Wednesday, July 18, 2007

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).

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