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Georgia
Lemon Law Statutes
GA Code 10-1-780
10-1-780
This article shall be known and may be cited as the "Motor
Vehicle Warranty Rights Act."
10-1-781
The General Assembly recognizes that a new motor vehicle is a
major consumer purchase and that a defective motor vehicle is
likely to create hardship for, or may cause injury to, the consumer.It
is the intent of the General Assembly to ensure that the consumer
is made aware of his or her rights under this article.In enacting
these comprehensive measures, it is the intent of the General
Assembly to create the proper blend of private and public remedies
necessary to enforce this article.
10-1-782
Unless the context clearly requires otherwise, the definitions
in this Code section apply throughout this article. As used in
this article, the term:
- "Administrator" means the administrator appointed
pursuant to Code Section 10-1-395.
- "Collateral charges" means those additional charges
to a consumer or lessor wholly incurred as a result of the acquisition
purchase of the motor vehicle. For the purposes of this article,
collateral charges include but are not limited to manufacturer
installed or dealer installed items or service charges, earned
finance charges incurred by a consumer in the case of a purchase,
and by the lessor in the case of a lease, sales tax, and title
charges.
- "Consumer" means any person who has entered into
an agreement or contract for the transfer, lease, or purchase
of a new motor vehicle primarily for personal, family, or household
purposes, regardless of how the documents characterize the transaction.
The term shall also mean and include any sole proprietorship,
partnership, or corporation which is a commercial owner or lessee
of no more than three new motor vehicles and which has ten or
fewer employees and a net income after taxes of $100,000.00 per
annum or less for federal income tax purposes. For the limited
purpose of enforcing the rights granted under this article, the
term "consumer" will also include any person or entity
regularly engaged in the business of leasing new motor vehicles
to consumers.
- "Court" means the superior court in the county
where the consumer resides, except if the consumer does not reside
in this state, then the superior court in the county where an
arbitration hearing or determination was conducted or made pursuant
to this article.
- "Distributor" means a person or entity holding
a distribution agreement with a manufacturer for the distribution
of new motor vehicles to new motor vehicle dealers or who is
licensed or otherwise authorized to utilize trademarks or service
marks associated with one or more makes of motor vehicles in
connection with such distribution, who is not responsible to
the manufacturer for honoring the manufacturer's express warranty,
and who does not issue an express warranty to consumers.
- "Express warranty" means a warranty which is given
by the manufacturer in writing.
- "Incidental costs" means any reasonable expenses
incurred by the consumer in connection with the repair of the
new motor vehicle, including but not limited to payments to dealers
for attempted repairs of nonconformities, towing charges, and
the costs of obtaining alternative transportation.
- "Informal dispute resolution settlement mechanism" means
any procedure established, employed, utilized, or run by a manufacturer
for the purpose of resolving disputes with consumers regarding
any warranty.
- "Lemon law rights period" means the period ending
one year after the date of the original delivery of a new motor
vehicle to a consumer or the first 12,000 miles of operation
after delivery of a new motor vehicle to a consumer, whichever
occurs first.
- "Manufacturer" means any person engaged in the
business of constructing or assembling new motor vehicles or
engaged in the business of importing new motor vehicles into
the United States for the purpose of selling or distributing
new motor vehicles to new motor vehicle dealers.
- "New motor vehicle" means any self-propelled vehicle,
primarily designed for the transportation of persons or property
over the public highways, that was leased or purchased in this
state or registered by the original consumer in this state and
on which the original motor vehicle title was issued to the lessor
or purchaser without having been previously issued to any person
other than the selling dealer. If the motor vehicle is a motor
home, this article shall apply to the self-propelled vehicle
and chassis, but does not include those portions of the vehicle
designated, used, or maintained primarily as a mobile dwelling,
office, or commercial space. The term "new motor vehicle" does
not include motorcycles or trucks with 10,000 pounds or more
gross vehicle weight rating. The term "new motor vehicle" shall
not include any vehicle on which the title and other transfer
documents show a used, rather than new, vehicle. The term "new
motor vehicle" includes a demonstrator or lease-purchase,
as long as a manufacturer's warranty was issued as a condition
of sale, unless specifically excluded under this definition.
- "New motor vehicle dealer" means a person who
holds a dealer agreement with a manufacturer for the sale of
new motor vehicles, who is engaged in the business of purchasing,
selling, servicing, exchanging, leasing, distributing, or dealing
in new motor vehicles, or who is licensed or otherwise authorized
to utilize trademarks or service marks associated with one or
more makes of motor vehicles in connection with such sales. For
the purposes of subsection (d) of Code Section 10-1-784, concerning
private civil actions for violations of this article, the term "new
motor vehicle dealer" shall include any person or entity
regularly engaged in the business of leasing new motor vehicles
to consumers.
- "Nonconformity" means a defect, serious safety
defect, or condition that substantially impairs the use, value,
or safety of a new motor vehicle to the consumer, but does not
include a defect or condition that is the result of abuse, neglect,
or unauthorized modification or alteration of the new motor vehicle.
- "Panel" means a new motor vehicle arbitration
panel as designated in Code Sections 10-1-786 and 10-1-794.
- "Purchase price" means in the case of a sale of
a new motor vehicle to a consumer the cash price of the new motor
vehicle appearing in the sales agreement, contract, or leasing
agreement, including any reasonable allowance for a trade-in
vehicle. In determining whether the trade-in allowance was reasonable,
the panel may take into account whether the purchase price of
the vehicle was at fair market value or not and make appropriate
adjustments to ensure that the consumer is made whole but not
unjustly enriched. In the case of a consumer lease of a new motor
vehicle, "purchase price" means the cash price paid
by the lessor to a dealer or distributor to purchase the new
motor vehicle.
- "Reasonable offset for use" means an amount directly
attributable to use by the consumer before the consumer requests
repurchase or replacement by the manufacturer pursuant to Code
Section 10-1-784. The reasonable offset for use shall be computed
by the number of miles that the vehicle traveled before the consumer's
request of repurchase or replacement multiplied by the purchase
price and divided by 100,000.
- "Reasonable number of attempts" under the lemon
law rights period means the definition as provided in Code Section
10-1-784.
- "Replacement motor vehicle" means a new 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.
- "Serious safety defect" means a life-threatening
malfunction or nonconformity.
- "Substantially impair" means to render the new
motor vehicle unreliable, or unsafe for ordinary use, or to diminish
the resale value of the new motor vehicle more than a meaningful
amount below the average resale value for comparable motor vehicles.
- "Warranty" means any express written warranty
of the manufacturer but shall not include any extended coverage
purchased by the consumer as a separate item.
10-1-783
- Each new motor vehicle dealer shall provide an owner's
manual which shall be published by the manufacturer and include
a list
of the addresses and phone numbers at which consumers may, at
no cost, contact the manufacturer's customer service personnel
who are authorized to direct activities regarding repair of the
consumer's vehicle.
- At the time of purchase, the new motor vehicle dealer shall
provide the consumer with a written statement that explains the
consumer's rights under this article. The statement shall be
written by the administrator and shall contain information regarding
the procedures and remedies under this article.
- For the purposes of this article, if a new motor vehicle
has a nonconformity and the consumer reports the nonconformity
during the lemon law rights period to the manufacturer, its agent,
or the new motor vehicle dealer who sold the new motor vehicle,
the vehicle shall be repaired at the manufacturer's expense to
correct the nonconformity regardless of whether such repairs
are made after the expiration of the lemon law rights period.
If in any subsequent proceeding under this article it is determined
that the consumer's repair did not qualify under this article,
and the manufacturer was not otherwise obligated to repair the
vehicle, the consumer shall be liable to the manufacturer for
the costs of the repair.
- Upon request from the consumer, the manufacturer or new
motor
vehicle dealer shall provide a copy of any report or computer
reading compiled by the manufacturer's field or zone representative
regarding inspection, diagnosis, or test-drive of the consumer's
new motor vehicle.
- Each time the consumer's vehicle is returned from being
diagnosed or repaired under the lemon law rights period or under
a warranty,
the new motor vehicle dealer shall provide to the consumer a
fully itemized, legible statement or repair order indicating
any diagnosis made, and all work performed on the vehicle, including
but not limited to a general description of the problem reported
by the consumer or an identification of the defect or condition,
parts and labor, the date and the odometer reading when the vehicle
was submitted for repair, and the date when the vehicle was made
available to the consumer.
- No manufacturer, its agent, or new motor vehicle dealer
may
refuse to diagnose or repair any nonconformity for the purpose
of avoiding liability under this article.
- The lemon law rights period and 30 day out-of-service period
shall be extended by any time that repair services are not available
to the consumer as a direct result of a strike, war, invasion,
fire, flood, or other natural disaster.
10-1-784
- If the manufacturer, its agent, or the new motor vehicle
dealer is unable to repair or correct any nonconformity in a
new motor vehicle after a reasonable number of attempts, the
consumer shall notify the manufacturer by certified mail, return
receipt requested, at the address provided by the manufacturer.
The manufacturer shall, within seven days after receipt of such
notification, notify the consumer of a reasonably accessible
repair facility and after delivery of the vehicle to the designated
repair facility by the consumer, the manufacturer shall, within
14 days, conform the motor vehicle to the warranty. If the manufacturer
is unable to repair or correct any nonconformity of the new motor
vehicle, the manufacturer shall, within 30 days of the consumer's
written request, by certified mail, return receipt requested,
at the option of the consumer, or the lessor in the event of
a leased motor vehicle, replace or repurchase the new motor vehicle.
If the manufacturer fails to notify the consumer of a reasonably
accessible repair facility or perform the repairs within the
time periods prescribed in this subsection, the requirement that
the manufacturer be given a final attempt to cure the nonconformity
does not apply.
- If a lessor elects replacement, the contractual obligation,
except for those terms of the agreement which identify the
vehicle, between the lessor and the consumer shall not be altered.
If a lessor elects repurchase, it shall return to the consumer
a sum equal to the allowance for any trade-in, and down payment
or initial balloon payment, made by the consumer, and all future
obligations of the consumer to the lessor shall cease. In the
event a lessor elects to require the manufacturer to repurchase
a leased vehicle, the consumer will remain liable for all lease
obligations arising prior to the date that the lessor elects
such replacement, but will have no future obligations under
the lease, and will be liable for no penalty for early termination.
A lessor must elect either a repurchase or replacement within
30 days of receiving written notice from the consumer that
such an election is desired; if the lessor fails to make such
an election within the 30 days, the consumer may make the election
to repurchase or replace and the lessor shall be bound by the
consumer's election.
- The replacement motor vehicle shall be identical or reasonably
equivalent to the motor vehicle to be replaced. Such replacement
shall include payment of all collateral charges which the consumer
or lessor will incur a second time which would not have been
incurred again except for the replacement, and any and all
incidental costs incurred by the consumer or lessor. In the
case of a replacement motor vehicle, the reasonable offset
for use shall be paid by the consumer to the manufacturer.
Compensation for a reasonable offset for use shall be paid
by the consumer to the manufacturer in the event that a replacement
motor vehicle is elected. In the case of a lease where the
consumer either has no option to purchase the motor vehicle
at the end of the lease term, or the consumer has an option
to purchase the motor vehicle at the end of the lease term
but does not exercise the option, the lessor shall refund to
the consumer the lesser of (A) the offset for use paid by the
consumer to the manufacturer at the time of delivery of the
replacement vehicle, or (B) the gain realized by the lessor
by reason of the difference, if any, between the anticipated
residual value of the original motor vehicle as determined
at the inception of the lease and the realized value of the
replacement motor vehicle at the end of the lease. If the lessor
does not realize any gain from the disposition of the replacement
vehicle, there will be no refund due to the consumer from the
lessor. The foregoing rules apply only to leases where the
consumer performs all of the consumer's obligations under the
lease agreement and the lease terminates upon the scheduled
expiration of the lease term as set forth in the lease agreement
or any mutually agreed upon extension of the lease term. The
administrator may provide by rule under Chapter 13 of Title
50, the "Georgia Administrative Procedure Act," for
determining the manner of calculating the amount of any further
charges or refunds that may apply in the case of leases terminated
prematurely either by the voluntary election of the parties,
or involuntarily by the lessor in the event of the lessee's
default, the loss or destruction of the vehicle, or for any
other reason.
- When repurchasing the new motor vehicle, the manufacturer
shall refund to the consumer all collateral charges and incidental
costs. In the event of a repurchase, purchase price refunds
shall be made to the consumer and lienholder of record, if
any, as his or her interests may appear, less a reasonable
offset for use. In the event of a lease, purchase price refunds
shall be made to the lessor, less a reasonable offset for use.
If it is determined that the lessee is entitled to a refund,
the consumer's lease agreement with the lessor shall be terminated
upon payment of the refund and no penalty for early termination
shall be assessed.
- A reasonable number of attempts shall be presumed as a
matter of law to have been undertaken by the manufacturer, its
agent,
or the new motor vehicle dealer to repair or correct any nonconformity
of a new motor vehicle, if: (1) a serious safety defect in the
braking or steering system has been subject to repair at least
once during the lemon law rights period and has not been corrected;
(2) during any period of 24 months or less, or during any period
in which the vehicle has been driven 24,000 miles or less, whichever
occurs first, any other serious safety defect has been subject
to repair two or more times, at least one of which is during
the lemon law rights period, and the nonconformity continues
to exist; (3) during any period of 24 months or less or during
any period in which the vehicle has been driven 24,000 miles
or less, whichever occurs first, the same nonconformity has been
subject to repair, three or more times, at least one of which
is during the lemon law rights period, and the nonconformity
continues to exist; or (4) during any period of 24 months or
less or during any period in which the vehicle has been driven
24,000 miles or less, whichever occurs first, the vehicle is
out of service by reason of repair of one or more nonconformities
for a cumulative total of 30 calendar days, at least 15 of them
during the lemon law rights period.If less than 15 days remain
under the lemon law rights period when the new motor vehicle
is first brought in for diagnosis or repair, the lemon law rights
period as regards the problem to be diagnosed or repaired shall
be extended for a period of 90 days.
- For purposes of this article, the lemon law rights period
regarding nonconformities on all new motor vehicles sold in this
state shall be for 12 months following the purchase of the vehicle
or for 12,000 miles following the purchase of the vehicle, whichever
occurs first.
- This article shall not create and shall not give rise to
any cause of action against and shall not impose any liability
upon any new motor vehicle dealer or distributor except as provided
in this Code section. No new motor vehicle dealer or distributor
shall be held liable by the manufacturer or by the consumer for
any collateral charges, damages, costs, purchase price refunds,
or vehicle replacements, and manufacturers and consumers shall
not have a cause of action against a new motor vehicle dealer
or distributor under this article.A violation of any duty or
responsibility imposed upon a new motor vehicle dealer or distributor
under this article shall constitute a per se violation of Code
Section 10-1-393; provided, however, that enforcement against
such violations shall be by public enforcement by the administrator
and shall not be enforceable through private enforcement under
the provisions of Code Section 10-1-399, except that a knowing
violation of Code Section 10-1-785 shall be enforceable through
private enforcement under the provisions of Code Section 10-1-399.The
provisions of Code Sections 11-2-602 through 11-2-609 shall not
apply to the sale of a new motor vehicle if the consumer seeks
to use the remedies provided for in this article.A consumer shall
be deemed to have used the remedies provided for in this article
when he or she completes, signs, and returns forms prescribed
by the administrator for the submission of disputes to an informal
dispute resolution settlement mechanism or to a panel, whichever
occurs first. Such forms shall contain a conspicuous statement
clearly advising the consumer of the rights the consumer is waiving
by participating in the procedures under this article. A consumer
may not use the remedies provided for in this article if the
consumer has already sought to use the remedies provided for
in Code Sections 11-2-602 through 11-2-609, unless the nonconformity
did not exist or was not known at the time of using the remedies
provided for in such Code sections. Manufacturers and consumers
may not make new motor vehicle dealers or distributors parties
to arbitration panel proceedings or any other proceedings under
this article. The provisions of this article shall not impair
any obligation under any manufacturer-dealer franchise agreement
or manufacturer-distributor agreement; provided, however, that
any provision of any manufacturer-dealer franchise agreement
or manufacturer-distributor agreement which attempts to shift
any duty, obligation, responsibility, or liability imposed upon
a manufacturer by this article to a new motor vehicle dealer
or distributor, either directly or indirectly, shall be void
and unenforceable, except for any liability imposed upon a manufacturer
by this article which is directly caused by the gross negligence
of the dealer in attempting to repair the motor vehicle after
such gross negligence has been determined by the hearing officer,
as provided in Article 22 of this chapter, the "Georgia
Motor Vehicle Franchise Practices Act."
10-1-785
- No manufacturer or other transferor shall knowingly resell,
either at wholesale or retail, lease, transfer a title, or otherwise
transfer, except to sell for scrap, any motor vehicle which has
been determined to have a serious safety defect by reason of
a determination, adjudication, or settlement decision pursuant
to this article or similar statute of any other state, unless
the serious safety defect has been corrected; the manufacturer
warrants in writing upon the resale, transfer, or lease that
the defect has been corrected; and the transferor provides the
manufacturer's written warranty under this Code section to the
consumer.
- After replacement or repurchase pursuant to this article
of a motor vehicle with a nonconformity, other than a serious
safety defect, which has not been corrected, the manufacturer
shall notify the administrator, by certified mail, upon receipt
of the manufacturer's motor vehicle.If such nonconformity is
corrected, the manufacturer shall notify the administrator in
the same manner of such correction.If the two events described
in this subsection occur within 30 days of one another, both
notices may be combined into the same notice.
- Upon the resale, either at wholesale or retail, lease,
transfer of title, or other transfer of a motor vehicle with
a nonconformity,
other than a serious safety defect, which has not been corrected
and which was previously returned after a final determination,
adjudication, or settlement under this article or under a similar
statute of any other state, the manufacturer shall execute and
deliver to the transferee before transfer to a consumer an instrument
in writing setting forth information identifying the nonconformity
in a manner to be specified by the administrator; the transferor
shall deliver the instrument to the consumer before transfer.
- Upon the resale, either at wholesale or retail, lease,
transfer of title, or other transfer of a motor vehicle found
to have
a nonconformity under this article which has been corrected,
the manufacturer shall warrant in writing on forms prescribed
by the administrator upon the transfer that the nonconformity
has been corrected, and the manufacturer, its agent, the new
motor vehicle dealer, or other transferor shall execute and deliver
to the transferee before transfer an instrument in writing setting
forth information identifying the nonconformity and indicating
in a manner to be specified by the administrator that it has
been corrected and providing an express manufacturer's warranty
on the vehicle regarding the nonconformity for 12 months or 12,000
miles, whichever occurs first.
- For purposes of this Code section, the term "settlement" includes
an agreement entered into between the manufacturer and the consumer
that occurs after the dispute has been submitted to an informal
dispute resolution settlement mechanism or has been deemed eligible
by the administrator for arbitration before a panel.
10-1-786
- As provided in Code Section 10-1-794, the administrator
may establish a new motor vehicle arbitration panel or panels
to
settle disputes between consumers and manufacturers as provided
in this article. The panels shall not be affiliated with any
manufacturer or new motor vehicle dealer and shall have available
the services of persons with automotive technical expertise to
assist in resolving disputes under this article.
- The administrator may adopt rules under Chapter 13 of Title
50, the "Georgia Administrative Procedure Act," for
the uniform conduct of arbitrations by panels and by informal
dispute resolution settlement mechanisms under this article,
which rules may include, but not be limited to, the following:
- Procedures regarding presentation of oral and written testimony,
witnesses and evidence relevant to the dispute, cross-examination
of witnesses, and representation by counsel. The administrator
shall provide by rule for oral hearings, when appropriate,
in panel or informal dispute resolution settlement mechanism
proceedings;
- Procedures for production of records and documents requested
by a party which the panel finds are reasonably related to
the dispute;
- Procedures for issuance of subpoenas on behalf of the panel
by the administrator, which shall be enforced by the superior
courts as in Code Section 10-1-398;
- Procedures regarding written affidavits from employees
and agents of a dealer, a manufacturer, any party, or from
other potential witnesses and the consideration of such affidavits
by a panel; and
- Records of panel proceedings and hearings shall be open
to the public.
- A consumer shall exhaust any certified informal dispute
resolution settlement procedure under Code Section 10-1-793 and
the new
motor vehicle arbitration panel remedy before filing any superior
court action pursuant to Code Section 10-1-788.
- The administrator may adopt rules under Chapter 13 of Title
50, the "Georgia Administrative Procedure Act," to
implement this article. Such rules may include uniform standards
by which the panel and any informal dispute resolution settlement
mechanism under Code Section 10-1-793 shall make determinations
under this article, including but not limited to rules which
may provide for:
- Determining that a nonconformity exists;
- Determining that a reasonable number of attempts to repair
a nonconformity have been undertaken; or
- Determining that a manufacturer has failed to comply with
Code Section 10-1-784.
10-1-787
- A consumer shall request arbitration under this article
by submitting a request in writing to the administrator.Except
as
otherwise provided in this article, disputes under the lemon
law rights period shall be eligible for arbitration.The administrator
shall make a reasonable determination of the eligibility of the
request for arbitration and may provide necessary information
to the consumer regarding the consumer's rights and remedies
under this article.The administrator may adopt rules under Chapter
13 of Title 50, the "Georgia Administrative Procedure Act," regarding
the eligibility of requests for arbitration. The administrator
shall assign a dispute he deems eligible to a panel.
- Manufacturers shall submit to arbitration under this article
if the consumer's dispute is deemed eligible for arbitration
by the administrator and by the panel.
- The new motor vehicle arbitration panel may reject for
arbitration any dispute that it determines to be frivolous, fraudulent,
filed
in bad faith, res judicata, or beyond its authority.Any dispute
deemed by the panel to be ineligible for arbitration due to insufficient
evidence may be reconsidered by the panel upon the submission
of other information or documents regarding the dispute that
would allegedly qualify for relief under this article.Following
a second review, the panel may reject the dispute for arbitration
if evidence is still clearly insufficient to qualify the dispute
for relief under this article.The administrator may adopt rules
under Chapter 13 of Title 50, the "Georgia Administrative
Procedure Act," governing rejection of disputes by a panel.A
decision to reject any dispute for arbitration shall be sent
by certified mail, return receipt requested, to the consumer
and the manufacturer.
- An arbitration panel shall award the remedies under Code
Section 10-1-784 if it finds a nonconformity and that a reasonable
number of attempts have been undertaken to correct the nonconformity.The
panel may in its discretion award attorney's fees and technical
or expert witness costs to a consumer.
- It is an affirmative defense to any claim under this article
that:
- the alleged nonconformity does not substantially impair
the use, value, or safety of the new motor vehicle to the consumer;
or
- the alleged nonconformity is the result of abuse, neglect,
or unauthorized modifications or alterations of the new motor
vehicle.
- The panel's decision shall be sent by certified mail, return
receipt requested, to the consumer.The consumer must reject the
decision in writing by certified mail, return receipt requested,
addressed to the panel within 30 days of receipt of the panel's
decision, or he or she shall be deemed to have accepted the panel's
decision.The panel shall immediately notify the manufacturer
by certified mail, return receipt requested, whether the consumer
has accepted, rejected, or has been deemed to have accepted.
- Upon receipt of the panel's notice, the manufacturer shall
have 40 calendar days to comply with the arbitration panel decision
or to file a petition of appeal in superior court.At the time
the petition of appeal is filed, the manufacturer shall send,
by certified mail, a conformed copy of such petition to the administrator.
- If, at the end of the 40 calendar day period, neither compliance
with nor a petition to appeal the panel's decision has occurred,
the administrator may impose a fine of up to $1,000.00 per day
until compliance occurs or until a maximum penalty of double
the value of the vehicle or $100,000.00, whichever is less, accrues.If
the manufacturer can provide clear and convincing evidence either
that any delay or failure was beyond its control, or that any
delay was acceptable to the consumer, the fine shall not be imposed.If
the manufacturer fails to provide such evidence or fails to pay
the fine, the administrator may initiate proceedings against
the manufacturer for failure to pay any accrued fine and may
initiate proceedings on behalf of the state to require specific
performance of an arbitration decision under this article.The
administrator shall deposit any fines in the state treasury.
10-1-788
- After the manufacturer has received notice of the consumer's
acceptance or rejection, the consumer or the manufacturer shall
have 40 days to request a trial de novo of the arbitration decision
in superior court.
- If the manufacturer appeals, the court may require the manufacturer
to post security for the consumer's financial loss due to the
passage of time for review.
- If the manufacturer appeals and the consumer prevails, recovery
may include the monetary value of the award, collateral charges,
continuing incidental costs, if any, and attorney's fees and
costs.
10-1-789
- Effective July 1, 1990, a fee of $3.00 shall be collected
by the new motor vehicle dealer from the consumer at completion
of a sale or a lease of each new motor vehicle.The fee shall
be forwarded quarterly to the Office of Planning and Budget for
deposit in the new motor vehicle arbitration account created
in the state treasury. The first quarterly payments are due and
payable on October 1, 1990, and shall be mailed by the dealer
not later than October 10; thereafter, all payments are due and
payable the first of the month in each quarter and shall be mailed
by the dealer not later than the tenth day of such month.Moneys
in the account shall be used for the purposes of this article,
subject to appropriation. Funds in the new motor vehicle arbitration
account shall be transferred to the general treasury at the end
of each fiscal year. One dollar of each fee collected shall be
retained by the dealer to cover administrative costs.
- At the end of each fiscal year, the administrator shall prepare
a report listing the annual revenue generated and the expenses
incurred in implementing and operating the arbitration program
under this chapter.The Office of Planning and Budget shall provide
the administrator with the figures regarding revenue generated.
- It is the intent of the General Assembly that any consumer
who, on or after July 1, 1990, but prior to January 1, 1991,
pays or should have paid the fee designated in this Code section
shall be entitled to utilize the remedies provided in Code Sections
10-1-786, 10-1-787, and 10-1-788 in addition to any other remedies
which exist in law or in equity regarding defective automobiles,
notwithstanding the effective dates of this article or the effective
dates of any provisions of this article.
10-1-790
A violation of this article, or any failure of any person, including
a manufacturer or its agents, to honor any express warranty,
automotive or otherwise, issued by that person, regardless of
whether or not such warranty was purchased as a separate item
by the consumer and regardless of whether or not any dispute
under the warranty is deemed eligible for arbitration under this
article, shall constitute an unfair and deceptive act or practice
and a consumer transaction under Part 2 of Article 15 of this
chapter.In determining whether there is an unfair and deceptive
act or practice under this Code section, the principles in this
article regarding a reasonable number of attempts may serve as
guidelines. All public and private remedies provided under Part
2 of Article 15 of this chapter shall be available to enforce
this article, subject to the affirmative defenses provided in
Code Section 10-1-787, and except as provided in Code Section
10-1-784.
10-1-791
Any agreement entered into by a consumer for the purchase of
a new motor vehicle that waives, limits, or disclaims the rights
set forth in this article shall be void as contrary to public
policy. Said rights shall extend to a subsequent transferee of
a new motor vehicle.
10-1-792
Nothing in this article shall limit anyone from pursuing other
rights or remedies under any other law, except as otherwise provided
in this article.
10-1-793
- If a manufacturer has established an informal dispute resolution
settlement mechanism in this state and is operating in accordance
with rules promulgated by the administrator under this article,
and the administrator has certified that the informal dispute
resolution settlement procedure complies with and is operating
in accordance with such rules, a consumer must submit a dispute
under this article to the informal dispute resolution settlement
procedure before submitting it to the new motor vehicle arbitration
panel.The administrator may adopt rules consistent with this
article under Chapter 13 of Title 50, the "Georgia Administrative
Procedure Act," regarding the informal dispute resolution
settlement mechanisms, including but not limited to the composition,
function, training, procedures, and conduct of informal dispute
resolution settlement mechanisms and including eligibility requirements
and procedures for appeals to a panel.Such rules must be complied
with prior to certification.
- Informal dispute resolution settlement mechanisms shall
take into account the principles contained in this article and
in
any rules promulgated thereunder and shall take into account
all legal and equitable factors germane to a fair and just decision.A
decision shall include any remedies appropriate under the circumstances,
including repair, replacement, refund, reimbursement for collateral
and incidental charges, and compensation for loss of value.For
purposes of this Code section, the phrase: "Take into account
the principles contained in this article" means to be aware
of the provisions of this article, to understand how they might
apply to the circumstances of the particular dispute, and to
apply them if it is appropriate and fair to both parties to do
so.
- At any time the administrator has reason to believe that
a certified informal dispute resolution settlement mechanism
is not acting in conformity with this article or with rules promulgated
thereunder, he may initiate proceedings under Chapter 13 of Title
50, the "Georgia Administrative Procedure Act," to
revoke the certification of the informal dispute resolution settlement
mechanism.An informal dispute resolution settlement mechanism
shall keep such records as prescribed by the administrator in
rules under this article and shall submit without notice to inspection
and copying of these records by the administrator's employees.Expenses
of any copying shall be borne by the informal dispute resolution
settlement mechanism.
10-1-794
The new motor vehicle arbitration panel or panels shall begin
operating on January 2, 1991.The administrator in his discretion
may establish and operate the panel or panels under any of the
following procedures, provided that disputes filed during the
same time period shall not be handled under different procedures:
(1) contracting with private or public entities to conduct arbitrations
under the procedures and standards in this article, (2) appointing
private citizens to serve on a panel or panels, or (3) hiring
temporary or permanent employees to serve on the panel or panels.
Each new motor vehicle arbitration panel shall consist of three
members, none of whom may be directly or indirectly involved
in the manufacture, distribution, sale, or service of any motor
vehicle or employed by or related to the consumer.All panel members
shall have a degree from an American Bar Association Accredited
School of Law or shall have at least two years' experience in
professional arbitration.Any private citizens appointed by the
administrator to serve as panel members shall be reimbursed for
expenses as are members of the General Assembly and shall be
compensated at an hourly rate as determined by the administrator.
Temporary or permanent employees hired to serve on the panels
shall be in the unclassified service and may serve on a full
or part-time basis at a salary determined by the administrator.All
administrative staff hired by the administrator to aid in the
administration of this article shall be in the unclassified service
and compensated at a salary determined by the administrator.
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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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