Wednesday, July 18, 2007

Hawaii Lemon Law

The Hawaii state lemon law is known as “Hawaii Motor Vehicle Express Warranty Enforcement” which is Chapter 481i of the Hawaii legal code. Hawaii protects motor vehicles that are used for transportation of people and property over public streets and highways and also for personal, family, or household purposes. Demonstrator vehicles are covered as well. Mopeds, motorcycles, motor scooters, and vehicles that weigh over 10,000 gross pounds are not included. Companies vehicles which are used for personal, family, or household purposes are protected (§481i-2).

The consumer has Hawaii lemon law protection for the duration of the express warranty, 24 months, or 24,000 miles, whichever comes last. The manufacturer guarantees in the warranty that the car should run as promised and if does not it will take the necessary steps to fix it. If the vehicle is having problems of nonconformity, then the consumer is entitled under law to receive a refund or replacement. However, the manufacturer must have a reasonable number of attempts to repair or fix the nonconformities of the vehicle. A Nonconformity is according to §481i-2 a “defect, malfunction, or condition that fails to conform to the motor vehicle’s applicable express warranty and that substantially impairs the use, market value, or safety of a motor vehicle.” If shall be presumed that a reasonable number of attempts have been made on the vehicle, if (§481i-3):
  • The manufacturer, its agent, or authorized dealer has had at least three attempts to fix a problem of nonconformity.
  • The manufacturer, its agent, or authorized dealer has had at least one attempt to fix a problem of nonconformity that is likely to cause death or serious injury.
  • The vehicle has been out of service for nonconformity repairs for a cumulative of 30 or more business days, unless repair could not be performed due to circumstances beyond the manufacturer’s control such as natural disasters or war.

When the consumer purchases the vehicle the manufacturer has to provide the consumer information on a state certified arbitration, the process on how to file a lemon claim, and whether the consumer is eligible to receive a refund or replacement. The manufacturer or its agent must provide a report of the repair every time the vehicle is fixed, which the consumer must sign (§481i-3).

In order to be eligible for a refund or replacement the consumer must provide a written report of the alleged nonconformity and must allow the manufacturer reasonable time to repair. When the vehicle has been repaired twice for the nonconformity or has been in the shop for 20 days, the dealer will notify of the manufacturer of the problem. If the consumer does decide to invoke his arbitration right, he will first go through the state certified arbitration program. If the consumer elects a nonbinding arbitration case, and if either side is not satisfied with the arbitration decision, then within 30 days that party may ask for a trial. If the party who asks for court does not improve its position by 25 percent, it will have to pay for the reasonable costs of trial, consultation, and attorney fees (§481i-4).

The consumer will be provided with either a replacement or refund if he wins the case. A replacement is “a motor vehicle which is identical or reasonably equivalent to the motor vehicle to be replaced” including all other options the car came with (§481i-2). A refund will include the purchase price of the vehicle, all collateral and incidental damage, and a reasonable offset. The reasonable offset is to include the miles driven for the date of the third repair, the first repair attempt for serious defects, or the 30th day in the repair shop. The value decreases by one cent for every 1,000 miles driven (§481i-2). Also, included in the reasonable offset is any damage done to the car that is beyond normal wear and tear that wasn’t because of the nonconformity.
A lemon vehicle may not be resold, leased, or auctioned off by any person in the state of Hawaii until both the manufacturer and the purchase a sign a document stating:

“IMPORTANT: THIS VEHICLE WAS RETURNED TO THE MANUFACTURER BECAUSE A DEFECT(S) COVERED BY THE MANUFACTURER’S EXPRESSED WARRANTY WAS NOT REPAIRED WITHIN A REASONABLE TIME AS PROVIDED BY LAW.”

Also, the nonconformity must be corrected. The manufacturer must extend the warranty guarantee to the new consumer that if they defect reappears within one year or 12,000 miles, whichever comes first. The warranty guarantees the nonconformity will be corrected (§481i-3).

Georgia Lemon Law

The Georgia state lemon law is known as the “Motor Vehicle Warranty Rights Act” which is GA Code 10 – 1 – 780. Georgia protects motor vehicles that are self-propelled, used for transportation of people and property over public highways, purchased or registered in the state, and new vehicles. This does not include motorcycles, trucks that weight over 10,000 in gross weight, and living areas in self-propelled vehicles. Demonstrator vehicles and leases are also included as long as they come with a manufacturer’s warranty.

The consumer has Georgia lemon law protection for 12 months or 12,000 miles, whichever comes first. The manufacturer guarantees in the warranty that the car should run as promised and if does not it will take the necessary steps to fix it. If the vehicle is having problems of nonconformity, then the consumer is entitled under law to receive a refund or replacement. However, the manufacturer must have a reasonable number of attempts to repair or fix the nonconformities of the vehicle. Nonconformity is defined in §10-1-782(13) as “a defect, serious safety defect, or condition that substantially impairs the use, value, or safety of a new motor vehicle to the consumer”. This does include damage as a result was of because of abuse, neglect, modification, etc. If shall be presumed that a reasonable number of attempts have been made on the vehicle, if:
  • The manufacturer, its agent, or authorized dealer has had at least one attempt to fix a problem of nonconformity, which a serious safety defect in the braking or steering system.
  • The manufacturer, its agent, or authorized dealer has had at least two or more attempts to fix a serious safety problem of nonconformity, within the first 24 months or 24,000 miles of operation, whichever comes first. However, the first repair must be within the lemon period (12 months/12,000 miles).
  • The manufacturer, its agent, or authorized dealer has had at least three or more attempts to fix a problem of nonconformity, within the first 24 months or 24,000 miles of operation, whichever comes first. However, the first repair must be within the lemon period (12 months/12,000 miles).
  • The vehicle has been out of service for nonconformity repairs for a cumulative of 30 or more calendar days, within the first 24 months or 24,000 miles of operation, whichever comes first. However, the first 15 days must be within the lemon period (12 months/12,000 miles). This period may be extended in cases of situations in which manufacturers were not able to repair because circumstances out of its control such as natural disaster and war (§10-1-783(g)).

When the consumer purchases the vehicle, the manufacturer has to provide the consumer information on a state certified arbitration, the process on how to file a lemon claim, and whether the consumer is eligible to receive a refund or replacement. The manufacturer or its agent must provide a report of the repair every time the vehicle is fixed, which the consumer must sign (§10-1-783).

If the consumer is still believes the nonconformity exists after a reasonable number of attempts, the consumer may proceed to file a lemon claim. First, the consumer must notify the manufacturer that it is proceeding in its claim. The manufacturer will have two weeks to attempt to solve the problem one more time. If the manufacturer does not solve the problem and refuses to accept the lemon back, the consumer will head to arbitration. If the manufacturer has an arbitration setup through the Georgia Better Business Bureau, then the consumer must use that. If the consumer is not satisfied with that decision or the manufacturer does not have an arbitration program, then the consumer may proceed to the state-operated arbitration. At this point, when the case is ruled on both the consumer and the manufacturer may appeal to the judicial court if they do not agree with the decision.

The manufacturer may use in his defense that the alleged nonconformity does not substantially impair the use, value, or safety of the new motor vehicle to the consumer or that the nonconformity is result of abuse, neglect, etc that was done to the vehicle.
If the consumer wins the claim, he is entitled to either a refund or a replacement. A vehicle replacement according to (§10-1-783(18)) is a vehicle “identical or reasonably equivalent to the motor vehicle to be replaced, as the motor vehicle to be replaced at the time of the purchase or lease.” A refund will include full purchase price along with all collateral charges and incidental costs.

There are many steps to be taken in order for a lemon vehicle to be resold on the Georgia market. The manufacturer must notify the state the vehicle is to be returned (§10-1-786(b)). The nonconformity must then be corrected and notified to the state again that is intended to be resold. The seller of the vehicle must inform the new buyer of the lemon vehicle that the car once had a nonconformity which caused it to be returned. The buyer must put in writing they understand this. The lemon vehicle will have a warranty for the nonconformity for 12 months after the delivery or 12,000 miles, whichever comes first (§10-1-783).

Florida Lemon Law

The Florida state lemon law is known as “Motor Vehicle Warranty Enforcement Act” which is Title XXXIX, Chapter 681 of the Florida legal code. Florida protects motor vehicles that are self-propelled, sold in the state Florida, and used to transport people or property. Other motor vehicles included are recreational vehicles and leased vehicles who come with warranties. It does not include used vehicles, off-road vehicles, motorcycles, mopeds, or living areas of recreational vehicles (681.102(15)).

The consumer has Florida lemon law protection for 24 months after the original delivery of the vehicle (681.102(10)). The manufacturer guarantees in the warranty that the car should run as promised and if does not it will take the necessary steps to fix it. If the vehicle is having problems of nonconformity, then the consumer is entitled under law to receive a refund or replacement. However, the manufacturer must have a reasonable number of attempts to repair or fix the nonconformities of the vehicle. Nonconformity, according to section 681.102(16), is defined as a “defect or condition that substantially impairs the use, value, or safety of a motor vehicle.” It does not include abuse, modifications, alterations, etc that have been done by someone else than the manufacturer. If shall be presumed that a reasonable number of attempts have been made on the vehicle, if (681.104):
  • The manufacturer, its agent, or authorized dealer has had at least three attempts to fix the same problem of nonconformity.
  • The vehicle has been out of service for nonconformity repairs for a cumulative of 15 or more days, unless repair could not be performed due to circumstances beyond the manufacturer’s control. (This is the presumption. In order for refund/replacement the vehicle must be in for 30 or more cumulative days.)

If the vehicle has had a reasonable number attempts to be fixed and the consumer believes there is still a problem of nonconformity, and the manufacturer has given a refund or replacement, then the consumer may proceed to file a lemon claim. First, he must given written notification to the manufacturer about the nonconformity. The manufacturer will have 10 days to repair the problem. If cases of the vehicle being out of service, the manufacturer may have one final time to inspect or repair the vehicle (681.105). If the manufacturer fails to complete these steps, then the consumer may proceed with his lemon law rights. If the manufacturer of the vehicle has a dispute settlement program that is certified through the state, then the consumer must proceed through that program. If a decision is not rendered within 40 days or the consumer is not satisfied with the arbitration decision, he may then proceed to Florida’s New Motor Vehicle Arbitration Board. Once again, if the consumer is not satisfied with state’s decision, he may proceed into civil court to seek its protections under the state lemon law. The state decision, however, may be admissible in civil court. The manufacturer may argue against the consumer’s lemon claim with the defenses (681.104(4)):

  • The alleged nonconformity does not substantially impair the use, value, or safety of the motor vehicle;
  • The nonconformity is the result of an accident, abuse, neglect, or unauthorized modifications or alterations of the motor vehicle other than the manufacturer or its authorized service agents.
  • The claim by the consumer was not filed in good faith.
  • Any other affirmative defense allowed by law may be used as well.

If the consumer wins the case in any of these three steps, he is entitled to a refund or replacement with the discretion to choose either one. The replacement, according to section 681.102(22), is a “motor vehicle which is identical or reasonably equivalent to the motor vehicle to be replaced.” In the cases of a refund, the consumer will be entitled to be reimbursed any incidental or collateral fees he may have incurred. A deduction will be made to the refund value known as “reasonable offset for use” (681.102(20)). The value is calculated by taking the number of miles driven up to the date of the settlement agreement or arbitration hearing, whichever comes first, multiplied by the purchase of the vehicle, divided by 120,000.

If the manufacturer accepts the return of the motor vehicle it must notify the state and report the vehicle’s identification number within 10 days of the return (681.114(1)). No one in the state of Florida will have the power to sale or lease the vehicle without informing the prospective buyer of the history of the vehicle’s nonconformity, clearly and conspicuously. The Department of Legal Affairs will provide the guidelines on the disclosure. The manufacturer shall provide a guarantee to correct the problem of nonconformity for the new consumer within the first 12 months after the deliver or 12,000 miles, whichever comes first.

District of Columbia Lemon Law

The District of Columbia state lemon law is located in the DC legal code in DIVISION VIII, TITLE 50, SUBTITLE II. CHAPTER 5. The District of Columbia covers new motor vehicles that are in the period of their first 18,000 miles of operation or still within the first two years of the purchase, whichever comes first.

The consumer receives DC lemon law protection for the first 24 months or 18,000 miles after the purchase of the vehicle. The manufacturer guarantees in the warranty that the car should run as promised and if does not it will take the necessary steps to fix it. If the vehicle is having problems of nonconformity, then the consumer is entitled under law to receive a refund or replacement. Nonconformity is not defined in the text, but in §50-502 the law states the manufacturers are to repair “any nonconformity, correct defect, or condition which results in significant impairment of the motor vehicle.” However, the manufacturer must have a reasonable number of attempts to repair or fix the nonconformities of the vehicle. If shall be presumed that a reasonable number of attempts have been made on the vehicle, if:

  • The manufacturer, its agent, or authorized dealer has had at least four attempts to fix a problem of nonconformity, which is non-safety related.
  • The manufacturer, its agent, or authorized dealer has had at least one attempt to fix a problem of nonconformity, which is safety related.
  • The vehicle has been out of service for nonconformity repairs for a cumulative of 30 or more days, unless repair could not be performed due to circumstances beyond the manufacturer’s control such as natural disasters or war.

In order for a consumer to seek a refund or replacement in the District of Columbia, he must first submit a lemon claim to the Board of Consumer Claims Arbitration. The board may either reject the claim or proceed to arbitration. If the board rejects the claim, then the consumer is free to proceed to civil court. If the case is arbitrated and the consumer is not satsified with the results, then again the consumer may head to court. The two defenses the manufacturer may use against the lemon claim are (§50-502):

  1. The nonconformity, defect, or condition does not significantly impair the vehicle.
  2. The nonconformity, defect, or condition is the result of abuse, neglect, or unauthorized modifications or alterations of the motor vehicle.

If the consumer wins the case they are entitled to a refund or replacement. A refund shall include full purchase price, including all sales tax, license fees, registration fees, and/or any other government charges. A deduction may be made to this value by subtracting 10 cents off for every mile the vehicle has driven past 12,000 and for any damage not from the normal wear and tear that wasn’t caused by the nonconformity.

For lemon vehicles returned in DC, the manufacturer, its agent, or authorized dealer must notify the Department of Public Works that is has been returned. The Department of Public Works will note that car has been returned on every certificate of the title for the vehicle. The dealer who eventually sales the lemon vehicle back into the market must notify the prospective consumer of its past before the sales contracted is signed.

For all used vehicles in DC, written notice must be provided to the prospective consumer about past mechanical defects or any other damage the vehicle has sustained for which the costs of repairs have exceeded $1,000. The dealer must also notify the consumer if it has ever conducted an inspection on the used vehicle and if any defects came about from the inspection (§50-505(a)). The purchaser of the used vehicle retains the right to sue the dealer for damages or injuries sustained if the dealer failed to disclose this information (§50-505(c)). The consumer must first go through the Board of Consumer Claims Arbitration. If the consumer is not satisfied with the decision, he may proceed to court for the damages.

Delaware Lemon Law

The Delaware state lemon law can be located at Title 6, Subtitle II, Chapter 50, Sections 5001 – 5009 of the Delaware legal code. Delaware protects automobiles that are “any passenger motor vehicle, except motorcycles, which is leased or bought in Delaware or registered by the Division of Motor Vehicles in the Department of Public Safety except the living facilities” (§5001(5)).

The consumer has Delaware lemon law protection for the duration of the express warranty or 12 months after the delivery of the vehicle, whichever comes first. The manufacturer guarantees in the warranty that the car should run as promised and if does not it will take the necessary steps to fix it. If the vehicle is having problems of nonconformity, then the consumer is entitled under law to receive a refund or replacement. However, the manufacturer must have a reasonable number of attempts to repair or fix the nonconformities of the vehicle. Nonconformity is defined in (§5001(6)) as “a defect or condition which substantially impairs the use, value, or safety of an automobile.” If shall be presumed that a reasonable number of attempts have been made on the vehicle, if:
  • The manufacturer, its agent, or authorized dealer has had at least four or more attempts to fix a problem of nonconformity.
  • The vehicle has been out of service for nonconformity repairs for a cumulative of 30 or more calendar days, unless repair could not be performed due to circumstances beyond the manufacturer’s control such as natural disasters or war.
If the consumer is still believes the nonconformity exists after a reasonable number of attempts to fix it, the consumer may proceed to file a lemon claim. First, the consumer must notify the manufacturer of the nonconformity and make known he is willing to file a claim. The manufacturer has one final attempt to fix the nonconformity. If the consumer is not satisfied with the final repair attempt or the manufacturer never gave one final repair attempt, then the consumer may move ahead in his lemon filing. If the manufacturer has an informal dispute settlement program, which is certified and approved b the Division of Consumer Protection, the consumer must first go through that program. The consumer may not sue against the dealer, only the manufacturer. The dealer is protected by Delaware law in all lemon claim cases (§5003(e)). If the program rules in favor of the consumer, the consumer is eligible for a refund or replacement. In cases of replacement, the manufacturer must reimburse the consumer for any incidental costs, including dealer preparation fees, fees for transfer of registration, sales taxes or other charges or fees (§5003(b)). Refunds will be also be reimbursed for the same fees and taxes, but a reasonable allowance for miles driven and for damage that goes beyond normal wear and tear. The reasonable allowance equals the purchase price multiplied by the mileage at the time the vehicle was brought in for its first repair divided by 100,000.

The manufacturer may use in his defense that the alleged nonconformity does not substantially impair the use, value, or safety of the new motor vehicle to the consumer or that the nonconformity is result of abuse, neglect, etc that was done to the vehicle by someone besides the manufacturer (§ 5005).

There is no information on the reselling of lemon vehicles in Delaware’s lemon law.

Colorado Lemon Law

The Colorado state lemon law is the §44-10-101 to §44-10-107 of the Colorado legal code. Colorado protects motor vehicles that are self-propelled private passengers, designed primarily for travel on the public highways, and are not used to carry more than ten people. The motor vehicles include pickup trucks and vans, while excluding motor homes and vehicles that have less than three wheels.

The consumer has Colorado lemon law protection for duration of the express warranty or 12 months from the delivery of the vehicle, whichever is the earlier date. The manufacturer guarantees in the warranty that the car should run as promised and if does not it will take the necessary steps to fix it. If the vehicle is having problems of nonconformity, then the consumer is entitled under law to receive a refund or replacement. However, the manufacturer must have a reasonable number of attempts to repair or fix the nonconformities of the vehicle. Nonconformity is not explicitly defined, but in the text of §42-10-103 it can be assumed that the definition of a nonconformity is “the defect or condition which substantially impairs the use and market value of such motor vehicle.” If shall be presumed that a reasonable number of attempts have been made on the vehicle, if:

  • The manufacturer, its agents, or authorized dealers has had at least four attempts to fix a problem of nonconformity.
  • The vehicle has been out of service for nonconformity repairs for a cumulative of 30 or more business days, unless repair could not be performed due to circumstances beyond the manufacturer’s control such as natural disasters or war.
In order for a consumer to file a lemon claim under Colorado law, he must first submit written notification to the manufacturer about the problem of nonconformity. The manufacturer shall have one more chance to cure the defect. This last chance, however, will be counted towards the reasonable number of attempts. From this point, if the consumer is not satisfied with the repair, he must proceed to the manufacturer’s informal dispute settlement program. If the manufacturer does not have one, the consumer may proceed to civil court. The court shall reward reasonable attorney fees to prevailing side in any action brought to enforce the provisions of this article (42-10-103(d)(3)). The consumer has the option of either a comparable replacement or a refund. The refund to the consumer will be the full purchase price, including sales tax, license fees, and registration fees, or any other charges (42-10-103(1)). A reasonable allowance will be subtracted off the value for the miles before the first repair. The manufacturer may argue against the lemon claiming two defenses (42-10-104):

  • The nonconformity does not substantially impair the use and market value of the motor vehicle.
  • The nonconformity is the result of consumer’s abuse, neglect, or unauthorized modifications of the motor vehicle.
There is no explicit information regarding the reselling of lemon vehicles back on the market. However, in §42-10-105 the law makes clear that the dealer will not be liable for any suits and it doesn’t allow the manufacturer to action against the dealers either. The dealer is obligated to properly install options and make repairs that will prevent or cure vehicle nonconformities.

Tuesday, July 17, 2007

Arkansas Lemon Law

The Arkansas state lemon law is cited as the “Arkansas New Motor Vehicle Quality Assurance Act” which is Title 4, Chapter 90, Sections 401-417 of the Arkansas legal code.

Arkansas protects motor vehicles that are “self-propelled vehicle licensed, purchased, or leased in this state and primarily designed for the transportation of persons or property over public streets and highways.” Mopeds, motorcycles, the living facilities of a motor home, or vehicles over that weigh over 10,000 gross pounds are not protected by the Arkansas lemon law.

The consumer has Arkansas lemon law protection for 24 months or 24,000 miles, whichever comes last. The manufacturer guarantees in the warranty that the car should run as promised and if does not it will take the necessary steps to fix it. If the vehicle is having problems of nonconformity, then the consumer is entitled under law to receive a refund or replacement. However, the manufacturer must have a reasonable number of attempts to repair or fix the nonconformities of the vehicle. A nonconformity, according to §4-90-403-13, is “any specific or generic defect or condition or any concurrent combinations of defects or conditions that:

A. Substantially impairs the use, market value, or safety of a motor vehicle; or
B. Renders the motor vehicle nonconforming to the terms of an applicable manufacturer’s express warranty or implied warranty of merchantability”

If shall be presumed that a reasonable number of attempts have been made on the vehicle, if:

  • The manufacturer, its agent, or authorized dealer has had at least three attempts to fix a problem of nonconformity.
  • The manufacturer, its agent, or authorized dealer has had at least one attempt to fix a problem of nonconformity that is likely to cause death or serious injury.
  • The vehicle has been out of service for nonconformity repairs for a cumulative of 30 or more calendar days, unless repair could not be performed due to circumstances beyond the manufacturer’s control such as natural disasters or war.
  • The manufacturer, its agent, or authorized dealer has had five attempts, on separate occasions, to repair any nonconformities.

Manufacturers must provide the consumers written notice of the Arkansas lemon law at the time of the purchase or lease of the vehicle. The Consumer Protection Division of the Office of the Attorney General prepares the written notice. The manufacturer shall also make clear that in order for a consumer to go about his refund he must first provide written notice to the manufacturer of the nonconformity.

Before consumers are allowed to file a claim of a lemon, he must give the manufacturer one last chance to fix the defect. The consumer has to send a certified mail notice to the manufacturer giving one last notice of the nonconformity. The manufacturer has 10 calendar days to schedule one final repair attempt. If the defect still stands, or the manufacturer never scheduled a repair date, then the consumer is eligible for a refund or replacement. If the manufacturer denies the lemon claim, then the consumer may head to the informal dispute settlement program. The informal dispute program must be certified by the Consumer Protection Division of the Office of the Attorney General and must comply with all Federal Trade Commission standards (§4-90-414-b). If the consumer is denied his claim in the informal dispute, he may proceed to civil court, but be aware that the arbitration decision can be applicable in the next court. If a consumer heads directly to civil court and the manufacturer has an arbitration program setup, then the consumer may not be eligible to receive a refund or replacement. The only exception to this rule is if the manufacturer allows the consumer to head directly to court (§4-90-414-a). If the consumer is rewarded a refund, he may be entitled to receive more money than the actual original purchase. According to the Arkansas Lemon Law Guide, these costs include:

  • Credits and allowances for any trade-in vehicle,
  • Costs of any options and other modifications added by the manufacturer or its authorized dealer,
  • Costs of sales tax, license and registration fees, and finance charges,
  • Chargers of renting a similar vehicle while the original vehicle was out of service because of the defect,
  • Expert fees,
  • Charges for extended warranty coverages provided by the manufacturer, its subsidiary or agent.

A “reasonable allowance” must also be subtracted off the refund value. The reasonable allowance equals the purchase price multiplied by the mileage at the time the vehicle was brought in for its first repair divided by 120,000.

Manufacturers in Arkansas are allowed to put the lemon car back on the market. However, the dealer or leasing company of the manufacturer must provide to the first buyer of the lemon car a written notice stating that the vehicle was “returned to the manufacturer because of a nonconformity not cured within a reasonable time.” The manufacturer in the first sale provides the same express warranty of the original purchase, except the protection term only lasts 12,000 miles or 12 months after the resale purchase, whichever occurs first (4-90-412). Consumer should also beware some manufacturer will take back the car before the lemon decision is actually made. Therefore, the manufacturer is not required to let future consumers know that the vehicle was involved in a lemon dispute.