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Alabama Lemon Law
Alabama
Code § 8-20A-1 through § 8-20A-6
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.
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