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Arizona
Lemon Law Statutes
Arizona
Revised Statutes §§ 44-1261 to -1265
44-1261.
Definitions;
exemptions
-
In this article, unless the context otherwise requires:
- "Consumer" means
the purchaser, other than for purposes of resale, of a
motor vehicle, any person to whom the motor vehicle is
transferred during the duration of an express warranty
applicable to the motor vehicle or any other person entitled
by the terms of the warranty to enforce the obligations
of the warranty.
- "Motor
vehicle" means a self-propelled vehicle designated
primarily for the transportation of persons or property
over the public highways.
- If the motor vehicle is a motor home, the provisions of
this article shall apply to the self-propelled vehicle and
chassis
but does not include those portions of the vehicle designed,
used or maintained primarily as a mobile dwelling, office
or commercial space.
- The provisions of this article do not apply to a motor
vehicle with a declared gross weight over ten thousand
pounds.
44-1262 .
New motor vehicle; repair during express warranty or two
years or twenty-four thousand miles
-
If a new motor vehicle does not conform to all applicable
express warranties:
- A consumer shall report the nonconformity to the manufacturer,
its agent or its authorized dealer or issuer of a warranty
during the shorter of the following:
-
The term of the express warranty.
- The period of two years or twenty-four thousand
miles following the date of original delivery of the
motor
vehicle to the consumer, whichever is earlier.
- The manufacturer, its agent or its authorized dealer or
the issuer of a warranty shall make those repairs that
are necessary to conform the motor vehicle to such express
warranties, even if the repairs are made after the expiration
of the term or two year period or twenty-four thousand
mile limit.
-
This section does not limit in any way the remedies available
to a consumer under a new motor vehicle warranty that extends
beyond the limits prescribed in this section.
44-1263 .
Inability to conform motor vehicle to express warranty; replacement
of vehicle or refund of monies; affirmative defenses
-
If the manufacturer, its agents or its authorized dealers
are unable to conform the motor vehicle to any applicable
express warranty by repairing or correcting any defect or
condition which substantially impairs the use and value of
the motor vehicle to the consumer after a reasonable number
of attempts, the manufacturer shall replace the motor vehicle
with a new motor vehicle or accept return of the motor vehicle
from the consumer and refund to the consumer the full purchase
price, including all collateral charges, less a reasonable
allowance for the consumer's use of the vehicle. The manufacturer
shall make refunds to the consumer and lienholder, if any,
as their interests appear. A reasonable allowance for use
is that amount directly attributable to use by the consumer
before his first written report of the nonconformity to the
manufacturer, agent or dealer and during any subsequent period
when the vehicle is not out of service by reason of repair.
-
It is an affirmative defense to any claim under this article
that either:
-
An alleged nonconformity does not substantially impair
the use and market value of the motor vehicle.
-
A nonconformity is the result of abuse, neglect or unauthorized
modifications or alterations of the motor vehicle.
44-1264 .
Reasonable number of attempts to conform motor vehicle to
express warranty; presumption
-
It is presumed that a reasonable number of attempts have
been undertaken to conform a motor vehicle to the applicable
express warranties if either:
- The same nonconformity has been subject to repair four
or more times by the manufacturer or its agents or authorized
dealers during the shorter of the express warranty term
or the period of two years or twenty-four thousand miles
following the date of original delivery of the motor vehicle
to the consumer, whichever is earlier, but the nonconformity
continues to exist.
- The motor vehicle is out of service by reason of repair
for a cumulative total of thirty or more calendar days
during the shorter of the express warranty term or the
two year period or twenty-four thousand miles, whichever
is earlier.
-
The term of an express warranty, the two year period and
the thirty day period are extended by any period of time
during which repair services are not available to the consumer
because of any war, invasion, strike, fire, flood or other
natural disaster.
-
The presumption prescribed in this section does not apply
against a manufacturer unless the manufacturer has received
prior direct written notification from or on behalf of the
consumer of the alleged defect and has had an opportunity
to cure the alleged defect.
44-1265 .
Nonlimitation of rights; refund or replacement not required
if certain procedures not followed; attorney fees
-
If a manufacturer has established or participates in an informal
dispute settlement procedure which complies in all respects
with 16 code of federal regulations part 703, section 44-1263
relating to refunds or replacement does not apply to any
consumer who has not first resorted to such a procedure.
-
A consumer shall begin an action under this article within
six months following the earlier of expiration of the express
warranty term or two years or twenty-four thousand miles
following the date of original delivery of the motor vehicle
to the consumer, whichever is earlier. If a consumer prevails
in an action under this article, the court shall award the
consumer reasonable costs and attorney fees.
44-1266 .
Notice to dealers and prospective purchasers
-
A manufacturer who has been ordered by judgment or decree
to replace or repurchase a motor vehicle pursuant to this
article or the repair or replace laws of another state shall,
before offering the motor vehicle for resale, attach to the
motor vehicle written notification indicating the motor vehicle
has been replaced or repurchased. A consumer has a cause
of action against any person who removes the written notification
from the motor vehicle, except as provided in subsection
B of this section.
-
A motor vehicle dealer, broker, wholesale motor vehicle dealer
or wholesale motor vehicle auction dealer as defined in section
28-4301 who offers for sale a motor vehicle that has been
replaced or repurchased pursuant to this article or the repair
or replace laws of another state shall provide the purchaser
with the manufacturer's written notification indicating that
the motor vehicle has been replaced or repurchased before
completion of the sale.
-
It shall constitute an affirmative defense in an action brought
pursuant to subsection A of this section against a motor
vehicle dealer or an agent of a motor vehicle dealer that
the notification described in subsection A of this section
was removed by someone other than the dealer or agent without
the knowledge of the dealer or agent.
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The
Magnuson-Moss Warranty Act
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.
Your car is a major investment, rationalized by the peace of mind that flows from its expected dependability and safety. Accordingly, you are entitled
to expect an automobile properly constructed and regulated to provide reasonably safe, trouble-free, and dependable transportation – regardless
of the exact make and model you bought. Unfortunately, sometimes these principles do not hold true and defects arise in automobiles. Although one defect
is not actionable, repeated defects are as there exists a generally accepted rule that unsuccessful repair efforts render the warrantor liable. Simply
put, there comes a time when “enough is enough” – when after having to take your car into the shop for repairs an inordinate number
of times and experiencing all of the attendant inconvenience, you are entitled to say, ‘That’s all,’ and revoke, notwithstanding the
seller’s repeated good faith efforts to fix the car. The rationale behind these basic principles is clear: once your faith in the vehicle is shaken,
the vehicle loses its real value to you and becomes an instrument whose integrity is impaired and whose operation is fraught with apprehension. The question
thus becomes when is “enough”?
As you know, enough is never enough from your warrantor’s point of view and you should simply continue to have your defective vehicle repaired – time
and time again. However, you are not required to allow a warrantor to tinker with your vehicle indefinitely in the hope that it may eventually be fixed.
Rather, you are entitled to expect your vehicle to be repaired within a reasonable opportunity. To this end, both the federal Moss Warranty Act, and
the various state “lemon laws,” require repairs to your vehicle be performed within a reasonable opportunity.
Under the Magnuson-Moss Warranty
Act, a warrantor should perform adequate repairs in at least two, and possibly three, attempts to correct a particular defect. Further, the Magnuson-Moss
Warranty Act’s reasonableness requirement applies to your vehicle as a whole rather than to each individual defect
that arises. Although most of the Lemon Laws vary from state to state, each individual law usually require a warrantor to cure a specific defect within
four to five attempts or the automobile as a whole within thirty days. If the warrantor fails to meet this obligation, most of the lemon laws provide
for a full refund or new replacement vehicle. Further, this reasonable number of attempts/reasonable opportunity standard, whether it be that of the
Magnuson-Moss Warranty Act or that of the Lemon Laws, is akin to strict liability – once this threshold has been met, the continued existence of
a defect is irrelevant and you are still entitled to relief.
One of the most important parts of the Magnuson-Moss Warranty Act is its fee shifting
provision. This provision provides that you may recover the attorney fees incurred in the prosecution of your case if you are successful – independent
of how much you actually win. That rational behind this fee shifting provision is to twofold: (1) to ensure you will be able to vindicate your rights
without having to expend large sums on attorney's fees and (2) because automobile manufacturers are able to write off all expenses of defense as a
legitimate business expense, whereas you, the average consumer, obviously does not have that kind of economic staying power. Most of the Lemon Laws contain
similar fee shifting provisions.
You may also derive additional warranty rights from the Uniform Commercial Code; however, the Code does not allow you
in most states to recover your attorney fees and is also not as consumer friendly as the Magnuson-Moss Warranty Act or the various state lemon laws.
The narrative information on Magnuson-Moss, UCC and lemon laws on these pages is provided by Marshall Meyers, attorney.
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Uniform
Commercial Code Summary
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 Section2-601 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 then 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 to inspect 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.
The following is an example of a case of rejection: Mr. Zabriskie purchase a new 1966 Chevrolet Biscayne. After picking up the car on Friday evening,
while en route to his home 2.5 miles away, and within 7/10ths of a mile from the dealership, the car stalled and stalled again within 15 feet. Thereafter,
the car would only drive in low gear. The buyer rejected the vehicle and stopped payment on his check. The dealer contended that the buyer could not
reject the car because he had driven it around the block and that was his reasonable opportunity to inspect. The New Jersey Court said;
To the layman,
the complicated mechanisms of today's automobile are a complete mystery. To have the automobile inspected by someone with sufficient expertise to disassemble
the vehicle in order the discover latent defects before the contract is signed, is assuredly impossible and highly impractical. Consequently, the first
few miles of driving become even more significant to the excited new car buyer. This is the buyer's first reasonable opportunity to enjoy his new vehicle
to see if it conforms to what it was represented to be and whether he is getting what he bargained for. How long the buyer may drive the new car under
the guise of inspection of new goods is not an issue in the present case because 7/10th of a mile is clearly within the ambit of a reasonable opportunity
to inspect. Zabriskie Chevrolet, Inc. v. Smith, 240 A. 2d 195(1968)
It is suggested that Courts will tend to excuse use by consumers if possible.
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 nonconformity 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 always is assured that any noncomformities he does discover will be remedied.
What is a noncomformity substantially impairing the value of the vehicle?
- A noncomformity may include a number of relatively minor defects whose cumulative total adds up to a substantial impairment. This is the "Shake
Faith" Doctrine first stated in the Zabrisikie case. "For a majority of people the purchase of a new car is a major investment, rationalized
by the peace of mind that flows from its dependability and safety. Once their faith is shaken, the vehicle loses not only its real value in their eyes,
but becomes an instrument whose integrity is substantially impaired and whose operation is fraught with apprehension".
- A substantial noncomformity may include a failure or refusal to repair the goods under the warranty. In Durfee V. Rod Baxter Imports, the Minnesota
Court held that the Saab owner that was plagued by a series of of annoying minor defects and stalling, which were never repaired after a number of attempts,
could revoke, "if repairs are not successfully undertaken within a reasonable time", the consumer may elect to revoke.
- Substantial Non Conformity and Lemon Laws often define what may be considered a substantial impairment. These definitions have been successfully used
to flesh out the substantial impairment in the UCC.
Additional narrative information on Magnusson-Moss, UCC and lemon laws on these pages is provided by T. Michael Flinn, attorney.
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