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Georgia Lemon Law
Official
Code of Georgia Annotated, §§10-1-780 to
792
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:
(1)
"Administrator" means the
administrator appointed pursuant to Code
Section 10-1-395.
(2)
"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.
(3)
"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.
(4)
"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.
(5)
"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.
(6)
"Express warranty" means a warranty
which is given by the manufacturer in
writing.
(7)
"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.
(8)
"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.
(9)
"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.
(10)
"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.
(11)
"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.
(12)
"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.
(13)
"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.
(14)
"Panel" means a new motor vehicle
arbitration panel as designated in Code
Sections 10-1-786 and 10-1-794.
(15)
"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.
(16)
"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.
(17)
"Reasonable number of attempts"
under the lemon law rights period means the
definition as provided in Code Section
10-1-784.
(18)
"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.
(19)
"Serious safety defect" means a
life-threatening malfunction or
nonconformity.
(20)
"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.
(21)
"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
(a)
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.
(b)
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.
(c)
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.
(d)
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.
(e)
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.
(f)
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.
(g)
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
(a)
(1)
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.
(2)
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.
(3)
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.
(4)
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
lien holder 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.
(b)
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.
(c)
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.
(d)
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
(a)
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.
(b)
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.
(c)
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.
(d)
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 ot
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