Section
8-20A-1
Definitions.
As
used in
this
chapter,
the
following
terms
shall
have the
respective
meanings
as
indicated:
- (1)
Consumer.
- The
purchaser,
other
than
for
purposes
of
resale,
of a
new
or
previously
untitled
motor
vehicle
used
in
substantial
part
for
personal,
family,
or
household
purposes,
and
any
other
person
entitled
by
the
terms
of
such
warranty
to
enforce
the
obligations
of
the
warranty.
- (2)
Motor
vehicle.
- Every
vehicle
intended
primarily
for
use
and
operation
on
the
public
highways
which
is
self-propelled;
provided,
however,
that
the
term
"motor
vehicle"
shall
not
apply
to
motor
homes
or
to
any
motor
vehicle
having
a
manufacturer's
gross
vehicle
weight
rating
(GVWR)
of
10,000
pounds
or
more.
- (3)
Manufacturer.
- The
person,
firm,
or
corporation
engaged
in
the
business
of
manufacturing,
importing
and/or
distributing
motor
vehicles
to
be
made
available
to a
motor
vehicle
dealer
for
retail
sale.
- (4)
Motor
vehicle
dealer
or
Authorized
dealer.
- The
person,
firm,
or
corporation
operating
under
a
dealer
agreement
from
a
manufacturer,
importer,
or
distributor
and
who
is
engaged
regularly
in
the
business
of
buying,
selling
or
exchanging
motor
vehicles
in
this
state
and
who
has
in
this
state
an
established
place
of
business.
- (5)
Express
warranty.
- A
written
warranty,
so
labeled,
issued
by
the
manufacturer
of a
new
motor
vehicle,
including
any
terms
or
conditions
precedent
to
the
enforcement
of
obligations
under
that
warranty.
- (6)
Nonconforming
condition.
- Any
condition
of a
motor
vehicle
which
shall
not
be
in
conformity
with
the
terms
of
any
express
warranty
issued
by
the
manufacturer
to a
consumer
and
which:
(i)
significantly
impairs
the
use,
value
or
safety
of
the
motor
vehicle
and
(ii)
occurs
or
arises
solely
in
the
course
of
the
ordinary
use
of
the
motor
vehicle,
and
which
does
not
arise
or
occur
as a
result
of
abuse,
neglect,
modification,
or
alteration
of
the
motor
vehicle
not
authorized
by
the
manufacturer,
nor
from
any
accident
or
other
damage
to
the
motor
vehicle
which
occurs
or
arises
after
such
motor
vehicle
was
delivered
by
an
authorized
dealer
to
the
consumer.
- (7)
Notice
of a
nonconforming
condition.
- A
written
statement
which
shall
be
delivered
to
the
manufacturer
and
which
shall
describe
the
subject
motor
vehicle,
the
nonconforming
condition,
and
shall
describe
all
previous
attempts
to
correct
such
nonconforming
condition
by
identifying
the
person,
firm
or
corporation
who
or
which
made
such
attempt,
and
the
time
when
such
attempt
was
made.
- (8)
Lemon
law
rights
period.
- The
period
ending
one
year
after
the
date
of
the
original
delivery
of a
motor
vehicle
to a
consumer
or
the
first
12,000
miles
of
operation,
whichever
first
occurs.
Section
8-20A-2
Obligations
of
manufacturer.
(a)
If a new
motor
vehicle
does not
conform
to any
applicable
express
warranty,
and the
consumer
delivers
the
motor
vehicle
to the
manufacturer,
its
agent,
or its
authorized
dealer,
and
gives
notice
of the
nonconforming
condition
during
the
lemon
law
rights
period,
the
manufacturer
of the
motor
vehicle
shall be
obligated
to make
such
repairs
to the
motor
vehicle
as shall
be
necessary
to
remedy
any
nonconforming
condition
thereof.
Such
repairs
shall be
required
even
after
the
expiration
of the
lemon
law
rights
period
provided
that
notice
of the
nonconforming
condition
was
first
given
during
the
lemon
law
rights
period
and
provided
further
that the
manufacturer's
obligation
to
repair
the
nonconforming
condition
shall
not
extend
beyond
the
period
of 24
months
following
delivery
of the
vehicle
or
24,000
miles,
whichever
occurs
first.
(b)
If,
after
reasonable
attempts,
the
manufacturer,
its
agent,
or its
authorized
dealer
is
unable
to
conform
the
motor
vehicle
to any
express
warranty
by
repairing
or
correcting
a
nonconforming
condition
of the
motor
vehicle
which
first
occurred
during
the
lemon
law
rights
period,
the
manufacturer
shall,
at the
option
of the
consumer,
replace
the
motor
vehicle
with a
comparable
new
motor
vehicle
or shall
accept
return
of the
vehicle
from the
consumer
and
refund
to the
consumer
the
following:
-
- (1)
The
full
contract
price
including,
but
not
limited
to,
charges
for
undercoating,
dealer
preparation
and
transportation
charges,
and
installed
options,
plus
the
nonrefundable
portions
of
extended
warranties
and
service
contracts;
-
- (2)
All
collateral
charges,
including
but
not
limited
to,
sales
tax,
license
and
registration
fees,
and
similar
government
charges;
-
- (3)
All
finance
charges
incurred
by
the
consumer
after
he
first
reported
the
nonconformity
to
the
manufacturer,
its
agent,
or
its
authorized
dealer;
and
-
- (4)
Any
incidental
damages
which
shall
include
the
reasonable
cost
of
alternative
transportation
during
the
period
that
the
consumer
is
without
the
use
of
the
motor
vehicle
because
of
the
nonconforming
condition.
There
shall
be
offset
against
any
monetary
recovery
of
the
consumer
a
reasonable
allowance
for
the
consumer's
use
of
the
vehicle.
Refunds
shall
be
made
to
the
consumer,
and
any
lien
holders,
as
their
interests
may
appear.
A
reasonable
allowance
for
use
is
that
amount
directly
attributable
to
use
by
the
consumer
before
his
first
report
of
the
nonconformity
to
the
manufacturer,
agent,
or
authorized
dealer,
and
must
be
calculated
by
multiplying
the
full
purchase
price
of
the
motor
vehicle
by a
fraction
having
as
its
denominator
100,000
and
having
as
its
numerator
the
number
of
miles
that
the
vehicle
travelled
before
the
first
report
of
nonconformity.
(c)
It shall
be
presumed
that
reasonable
attempts
to
correct
a
nonconforming
condition
have
been
allowed
by the
consumer
if,
during
the
period
of 24
months
following
delivery
of the
vehicle
or
24,000
miles,
whichever
first
occurs,
either
of the
following
events
shall
have
occurred:
-
- (1)
The
same
nonconforming
condition
has
been
subject
to
repair
attempts
three
or
more
times
by
the
manufacturer,
its
agents
or
its
authorized
dealers,
at
least
one
of
which
occurred
during
the
lemon
law
rights
period,
plus
a
final
attempt
by
the
manufacturer,
and
the
same
nonconforming
condition
continues
to
exist;
or
-
- (2)
The
motor
vehicle
is
out
of
service
and
in
the
custody
of
the
manufacturer,
its
agent,
or
an
authorized
dealer
due
to
repair
attempts
(including
the
final
repair
attempt),
one
of
which
occurred
during
the
lemon
law
rights
period,
for
a
cumulative
total
of
30
calendar
days,
unless
such
repair
could
not
be
performed
because
of
conditions
beyond
the
control
of
the
manufacturer,
its
agents
or
authorized
dealers,
such
as
war,
invasion,
strike,
fire,
flood,
or
other
natural
disaster.
Section
8-20A-3
Cause
of
action
against
manufacturer.
(a)
A
consumer
sustaining
damages
as a
proximate
consequence
of the
failure
by a
manufacturer
to
perform
its
obligations
imposed
under
this
chapter
may
bring a
civil
action
against
the
manufacturer
to
enforce
the
provisions
of this
chapter.
Prior to
the
commencement
of any
such
proceeding
a
consumer
must
give
notice
of a
nonconforming
condition
by
certified
United
States
mail to
the
manufacturer
and
demand
correction
or
repair
of the
nonconforming
condition.
If at
the time
such
notice
of a
nonconforming
condition
is given
to the
manufacturer,
a
presumption
has
arisen
that
reasonable
attempts
to
correct
a
nonconforming
condition
have
been
allowed,
the
manufacturer
shall be
given a
final
opportunity
to cure
the
nonconforming
condition.
The
manufacturer
shall
within
seven
calendar
days of
receiving
the
written
notice
of
nonconforming
condition
notify
the
consumer
of a
reasonably
accessible
repair
facility.
After
delivery
of the
new
vehicle
to the
authorized
repair
facility
by the
consumer,
the
manufacturer
shall
attempt
to
correct
the
nonconforming
condition
and
conform
the
vehicle
to the
express
warranty
within a
period
not to
exceed
14
calendar
days. If
a
manufacturer
has
established
an
informal
dispute
settlement
procedure
which is
in
compliance
with
federal
rules
and
regulations,
a
consumer
must
first
exhaust
any
remedy
afforded
to the
consumer
under
the
informal
dispute
procedure
of the
manufacturer
before a
cause of
action
may be
instituted
under
the
provisions
of this
chapter.
(b)
It shall
be an
affirmative
defense
to any
claim
against
the
manufacturer
under
this
chapter
that: (i)
an
alleged
nonconforming
condition
does not
significantly
impair
the use,
market
value,
or
safety
of the
motor
vehicle;
or (ii)
a
nonconforming
condition
is a
result
of
abuse,
neglect,
or any
modification
or
alteration
of a
motor
vehicle
by a
consumer
that is
not
authorized
by the
manufacturer.
(c)
If it is
determined
that the
manufacturer
has
breached
its
obligations
imposed
under
this
chapter,
then the
consumer
shall be
entitled
to
recover,
in
addition
to the
remedy
provided
under
Section
8-20A-2
above,
an
additional
award
for
reasonable
attorneys
fees.
Section
8-20A-4
Resale
of
returned
motor
vehicle.
If
a motor
vehicle
has been
returned
to the
manufacturer
under
the
provisions
of this
chapter
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
in this
state
unless:
-
- (1)
The
manufacturer
discloses
in
writing
to
the
subsequent
purchaser
the
fact
that
the
motor
vehicle
was
returned
under
the
provisions
of
this
chapter
and
the
nature
of
the
nonconformity
to
the
vehicle
warranty.
-
- (2)
The
manufacturer
returns
the
title
of
the
motor
vehicle
to
the
Alabama
Department
of
Revenue
advising
of
the
return
of
the
motor
vehicle
under
provisions
of
this
chapter
with
an
application
for
title
in
the
name
of
the
manufacturer.
The
Department
of
Revenue
shall
brand
the
title
issued
to
the
manufacturer
and
all
subsequent
titles
to
the
motor
vehicle
with
the
following
statement:
-
- THIS
VEHICLE
WAS
RETURNED
TO
THE
MANUFACTURER
BECAUSE
IT
DID
NOT
CONFORM
TO
ITS
WARRANTY.
Section
8-20A-5
No
dealership
liability.
Nothing
in this
chapter
imposes
any
liability
upon a
motor
vehicle
dealer
or
authorized
dealer
or
creates
a cause
of
action
by a
consumer
against
a motor
vehicle
dealer
or
authorized
dealer.
A motor
vehicle
dealer
or
authorized
dealer
may not
be made
a party
defendant
in any
action
involving
or
relating
to this
chapter.
The
manufacturer
shall
not
charge
back or
require
reimbursement
by a
motor
vehicle
dealer
or
authorized
dealer
for any
costs,
including,
but not
limited
to, any
refunds
or
vehicle
replacements,
incurred
by the
manufacturer
arising
out of
this
chapter.
Section
8-20A-6
Statute
of
limitations.
Any
action
brought
under
this
chapter
against
the
manufacturer
shall be
commenced
within
three
years
following
the date
of
original
delivery
of the
motor
vehicle
to the
consumer.
|
Magnuson-Moss
Warranty-Federal
Trade
Commission
ACT
[Top]
The
Magnuson-Moss
Warranty
Act is a
federal
Law that
protects
the
buyer of
any
product
which
costs
more
than $25
and
comes
with an
express
written
warranty.
This law
applies
to any
product
that you
buy that
does not
perform
as it
should.
The
Magnuson-Moss
Act is a
federal
law
giving
consumers
considerable
rights
in
dealing
with
manufacturers
and
car-dealers
of lemon
automobiles.
This law
guarantees
a car
buyer
that
certain
minimum
requirements
of
warranties
must be
met, and
provides
for
disclosure
of
warranties
before
purchase.
Regarding
"lemon
cars",
this law
greatly
affects
the
rights
of car
buyers.
For any
product
which
has a
written
warranty,
if any
part of
the
product,
or the
product
itself
is
considered
defective,
the
warrantor
must
permit
the
buyer
the
choice
of
either a
refund
or
replacement
of the
product.
We have
argued
successfully
to
juries
that the
lemon
manufacturers
and
car-dealers
should
be given
three
(3)
attempts
to fix
the
defect.
Continued
attempts
to
repair
beyond
the
initial
three
(3)
should
not be
allowed.
We call
this the
"three
strikes
and
you're
out"
principle.
A
consumer
may
pursue
legal
action
in any
court of
general
jurisdiction
in the
United
States
to
enforce
his
rights
under
the
Magnuson-Moss
Act.
Attorney's
fees
based on
actual
time
spent
will be
covered
if the
consumer
prevails.
Due to
this
particular
condition,
there is
quite a
bit of
financial
pressure
on the
manufacturer
to
settle
consumer
disputes
before
going to
court,
as this
would
keep
their
expenses
down.
UNIFORM
COMMERCIAL
CODE
[Top]
TARR
BABY-The
Uniform
Commercial
Code or
UCC has
been
enacted
in all
50
states
and some
of the
territories
of the
United
States.
It is
the
primary
source
of law
in all
contracts
dealing
with the
sale of
products.
The “TARR”
refers
to
Tender,
Acceptance,
Rejection,
Revocation
and
applies
to
different
aspects
of the
consumer's
"relationship"
with the
purchased
goods.
TENDER-The
tender
provisions
of the
Uniform
Commercial
Code
contained
in
Section
2-601
provide
that the
buyer is
entitled
to
reject
any
goods
that
fail in
any
respect
to
conform
to the
contract.
Unfortunately,
new cars
are
often
technically
complex
and
their
innermost
workings
are
beyond
the
understanding
of the
average
new car
buyer.
The
buyer,
therefore,
does not
know
whether
the
goods
are
non-conforming.
ACCEPTANCE-The
new car
buyer
accepts
the
goods
believing
and
expecting
that the
manufacturer
will
repair
any
problem
he has
with the
goods
under
the
warranty.
REJECTION-The
new car
buyer
may
discover
a
problem
with the
vehicle
within
the
first
few
miles of
his
purchase.
This
would
allow
the new
car
buyer to
reject
the
goods.
If the
new car
buyer
discovers
a defect
in the
car
within a
reasonable
time of
inspecting
the
vehicle,
he may
reject
the
vehicle.
This
period
is not
defined.
On the
one
hand,
the
buyer
must be
given a
reasonable
time to
inspect
and that
reasonable
time to
inspect
will be
held as
an
acceptance
of the
vehicle.
The
courts
will
decide
this
reasonable
time to
inspect
based on
the
knowledge
and
experience
of the
buyer,
the
difficulty
in
discovering
the
defect,
and the
opportunity
to
discover
the
defect.
REVOCATION-
What
happens
when the
consumer
has used
the new
car for
a
lengthy
period
of time?
This is
the
typical
lemon
car
case.
The UCC
provides
that a
buyer
may
revoke
his
acceptance
of goods
whose
non-conformity
substantially
impairs
the
value of
the
goods to
him when
he has
accepted
the
goods
without
discovery
of a
non-conformity
because
it was
difficult
to
discover
or if he
was
assured
that
non-conformities
would be
repaired.
Of
course,
the
average
new car
buyer
does not
learn of
the
non-conformity
until
hundreds
of
thousands
of miles
later.
And
because
quality
is job
one, and
manufacturers
are
competing
on the
basis of
their
warranties,
the
consumer
is
always
assured
that any
non-conformities
he does
discover
will be
remedied.
Note:
The
author
of the
sections
on the
Magnuson-Moss
Warranty
Act and
the
Uniform
Commercial
Code is
T.
Michael
Flynn of
www.defect.com.
|
|
