Lemon Law Almost every state has a new car "lemon law" that allows the owner a refund or replacement when a new vehicle has a substantial problem that is not fixed within a reasonable number of attempts. Many specify a refund or replacement when a substantial problem is not fixed in four repair attempts or the car has been out of service for 30 days within the first 12,000 miles/12 months. If you believe that your car is a lemon: contact your state or local consumer protection office for information on the laws in your state and the steps you must take to resolve the situation; give the dealer a list of symptoms every time you bring it in for repairs; keep copies for your records; get copies of the repair orders showing the reported problems, the repairs performed and the dates that the car was in the shop; and contact the manufacturer, as well as the dealer, to report the problem. Some state laws require that you do so to give the manufacturer a chance to fix the problem. Your owner's manual will list an address for the manufacturer. Virginia Lemon Law Virginia State Statutes   § 59.1-207.9. Short title. This chapter may be cited as the Virginia Motor Vehicle Warranty Enforcement Act. (1984, c. 773.) § 59.1-207.10. Intent. The General Assembly recognizes that a motor vehicle is a major consumer purchase, and there is no doubt that a defective motor vehicle creates a hardship for the consumer. It is the intent of the General Assembly 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 General Assembly 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 this chapter shall in any way limit the rights or remedies which are otherwise available to a consumer under any other law. (1984, c. 773.) § 59.1-207.11. Definitions. As used in this chapter, the following terms shall have the following meanings: "Collateral charges" means any sales-related or lease-related charges including but not limited to sales tax, license fees, registration fees, title fees, finance charges and interest, transportation charges, dealer preparation charges or any other charges for service contracts, undercoating, rust proofing or installed options, not recoverable from a third party. If a refund involves a lease, "collateral charges" means, in addition to any of the above, capitalized cost reductions, credits and allowances for any trade-in vehicles, fees to another to obtain the lease, and insurance or other costs expended by the lessor for the benefit of the lessee. "Comparable motor vehicle" means a motor vehicle that is identical or reasonably equivalent to the motor vehicle to be replaced, as the motor vehicle to be replaced existed at the time of purchase or lease with an offset from this value for a reasonable allowance for its use. "Consumer" means the purchaser, other than for purposes of resale, or the lessee, of a motor vehicle used in substantial part for personal, family, or household purposes, and any person to whom such motor vehicle is transferred for the same purposes during the duration of any warranty applicable to such motor vehicle, and any other person entitled by the terms of such warranty to enforce the obligations of the warranty. "Incidental damages" shall have the same meaning as provided in § 8.2-715. "Lemon law rights period" means the period ending eighteen months after the date of the original delivery to the consumer of a new motor vehicle. This shall be the period during which the consumer can report any nonconformity to the manufacturer and pursue any rights provided for under this chapter. "Lien" means a security interest in a motor vehicle. "Lienholder" means a person, partnership, association, corporation or entity with a security interest in a motor vehicle pursuant to a lien. "Manufacturer" means a person, partnership, association, corporation or entity engaged in the business of manufacturing or assembling motor vehicles, or of distributing motor vehicles to motor vehicle dealers. "Manufacturer's express warranty" means the written warranty, so labeled, of the manufacturer of a new automobile, including any terms or conditions precedent to the enforcement of obligations under that warranty. "Motor vehicle" means only passenger cars, pickup or panel trucks, motorcycles, self-propelled motorized chassis of motor homes and mopeds as those terms are defined in § 46.2-100 and demonstrators or leased vehicles with which a warranty was issued. "Motor vehicle dealer" shall have the same meaning as provided in § 46.2-1500. "Nonconformity" means a failure to conform with a warranty, a defect or a condition, including those that do not affect the driveability of the vehicle, which significantly impairs the use, market value, or safety of a motor vehicle. "Notify" or "notification" means that the manufacturer shall be deemed to have been notified under this chapter if a written complaint of the defect or defects has been mailed to it or it has responded to the consumer in writing regarding a complaint, or a factory representative has either inspected the vehicle or met with the consumer or an authorized dealer regarding the nonconformity. "Reasonable allowance for use" shall not exceed one-half of the amount allowed per mile by the Internal Revenue Service, as provided by regulation, revenue procedure, or revenue ruling promulgated pursuant to § 162 of the Internal Revenue Code, for use of a personal vehicle for business purposes, plus an amount to account for any loss to the fair market value of the vehicle resulting from damage beyond normal wear and tear, unless the damage resulted from nonconformity to any warranty. "Serious safety defect" means a life-threatening malfunction or nonconformity that impedes the consumer's ability to control or operate the new motor vehicle for ordinary use or reasonable intended purposes or creates a risk of fire or explosion. "Significant impairment" means to render the new motor vehicle unfit, unreliable or unsafe for ordinary use or reasonable intended purposes. "Warranty" means any implied warranty or any written warranty of the manufacturer, or any affirmations of fact or promise made by the manufacturer in connection with the sale or lease of a motor vehicle that become part of the basis of the bargain. The term "warranty" pertains to the obligations of the manufacturer in relation to materials, workmanship, and fitness of a motor vehicle for ordinary use or reasonable intended purposes throughout the duration of the lemon law rights period as defined under this section. (1984, c. 773; 1988, c. 603; 1990, c. 772; 1998, c. 671.) § 59.1-207.12. Conformity to all warranties. If a new motor vehicle does not conform to all warranties, and the consumer reports the nonconformity to the manufacturer, its agents, or its authorized dealer during the manufacturer's warranty period, the manufacturer, its agent or its authorized dealer shall make such repairs as are necessary to conform the vehicle to such warranties, notwithstanding the fact that such repairs are made after the expiration of such manufacturer's warranty period. (1984, c. 773; 1988, c. 603.) § 59.1-207.13. Nonconformity of motor vehicles. A. If the manufacturer, its agents or authorized dealers do not conform the motor vehicle to any applicable warranty by repairing or correcting any defect or condition, including those that do not affect the driveability of the vehicle, which significantly impairs the use, market value, or safety of the motor vehicle to the consumer after a reasonable number of attempts during the lemon law rights period, the manufacturer shall: 1. Replace the motor vehicle with a comparable motor vehicle acceptable to the consumer, or 2. Accept return of the motor vehicle and refund to the consumer, lessor, and any lienholder as their interest may appear the full contract price, including all collateral charges, incidental damages, less a reasonable allowance for the consumer's use of the vehicle up to the date of the first notice of nonconformity that is given to the manufacturer, its agents or authorized dealer. Refunds or replacements shall be made to the consumer, lessor or lienholder, if any, as their interests may appear. The consumer shall have the unconditional right to choose a refund rather than a replacement vehicle and to drive the motor vehicle until he receives either the replacement vehicle or the refund. The subtraction of a reasonable allowance for use shall apply to either a replacement or refund of the motor vehicle. Mileage, expenses, and reasonable loss of use necessitated by attempts to conform such motor vehicle to the express warranty may be recovered by the consumer. A1. In the case of a replacement of or refund for a leased vehicle, in addition to any other damages provided in this chapter, the motor vehicle shall be returned to the manufacturer and the consumer's written lease shall be terminated by the lessor without penalty to the consumer. The lessor shall transfer title to the manufacturer as necessary to effectuate the consumer's rights pursuant to this chapter, whether the consumer chooses vehicle replacement or a refund. B. It shall be presumed that a reasonable number of attempts have been undertaken to conform a motor vehicle to any warranty and that the motor vehicle is significantly impaired if during the period of eighteen months following the date of original delivery of the motor vehicle to the consumer either: 1. The same nonconformity has been subject to repair three or more times by the manufacturer, its agents or its authorized dealers and the same nonconformity continues to exist; 2. The nonconformity is a serious safety defect and has been subject to repair one or more times by the manufacturer, its agent or its authorized dealer and the same nonconformity continues to exist; or 3. The motor vehicle is out of service due to repair for a cumulative total of thirty calendar days, unless such repairs could not be performed because of conditions beyond the control of the manufacturer, its agents or authorized dealers, including war, invasion, strike, fire, flood or other natural disasters. C. The lemon law rights period shall be extended if the manufacturer has been notified but the nonconformity has not been effectively repaired by the manufacturer, or its agent, by the expiration of the lemon law rights period. D. The manufacturer shall clearly and conspicuously disclose to the consumer, in the warranty or owner's manual, that written notification of the nonconformity to the manufacturer is required before the consumer may be eligible for a refund or replacement of the vehicle under this chapter. The manufacturer shall include with the warranty or owner's manual the name and address to which the consumer shall send such written notification. E. It shall be the responsibility of the consumer, or his representative, prior to availing himself of the provisions of this section, to notify the manufacturer of the need for the correction or repair of the nonconformity, unless the manufacturer has been notified as defined in § 59.1-207.11. If the manufacturer or factory representative has not been notified of the conditions set forth in subsection B of this section and any of the conditions set forth in subsection B of this section already exists, the manufacturer shall be given an additional opportunity, not to exceed fifteen days, to correct or repair the nonconformity. If notification shall be mailed to an authorized dealer, the authorized dealer shall upon receipt forward such notification to the manufacturer. F. Nothing in this chapter shall be construed to limit or impair the rights and remedies of a consumer under any other law. G. It is an affirmative defense to any claim under this chapter that: 1. An alleged nonconformity does not significantly impair the use, market value, or safety of the motor vehicle; or 2. A nonconformity is the result of abuse, neglect or unauthorized modification or alteration of a motor vehicle by a consumer. (1984, c. 773; 1987, c. 607; 1988, c. 603; 1990, c. 772; 1998, c. 671.) § 59.1-207.14. Action to enforce provisions of chapter. Any consumer who suffers loss by reason of a violation of any provision of this chapter may bring a civil action to enforce such provision. Any consumer who is successful in such an action or any defendant in any frivolous action brought by a consumer shall recover reasonable attorney's fees, expert witness fees and court costs incurred by bringing such actions. (1984, c. 773; 1988, c. 603.) § 59.1-207.15. Informal dispute settlement procedure. A. If a manufacturer provides an informal dispute settlement procedure, it shall be the consumer's choice whether or not to use it prior to availing himself of his rights under this chapter. B. If a dispute settlement procedure is resorted to by the consumer and the decision is for a refund or a comparable motor vehicle, the manufacturer shall have forty days from its receipt of the consumer's acceptance of the decision or from the date of a court order to comply with the terms of the decision. C. In any action brought because of the manufacturer's failure to comply with the decision, within the scope of the procedure's authority, rendered as a result of a dispute resolution proceeding or a court order, the court may triple the value of the award stipulated in the decision as provided for in this chapter, plus award other equitable relief the court deems appropriate, including additional attorney's fees. (1988, c. 603; 1990, c. 772.) § 59.1-207.16. Action to be brought within certain time. Any action brought under this chapter shall be commenced within eighteen months following the date of original delivery of the motor vehicle to the consumer. However, any consumer whose good faith attempts to settle the dispute pursuant to the informal dispute settlement provisions of § 59.1-207.15 have not resulted in the satisfactory resolution of the matter shall have (i) twelve months from the date of the final action taken by the manufacturer in its dispute settlement procedure, if such procedure was resorted to within eighteen months of delivery, or (ii) the original eighteen-month period, whichever is longer, to file an action in the proper court. (1988, c. 603; 1990, c. 772; 1999, c. 387.) § 59.1-207.16:1. Disclosure of returned vehicles; penalty. A. If a motor vehicle that is returned to the manufacturer or distributor either under this chapter or by judgment, decree, or arbitration award in this or any other state and is then transferred by a manufacturer or distributor to a dealer, licensed under Chapter 15 (§ 46.2-1500 et seq.) of Title 46.2, in Virginia, the manufacturer or distributor shall disclose this information to the Virginia dealer. B. If the returned vehicle is then made available for resale or for another lease, the manufacturer shall, prior to sale or lease, disclose in writing in a clear and conspicuous manner, on a separate piece of paper in ten-point capital type, to the Virginia dealer that this motor vehicle was returned to the manufacturer, distributor or factory branch, the nature of the defect which resulted in the return, and the condition of the motor vehicle at the time of transfer to the Virginia dealer. It shall be the responsibility of the dealer that receives this disclosure to give notice of its contents to any prospective purchaser or lessee prior to sale or lease, and to transfer the disclosure, or a copy thereof, to the next purchaser or lessee. A dealer's responsibility under this section shall cease upon the sale or lease of the affected motor vehicle to the first purchaser or lessee not for resale or lease. C. Any manufacturer or distributor who violates this section of the Motor Vehicle Warranty Enforcement Act shall be guilty of a Class 3 misdemeanor. (1994, c. 578; 1998, c. 671.) MARYLAND'S LEMON LAW A Guide to Consumer Rights and Remedies When a New Car Turns Out to be Defective Prepared by the Department of Legislative Reference Annapolis, Maryland In 1984 the General Assembly enacted the Maryland Automotive Warranty Enforcement Act more commonly known as "The Lemon Law." This law provides consumers with a number of rights and remedies to aid in the enforcement of manufacturer's warranties on new cars. Every new automobile sold by a dealership in the United States comes with a manufacturer's warranty. The warranty may be of little comfort when the car dealer or manufacturer does not satisfy the guarantees made in the warranty or when the new car must be returned for repairs again and again. If this happens, the Motor Vehicle Administration (MVA) is the first place to turn for help. The MVA licenses car dealers and may be helpful in resolving a warranty complaint. If the MVA is unable to resolve the dispute, several private legal remedies are available. Maryland's Lemon Law is intended to aid in enforcing a new car warranty. Applicability of the Lemon Law The Lemon Law applies to the sale of all new cars, small trucks, and multipurpose vehicles in Maryland. It does not apply to motor homes. The benefits of the Lemon Law are available not only if the vehicle that was purchased from a dealer was new, but also if it was transferred to another person during the vehicle's warranty period. That warranty period is 15 months after the car was originally delivered by the dealer or 15,000 miles, whichever comes first. Under the law, a car is considered a lemon if, during the 15-month/15,000 mile warranty period, a defect or condition that substantially impairs the use and market value of the car cannot be repaired after a reasonable number of attempts. A "reasonable number of attempts" means once, in the case of the braking or steering system, and four times in the case of other defects. Alternatively, the "reasonable number of attempts" requirement is satisfied if the car is out of service for repair of defects for a total of 30 or more days during the warranty period. A car is not considered a lemon, however, if the defect is the result of abuse, neglect, or unauthorized modifications of the car. How the Process Works The Lemon Law imposes certain requirements on the consumer, the car dealer, and the manufacturer. If the dealer and manufacturer do not comply with these requirements, they may be subject to several different penalties under the law. If the consumer does not fulfill the consumer's obligations, the right to take advantage of the Lemon Law may be lost. If there is a problem with a new car during the warranty period, the dealer or the manufacturer must be given an opportunity to repair the defect. Also, the consumer must send a written notice of the defect to the manufacturer by certified mail, return receipt requested, during the warranty period. The manufacturer or dealer must correct the defect, at no charge to the consumer, within 30 days after receiving notice of the defect. If the car is returned to the dealer four times to repair the same defect or if it is out of service for more than a total of 20 days because of defects, the dealer must notify the manufacturer of the defect and send a copy of the notice to the Motor Vehicle Administration. However, failure of the dealer to give the required notice does not affect the consumer's rights under the Lemon Law. If the consumer is not satisfied with the way the dealer or manufacturer is handling the new car's defect or if the consumer is unable to reach an agreement as to an appropriate remedy, the consumer may submit the dispute to the manufacturer's informal arbitration procedure, if one exists. The consumer is not required to submit to arbitration, however, and even if arbitration is chosen, it is not binding on the consumer. Legal action in the courts before, during, or after an arbitration proceeding is always an option. The only limitation is that a legal action under the Lemon Law must be filed in court within three years after the date of original delivery of the vehicle to the consumer. Remedies If the dealer or manufacturer is unable to repair the consumer's car after a reasonable number of attempts (as described above), the manufacturer is required to do one of two things. At the consumer's option, the manufacturer must either: (1) Replace the car with another that is acceptable to the consumer; or (2) Accept return of the car and refund the full purchase price, less a reasonable allowance for the use of the vehicle. There are other remedies available to a consumer under the Lemon Law. If the consumer cannot settle a dispute with the manufacturer out of court, the court may require the manufacturer to pay part or all of the consumer's attorney's fees if the consumer prevails in court. If the court finds that the manufacturer has acted in bad faith in failing to fulfill its obligations under the Lemon Law, the manufacturer may be ordered to pay the consumer up to $10,000, in addition to any other remedies ordered by the court. Furthermore, a violation of the Lemon Law by a car dealer or manufacturer is considered an "unfair and deceptive trade practice" and may subject the dealer or manufacturer to certain penalties under the Maryland Consumer Protection Act. In addition to the Lemon Law, other areas of the law may help the consumer in a dispute concerning a new car. For example, under the Maryland Uniform Commercial Code, the consumer may be entitled to the benefit of certain implied warranties which are not contained in a written warranty. District of Columbia Lemon Law Lemon qualification: Three unsuccessful repairs or 30 calendar days out of service or 1 unsuccessful repair of a safety-related defect within 2 years or 18,000 miles, whichever is shorter. Notification requirement: Certified mail to manufacturer, agent, or dealer documenting each defect. State-run arbitration? Yes For more info, call: Contact the Center for Auto Safety at 2001 S St., N.W., Washington, DC 20009 Leased cars covered?: Yes