Alaska Lemon Law

The Alaska state lemon law is officially known the Alaska Motor Vehicle Warranties Act (Title 45, Chapter 45, Section 300 – 360). Alaska protects motor vehicles that have four or more wheels, self-propelling, and are used primarily for personal, family, or household purposes. Vehicles that are designated for off-road use such as tractors do not fall under the law’s protection.

The consumer has Alaska lemon law protection for the first year of the purchase or the duration the express warranty, 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 as “a defect or condition in a motor vehicle caused by a manufacturer, distributor, dealer or repairing agent that substantially impairs the use or market value of a vehicle” (Sec. 45.45.360(7)).

• The same nonconformity has been subject to repair three or more times, but the nonconformity continues to exist.
• 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.

If the owner of the lemon vehicle wants to claim a lemon vehicle, he must first give written notice by certified mail to the manufacturer, its agent, or dealer at least before 60 days have elapsed after the expiration of the warranty or the first year. The notice must state the vehicle has a nonconformity, a description of the nonconformity, notice that the manufacturer has made a reasonable number of attempts to fix the problem, and that the owner wants a refund or replacement. The manufacturer has 30 days from receiving the notice to repair the nonconformity one last time.

If the nonconformity still exists after this point the owner may proceed to arbitration or court to receive his refund. If the manufacturer has an arbitration program setup that follows all state and federal guidelines, the owner is obligated to use the program. However, if the arbitration program does not have the approval of the state, then the owner may proceed to court or continue with arbitration. The manufacturer may argue in defense against the nonconformity complain that the problem (1) does not substantially impair the either the use or market value of the car, (2) the owner or someone not authorized by the manufacturer alterations have made alterations to the vehicle(3) the owner has abused or neglected the vehicle. The arbitration decision is binding to the manufacturer, but not to the owner, meaning the owner may take his case to court if he is not awarded in arbitration.

If the manufacturer or a distributor wants to sell resell the vehicle back on to the market it must disclose the reason the vehicle was returned to all future owners.