person engaged in the business of manufacturing, assembling or distributing motor vehicles, who will, under normal business conditions during the year, manufacture, assemble or distribute to dealers at least ten new motor vehicles;
(c) “manufacturer’s express warranty” and “warranty” mean the written warranty of the manufacturer of a new motor vehicle of its condition and fitness for use, including any terms or conditions precedent to the enforcement of obligations under that warranty;
(d) “lease” means a contract in the form of a lease or bailment for the use of personal property by a natural person for a period of time exceeding four months, used for personal, family, or household purposes at least 40 percent of the time, whether or not the lessee has the option to purchase or otherwise become the owner of the property at the expiration of the lease;
(e) “motor vehicle” means (1) a passenger automobile as defined in section 168.011, subdivision 7, including pickup trucks and vans, and (2) the self-propelled motor vehicle chassis or van portion of recreational equipment as defined in section 168.011, subdivision 25, which is sold or leased to a consumer in this state;
(f) “informal dispute settlement mechanism” means an arbitration process or procedure by which the manufacturer attempts to resolve disputes with consumers regarding motor vehicle nonconformities and repairs that arise during the vehicle’s warranty period;
(g) “motor vehicle lessor” means a person who holds title to a motor vehicle leased to a lessee under a written lease agreement or who holds the lessor’s rights under such agreement; and
(h) “early termination costs” means expenses and obligations incurred by a motor vehicle lessor as a result of an early termination of a written lease agreement and surrender of a motor vehicle to a manufacturer under subdivision 4, including penalties for prepayment of finance arrangements.
2. Manufacturer’s duty to repair. If a new motor vehicle does not conform to all applicable express warranties, and the consumer reports the nonconformity to the manufacturer, its agent, or its authorized dealer during the term of the applicable express warranties or during the period of two years following the date of original delivery of the new motor vehicle to a consumer, whichever is the earlier date, the manufacturer, its agent, or its authorized dealer shall make the repairs necessary to conform the vehicle to the applicable express warranties, notwithstanding the fact that the repairs are made after the expiration of the warranty term or the two-year period.
3. Manufacturer’s duty to refund or replace. (a) If the manufacturer, its agents, or its authorized dealers are unable to conform the new motor vehicle to any applicable express warranty by repairing or correcting any defect or condition which substantially impairs the use or market value of the motor vehicle to the consumer after a reasonable number of attempts, the manufacturer shall either replace the new motor vehicle with a comparable motor vehicle or accept return of the vehicle from the consumer and refund to the consumer the full purchase price, including the cost of any options or other modifications arranged, installed, or made by the manufacturer, its agent, or its authorized dealer within 30 days after the date of original delivery, and all other charges including, but not limited to, sales or excise tax, license fees and registration fees, reimbursement for towing and rental vehicle expenses incurred by the consumer as a result of the vehicle being out of service for warranty repair, less a reasonable allowance for the consumer’s use of the vehicle not exceeding ten cents per mile driven or ten percent of the purchase price, whichever is less. If the manufacturer offers a replacement vehicle under this section, the consumer has the option of rejecting the replacement vehicle and requiring the manufacturer to provide a refund. Refunds must be made to the consumer, and lienholder, if any, as their interests appear on the records of the registrar of motor vehicles. Refunds shall include the amount stated by the dealer as the trade-in value of a consumer’s used motor vehicle, plus any additional amount paid by the consumer for the new motor vehicle. A manufacturer must give to the consumer an itemized statement listing each of the amounts refunded under this section. If the amount of sales or excise tax refunded is not separately stated, or if the manufacturer does not apply for a refund of the tax within one year of the return of the motor vehicle, the department of public safety may refund the tax, as determined under paragraph (h), directly to the consumer and lienholder, if any, as their interests appear on the records of the registrar of motor vehicles. A reasonable allowance for use is that amount directly attributable to use by the consumer and any previous consumer during any period in which the use and market value of the motor vehicle are not substantially impaired. It is an affirmative defense to any claim under this section (1) that an alleged nonconformity does not substantially impair the use or market value, or (2) that a nonconformity is the result of abuse, neglect, or unauthorized modifications or alterations of a motor vehicle by anyone other than the manufacturer, its agent or its authorized dealer.
(b) It is presumed that a reasonable number of attempts have been undertaken to conform a new motor vehicle to the applicable express warranties, if (1) the same nonconformity has been subject to repair four or more times by the manufacturer, its agents, or its authorized dealers within the applicable express warranty term or during the period of two years following the date of original delivery of the new motor vehicle to a consumer, whichever is the earlier date, but the nonconformity continues to exist, or (2) the vehicle is out of service by reason of repair for a cumulative total of 30 or more business days during the term or during the period, whichever is the earlier date.
(c) If the nonconformity results in a complete failure of the braking or steering system of the new motor vehicle and is likely to cause death or serious bodily injury if the vehicle is driven, it is presumed that a reasonable number of attempts have been undertaken to conform the vehicle to the applicable express warranties if the nonconformity has been subject to repair at least once by the manufacturer, its agents, or its authorized dealers within the applicable express warranty term or during the period of two years following the date of original delivery of the new motor vehicle to a consumer, whichever is the earlier date, and the nonconformity continues to exist.
(d) The term of an applicable express warranty, the two-year period and the 30-day period shall be extended by any period of time during which repair services are not available to the consumer because of a war, invasion, strike, or fire, flood, or other natural disaster.
(e) The presumption contained in paragraph (b) applies against a manufacturer only if the manufacturer, its agent, or its authorized dealer has received prior written notification from or on behalf of the consumer at least once and an opportunity to cure the defect alleged. If the notification is received by the manufacturer’s agent or authorized dealer, the agent or dealer must forward it to the manufacturer by certified mail, return receipt requested.
(f) The expiration of the time periods set forth in paragraph (b) does not bar a consumer from receiving a refund or replacement vehicle under paragraph (a) if the reasonable number of attempts to correct the nonconformity causing the substantial impairment occur within three years following the date of original delivery of the new motor vehicle to a consumer, provided the consumer first reported the nonconformity to the manufacturer, its agent, or its authorized dealer during the term of the applicable express warranty.
(g) At the time of purchase or lease, the manufacturer must provide directly to the consumer a written statement on a separate piece of paper, in 10-point all capital type, in substantially the following form: “IMPORTANT: IF THIS VEHICLE IS DEFECTIVE, YOU MAY BE ENTITLED UNDER THE STATE’S LEMON LAW TO REPLACEMENT OF IT OR A REFUND OF ITS PURCHASE PRICE OR YOUR LEASE PAYMENTS. HOWEVER, TO BE ENTITLED TO REFUND OR REPLACEMENT, YOU MUST FIRST NOTIFY THE MANUFACTURER, ITS AGENT, OR ITS AUTHORIZED DEALER OF THE PROBLEM IN WRITING AND GIVE THEM AN OPPORTUNITY TO REPAIR THE VEHICLE. YOU ALSO HAVE A RIGHT TO SUBMIT YOUR CASE TO THE CONSUMER ARBITRATION PROGRAM WHICH THE MANUFACTURER MUST OFFER IN MINNESOTA.”
(h) The amount of the sales or excise tax to be paid by the manufacturer to the consumer under paragraph (a) shall be the tax paid by the consumer when the vehicle was purchased less an amount equal to the tax paid multiplied by a fraction, the denominator of which is the purchase price of the vehicle and the numerator of which is the allowance deducted from the refund for the consumer’s use of the vehicle.
4. Manufacturer’s duty to consumers with leased vehicles. A consumer who leases a new motor vehicle has the same rights against the manufacturer under this section as a consumer who purchases a new motor vehicle, except that, if it is determined that the manufacturer must accept return of the consumer’s leased vehicle pursuant to subdivision 3, then the consumer lessee is not entitled to a replacement vehicle, but is entitled only to a refund as provided in this subdivision. In such a case, the consumer’s leased vehicle shall be returned to the manufacturer and the consumer’s written lease with the motor vehicle lessor must be terminated. The manufacturer shall then provide the consumer with a full refund of the amount actually paid by the consumer on the written lease, including all additional charges set forth in subdivision 3, if actually paid by the consumer, less a reasonable allowance for use by the consumer as set forth in subdivision 3. The manufacturer shall provide the motor vehicle lessor with a full refund of the vehicle’s original purchase price plus any early termination costs, not to exceed 15 percent of the vehicle’s original purchase price, less the amount actually paid by the consumer on the written lease.
5. Resale or re-lease of returned motor vehicle. (a) If a motor vehicle has been returned under the provisions of subdivision 3 or a similar statute of another state, whether as the result of a legal action or as the result of an informal dispute settlement proceeding, it may not be resold or re-leased in this state unless:
(1) the manufacturer provides the same express warranty it provided to the original purchaser, except that the term of the warranty need only last for 12,000 miles or 12 months after the date of resale, whichever is earlier; and
(2) the manufacturer provides the consumer with a written statement on a separate piece of paper, in 10-point all capital type, in substantially the following form: “IMPORTANT: THIS VEHICLE WAS RETURNED TO THE MANUFACTURER BECAUSE IT DID NOT CONFORM TO THE MANUFACTURER’S EXPRESS WARRANTY AND THE NONCONFORMITY WAS NOT CURED WITHIN A REASONABLE TIME AS PROVIDED BY MINNESOTA LAW.”
The provisions of this section apply to the resold or re-leased motor vehicle for full term of the warranty required under this subdivision.
(b) Notwithstanding the provisions of paragraph (a), if a new motor vehicle has been returned under the provisions of subdivision 3 or a similar statute of another state because of a nonconformity resulting in a complete failure of the braking or steering system of the motor vehicle likely to cause death or serious bodily injury if the vehicle was driven, the motor vehicle may not be resold in this state.
6. Alternative dispute settlement mechanism. (a) Any manufacturer doing business in this state, entering into franchise agreements for the sale of its motor vehicles in this state, or offering express warranties on its motor vehicles sold or distributed for sale in this state shall operate, or participate in, an informal dispute settlement mechanism located in the state of Minnesota which complies with the provisions of the Code of Federal Regulations, title 16, part 703, and the requirements of this section. The provisions of subdivision 3 concerning refunds or replacement do not apply to a consumer who has not first used this mechanism before commencing a civil action, unless the manufacturer allows a consumer to commence an action without first using this mechanism.
(b) An informal dispute settlement mechanism provided for by this section shall, at the time a request for arbitration is made, provide to the consumer and to each person who will arbitrate the consumer’s dispute, information about this section as approved and directed by the attorney general, in consultation with interested parties. The informal dispute settlement mechanism shall permit the parties to present or submit any arguments based on this section and shall not prohibit or discourage the consideration of any such arguments.
(c) If, in an informal dispute settlement mechanism, it is decided that a consumer is entitled to a replacement vehicle or refund under subdivision 3, then any refund or replacement offered by the manufacturer or selected by a consumer shall include and itemize all amounts authorized by subdivision 3. If the amount of excise tax refunded is not separately stated, or if the manufacturer does not apply for a refund of the tax within one year of the return of the motor vehicle, the department of public safety may refund the excise tax, as determined under subdivision 3, paragraph (h), directly to the consumer and lienholder, if any, as their interests appear on the records of the registrar of motor vehicles.
(d) No documents shall be received by any informal dispute settlement mechanism unless those documents have been provided to each of the parties in the dispute at or prior to the mechanism’s meeting, with an opportunity for the parties to comment on the documents either in writing or orally. If a consumer is present during the informal dispute settlement mechanism’s meeting, the consumer may request postponement of the mechanism’s meeting to allow sufficient time to review any documents presented at the time of the meeting which had not been presented to the consumer prior to the meeting.
(e) The informal dispute settlement mechanism shall allow each party to appear and make an oral presentation in the state of Minnesota unless the consumer agrees to submit the dispute for decision on the basis of documents alone or by telephone, or unless the party fails to appear for an oral presentation after reasonable prior written notice. If the consumer agrees to submit the dispute for decision on the basis of documents alone, then manufacturer or dealer representatives may not participate in the discussion or decision of the dispute.
(f) Consumers shall be given an adequate opportunity to contest a manufacturer’s assertion that a nonconformity falls within intended specifications for the vehicle by having the basis of the manufacturer’s claim appraised by a technical expert selected and paid for by the consumer prior to the informal dispute settlement hearing.
(g) Where there has been a recent attempt by the manufacturer to repair a consumer’s vehicle, but no response has yet been received by the informal dispute mechanism from the consumer as to whether the repairs were successfully completed, the parties must be given the opportunity to present any additional information regarding the manufacturer’s recent repair attempt before any final decision is rendered by the informal dispute settlement mechanism. This provision shall not prejudice a consumer’s rights under this section.
(h) If the manufacturer knows that a technical service bulletin directly applies to the specific mechanical problem being disputed by the consumer, then the manufacturer shall provide the technical service bulletin to the consumer at reasonable cost. The mechanism shall review any such technical service bulletins submitted by either party.
(i) A consumer may be charged a fee to participate in an informal dispute settlement mechanism required by this section, but the fee may not exceed the conciliation court filing fee in the county where the arbitration is conducted.
(j) Any party to the dispute has the right to be represented by an attorney in an informal dispute settlement mechanism.
(k) The informal dispute settlement mechanism has all the evidence-gathering powers granted an arbitrator under section 572.14.
(l) A decision issued in an informal dispute settlement mechanism required by this section may be in writing and signed.
7. Effect and admissibility of decision by informal dispute settlement mechanism. The decision issued in an informal dispute settlement mechanism required by this section is nonbinding on the parties involved, unless otherwise agreed by the parties. Any party, upon application, may remove the decision to district court for a trial de novo. If the manufacturer is aggrieved by the decision of the informal dispute settlement mechanism, an application to remove the decision must be filed in the district court within 30 days after the date the decision is received by the parties. If the application to remove is not made within 30 days, then the district court shall, upon application of a party, issue an order confirming the decision. A written decision issued by an informal dispute settlement mechanism, and any written findings upon which the decision is based, are admissible as nonbinding evidence in any subsequent legal action and are not subject to further foundation requirements.
8. Treble damages for bad faith appeal of decision. If the district court finds that a party has removed a decision of an informal dispute settlement mechanism in bad faith, by asserting a claim or defense that is frivolous and costly to the other party, or by asserting an unfounded position solely to delay recovery by the other party, then the court shall award to the prevailing party three times the actual damages sustained, together with costs and disbursements, including reasonable attorney’s fees.
9. Civil remedy. Any consumer injured by a violation of this section may bring a civil action to enforce this section and recover costs and disbursements, including reasonable attorney’s fees incurred in the civil action. In addition to the remedies provided herein, the attorney general may bring an action pursuant to section 8.31 against any manufacturer for violation of this section.
10. Limitation on actions. A civil action brought under this section must be commenced within three years of the date of original delivery of the new motor vehicle to a consumer; except that, if the consumer applies to an informal dispute settlement mechanism within three years of the date of original delivery of a new motor vehicle to a consumer, and if the consumer is aggrieved by the decision of the informal dispute settlement mechanism, then any civil action brought under this section must be commenced within six months after the date of the final decision by the mechanism.
11. Remedy nonexclusive. Nothing in this section limits the rights or remedies which are otherwise available to a consumer under any other law.
12. Disclosure requirement. In addition to any investigative powers authorized by law, the attorney general may inspect the records of the informal dispute settlement mechanism upon reasonable notice, during regular business hours, and may make available to the public information about the operation of the mechanism, but data on an individual may not be disclosed without the prior consent of the individual.
13. Dealer liability. Nothing in this section imposes liability on a dealer or creates an additional cause of action by a consumer against a dealer, except for written express warranties made by the dealer apart from the manufacturer’s warranties. The manufacturer shall not charge back or require reimbursement by the dealer for any costs, including, but not limited to, any refunds or vehicle replacements, incurred by the manufacturer arising out of this section, unless there is evidence that the related repairs had not been carried out by the dealer in a timely manner or in a manner substantially consistent with the manufacturer’s published instructions.
August 31, 2006 at 11:33 am · Filed under Lemon Laws
Items that are covered under Mississippi Lemon Law
Vehicles sold in this state, used primarily for personal, family or household purposes excluding off-road vehicles, mopeds, motorcycles, and parts of a motor home added by the manufacturer of the motor home.
Mississippi Lemon Law may apply if the following has occurred
3 repair attempts – 15 working days out of service
Length of time or miles before the Mississippi Lemon Law runs out
Express warranty period or 1 year, whichever occurs earlier.
Lemon Law in Mississippi
63-17-151 Short title.
Sections 63-17-151 et seq. shall be known and may be cited as the “Motor Vehicle Warranty Enforcement Act”.
63-17-153 Legislative findings and declaration of purpose.
The Legislature recognizes that a motor vehicle is a major consumer purchase and that a defective motor vehicle creates a hardship for the consumer. The Legislature further recognizes that a duly franchised motor vehicle dealer is an agent of the manufacturer. It is the intent of the Legislature that a good faith motor vehicle warranty complaint by a consumer should be resolved by the manufacturer, or its agent, within a specified period of time. It is further the intent of the Legislature to provide the statutory procedures whereby a consumer may receive a replacement motor vehicle, or a full refund, for a motor vehicle which cannot be brought into conformity with the express warranty issued by the manufacturer. However, nothing in Sections 63-17-153 et seq. shall in any way limit the rights or remedies which are otherwise available to a consumer under any other law.
63-17-155 Definitions.
As used in Sections 63-17-151 et seq. the following terms shall have the following meanings:
(a) “Collateral charges” means those additional charges to a consumer which are not directly attributable to the manufacturer’s suggested retail price label for the motor vehicle. For the purposes of Sections 63-17-151 et seq. collateral charges shall include, but not be limited to, dealer preparation charges, undercoating charges, transportation charges, towing charges, replacement car rental costs and title charges.
(b) “Comparable motor vehicle” means an identical or reasonably equivalent motor vehicle.
(c) “Consumer” means the purchaser, other than for purposes of resale, of a motor vehicle, primarily used for personal, family, or household purposes, and any person to whom such motor vehicle is transferred for the same purposes during the duration of an express warranty applicable to such motor vehicle, and any other person entitled by the terms of such warranty to enforce the obligations of the warranty.
(d) “Express warranty” means any written affirmation of fact or promise made in connection with the sale of a motor vehicle by a supplier to a consumer which relates to the nature of the material or workmanship and affirms or promises that such material or workmanship is defect-free or will meet a specified level of performance over a specified period of time. For the purposes of Sections 63-17-151 et seq. express warranties do not include implied warranties.
(e) “Manufacturer” means a manufacturer or distributor as defined in Section 63-17-55.
(f) “Motor vehicle” means a vehicle propelled by power other than muscular power which is sold in this state, is operated over the public streets and highways of this state and is used as a means of transporting persons or property, but shall not include vehicles run only upon tracks, off-road vehicles, motorcycles, mopeds, or parts and components of a motor home which were added on and/or assembled by the manufacturer of the motor home. “Motor vehicle” shall include demonstrators or lease-purchase vehicles as long as a manufacturer’s warranty was issued as a condition of sale.
(g) “Purchase price” means the price which the consumer paid to the manufacturer to purchase the motor vehicle in a cash sale or, if the motor vehicle is purchased in a retail installment transaction, the cash sale price as defined in Section 63-19-3.
63-17-157 Repair of nonconforming vehicle.
For the purposes of Sections 63-17-151 et seq., if a new motor vehicle does not conform to all applicable express warranties, and the consumer reports the nonconformity to the manufacturer or its agent during the term of such express warranties or during the period of one (1) year following the date of original delivery of the motor vehicle to the consumer, whichever period expires earlier, the manufacturer or its agent shall make such repairs as are necessary to conform the vehicle to such express warranties, notwithstanding the fact that such repairs are made after the expiration of such term or such one-year period.
63-17-159. Replacement of vehicle or refund of purchase price.
Where nonconformity cannot be corrected; affirmative defenses; presumption of reasonable attempts to conform vehicle to warranties; extension of warranties; notice requirements relating to repair of nonconformity; civil actions.
(1) If the manufacturer or its agent cannot conform the motor vehicle to any applicable express warranty by repairing or correcting any default or condition which impairs the use, market value, or safety of the motor vehicle to the consumer after a reasonable number of attempts, the manufacturer shall give the consumer the option of having the manufacturer either replace the motor vehicle with a comparable motor vehicle acceptable to the consumer, or take title of the vehicle from the consumer and refund to the consumer the full purchase price, including all reasonably incurred collateral charges, less a reasonable allowance for the consumer’s use of the vehicle. The subtraction of a reasonable allowance for use shall apply when either a replacement or refund of the motor vehicle occurs. A reasonable allowance for use shall be that sum of money arrived at by multiplying the number of miles the motor vehicle has been driven by the consumer by Twenty Cents (20 per mile. Refunds shall be made to the consumer and lien holder of record, if any, as their interests may appear.
(2) It shall be an affirmative defense to any claim under Sections 63-17-151 et seq. that:
(a) An alleged nonconformity does not impair the use, market value or safety of the motor vehicle;
(b) A nonconformity is the result of abuse, neglect or unauthorized modifications or alterations of a motor vehicle by a consumer;
(c) A claim by a consumer was not filed in good faith; or
(d) Any other affirmative defense allowed by law.
(3) It shall be presumed that a reasonable number of attempts have been undertaken to conform a motor vehicle to the applicable express warranties if within the terms, conditions or limitations of the express warranty, or during the period of one (1) year following the date of original delivery of the motor vehicle to a consumer, whichever expires earlier, either:
(a) Substantially the same nonconformity has been subject to repair three (3) or more times by the manufacturer or its agent and such nonconformity continues to exist; or
(b) The vehicle is out of service by reason of repair of the nonconformity by the manufacturer or its agent for a cumulative total of fifteen (15) or more working days, exclusive of downtime for routine maintenance as prescribed by the owner’s manual, since the delivery of the vehicle to the consumer. The fifteen-day period may be extended by any period of time during which repair services are not available to the consumer because of conditions beyond the control of the manufacturer or its agent.
(4) The terms, conditions or limitations of the express warranty, or the period of one (1) year following the date of original delivery of the motor vehicle to a consumer, whichever expires earlier, may be extended if the motor vehicle warranty problem has been reported but has not been repaired by the manufacturer or its agent by the expiration of the applicable time period.
(5) The manufacturer shall provide a list of the manufacturer’s zone or regional service office addresses in the owner’s manual provided with the motor vehicle. It shall be the responsibility of the consumer or his representative, prior to availing himself of the provisions of this section, to give written notification to the manufacturer of the need for the repair of the nonconformity, in order to allow the manufacturer an opportunity to cure the alleged defect. The manufacturer shall immediately notify the consumer of a reasonably accessible repair facility to conform the vehicle to the express warranty. After delivery of the vehicle to the designated repair facility by the consumer, the manufacturer shall have ten (10) working days to conform the motor vehicle to the express warranty. Upon notification from the consumer that the vehicle has not been conformed to the express warranty, the manufacturer shall inform the consumer if an informal dispute settlement procedure has been established by the manufacturer in accordance with Section 63-17-163, and provide the consumer with a copy of the provisions of Sections 63-17-151 et seq. However, if prior notice by the manufacturer of an informal dispute settlement procedure has been given, no further notice is required. If the manufacturer fails to notify the consumer of the availability of this informal dispute settlement procedure, the requirements of Section 63-17-163 shall not apply.
(6) Any action brought under Sections 63-17-151 et seq. shall be commenced within one (1) year following expiration of the terms, conditions or limitations of the express warranty, or within eighteen (18) months following the date of original delivery of the motor vehicle to a consumer, whichever is earlier, or, if a consumer resorts to an informal dispute settlement procedure as provided in Sections 63-17-151 et seq., within ninety (90) days following the final action of the panel.
(7) If a consumer finally prevails in any action brought under Sections 63-17-151 et seq., the court may allow him to recover as part of the judgment a sum equal to the aggregate amount of costs and expenses, including attorney’s fees based on actual time expended, determined by the court to have been reasonably incurred by the plaintiff for or in connection with the commencement and prosecution of such action.
63-17-161 Liability of consumer for bad faith claims.
Any claim by a consumer which is found by the court to have been filed in bad faith, or solely for the purpose of harassment, or in complete absence of a justifiable issue of either law or fact raised by the consumer, shall result in the consumer being liable for all court costs incurred by the manufacturer or its agent as a direct result of the bad faith claim.
63-17-163 Necessity for resort to informal dispute settlement procedure.
If a manufacturer has established an informal dispute settlement procedure which complies in all respects with the provisions of 16 C.F.R., Part 703, the provisions of Section 63-17-159 concerning refunds or replacements shall not apply to any consumer who has not first resorted to such procedure.
63-17-165 Remedies for violations.
Any violation of Sections 63-17-151 et seq. shall be subject to the rights and remedies as provided for by Chapter 24, Title 75, Mississippi Code of 1972.
August 31, 2006 at 11:32 am · Filed under Lemon Laws
Items that are covered under Missouri Lemon Law
Vehicles used primarily for personal, family or household purposes, excluding commercial vehicles, mopeds, motorcycles, and RVs except for the chassis, engine, powertrain and component parts of RV’s.
Missouri Lemon Law may apply if the following has occurred
4 repair attempts – 30 business days out of service
Length of time or miles before the Missouri Lemon Law runs out
Express warranty period or 1 year, whichever occurs earlier.
Lemon Law in Missouri
407.560. As used in sections 407.560 to 407.579, the following terms mean:
(1) “Collateral charges”, those additional charges to a consumer not directly attributable to a manufacturer’s suggested retail price label for the new motor vehicle. For the purposes of sections 407.560 to 407.579, “collateral charges” includes all sales tax, license fees, registration fees, title fees and motor vehicle inspections;
(2) “Comparable motor vehicle”, an identical or reasonably equivalent motor vehicle;
(3) “Consumer”, the purchaser, other than for the purposes of resale, of a new motor vehicle, primarily used for personal, family, or household purposes, and any person to whom such new motor vehicle is transferred for the same purposes during the duration of an express warranty applicable to such new motor vehicle, and any other person entitled by the terms of such warranty to enforce the obligations of the warranty;
(4) “Express warranty”, any written affirmation of the fact or promise made by a manufacturer to a consumer in connection with the sale of new motor vehicles which relates to the nature of the material or workmanship or will meet a specified level of performance over a specified period of time;
(5) “Manufacturer”, any person engaged in the manufacturing or assembling of new motor vehicles as a regular business;
(6) “New motor vehicle”, any motor vehicle being transferred for the first time from a manufacturer, distributor or new vehicle dealer, which has not been registered or titled in this state or any other state and which is offered for sale, barter or exchange by a dealer who is franchised to sell, barter or exchange that particular make of new motor vehicle. The term “new motor vehicle” shall include only those vehicles propelled by power other than muscular power, but the term shall not include vehicles used as a commercial motor vehicle, off-road vehicles, mopeds, motorcycles or recreational motor vehicles as defined in section 301.010, RSMo, except for the chassis, engine, powertrain and component parts of recreational motor vehicles. The term “new motor vehicle” shall also include demonstrators or lease-purchase vehicles as long as a manufacturer’s warranty was issued as a condition of sale.
Report of nonconformity required, when–repairs, duty of manufacturer or agent, when.
407.565. For the purposes of sections 407.560 to 407.579, if a new motor vehicle does not conform to all applicable express warranties, and the consumer reports the nonconformity to the manufacturer, or its agent, during the term of such express warranties, or during the period of one year following the date of original delivery of the new motor vehicle to the consumer, whichever period expires earlier, the manufacturer, or its agent, shall make such repairs as are necessary to conform the new vehicle to such express warranties, notwithstanding the fact that such repairs are made after the expiration of such term or such one-year period.
Replacement of motor vehicle or refund of purchase price, when– allowance deducted for consumer’s use.
407.567. 1. If the manufacturer, through its authorized dealer or its agent, cannot conform the new motor vehicle to any applicable express warranty by repairing or correcting any default or condition which impairs the use, market value, or safety of the new motor vehicle to the consumer after a reasonable number of attempts, the manufacturer shall, at its option, either replace the new motor vehicle with a comparable new vehicle acceptable to the consumer, or take title of the vehicle from the consumer and refund to the consumer the full purchase price, including all reasonably incurred collateral charges, less a reasonable allowance for the consumer’s use of the vehicle. The subtraction of a reasonable allowance for use shall apply when either a replacement or refund of the new motor vehicle occurs.
2. Refunds shall be made to the consumer and lienholder of record, if any, as their interests may appear.
Affirmative defenses.
407.569. It shall be an affirmative defense to any claim under sections 407.560 to 407.579 that:
(1) An alleged nonconformity does not substantially impair the use, market value, or safety of the motor vehicle;
(2) A nonconformity is the result of abuse, neglect, or unauthorized modifications or alterations of a motor vehicle;
(3) A claim by a consumer was not filed in good faith; or
(4) Any other affirmative defense allowed by law.
Presumptions of nonconformity–exception.
407.571. It shall be presumed that a reasonable number of attempts have been undertaken to conform a new motor vehicle to the applicable express warranties if within the terms, conditions, or limitations of the express warranty, or during the period of one year following the date of original delivery of the new motor vehicle to a consumer, whichever expires earlier, either:
(1) The same nonconformity has been subject to repair four or more times by the manufacturer, or its agents, and such nonconformity continues to exist; or
(2) The new vehicle is out of service by reason of repair of the nonconformity by the manufacturer, through its authorized dealer or its agents, for a cumulative total of thirty or more working days, exclusive of down time for routine maintenance as prescribed by the manufacturer, since delivery of the new vehicle to the consumer. The thirty-day period may be extended by a period of time during which repair services are not available to the consumer because of conditions beyond the control of the manufacturer or its agents.
Warranty extension, when–complaint remedies information to be furnished–notice to manufacturer required–manufacturer’s duties, time limitation.
407.573. 1. The terms, conditions, or limitations of the express warranty, or* the period of one year following the date of original delivery of the new motor vehicle to a consumer, whichever expires earlier, may be extended if the new motor vehicle warranty problem has been reported but has not been repaired by the manufacturer, or its agent, by the expiration of the applicable time period.
2. The manufacturer shall provide information for consumer complaint remedies with each new motor vehicle. It shall be the responsibility of the consumer, or his representative, prior to availing himself of the provisions of sections 407.560 to 407.579, to give written notification to the manufacturer of the need for the repair of the nonconformity, in order to allow the manufacturer an opportunity to cure the alleged defect. The manufacturer shall immediately notify the consumer of a reasonably accessible repair facility of a franchised new vehicle dealer to conform the new vehicle to the express warranty. After delivery of the new vehicle to an authorized repair facility by the consumer, the manufacturer shall have ten calendar days to conform the new motor vehicle to the express warranty. Upon notification from the consumer that the new vehicle has not been conformed to the express warranty, the manufacturer shall inform the consumer if an informal dispute settlement procedure has been established by the manufacturer in accordance with section 407.575. However, if prior notice by the manufacturer of an informal dispute settlement procedure has been given, no further notice is required.
3. Any action brought under sections 407.560 to 407.579 shall be commenced within six months following expiration of the terms, conditions, or limitations of the express warranty, or within eighteen months following the date of original delivery of the new motor vehicle to a consumer, whichever is earlier, or, in the event that a consumer resorts to an informal dispute settlement procedure as provided in sections 407.560 to 407.579, within ninety days following the final action of any panel established pursuant to such procedure.
Manufacturer with approved settlement procedure, consumer’s duty.
407.575. If a manufacturer has established an informal dispute settlement procedure which complies in all respects with the provisions of the code of Federal Regulations, 16 C.F.R. 703, provisions of sections 407.560 to 407.579 concerning refunds or replacements shall not apply to any consumer who has not first resorted to such procedure.
Court action by consumer, costs, expenses, attorney’s fees, how paid.
407.577. 1. If a consumer undertakes a court action after complying with the provisions of sections 407.560 to 407.579 and finally prevails in that action, he shall be allowed by the court to recover as part of the judgment a sum equal to the aggregate amount of costs and expenses, including attorney’s fees based on actual time expended, determined by the court to have been reasonably incurred by the plaintiff for or in connection with the commencement and prosecution of such action.
2. If any claim by a consumer under sections 407.560 to 407.579 is found by a court to have been filed in bad faith, or solely for the purpose of harassment, or in the absence of a substantial justifiable issue of either law or fact raised by the consumer, or for which the final recovery is not at least ten percent greater than any settlement offer made by the manufacturer prior to the commencement of the court action, then the consumer shall be liable for all costs and reasonable attorney’s fees incurred by the manufacturer, or its agent, as a direct result of the bad faith claim.
Consumer’s right to other remedies–law to apply, when.
407.579. 1. Except as provided in subdivision (1) of section 407.560, nothing in sections 407.560 to 407.579 shall in any way limit the rights or remedies which are otherwise available to a consumer at law or in equity.
2. Sections 407.560 to 407.579 shall apply to any new motor vehicle sold after January 1, 1985.
August 31, 2006 at 11:32 am · Filed under Lemon Laws
Items that are covered under Montana Lemon Law
Vehicles sold in this state, including the non-residential portion of a motor home and excluding trucks of 10,000 lbs. GVWR or more and motorcycles.
Montana Lemon Law may apply if the following has occurred
4 repair attempts – 30 business days out of service
Length of time or miles before the Montana Lemon Law runs out
2 years or 18,000 miles, whichever occurs first.
Lemon Law in Montana
61-4-501. Definitions.
For purposes of this part, the following definitions apply:
(1) “Collateral charge” means all governmental charges, including but not limited to sales tax, property tax, license and registration fees, and fees in lieu of tax.
(2) “Consumer” means the purchaser, other than for purposes of resale, of a motor vehicle that has not been brought into nonconformity as the result of abuse, neglect, or unauthorized modifications or alterations by the purchaser, any person to whom the motor vehicle is transferred during the duration of an express warranty applicable to the motor vehicle, or any other person entitled by the terms of the warranty to the benefits of its provisions.
(3) “Incidental damage” means incidental and consequential damage as defined in 30-2-715.
(4) “Manufacturer” has the meaning applied to that word in 61-4-201.
(5) “Motor vehicle” means a vehicle, including the nonresidential portion of a motor home as defined in 61-1-130, propelled by its own power, designed primarily to transport persons or property upon the public highways, and sold in this state. The term does not include a truck with 10,000 pounds or more gross vehicle weight rating or a motorcycle as defined in 61-1-105. Motor vehicle does not include components, systems, fixtures, appliances, furnishings, accessories, and features that are designed, used, and maintained primarily for residential purposes.
(6) “Reasonable allowance for use” is an amount directly attributable to use of the motor vehicle by the consumer and any previous consumers prior to the first written notice of the nonconformity to the manufacturer or its agent and during any subsequent period when the vehicle is not out of service because of nonconformity. The reasonable allowance for use shall be computed by multiplying the total contract price of the vehicle by a fraction having as its denominator 100,000 and having as its numerator the number of miles that the vehicle traveled prior to the manufacturer’s acceptance of its return.
(7) “Warranty period” means the period ending 2 years after the date of the original delivery to the consumer of a new motor vehicle or during the first 18,000 miles of operation, whichever is earlier.
61-4-502. Notice — warranty enforceable after warranty period
(1) If a consumer notifies in writing the manufacturer or its agent during the warranty period that a new motor vehicle does not conform to all applicable express warranties, the repairs necessary to conform the new motor vehicle to the express warranties shall be made by or at the expense of the warrantor, regardless of the expiration of the warranty period after notification of nonconformity is given by the consumer.
(2) The warranty period of an express warranty is extended to equal the time that repair services are not available because of war or invasion or because of strike or fire, flood, or other natural disaster. The presumption provided herein may not apply against a manufacturer who has not received prior written notification from or on behalf of the consumer and has not had an opportunity to cure the alleged defect.
(3) The manufacturer must clearly and conspicuously disclose to the consumer in the warranty or owner’s manual that written notification of a nonconformity is required before a consumer may be eligible for a refund or replacement of the vehicle. The manufacturer must include with the warranty or owner’s manual the name and address where the written notification must be sent.
61-4-503. Replacement for nonconformity to warranty.
(1) If after a reasonable number of attempts the manufacturer or its agent or authorized dealer is unable, during the warranty period, to conform the new motor vehicle to any applicable express warranty by repairing or correcting any defect or condition that substantially impairs the use and market value or safety of the motor vehicle to the consumer, the manufacturer shall replace it with a new motor vehicle of the same model and style and of equal value, unless for reasons of lack of availability such replacement is impossible, in which case the manufacturer shall replace it with a vehicle of comparable market value.
(2) As an alternative to replacement, the manufacturer may accept return of the new motor vehicle from the consumer upon refund to him of the full purchase price, plus reasonable collateral charges and incidental damages, less a reasonable allowance for the consumer’s use of the motor vehicle. The refund shall be paid to the consumer and to a lien holder, if any, in proportion to their interests.
61-4-504. Reasonable number of attempts — presumption.
A reasonable number of attempts to conform a new motor vehicle to the applicable express warranties is presumed to have been made for purposes of 61-4-503(1) if:
(1) the same nonconformity has been subject to repair four or more times by the manufacturer or its agent or authorized dealer during the warranty period but the nonconformity continues to exist; or
(2) the vehicle is out of service because of nonconformity for a cumulative total of 30 or more business days during the warranty period after notification of the manufacturer, agent, or dealer.
61-4-505. Dealer exemption — liability to manufacturer.
(1) Nothing in this part imposes any liability on a dealer or creates a cause of action by a consumer against a dealer under 61-4-503.
(2) A dealer is not liable to a manufacturer for any refunds or vehicle replacements in the absence of evidence indicating that repairs made by the dealer were carried out in a manner inconsistent with the manufacturer’s instructions.
61-4-506. Provisions nonexclusive.
(1) The provisions of this part do not limit the rights or remedies available to a consumer under any other law.
(2) All express warranties arising from the sale of a new motor vehicle are subject to the provisions of Title 30, chapter 2, part 3.
(3) It is an affirmative defense to a claim brought under this part that an alleged nonconformity does not substantially impair the use, market value, or safety of the vehicle or that the nonconformity is the result of abuse, neglect, or unauthorized modification or alteration of a motor vehicle by the consumer.
61-4-507. Exhaustion of remedies under federal law.
The provisions of 61-4-503 are not applicable against a manufacturer who has established an informal dispute settlement procedure certified by the department of commerce to be in substantial compliance with the provisions of Title 16, Code of Federal Regulations, part 703, as those provisions read on October 1, 1983, unless the consumer has first resorted to that procedure without satisfaction.
61-4-511. Manufacturer’s dispute settlement procedure.
(1) A manufacturer who has established an informal dispute settlement procedure under the provisions of Title 16, Code of Federal Regulations, part 703 (16 CFR, part 703), as those provisions read on October 1, 1983, shall submit a copy of the procedure to the department of commerce. The department of commerce shall issue a certificate of approval to a manufacturer whose procedure complies in all respects with such federal regulations and subsection (2). The department of commerce shall report to the department of justice all manufacturer’s procedures certified. The department of commerce may issue subpoenas requiring the attendance of witnesses and the production of records, documents, or other evidence necessary to it in an investigation related to the certification of a manufacturer’s informal dispute settlement procedure.
(2) A manufacturer’s informal dispute settlement procedure must afford the consumer or his representative an opportunity to appear and present evidence in Montana at a location reasonably convenient to the consumer and, further, may not include any practices that:
(a) delay a decision in any dispute beyond 60 days after the date on which the consumer initially resorts to the dispute settlement procedure;
(b) delay performance of remedies awarded in a settlement beyond 10 days after a decision, except that a manufacturer may have 30 days following the date of decision to replace a motor vehicle or make refund to the consumer as provided in 61-4-503;
(c) require the consumer to make the vehicle available for inspection by a manufacturer’s representative more than once;
(d) fail to consider in decisions any remedies provided by this part; or
(e) require the consumer to take any action or assume any obligation not specifically authorized under the federal regulations referred to in subsection (1).
61-4-512. Annual audit
(1) A manufacturer establishing an informal dispute resolution procedure shall file with the department of commerce a copy of the annual audit required under Title 16, Code of Federal Regulations, part 703 (16 CFR, part 703), as those provisions read on October 1, 1983, along with any additional information the department of commerce may require, including the number of refunds and replacements made by the manufacturer during the period audited.
(2) The department of commerce may, after notice and hearing as provided in Title 2, chapter 4, suspend or revoke the certification of a manufacturer’s informal dispute resolution procedure upon a finding that the procedure is being used to create hardship to consumers. The department of commerce shall notify the department of justice of any revocation or suspension of a certification. The department of justice may consider the revocation or suspension in licensing manufacturers under Title 61, chapter 4, part 2.
61-4-515. Arbitration procedure.
(1) The department of commerce shall provide an independent forum and arbitration procedure for the settlement of disputes between consumers and manufacturers of motor vehicles that do not conform to all applicable warranties under the provisions of this part. The procedure must conform to Title 27, chapter 5. All arbitration shall take place in Montana at a place reasonably convenient to the consumer.
(2) Except as provided in 61-4-520, a consumer owning a motor vehicle that fails to conform to all applicable warranties may bring a grievance before an arbitration panel only if the manufacturer of the motor vehicle has not established an informal dispute settlement procedure which has been certified by the department of commerce under 61-4-511.
61-4-516. Composition of arbitration panel.
An arbitration panel hearing a grievance under this part must consist of three members. One member must be chosen by the consumer, one member must be chosen by the manufacturer, and one member must be chosen by mutual agreement of the parties. The department of commerce may maintain a list of persons willing to serve on panels from which the third member may be chosen.
61-4-517. Implementation of arbitration.
(1) A consumer may initiate a request for arbitration by filing a notice with the department of commerce. The consumer shall file, on a form prescribed by the department of commerce, any information considered relevant to the resolution of the dispute and shall return the form, along with a $50 filing fee, within 5 days after receiving it. The complaint form must offer the consumer the choice of presenting any subsequent testimony orally or in writing, but not both.
(2) The department of commerce shall determine whether the complaint alleges the violation of any applicable warranty under this part. If the department of commerce determines that a complaint does not allege a warranty violation, it must refund the filing fee.
(3) Upon acceptance of a complaint, the department of commerce shall notify the manufacturer of the filing of a request for arbitration and shall obtain from the manufacturer, on a form prescribed by the department of commerce, any information considered relevant to the resolution of the dispute. The manufacturer must return the form within 15 days of receipt, with a filing fee of $250.
(4) Fees collected under this section shall be deposited in a special revenue fund for the use of the department of commerce in administering this part.
(5) The manufacturer’s fee provided in subsection (3) is due only if the department of commerce arbitration procedures are utilized.
61-4-518. Arbitration
(1) The department of commerce shall investigate, gather, and organize all information necessary for a fair and timely decision in each dispute. The department of commerce may, on behalf of the arbitration panel, issue subpoenas to compel the attendance of witnesses and the production of documents, papers, and records relevant to the dispute.
(2) If requested by the panel, the department of commerce may forward a copy of all written testimony and documentary evidence to an independent technical expert certified by the national institute of automotive excellence. The expert may review the material and be available to advise and consult with the panel. The expert may sit as a nonvoting member of the panel whenever oral testimony is presented. The department of justice may suggest an expert at the request of the department of commerce.
61-4-519. Action by arbitration panel
(1) The arbitration panel shall, as expeditiously as possible, but not later than 60 days after the department of commerce has accepted a complaint, render a fair decision based on the information gathered and disclose its findings and its reasoning to the parties.
(2) The decision shall provide appropriate remedies, including but not limited to:
(a) repair of the vehicle;
(b) replacement of the vehicle with an identical vehicle or a comparable vehicle acceptable to the consumer;
(c) refund as provided in 61-4-503(2);
(d) any other remedies available under the applicable warranties or 15 U.S.C. 2301 through 2312, as in effect on October 1, 1983; or
(e) reimbursement of expenses and costs to the prevailing party.
(3) The decision shall specify a date for performance and completion of all awarded remedies. The department of commerce shall contact the prevailing party within 10 working days after the date for performance to determine whether performance has occurred. The parties shall act in good faith in abiding by any decision. In addition, if the decision is not accepted, the parties shall follow the provisions of Title 27, chapter 5. If it is determined by the court that the appellant has acted without good cause in bringing an appeal of an award, the court, in its discretion, may grant to the respondent his costs and reasonable attorney fees.
61-4-520. Nonconforming procedure.
A consumer injured by the operation of any procedure that does not conform with procedures established by a manufacturer pursuant to 61-4-511 and the provisions of Title 16, Code of Federal Regulations, part 703, as in effect on October 1, 1983, may appeal any decision rendered as the result of such a procedure by requesting arbitration de novo of the dispute by a department of commerce panel. Filing procedures and fees for appeals must be the same as those required in 61-4-515 through 61-4-517. The findings of the manufacturer’s informal dispute settlement procedure are admissible in evidence at the department of commerce arbitration panel hearing and in any civil action arising out of any warranty obligation or matter related to the dispute.
61-4-525. Notice on resale of replaced vehicle.
A motor vehicle which is returned to the manufacturer and which requires replacement or refund may not be sold in the state without a clear and conspicuous written disclosure of the fact that the vehicle was returned. The department of justice may prescribe by rule the form and content of the disclosure statement and a procedure by which the disclosure may be removed upon a determination that the vehicle is no longer defective.
61-4-526. Records of disputes.
The department of commerce shall maintain records of each dispute as it determines, including an index of disputes by brand name and model. The department of commerce shall, at intervals of no more than 6 months, compile and maintain statistics indicating the record of compliance with arbitration decisions and the number of refunds or replacements awarded. A copy of the statistical summary must be filed with the department of justice and must be considered by it in determining the issuance of any manufacturer license required under Title 61, chapter 4, part 2.
August 31, 2006 at 11:32 am · Filed under Lemon Laws
Items that are covered under Nebraska Lemon Law
Vehicles sold in this state, normally used for personal, family, household or business purposes, except self-propelled mobile homes. (M)
Nebraska Lemon Law may apply if the following has occurred
4 repair attempts or 40 days out of service.
Length of time or miles before the Nebraska Lemon Law runs out
Express warranty period or 1 year, whichever occurs first.
Lemon Law in Nebraska
DOCUMENT: 60-2701
HEADING Chapter 60. Motor Vehicles.
CATCHLINE Terms, defined.
LAW 60-2701. As used in sections 60-2701 to 60-2709,unless the context otherwise requires:
- (1) Consumer shall mean the purchaser, other than for purposes of resale, of a motor vehicle normally used for personal, family, household, or business purposes, any person to whom such motor vehicle is transferred for the same purposes during the duration of an express warranty applicable to such motor vehicle, and any other person entitled by the terms of such warranty to enforce the obligations of the warranty;
- (2) Motor vehicle shall mean a new motor vehicle as defined in section 60-1401.02 which is sold in this state, excluding self-propelled mobile homes as defined in section 60-301; and
- (3) Manufacturer’s express warranty shall mean the written warranty, so labeled, of the manufacturer of a new motor vehicle.
DOCUMENT: 60-2702
HEADING Chapter 60. Motor Vehicles.
CATCHLINE Motor vehicle not conforming to express warranties; duty to repair.
LAW 60-2702. If a motor vehicle does not conform to all applicable express warranties, and the consumer reports the nonconformity to the manufacturer, its agent, or its authorized dealer during the term of such express warranties or during the period of one year following the date of original delivery of the motor vehicle to a consumer, whichever is the earlier date, the manufacturer, its agent, or its authorized dealer shall make such repairs as are necessary to conform the vehicle to such express warranties, notwithstanding the fact that such repairs are made after the expiration of such term or such one-year period.
DOCUMENT: 60-2703
HEADING Chapter 60. Motor Vehicles.
CATCHLINE Manufacturer’s duty to replace vehicle or refund price; when; affirmative defense.
LAW 60-2703. If the manufacturer, its agents, or authorized dealers are unable to conform the motor vehicle to any applicable express warranty by repairing or correcting any defect or condition which substantially impairs the use and market value of the motor vehicle to the consumer after a reasonable number of attempts, the manufacturer shall replace the motor vehicle with a comparable motor vehicle or accept return of the vehicle from the consumer and refund to the consumer the full purchase price including all sales taxes, license fees, and registration fees and any similar governmental charges, less a reasonable allowance for the consumer’s use of the vehicle. Refunds shall be made to the consumer and lienholder, if any, as their interests may appear. A reasonable allowance for use shall be that amount directly attributable to use by the consumer and any previous owner prior to his or her first report of the nonconformity to the manufacturer, agent, or dealer and during any subsequent period when the vehicle is not out of service by reason of repair. It shall be an affirmative defense to any claim under sections 60-2701 to 60-2709 (1) that an alleged nonconformity does not substantially impair such use and market value or (2) that a nonconformity is the result of abuse, neglect, or unauthorized modifications or alterations of a motor vehicle by a consumer.
DOCUMENT: 60-2704
HEADING Chapter 60. Motor Vehicles.
CATCHLINE Attempts to conform motor vehicle to warranties; presumption; term of warranty; how computed.
LAW 60-2704. It shall be presumed that a reasonable number of attempts have been undertaken to conform a motor vehicle to the applicable express warranties, if (1) the same nonconformity has been subject to repair four or more times by the manufacturer, its agents, or authorized dealers within the express warranty term or during the period of one year following the date of original delivery of the motor vehicle to a consumer, whichever is the earlier date, but such nonconformity continues to exist or (2) the vehicle is out of service by reason of repair for a cumulative total of forty or more days during such term or during such period, whichever is the earlier date. The term of an express warranty, such one-year period, and such forty-day period shall be extended by any period of time during which repair services are not available to the consumer because of a war, invasion, or strike, or fire, flood, or other natural disaster. In no event shall the presumption provided in this section apply against a manufacturer unless the manufacturer has received prior written direct notification by certified mail from or on behalf of the consumer and an opportunity to cure the defect alleged.
DOCUMENT: 60-2705
HEADING Chapter 60. Motor Vehicles.
CATCHLINE Dispute settlement procedure; effect; director; duties.
LAW 60-2705. The Director of Motor Vehicles shall adopt standards for an informal dispute settlement procedure which substantially comply with the provisions of 16 C.F.R. part 703, in existence as of February 22, 1983. If a manufacturer has established or participates in a dispute settlement procedure certified by the Director of Motor Vehicles within the guidelines of such standards, the provisions of section 60-2703 concerning refunds or replacement shall not apply to any consumer who has not first resorted to such a procedure.
DOCUMENT: 60-2706
HEADING Chapter 60. Motor Vehicles.
CATCHLINE Statute of limitations.
LAW 60-2706. Any action brought under sections 60-2701 to 60-2709 shall be commenced within (1) one year following the expiration of the express warranty term or (2) two years following the date of original delivery of the motor vehicle to a consumer, whichever is the earlier date.
DOCUMENT: 60-2707
HEADING Chapter 60. Motor Vehicles.
CATCHLINE Attorney’s fees; when allowed.
LAW 60-2707. In any action brought under sections 60-2701 to 60-2709 the court shall award reasonable attorney’s fees to the prevailing party if the prevailing party is the consumer.
DOCUMENT: 60-2708
HEADING Chapter 60. Motor Vehicles.
CATCHLINE Sections, how construed.
LAW 60-2708. Nothing in sections 60-2701 to 60-2709 shall in any way limit the rights or remedies which are otherwise available to a consumer under any other law.
DOCUMENT: 60-2709
HEADING Chapter 60. Motor Vehicles.
CATCHLINE Applicability of sections.
LAW 60-2709. Sections 60-2701 to 60-2709 shall apply to motor vehicles beginning with the manufacturer’s 1984 model year.
August 31, 2006 at 11:32 am · Filed under Lemon Laws
Items that are covered under Nevada Lemon Law
Motor vehicles normally used for personal, family or household purposes, except motor homes or off-road vehicles. (M)
Nevada Lemon Law may apply if the following has occurred
4 repair attempts or 30 calendar days out of service.
Length of time or miles before the Nevada Lemon Law runs out
Express warranty period or 1 year, whichever occurs first.
Lemon Law in Nevada
NRS 597.600 Definitions. As used in NRS 597.600 to 597.680, inclusive, unless the context otherwise requires:1. “Buyer” means:
(a) A person who purchases or contracts to purchase, other than for purposes of resale, a motor vehicle normally used for personal, family or household purposes.(b) Any person to whom the motor vehicle is transferred during the time a manufacturer’s express warranty applicable to the motor vehicle is in effect.
(c) Any other person entitled by the terms of the warranty to enforce its obligations.
2. Except as otherwise provided in this subsection “motor vehicle” has the meaning ascribed to it in NRS 482.075. The term does not include motor homes or off-road vehicles except for the purposes of NRS 597.680.
(Added to NRS by 1983, 610; A 1985, 2026; 1995, 2366)
NRS 597.610 Report of defect in motor vehicle; duty of manufacturer. If a new motor vehicle does not conform to all of the manufacturer’s applicable express warranties and the buyer reports the nonconformity in writing to the manufacturer:
1. Before the expiration of the manufacturer’s express warranties; or
2. No later than 1 year after the date the motor vehicle is delivered to the original buyer, whichever occurs earlier, the manufacturer, its agent or its authorized dealer shall make such repairs as are necessary to conform the vehicle to the express warranties without regard to whether the repairs will be made after the expiration of the express warranty or the time described in subsection 2. (Added to NRS by 1983, 610)Ñ(Substituted in revision for NRS 598.756)
NRS 597.620 Submission of claim to manufacturer for replacement or refund according to designated procedure. If the manufacturer has established or designated a procedure for settling disputes informally which substantially complies with the provisions of Title 16 of the Code of Federal Regulations, Part 703, a buyer must first submit his claim for replacement of the motor vehicle or for refund of the purchase price under that procedure before bringing any action under NRS 597.630.
(Added to NRS by 1983, 612)Ñ(Substituted in revision for NRS 598.761)
NRS 597.630 Duties of manufacturer if motor vehicle cannot be conformed to express warranties. 1. If, after a reasonable number of attempts, the manufacturer, or its agent or authorized dealer is unable to conform the motor vehicle to any applicable express warranty by repair or correction and the defect or condition causing the nonconformity substantially impairs the use and value of the motor vehicle to the buyer and is not the result of abuse, neglect or unauthorized modifications or alterations of the motor vehicle, the manufacturer shall:
(a) Replace the motor vehicle with a comparable motor vehicle of the same model and having the same features as the replaced vehicle, or if such a vehicle cannot be delivered to the buyer within a reasonable time, then a comparable motor vehicle substantially similar to the replaced vehicle; or(b) Accept return of the motor vehicle from the buyer and refund to him the full purchase price including all sales taxes, license fees, registration fees and other similar governmental charges, less a reasonable allowance for his use of the vehicle. A reasonable allowance for use is that amount directly attributable to use by the buyer before his first report of the nonconformity to the manufacturer, agent or dealer and during any subsequent period when the vehicle is not out of service for repairs. Refunds must be made to the buyer, and lienholder if any, as their interests may appear.
2. It is presumed that a reasonable number of attempts have been undertaken to conform a motor vehicle to the applicable express warranties where:
(a) The same nonconformity has been subject to repair four or more times by the manufacturer, or its agent or authorized dealer within the time the express warranty is in effect or within 1 year following the date the motor vehicle is delivered to the original buyer, whichever occurs earlier, but the nonconformity continues to exist; or(b) The motor vehicle is out of service for repairs for a cumulative total of 30 or more calendar days within the time the express warranty is in effect or within 1 year following the date the motor vehicle is delivered to the original buyer, whichever occurs earlier, except that if the necessary repairs cannot be made for reasons which are beyond the control of the manufacturer or its agent or authorized dealer, the number of days required to give rise to the presumption must be appropriately extended.
(Added to NRS by 1983, 611)Ñ(Substituted in revision for NRS 598.766)
NRS 597.640 Tolling of period for express warranties. For the purposes of NRS 597.600 to 597.670, inclusive, the running of the time an express warranty is in effect or of any other period of time described in those sections is tolled for the time during which services to repair the motor vehicle are not reasonably available to the buyer because of a war, invasion or strike, or because of a fire, flood or other natural disaster.
(Added to NRS by 1983, 611)Ñ(Substituted in revision for NRS 598.771)
NRS 597.650 Commencement of action by buyer. Any action brought pursuant to NRS 597.600 to 597.630, inclusive, must be commenced within 18 months after the date of the original delivery of the motor vehicle to the buyer.
(Added to NRS by 1983, 612)Ñ(Substituted in revision for NRS 598.776)
NRS 597.660 Waiver of rights by buyer prohibited. Any provision in any agreement between the manufacturer or its agent or authorized dealer and the buyer which provides that the buyer agrees to waive or forego any rights or remedies afforded by NRS 597.600 to 597.630, inclusive, is void.
(Added to NRS by 1983, 612)Ñ(Substituted in revision for NRS 598.781)
NRS 597.670 Effect of other rights and remedies of buyer. The provisions of NRS 597.600 to 597.630, inclusive, do not limit any other right or remedy which the buyer may have by law or by agreement.
(Added to NRS by 1983, 612)Ñ(Substituted in revision for NRS 598.786)
NRS 597.675 Notification of manufacturer regarding change in residential address. Any person entitled by the terms of a manufacturer’s express warranty to enforce its obligations is responsible for notifying the manufacturer of any change in his residential address.
(Added to NRS by 1995, 2366)
NRS 597.680 Reimbursement by manufacturer for cost of repairs to conform vehicle to express warranties. The manufacturer shall reimburse its agent or authorized dealer for the cost of repairs made to a motor vehicle to conform it to the manufacturer’s express warranties. The reimbursement must be paid at the rate usually billed by the agent or dealer to the general public for similar repairs.
(Added to NRS by 1985, 2026)Ñ(Substituted in revision for NRS 598.791)
August 31, 2006 at 11:32 am · Filed under Lemon Laws
Items that are covered under New Hampshire Lemon Law
Purchased or leased vehicles with a gross weight under 9,000 lbs except tractors, off highway recreational vehicles, and mopeds. (M)
New Hampshire Lemon Law may apply if the following has occurred
3 repair attempts – 30 business days out of service
Length of time or miles before the New Hampshire Lemon Law runs out
Within 1 year of expiration of express warranty period or final repair attempt.
Lemon Law in New Hampshire
§ 357-D:1� � Intent. – The legislature finds and declares that manufacturers, distributors and importers of new motor vehicles should be obligated to provide speedy and less costly resolution of automobile warranty problems. Manufacturers should be required to provide in as expeditious a manner as possible a refund of the consumer’s purchase price, payments to a lessor and lessee, or a replacement vehicle that is acceptable to the consumer whenever the manufacturer is unable to make the vehicle conform with its applicable warranty. New motor vehicle dealers and used motor vehicle dealers cannot be sued under this chapter.
Source.� 1991, 222:1, eff. Jan. 1, 1992.
§ 357-D:2� � Definitions. – In this chapter:
I. “Board” means the New Hampshire new motor vehicle arbitration board.
II. “Business day” means any day during which the service departments of authorized dealers of the manufacturer of the motor vehicle are normally open for business.
III. “Consumer” means the purchaser, other than for purposes of resale of a new motor vehicle; the lessee of a new motor vehicle, other than for the purpose of sublease; any person to whom such motor vehicle is transferred during the duration of an express warranty applicable to the motor vehicle; or any other person entitled by the terms of the warranty to enforce the obligations of the warranty. “Consumer” shall not include any governmental entity.
IV. “Distributor” means any person who sells or distributes new or used motor vehicles to motor vehicle dealers or who maintains distributor representatives within this state.
V. “Early termination costs” means expenses and obligations incurred by a motor vehicle lessee as a result of an early termination of a written lease agreement and surrender of a motor vehicle to a manufacturer, including penalties for prepayment of finance arrangements.
VI. “Factory branch” means any branch office maintained by a manufacturer for the purpose of selling, leasing, or offering for sale or lease, vehicles to a distributor or new motor vehicle dealer or for directing or supervising, in whole or in part, factory distributor representatives.
VII. “Lease” or “leased” means a written agreement with a lessee which shall be for the use of a motor vehicle for consideration for a term of 2 or more years.
VIII. “Lessee” means any consumer who leases a motor vehicle pursuant to a written lease agreement for a term of 2 or more years.
IX. “Manufacturer” means any person, resident or nonresident, who manufactures or assembles new motor vehicles, or imports for distribution through distributors of motor vehicles or any partnership, firm, association, joint venture, corporation or trust, resident or nonresident, which is controlled by a manufacturer. The term “manufacturer” includes distributors and factory branches.
X. “Motor vehicle” means:
(a) A motor vehicle, as defined in RSA 259:60, of the private passenger or station wagon type with a gross weight not exceeding 9,000 pounds that is purchased or leased by a consumer; or
(b) Any other 4-wheel motor vehicle with a gross weight not exceeding 9,000 pounds, except tractors, off highway recreational vehicles, and mopeds; or
(c) Motorcycles.
XI. “Motor vehicle dealer” means any person engaged in the business of selling, offering to sell, leasing, soliciting or advertising the sale of new or used motor vehicles or possessing motor vehicles for the purpose of resale either on his own account or on behalf of another, either as his primary business or incidental thereto. However, “motor vehicle dealer” shall not include:
(a) Receivers, trustees, administrators, executors, guardians, or other persons appointed by or acting under judgment, decree or order of any court; or
(b) Public officers while performing their duties as such officers.
XII. “Motor vehicle lessor” means a person who holds title to a motor vehicle leased to a lessee under written lease agreement for a term of 2 or more years, or who holds the lessor’s rights under such an agreement.
XIII. “New motor vehicle” means a passenger motor vehicle which is still under the manufacturer’s express warranty.
XIV. “Nonconformity” means a defect or condition that substantially impairs the use, value or safety of a motor vehicle, but does not include a defect or condition that results from an accident, abuse, neglect, modification, or alteration of the motor vehicle by persons other than the manufacturer or its authorized service agent.
XV. “Warranty” includes express warranties as defined in the Uniform Commercial Code, RSA 382-A, plus any written warranty of the manufacturer.
Source.� 1991, 222:1. 1994, 220:1, 2, eff. Jan. 1, 1995.
§ 357-D:3� � Enforcement of Warranties. – I. Every new motor vehicle sold in this state shall conform to all applicable warranties.
II. It shall be the manufacturer’s obligation under this chapter to insure that all new motor vehicles sold or leased in this state conform with the manufacturer’s express warranties. The manufacturer may delegate responsibility to its agents or authorized dealers provided, however, in the event the manufacturer delegates its responsibility under this chapter to its agents or authorized dealers, it shall compensate the dealer for all work performed by the dealer in satisfaction of the manufacturer’s responsibility under this chapter.
III. If a new motor vehicle does not conform to all applicable express warranties and the consumer reports the nonconformity to the manufacturer, its agent or authorized dealer during the term of the warranty, the manufacturer shall cause whatever repairs are necessary to conform the vehicle to the warranties, notwithstanding the fact that the repairs are made after the expiration of a warranty term.
IV. A manufacturer, its agent or authorized dealer shall not refuse to provide a consumer with a written repair order and shall provide to the consumer, each time the consumer’s vehicle is brought in for examination or repair of a defect, a written summary of the complaint and a fully itemized statement indicating all work performed on the vehicle including, but not limited to, examination of the vehicle, parts, and labor.
V. If, after a reasonable number of attempts, the manufacturer, its agent or authorized dealer or its delegate is unable to conform the motor vehicle to any express warranty by repairing or correcting any defect or condition covered by the warranty which substantially impairs the use, market value, or safety of the motor vehicle to the consumer, the manufacturer shall, at the option of the consumer within 30 days of the effective date of the board’s order, replace the motor vehicle with a new motor vehicle from the same manufacturer, if available, of comparable worth to the same make and model with all options and accessories with appropriate adjustments being allowed for any model year differences or shall accept return of the vehicle from the consumer and refund to the consumer the full purchase price or to the lessee, in the case of leased vehicles, as provided in paragraph IX. In those instances in which a refund is tendered, the manufacturer shall refund to the consumer the full purchase price as indicated in the purchase contract and all credits and allowances for any trade-in or down payment, license fees, finance charges, credit charges, registration fees, and any similar charges and incidental and consequential damages or, in the case of leased vehicles, as provided in paragraph IX. Refunds shall be made to the consumer and lienholder, if any, as their interests may appear, or to the motor vehicle lessor and lessee as provided in paragraph IX. A reasonable allowance for use shall be that amount directly attributable to use by the consumer prior to the first repair attempt and shall be calculated by multiplying the full purchase price of the vehicle by a fraction having as its denominator 100,000, or for a motorcycle with an engine size of 250 cubic centimeters or smaller 20,000, or for a motorcycle with an engine size greater than 250 cubic centimeters 40,000, and having as its numerator the number of miles that the vehicle traveled prior to the first attempt at repairing the vehicle.
VI. It shall be an affirmative defense to any claim under this chapter that an alleged nonconformity does not substantially impair the use, market value, or safety or that the nonconformity is the result of abuse, neglect, or unauthorized modifications or alterations of a motor vehicle by a consumer.
VII. It shall be presumed that a reasonable number of attempts have been undertaken to conform a motor vehicle to the applicable warranties if:
(a) The same nonconformity as identified in any written examination or repair order has been subject to repair at least 3 times by the manufacturer, its agent, or authorized dealer within the express warranty term and the same nonconformity continues to exist; or
(b) The vehicle is out of service by reason of repair of one or more nonconformities, defects, or conditions for a cumulative total of 30 or more business days during the term of the express warranty. The term of any warranty and the 30-day period shall be extended by any period of time during which repair services were not available to the consumer because of war, invasion, strike, fire, flood, or other natural disaster. If an extension of time is necessitated due to these conditions, the manufacturer shall provide for the free use of a vehicle to the consumer whose vehicle is out of service. A vehicle shall not be deemed out of service if it is available to the consumer for a major part of the day.
VIII. In order for an attempt at repair to qualify for the presumptions of this section, the attempt at repair shall be evidenced by a written examination or repair order issued by the manufacturer, its agent, or its authorized dealer. The presumptions of this section shall only apply to 3 attempts at repair evidenced by written examination or repair orders undertaken by the same agent or authorized dealer, unless the consumer shows good cause for taking the vehicle to a different agent or authorized dealer.
IX. In cases in which a refund is tendered by a manufacturer for a leased motor vehicle under paragraph V, the refund and rights of the motor vehicle lessor, lessee, and manufacturer shall be in accordance with the following:
(a) The manufacturer shall provide to the lessee the aggregate deposit and rental payments previously paid to the motor vehicle lessor by the lessee, and incidental and consequential damages, if applicable, minus a reasonable allowance for use. The aggregate deposit shall include, but not be limited to, all cash payments and trade-in allowances tendered by the lessee to the motor vehicle lessor under the lease agreement. The reasonable allowance for use shall be calculated by multiplying the aggregate deposit and rental payments made by the lessee on the motor vehicle by a fraction having as its denominator 100,000 or for a motorcycle 20,000, and having as its numerator the number of miles that the vehicle traveled prior to the first attempt to repair the vehicle.
(b) The manufacturer shall provide to the motor vehicle lessor the aggregate of the following:
(1) The lessor’s actual purchase cost, less payments made by the lessee;
(2) The freight cost, if applicable;
(3) The cost for dealer or manufacturer-installed accessories, if applicable;
(4) Any fee paid to another to obtain the lease;
(5) An amount equal to 5 percent of the lessor’s actual purchase cost as prescribed in subparagraph IX(b)(1). The amount in this subparagraph shall be instead of any early termination costs.
(c) The lessee’s lease agreement with the motor vehicle lessor and all contractual obligations shall be terminated upon a decision of the board in favor of the lessee. The lessee shall not be liable for any further costs or charges to the manufacturer or motor vehicle lessor under the lease agreement.
(d) The motor vehicle lessor shall release the motor vehicle title to the manufacturer upon the payment by the manufacturer under the provisions of this section.
(e) The board shall give notice to the motor vehicle lessor of the lessee’s filing of a request for arbitration under this chapter and shall notify the motor vehicle lessor of the date, time and place scheduled for a hearing before the board. The motor vehicle lessor shall provide testimony and evidence necessary to the arbitration proceedings. Any decision of the board shall be binding upon the motor vehicle lessor.
Source.� 1991, 222:1. 1992, 282:15, eff. Jan. 1, 1993.
§ 357-D:4� � Procedure to Obtain Refund or Replacement. – I. After the third attempt at repair or correction of the nonconformity, defect or condition, or after the vehicle is out of service by reason of repair of one or more nonconformities, defects or conditions for a cumulative total of 30 or more business days as provided in this chapter, the consumer shall notify the manufacturer along with a clear and conspicuous disclosure notice of the rights of the consumer under this chapter at the time the new motor vehicle is delivered, of the nonconformity, defect or condition and the consumer’s election to proceed under this chapter. The forms shall be made available by the manufacturer to the New Hampshire new motor vehicle arbitration board, and any other public or nonprofit agencies that shall request them. Forms and notices shall be in a form prescribed by rule of the department of justice and shall not include window stickers. The consumer shall, in the notice, elect whether to use the dispute settlement mechanism or the arbitration provisions established by the manufacturer or to proceed under the New Hampshire new motor vehicle arbitration board as established under this chapter. The consumer’s election of whether to proceed before the board or the manufacturer’s dispute settlement mechanism shall preclude his recourse to the method not selected.
II. A consumer shall not pursue a remedy under this chapter if he has discontinued financing or lease payments, if the payments have been discontinued due to the manufacturer’s breach of obligation under this chapter or due to a breach of the manufacturer’s warranties.
III. A consumer who elects to proceed before the board shall pay a filing fee of $ 50 and the manufacturer shall pay a filing fee of $ 250. Such fees shall be retained by the department of safety and used to defray costs associated with the work of the board, including per diem costs of board members and any other administrative expenses.
IV. Arbitration of the consumer’s complaint, either through the manufacturer’s dispute settlement mechanism or the board, shall be held within 40 days of receipt by the manufacturer or the board and the manufacturer of the consumer’s notice electing the remedy of arbitration unless the consumer or the manufacturer has good cause for an extension of time, not to exceed an additional 30-day period. If the extension of time is requested by the manufacturer, the manufacturer shall provide free use of a vehicle to the consumer if the consumer’s vehicle is out of service. In the event the consumer elects to proceed in accordance with the manufacturer’s dispute settlement mechanism and the arbitration of the dispute is not held within 40 days of the manufacturer’s receipt of the consumer’s notice and the manufacturer is not able to establish good cause for the delay, the consumer shall be entitled to receive the relief requested under this chapter.
V. Within the 40-day period set forth in paragraph IV, the manufacturer shall have one final opportunity to correct and repair the defect which the consumer claims entitles him to a refund or replacement vehicle. If the consumer is satisfied with the corrective work done by the manufacturer or his delegate, the arbitration proceedings shall be terminated without prejudice to the consumer’s right to request that arbitration be recommended as provided in RSA 357-D:11, I(b) if the repair proves unsatisfactory.
VI. The manufacturer shall refund the reasonable allowance provided for in RSA 357-D:3, V or IX, or make the replacement required by the board within 30 days of a decision of the board or within 15 days of final adjudication.
Source.� 1991, 222:1. 1994, 220:3, eff. Jan. 1, 1995.
§ 357-D:5� � New Motor Vehicle Arbitration Board Established; Administrative Attachment; Rulemaking; Decisions. – I. There is created a New Hampshire new motor vehicle arbitration board consisting of 5 members and 3 alternate members to be appointed by the governor and council. Terms of members shall be for 3 years. Board members may be appointed for no more than 2 terms. One member and one alternate of the board shall be new car dealers in New Hampshire, one member and one alternate shall be persons knowledgeable in automobile mechanics, and 3 members and one alternate shall be persons who represent consumers and have no direct involvement in the design, manufacture, distributions, sales or service of motor vehicles or their parts. Three members of the board shall constitute a quorum. Members shall be paid $50 per diem plus mileage.
II. The board shall be administratively attached to the department of safety under RSA 21-G:10.
III. The board shall adopt rules, pursuant to RSA 541-A, to implement the provisions of this chapter.
IV. The board shall hold a hearing within 40 days of receipt of a complaint, unless an extension of time has been granted by the board under RSA 357-D:4, IV, and shall render a decision within 30 days of the conclusion of a hearing. The board shall have the authority to issue only damages as are provided by this chapter.
Source.� 1991, 222:1. 1994, 220:4, 5, eff. Jan. 1, 1995.
§ 357-D:6� � Appeal From Board’s Decision. – I. The decision of the board shall be final and shall not be modified or vacated unless, on appeal to the superior court, a party to the arbitration proceeding proves, by clear and convincing evidence, that:
(a) The award was procured by corruption, fraud or other undue means.
(b) There was evident partiality by the board or corruption or misconduct by the board prejudicing the rights of any party.
(c) The board exceeded its powers.
(d) The board refused to postpone a hearing after being shown sufficient cause to do so, refused to hear evidence material to the controversy, or otherwise conducted the hearing contrary to the rules adopted by the board so as to prejudice substantially the rights of a party.
II. A party to the arbitration proceeding shall not pursue an appeal until a final decision has been rendered by the board. Any appeal shall be filed with the superior court within 30 days of the date of the written board decision.
Source.� 1991, 222:1. 1994, 220:6, eff. Jan. 1, 1995.
§ 357-D:7� � Unfair and Deceptive Acts and Practices. – Failure of the manufacturer or distributor to comply with a decision of the board shall constitute an unfair or deceptive act or practice under RSA 358-A:2.
Source.� 1991, 222:1, eff. Jan. 1, 1992.
§ 357-D:8� � Dealer’s Liability. – Nothing in this chapter imposes any liability on a franchised motor vehicle dealer or creates a cause of action by a consumer against a dealer, except for written express warranties made by the dealer apart from the manufacturer’s warranties. A dealer shall not be made a party defendant in any action involving or relating to this chapter, except as provided in this section. The manufacturer shall not charge back or require reimbursement by the dealer for any costs, including, but not limited to, any refunds or vehicle replacements, incurred by the manufacturer arising from this chapter.
Source.� 1991, 222:1, eff. Jan. 1, 1992.
§ 357-D:9� � Notification to Consumers; Rulemaking by Department of Justice. – Beginning with the model year following July 1, 1992, the manufacturer of every motor vehicle sold in this state shall provide a clear and conspicuous written notice of the consumer’s rights under this chapter as provided under RSA 357-D:4 at the time of the delivery of every such new motor vehicle in this state. The manufacturer shall provide the consumer with a self-addressed notice in a form developed in accordance with rules adopted by the department of justice under RSA 541-A and sufficient to notify the manufacturer of the consumer’s election to proceed under this chapter. The manufacturer shall not delegate this responsibility to its authorized dealers. The manufacturer of every new motor vehicle sold in this state shall also provide a clear and conspicuous notice that informs consumers of their rights under this chapter.
Source.� 1991, 222:1, eff. Jan. 1, 1992.
§ 357-D:10� � Costs and Attorney’s Fees. – In any action by a consumer against the manufacturer or distributor of a motor vehicle based upon the alleged breach of an express warranty made in connection with the sale or lease of such motor vehicle, the court, in its discretion, may award to the plaintiff costs and reasonable attorney’s fees. If the court determines that the action was brought with no substantial justification, it may award costs and reasonable attorney’s fees to the defendant.
Source.� 1991, 222:1, eff. Jan. 1, 1992.
§ 357-D:11� � Limitations on Actions. – I. Any proceeding initiated under the provisions of this chapter shall be commenced within one year following the later of:
(a) The expiration of the express warranty term; or
(b) The manufacturer’s final repair attempt of the nonconformity, as provided in RSA 357-D:4, V which gave rise to the consumer’s request that the vehicle be replaced or the money refunded.
II. Nothing in this chapter shall in any way limit the rights or remedies which are otherwise available to a consumer under any other provision of law.
Source.� 1994, 220:7, eff. Jan. 1, 1995.
§ 357-D:12� � Sale of Defective Motor Vehicles. – I. For purposes of this section “a serious safety defect” means a life-threatening malfunction or nonconformity that impedes the consumer’s ability to control or operate the motor vehicle for ordinary use or reasonable intended purposes or creates a risk of fire or explosion.
II. Any manufacturer or its agent or authorized dealer is prohibited from reselling in New Hampshire any vehicle determined or adjudicated by the board as having a serious safety defect.
August 31, 2006 at 11:32 am · Filed under Lemon Laws
Items that are covered under New Jersey Lemon Law
Passenger automobiles or motorcycles leased, purchased or registered in the state, except the living facilities of motor homes. (M)
New Jersey Lemon Law may apply if the following has occurred
3 repair attempts or more than 20 calendar days out of service.
Length of time or miles before the New Jersey Lemon Law runs out
2 years or 18,000 miles, whichever occurs first.
Lemon Law in New Jersey
56:12-29. Findings, intentionsThe Legislature finds that the purchase of a new motor vehicle is a major, high cost consumer transaction and the inability to correct defects in these vehicles creates a major hardship and an unacceptable economic burden on the consumer. It is the intent of this act to require the manufacturer of a new motor vehicle to correct defects originally covered under the manufacturer’s warranty which are identified and reported within a specified period. It is the further intent of this act to provide procedures to expeditiously resolve disputes between a consumer and a manufacturer when defects in a new motor vehicle are not corrected within a reasonable time, and to provide to award specific remedies where the uncorrected defect substantially impairs the use, value, or safety of the new motor vehicle.
L. 1988, c. 123, s. 1.
56:12-30. Definitions
2. As used in this act:
“Consumer” means a buyer or lessee, other than for purposes of resale or sublease, of a motor vehicle; a person to whom a motor vehicle is transferred during the duration of a warranty applicable to the motor vehicle; or any other person entitled by the terms of the warranty to enforce the obligations of the warranty.
“Dealer” means a person who is actively engaged in the business of buying, selling or exchanging motor vehicles at retail and who has an established place of business.
“Director” means the Director of the Division of Consumer Affairs in the Department of Law and Public Safety, or his designee.
“Division” means the Division of Consumer Affairs in the Department of Law and Public Safety.
“Lease agreement” means a contract or other written agreement in the form of a lease for the use of a motor vehicle by a person for a period of time exceeding 60 days, whether or not the lessee has the option to purchase or otherwise become the owner of the motor vehicle at the expiration of the lease.
“Lessee” means a person who leases a motor vehicle pursuant to a lease agreement.
“Lessor” means a person who holds title to a motor vehicle leased to a lessee under a lease agreement or who holds the lessor’s rights under such an agreement.
“Lien” means a security interest in a motor vehicle.
“Lienholder” means a person with a security interest in a motor vehicle pursuant to a lien.
“Manufacturer” means a person engaged in the business of manufacturing, assembling or distributing motor vehicles, who will, under normal business conditions during the year, manufacture, assemble or distribute to dealers at least 10 new motor vehicles.
“Manufacturer’s informal dispute settlement procedure” means an arbitration process or procedure by which the manufacturer attempts to resolve disputes with consumers regarding motor vehicle nonconformities and repairs that arise during the vehicle’s warranty period.
“Manufacturer’s warranty” or “warranty” means any warranty, whether express or implied of the manufacturer, of a new motor vehicle of its condition and fitness for use, including any terms or conditions precedent to the enforcement of obligations under the warranty.
“Motor vehicle” means a passenger automobile or motorcycle as defined in R.S.39:1-1 which is purchased or leased in the State of New Jersey or which is registered by the Division of Motor Vehicles in the Department of Law and Public Safety, except the living facilities of motor homes.
“Nonconformity” means a defect or condition which substantially impairs the use, value or safety of a motor vehicle.
“Reasonable allowance for vehicle use” means the mileage at the time the consumer first presents the motor vehicle to the dealer or manufacturer for correction of a nonconformity times the purchase price, or the lease price if applicable, of the vehicle, divided by one hundred thousand miles.
L.1988,c.123,s.2; amended 1991,c.130; 1993,c.21,s.3.
56:12-31. Report of nonconformity; repairs
If a consumer reports a nonconformity in a motor vehicle to the manufacturer or its dealer during the first 18,000 miles of operation or during the period of two years following the date of original delivery to a consumer, whichever is earlier, the manufacturer shall make, or arrange with its dealer to make, within a reasonable time, all repairs necessary to correct the nonconformity. Such repairs if made after the first 12,000 miles of operation or after the period of one year following the date of original delivery to the consumer, whichever is earlier, shall be paid for by the consumer, unless otherwise covered by a manufacturer’s warranty, and shall be recoverable as a cost under section 14 of this act.
L. 1988, c. 123, s. 3.
56:12-32. Refunds
a. If, during the period specified in section 3 of this act, the manufacturer or its dealer is unable to repair or correct a nonconformity within a reasonable time, the manufacturer shall accept return of the motor vehicle from the consumer. The manufacturer shall provide the consumer with a full refund of the purchase price of the original motor vehicle including any stated credit or allowance for the consumer’s used motor vehicle, the cost of any options or other modifications arranged, installed, or made by the manufacturer or its dealer within 30 days after the date of original delivery, and any other charges or fees including, but not limited to, sales tax, license and registration fees, finance charges, reimbursement for towing and reimbursement for actual expenses incurred by the consumer for the rental of a motor vehicle equivalent to the consumer’s motor vehicle and limited to the period during which the consumer’s motor vehicle was out of service due to a nonconformity, less a reasonable allowance for vehicle use. Nothing herein shall be construed to preclude a manufacturer from making an offer to replace the vehicle in lieu of a refund; except that the consumer may, in any case, reject a manufacturer’s offer of replacement and demand a refund. Refunds shall be made to the consumer and lienholder, if any, as their interests appear on the records of ownership maintained by the Director of the Division of Motor Vehicles. In the event that the consumer accepts an offer to replace the motor vehicle in lieu of a refund, it shall be the manufacturer’s responsibility to insure that any lien on the returned motor vehicle is transferred to the replacement vehicle.
b. A consumer who leases a new motor vehicle shall have the same remedies against a manufacturer under this section as a consumer who purchases a new motor vehicle. If it is determined that the lessee is entitled to a refund pursuant to subsection a. of this section, the consumer shall return the leased vehicle to the lessor or manufacturer and the consumer’s lease agreement with the motor vehicle lessor shall be terminated and no penalty for early termination shall be assessed. The manufacturer shall provide the consumer with a full refund of the amount actually paid by the consumer under the lease agreement, including any additional charges as set forth in subsection a. of this section if actually paid by the consumer, less a reasonable allowance for vehicle use. The manufacturer shall provide the motor vehicle lessor with a full refund of the vehicle’s original purchase price plus any unrecovered interest expense, less the amount actually paid by the consumer under the agreement. Refunds shall be made to the lessor and lienholder, if any, as their interests appear on the records of ownership maintained by the Director of the Division of Motor Vehicles.
L. 1988, c. 123, s. 4.
56:12-33. Presumption of inability to correct noncomformity; written notification
a. It is presumed that a manufacturer or its dealer is unable to repair or correct a nonconformity within a reasonable time if, within the first 18,000 miles of operation or during the period of two years following the date of original delivery of the motor vehicle to a consumer, whichever is the earlier date:
(1) Substantially the same nonconformity has been subject to repair three or more times by the manufacturer or its dealer and the nonconformity continues to exist; or
(2) The motor vehicle is out of service by reason of repair for one or more nonconformities for a cumulative total of 20 or more calendar days sin ce the original delivery of the motor vehicle and a nonconformity continues to exist.
b. The presumption contained in subsection a. of this section shall a pply against a manufacturer only if the manufacturer has received written no tification, by or on behalf of the consumer, by certified mail return receip t requested, of a potential claim pursuant to the provisions of this act and has had one opportunity to repair or correct the defect or condition within 10 calendar days following receipt of the notification. Notification by the consumer shall take place any time after the motor vehicle has had substant ially the same nonconformity subject to repair two or more times or has been out of service by reason of repair for a cumulative total of 20 or more calendar days.
c. The two-year term and the 20-day period specified in this section shall be extended by any period of time during which repair services are not available to the consumer because of a war, invasion or strike, or a fire, flood, or other natural disaster.
L. 1988, c. 123, s. 5.
56:12-34. Statements to consumers
a. At the time of purchase in the State of New Jersey, the manufacturer through its dealer, or at the time of lease in the State of New Jersey, the lessor, shall provide directly to the consumer the following written statement on a separate piece of paper, in 10-point bold-face type: “IMPORTANT: IF THIS VEHICLE IS DEFECTIVE, YOU MAY BE ENTITLED UNDER NEW JERSEY LAW TO A REFUND OF THE PURCHASE PRICE OR YOUR LEASE PAYMENTS. FOR COMPLETE INFORMATION REGARDING YOUR RIGHTS AND REMEDIES UNDER THE RELEVANT LAW, CONTACT THE NEW JERSEY DEPARTMENT OF LAW AND PUBLIC SAFETY, DIVISION OF CONSUMER AFFAIRS.”
b. Each time a consumer’s motor vehicle is returned from being examined or repaired during the period specified in section 3 of this act, the manufacturer through its dealer shall provide to the consumer an itemized, legible statement of repair which indicates any diagnosis made and all work performed on the vehicle and provides information including, but not limited to, the following: a general description of the problem reported by the consumer or an identification of the problem reported by the consumer or an identification of the defect or condition; the amount charged for parts and the amount charged for labor, if paid for by the consumer; the date and the odometer reading when the vehicle was submitted for repair; and the date and odometer reading when the vehicle was made available to the consumer.
c. Failure to comply with the provisions of this section constitutes an unlawful practice pursuant to section 2 of P.L. 1960, c. 39 (C. 56:8-2).
L. 1988, c. 123, s. 6.
56:12-35. Sale, leasing of returned motor vehicle
7. a. If a motor vehicle is returned to the manufacturer under the provisions of this act or a similar statute of another state or as the result of a legal action or an informal dispute settlement procedure, it shall not be resold or re-leased in New Jersey unless:
(1) The manufacturer provides to the dealer or lessor and the dealer or lessor provides to the consumer the following written statement on a separate piece of paper, in 10-point bold-face type: “IMPORTANT: THIS VEHICLE WAS RETURNED TO THE MANUFACTURER BECAUSE IT DID NOT CONFORM TO THE MANUFACTURER’S WARRANTY AND THE NONCONFORMITY WAS NOT CORRECTED WITHIN A REASONABLE TIME AS PROVIDED BY LAW;”
(2)ÊThe dealer or lessor obtains from the consumer a signed receipt certifying, in a conspicuous and understandable manner, that the written statement required under this subsection has been provided. The director shall prescribe the form of the receipt. The dealer or lessor may fulfill his obligation to obtain a signed receipt under this paragraph by making such a notation, in a conspicuous and understandable manner, on the vehicle buyer order form accompanying the sale or lease of that vehicle; and
(3)ÊThe dealer or lessor, in accordance with the provisions of section 1 of P.L.1993, c.21 (C.39:10-9.3), notifies the Director of the Division of Motor Vehicles in the Department of Law and Public Safety of the sale or transfer of ownership of the motor vehicle.
b.Nothing in this section shall be construed as imposing an obligation on a dealer or lessor to determine whether a manufacturer is in compliance with the terms of this section nor shall it be construed as imposing liability on a dealer or lessor for the failure of a manufacturer to comply with the terms of this section.
c.ÊFailure to comply with the provisions of this section constitutes an unlawful practice pursuant to section 2 of P.L.1960, c.39 (C.56:8-2).
L.1988,c.123,s.7; amended 1993,c.21,s.2.
56:12-36. Informal dispute settlement procedure
a.ÊIf a manufacturer has established, or participates in, an informal dispute settlement procedure pursuant to section 110 of Pub. L. 93-637 (15 U.S.C. s.2310) and the rules promulgated thereunder, or the requirements of this section, a consumer may submit a dispute regarding motor vehicle nonconformities to the dispute settlement body provided by that procedure but a consumer shall not be required to first participate in the informal dispute settlement procedure before participating in the division’s summary hearing procedure under this act.
b. If a consumer chooses to use a manufacturer’s informal dispute settlement procedure established pursuant to this section, the findings and decisions of the dispute settlement body shall state in writing whether the consumer is entitled to a refund under the presumptions and criteria set out in this act and the findings and decisions shall be admissible against the consumer and the manufacturer in any legal action.
c. If the dispute settlement body determines that a consumer is entitled to relief under this act, the consumer shall be entitled to a refund as authorized by section 4 of this act.
d.ÊIn any informal dispute settlement procedure established pursuant to this section:
(1)ÊParticipating arbitrators shall be trained in arbitration and familiar with the provisions of this act.
(2) Documents shall not be submitted to any dispute settlement body unless the documents have been provided to each of the parties in the dispute at least seven days prior to commencement of the dispute settlement hearing. The parties shall be given the opportunity to comment on the documents in writing or with oral presentation.
(3) No party shall participate in the informal dispute settlement procedure unless all other parties are also present and given an opportunity to be heard, or unless the other parties consent to proceeding without their presence and participation.
(4) A consumer shall be given an adequate opportunity to contest a manufacturer’s assertion that a nonconformity falls within intended specifications for the vehicle by having the basis of the manufacturer’s claim appraised by a technical expert selected and paid for by the consumer prior to the manufacturer’s informal dispute settlement procedure. If the dispute settlement body rules in favor of the consumer, his costs and reasonable attorney’s fees shall also be awarded.
(5) A dispute shall not be heard if there has been a recent attempt by the manufacturer to repair a consumer’s vehicle, but no response has yet been received by the dispute settlement body from the consumer as to whether the repairs were successfully completed. This provision shall not prejudice a consumer’s right under this section.
(6) The manufacturer shall provide, and the dispute settlement body shall consider, any relevant technical service bulletins which have been issued by the manufacturer regarding motor vehicles of the same make and model as the vehicle that is the subject of the dispute.
e.ÊAny manufacturer who establishes, or participates in, an informal dispute settlement procedure, whether it meets the requirements of this section or not, shall maintain, and forward to the director at six month intervals, the following records:
(1) The number of purchase price and lease price refunds requested, the number awarded by the dispute settlement body, the amount of each award and the number of awards satisfied in a timely manner;
(2) The number of awards in which additional repairs or a warranty extension was the most prominent remedy, the amount or value of each award, and the number of awards satisfied in a timely manner;
(3) The number and total dollar amount of awards in which some form of reimbursement for expenses or compensation for losses was the most prominent remedy, the amount or value of each award and the number of awards satisfied in a timely manner; and
(4) The average number of days from the date of a consumer’s initial request to use the manufacturer’s informal dispute settlement procedure until the date of the decision and the average number of days from the date of the decision to the date on which performance of the award was satisfied.
L. 1988, c. 123, s. 8.
56:12-37. Dispute resolution
9. a. A consumer shall have the option of submitting any dispute arising under section 4 of this act to the division for resolution. The director may establish a filing fee, to be paid by the consumer, fixed at a level not to exceed the cost for the proper administration and enforcement of this act. This fee shall be recoverable as a cost under section 14 of this act. Upon application by the consumer and payment of any filing fee, the manufacturer shall submit to the State hearing procedure. The filing of the notice in subsection b. of section 5 of P.L.1988, c.123 (C.56:12-33) shall be a prerequisite to the filing of an application under this section.
b. The director shall review a consumer’s application for dispute resolution and accept eligible disputes for referral to the Office of Administrative Law for a summary hearing to be conducted in accordance with special rules adopted pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), by the Office of Administrative Law in consultation with the director. Immediately upon acceptance of a consumer’s application for dispute resolution, the director shall contact the parties and arrange for a hearing date with the Clerk of the Office of Administrative Law. The hearing date shall, to the greatest extent possible, be convenient to all parties, but shall be no later than 20 days from the date the consumer’s application is accepted, unless a later date is agreed upon by the consumer. The Office of Administrative Law shall render a decision, in writing, to the director within 20 days of the conclusion of the summary hearing. The decision shall provide a brief summary of the findings of fact, appropriate remedies pursuant to this act, and a specific date for completion of all awarded remedies. The director, upon a review of the proposed decision submitted by the administrative law judge, shall adopt, reject, or modify the decision no later than 15 days after receipt of the decision. Unless the director modifies or rejects the decision within the 15-day period, the decision of the administrative law judge shall be deemed adopted as the final decision of the director. If the manufacturer unreasonably fails to comply with the decision within the specified time period, the manufacturer shall be liable for penalties in the amount of $5,000.00 for each day the manufacturer unreasonably fails to comply, commencing on the day after the specified date for completion of all awarded remedies.
c. The Office of Administrative Law is authorized to issue subpoenas to compel the attendance of witnesses and the production of documents, papers and records relevant to the dispute.
d. A manufacturer or consumer may appeal a final decision to the Appellate Division of the Superior Court. An appeal by a manufacturer shall not be heard unless the petition for the appeal is accompanied by a bond in a principal sum equal to the money award made by the administrative law judge plus $2,500.00 for anticipated attorney’s fees and other costs, secured by cash or its equivalent, payable to the consumer. The liability of the surety of any bond filed pursuant to this section shall be limited to the indemnification of the consumer in the action. The bond shall not limit or impair any right of recovery otherwise available pursuant to law, nor shall the amount of the bond be relevant in determining the amount of recovery to which the consumer shall be entitled. If a final decision resulting in a refund to the consumer is upheld by the court, recovery by the consumer shall include reimbursement for actual expenses incurred by the consumer for the rental of a motor vehicle equivalent to the consumer’s motor vehicle and limited to the period of time after which the consumer’s motor vehicle was offered to the manufacturer for return under this act, except in those cases in which the manufacturer made a comparable vehicle available to the consumer free of charge during that period. If the court finds that the manufacturer had no reasonable basis for its appeal or that the appeal was frivolous, the court shall award treble damages to the consumer. Failure of the Office of Administrative Law to render a written decision within 20 days of the conclusion of the summary hearing as required by subsection b. of this section shall not be a basis for appeal.
e. The Attorney General shall monitor the implementation and effectiveness of this act and report to the Legislature after three years of operation, at which time a recommendation shall be made either to continue under the procedures set forth in this act or to make such modifications as may be necessary to effectuate the purposes of this act.
L.1988,c.123,s.9; amended 1993,c.21,s.4.
56:12-38. Statistics
10. a. The Division of Consumer Affairs shall maintain an index of all motor vehicle disputes by make and model. The division shall, at six-month intervals, compile and maintain statistics indicating the record of manufacturer compliance with any settlement procedure decisions. The statistics shall be public record.
b. A manufacturer shall provide to the division all information on private arbitration or private buy-back programs maintained or instituted by the manufacturer. The information shall include the type and number of vehicles to which these programs apply and the reasons for establishing and maintaining the programs. The manufacturer shall provide the division with updated information at six month intervals.
L.1988,c.123,s.10; amended 1993,c.21,s.5.
56:12-39. Decision binding
A consumer shall not be required to participate in a manufacturer’s informal dispute settlement procedure or the division’s summary hearing procedure before filing an action in the Superior Court. However, a decision rendered in a proceeding brought pursuant to the division’s summary hearing procedure shall be binding on the consumer and the manufacturer, subject to the right of appeal as set forth in subsection d. of section 9 of this act, and shall preclude the institution of any other action in the Superior Court under this act.
L. 1988, c. 123, s. 11.
56:12-40. Affirmative defense
It shall be an affirmative defense to a claim under this act that the alleged nonconformity does not substantially impair the use, value, or safety of the new motor vehicle or that the nonconformity is the result of abuse, neglect, or unauthorized modifications or alterations of the motor vehicle by anyone other than the manufacturer or its dealer.
L. 1988, c. 123, s. 12.
56:12-41. Pleading
Any party to an action in the Superior Court of this State asserting a claim, counterclaim or defense based upon violations of this act shall mail a copy of the initial or responsive pleading containing the claim, counterclaim or defense to the Attorney General within 10 days after filing the pleading with the court. Upon application to the court in which the matter is pending, the Attorney General may intervene or appear in any status appropriate to this matter.
L. 1988, c. 123, s. 13.
56:12-42. Attorney, expert fees; costs
14. In any action by a consumer against a manufacturer brought in Superior Court or in the division pursuant to the provisions of this act, a prevailing consumer shall be awarded reasonable attorney’s fees, fees for expert witnesses and costs.
L.1988,c.123,s.14; amended 1993,c.21,s.6.
56:12-43. Use of funds
All fees, penalties and costs collected by the division pursuant to this act shall be appropriated for purposes of offsetting costs associated with the handling and resolution of consumer automotive complaints.
L. 1988, c. 123, s. 15.
56:12-44. Inherent design defect
A manufacturer shall certify to the division, within one year of discovery, the existence of any inherent design defect common to all motor vehicles of a particular model or make. Failure to comply with this constitutes an unlawful practice pursuant to section 2 of P.L. 1960, c. 39 (C. 56:8-2).
L. 1988, c. 123, s. 16.
56:12-45. Proceedings
The director may institute proceedings against any manufacturer who fails to comply with any of the provisions of this act.
L. 1988, c. 123, s. 17.
56:12-46. No liability, cause of action
Nothing in this act shall be construed as imposing any liability on a dealer, or creating a cause of action by a manufacturer against a dealer, and nothing shall be construed as imposing any liability on a dealer, or creating a cause of action by a consumer against a dealer under section 4 of this act.
L. 1988, c. 123, s. 18.
56:12-47. No limitation on rights
Nothing in this act shall in any way limit the rights or remedies which are otherwise available to a consumer under any other law.
L. 1988, c. 123, s. 19..
56:12-48. Agreements void
Any agreement entered into by a consumer for the purchase or lease of a new motor vehicle which waives, limits or disclaims the rights set forth in this act shall be void as contrary to public policy.
L. 1988, c. 123, s. 20.
56:12-49. Rules, regulations
Within 120 days following enactment, the director shall, subject to approval by the Attorney General and pursuant to the provisions of the “Administrative Procedure Act,” P.L. 1968, c. 410 (C. 52:14B-1 et seq.), adopt rules and regulations necessary to effectuate the purposes of this act.
L. 1988, c. 123, s. 21.
August 31, 2006 at 11:32 am · Filed under Lemon Laws
Items that are covered under New Mexico Lemon Law
Passenger motor vehicles, pickups, motorcycles, and vans, under 10,000 lbs. GVW, sold and registered in New Mexico, normally used for personal, family or household purposes. (M)
New Mexico Lemon Law may apply if the following has occurred
4 repair attempts or 30 business days out of service.
Length of time or miles before the New Mexico Lemon Law runs out
Express warranty period or 1 year, whichever occurs first.
Lemon Law in New Mexico
57-16A-1. Short title.
This act [57-16A-1 to 57-16A-9 NMSA 1978] may be cited as the “Motor Vehicle Quality Assurance Act”.History: Laws 1985, ch. 220, sec.1.
57-16A-2 Definitions (1995 Repl.)
As used in the Motor Vehicle Quality Assurance Act [57-16A-1 to 57-16A-9 NMSA 1978]:
A. “collateral charges” means those additional charges to a consumer not directly attributed to a manufacturer’s suggested retail price label for a new motor vehicle and includes all taxes, license, title and registration fees and other governmental charges related to the purchase of the vehicle;
B. “comparable motor vehicle” means an identical or reasonably equivalent motor vehicle;
C. “consumer” means the purchaser, other than for purposes of resale, of a new motor vehicle normally used for personal, family or household purposes, any person to whom such a motor vehicle has been transferred during the duration of an express warranty applicable to the motor vehicle and any other person entitled by the terms of the warranty to enforce the obligations of the warranty;
D. “express warranty” means any written affirmation of the fact of promise made by a manufacturer to a consumer in connection with the sale of new motor vehicles which relates to the nature of the material or workmanship or to a specified level of performance over a specified period of time, including any terms or conditions precedent to the enforcement of obligations pursuant to the warranty;
E. “manufacturer” means any person engaged in the manufacturing, assembling, importing or distributing of a motor vehicle as a regular business; and
F. “motor vehicle” means a passenger motor vehicle including an automobile, pickup truck, motorcycle or van normally used for personal, family or household purposes which is sold and registered in this state and whose gross vehicle weight is less than ten thousand pounds.
History: Laws 1985, ch. 220, sec.2.
57-16A-3 Conformation to express warranties (1995 Repl.)
A. If a new motor vehicle does not conform to all applicable express warranties and the consumer reports the nonconformity to the manufacturer, its agent or its authorized dealer during the term of such express warranties or during the period of one year following the date of original delivery of the motor vehicle to a consumer, whichever is the earlier date, the manufacturer, its agent or its authorized dealer shall make such repairs as are necessary to conform the vehicle to such express warranties.
B. If the manufacturer or its agent or authorized dealer, after a reasonable number of attempts, is unable to conform the new motor vehicle to any applicable express warranty by repairing or correcting any defect or condition which substantially impairs the use and market value of the motor vehicle to the consumer, the manufacturer shall replace the motor vehicle with a comparable motor vehicle or accept return of the vehicle from the consumer and refund to the consumer the full purchase price including all collateral charges, less a reasonable allowance for the consumer’s use of the vehicle. The subtraction of a reasonable allowance for use shall apply when either a replacement or refund of the new motor vehicle occurs. As used in this subsection, a reasonable allowance for use shall be that amount directly attributable to use by the consumer prior to his first report of the nonconformity to the manufacturer, agent or dealer and during any subsequent period when the vehicle is not out of service by reason of repair. Refunds shall be made to consumers or lienholders as their interests may appear.
C. It shall be presumed that a reasonable number of attempts as mentioned in Subsection B of this section have been undertaken to conform a new motor vehicle to the applicable express warranties if:
(1) the same uncorrected nonconformity has been subject to repair four or more times by the manufacturer or its agents or authorized dealers within the express warranty term or during the period of one year following the date of original delivery of the motor vehicle to a consumer, whichever is the earlier date, but the nonconformity continues to exist; or
(2) the vehicle is in the possession of the manufacturer, its agent or authorized dealer for repair a cumulative total of thirty or more business days during such term or during such period whichever is the earlier date, exclusive of down time for routine maintenance as prescribed by the manufacturer. The term of an express warranty, such one-year period and such thirty-day period shall be extended by any period of time during which repair services are not available to the consumer because of war, invasion, strike, fire, flood or other natural disaster. In no event shall the presumption herein provided apply against a manufacturer unless the manufacturer has received prior direct written notification from or on behalf of the consumer and an opportunity to cure the defect alleged. The manufacturer shall provide written notice and instruction to the consumer, either in the warranty or a separate notice, of the obligation to file this written notification before invoking the remedies available pursuant to the Motor Vehicle Quality Assurance Act [57-16A-1 to 57-16A-9 NMSA 1978].
History: Laws 1985, ch. 220, sec.3.
57-16A-4 Affirmative defenses (1995 Repl.)
It shall be an affirmative defense to any claim under the Motor Vehicle Quality Assurance Act [57-16A-1 to 57-16A-9 NMSA 1978] that:
A. an alleged nonconformity does not substantially impair the use and market value of the motor vehicle;
B. a nonconformity is the result of abuse, neglect or unauthorized modifications or alterations of the motor vehicle;
C. a claim by a consumer was not filed in good faith; or
D. any other affirmative defense allowed by law.
History: Laws 1985, ch. 220, sec.4.
57-16A-5 Limitation of remedy (1995 Repl.)
Any consumer who seeks enforcement of the provisions of the Motor Vehicle Quality Assurance Act [57-16A-1 to 57-16A-9 NMSA 1978] shall be foreclosed from pursuing any Uniform Commercial Code remedy set forth in Sections 55-2-602 through 55-2-608 NMSA 1978.
History: Laws 1985, ch. 220, sec.5.
57-16A-6 Informal dispute resolution (1995 Repl.)
If a manufacturer has established or participates in a fair and impartial informal dispute settlement procedure which substantially complies with the substantive requirements of Title 16, Part 703 of the Code of Federal Regulations, the provisions of Subsection B of Section 3 [57-16A-3B NMSA 1978] of the Motor Vehicle Quality Assurance Act concerning refunds or replacement shall not apply to any consumer who has not first resorted to that procedure. The state attorney general may investigate and determine that the informal dispute settlement procedure is fair and impartial and conforms with the requirements of Title 16, Part 703 of the Code of Federal Regulations.
History: Laws 1985, ch. 220, sec.6.
57-16A-7 Resale of returned motor vehicle (1995 Repl.)
No motor vehicle which has not been properly repaired pursuant to the provisions of Subsection B of Section 3 [57-16A-3 NMSA 1978] of the Motor Vehicle Quality Assurance Act, or pursuant to a similar law of another state, may be resold in New Mexico unless the manufacturer provides full written disclosure of the reason for the return to any prospective buyer.
History: Laws 1985, ch. 220, sec.7.
57-16A-8 Limitation of action (1995 Repl.)
Any action brought to enforce the provisions of the Motor Vehicle Quality Assurance Act [57-16A-1 to 57-16A-9 NMSA 1978] shall be commenced within eighteen months following the date of original delivery of the motor vehicle to a consumer, or, in the event that a consumer resorts to an informal dispute settlement procedure pursuant to Section 6 [57-16A-6 NMSA 1978] of the Motor Vehicle Quality Assurance Act, within ninety days following the final action of the panel, whichever is later.
57-16A-9 Reasonable attorney fees (1995 Repl.)
A consumer who prevails in an action brought to enforce the provisions of the Motor Vehicle Quality Assurance Act [57-16A-1 to 57-16A-9 NMSA 1978] shall be entitled to receive reasonable attorneys’ fees and court costs from the manufacturer. If a consumer does not prevail in such an action and brings that action for frivolous reasons or in bad faith, the manufacturer shall be entitled to receive reasonable attorneys’ fees and court costs from the consumer.
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