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Idaho Lemon Law
Idaho
Code, 48-901 to 48-913
48-901
Definitions.
For
purposes of this chapter, the following terms
have the following meanings:
(1)
"Consumer" means the purchaser or
lessee, other than for purposes of resale or
sublease, of a new motor vehicle used for
personal business use, personal, family or
household purposes, or a person to whom the
new motor vehicle is transferred for the same
purposes during the duration of an express
warranty applicable to the motor vehicle.
(2)
"Early termination costs" means
expenses and obligations incurred by a motor
vehicle lessor as a result of an early
termination of a written lease agreement and
surrender of a motor vehicle to a
manufacturer under section 48-904, Idaho
Code, including penalties for prepayment of
finance arrangements.
(3)
"Informal dispute settlement
mechanism" means an arbitration process
or procedure by which the manufacturer
attempts to resolve disputes with consumers
regarding motor vehicle nonconformities and
repairs that arise during the vehicle's
warranty period.
(4)
"Lease" means a contract in the
form of a lease or bailment for the use of
personal property by a natural person for a
period of time exceeding four (4) months,
used for personal business use, personal,
family, or household purposes, whether or not
the lessee has the option to purchase or
otherwise become the owner of the property at
the expiration of the lease.
(5)
"Manufacturer" means a person
engaged in the business of manufacturing,
assembling or distributing motor vehicles,
who will, under normal business conditions
during the year, manufacture, assemble or
distribute to dealers at least ten (10) new
motor vehicles.
(6)
"Manufacturer's express warranty"
and "warranty" mean the written
warranty of the manufacturer of a new motor
vehicle of its condition and fitness for use,
including any terms or conditions precedent
to the enforcement of obligations under that
warranty.
(7)
"Motor vehicle" means a motor
vehicle as defined in chapter 1, title 49,
Idaho Code, which is sold or licensed in this
state but does not include
(a)
Motorcycle or farm tractor as defined in
sections 49-107 and 49-114, Idaho Code; or
(b)
Trailer as defined in section 49-121, Idaho
Code; or
(c)
Any motor vehicle with a gross laden weight
over twelve thousand (12,000) pounds.
(8)
"Motor vehicle lessor" means a
person who holds title to a motor vehicle
leased to a lessee under a written lease
agreement or who holds the lessor's rights
under such agreement.
48-902
Manufacturer's duty to repair - Service and
Repair Facilities.
(1)
If a new motor vehicle does not conform to
all applicable express warranties, and the
consumer reports the nonconformity to the
manufacturer, its agent, or its authorized
dealer during the term of the applicable
express warranties or during the period of
two (2) years following the date of original
delivery of the new motor vehicle to a
consumer, or during the period ending with
the date on which the mileage on the motor
vehicle reaches twenty-four thousand (24,000)
miles, whichever is the earliest date, the
manufacturer, its agent, or its authorized
dealer shall make the repairs necessary to
conform the vehicle to the applicable express
warranties, notwithstanding the fact that the
repairs are made after the expiration of the
warranty term or the two (2) year period.
(2)
Every manufacturer of motor vehicles sold and
for which the manufacturer has made an
express warranty shall maintain sufficient
service and repair facilities reasonably
close to all areas in which its motor
vehicles are sold to carry out the terms of
the warranties or designate and authorize as
service and repair facilities independent
repair or service facilities reasonably close
to all areas in which its motor vehicles are
sold to carry out the terms of the
warranties. As a means of complying with the
provisions of this subsection, a manufacturer
may, in a town or city where there is not a
franchise market representative, enter into
warranty service contracts with independent
service and repair facilities.
48-903
Manufacturer's duty to refund or replace.
(1)
If the manufacturer, its agents, or its
authorized dealers are unable to conform the
new motor vehicle to any applicable express
warranty by repairing or correcting any
defect or condition which impairs the use or
market value of the motor vehicle to the
consumer after a reasonable number of
attempts, the manufacturer shall either
replace the new motor vehicle with a
comparable motor vehicle or accept return of
the vehicle from the consumer and refund to
the consumer the amount the consumer paid for
the vehicle, inclusive of the value of any
trade-in, not to exceed one hundred five
percent (105%) of the manufacturer's
suggested retail price of the motor vehicle.
The manufacturer's suggested retail price
shall include all manufacturer installed
options. The one hundred five percent (105%)
cap shall include the cost of any options or
other modifications arranged, installed, or
made by the manufacturer's agent, or its
authorized dealer within thirty (30) days
after the date of original delivery. The
manufacturer shall refund to the consumer all
other charges including, but not limited to,
sales or excise tax, license fees and
registration fees, reimbursement for towing
and rental vehicle expenses incurred by the
consumer as a result of the vehicle being out
of service for warranty repair. A reasonable
allowance for the consumer's use of the
vehicle shall be deducted from the refund to
the consumer not to exceed the number of
miles attributable to the consumer up to the
date of the arbitration hearing multiplied by
the purchase price of the vehicle and divided
by one hundred twenty thousand (120,000). If
the manufacturer offers a replacement vehicle
under this section, the consumer has the
option of rejecting the replacement vehicle
and requiring the manufacturer to provide a
refund. Refunds must be made to the consumer,
and lien holder, if any, as their interests
appear on the records of the division of
motor vehicles of the Idaho transportation
department. A manufacturer must give to the
consumer an itemized statement listing each
of the amounts refunded under this section.
If the amount of sales or excise tax refunded
is not separately stated, or if the
manufacturer does not apply for a refund of
the tax within one (1) year of the return of
the motor vehicle, the state tax commission
may refund the tax, as determined under
subsection (8) of this section, directly to
the consumer and lien holder, if any, as
their interests appear on the records of the
division of motor vehicles. It is an
affirmative defense to any claim under this
chapter
(a)
that an alleged nonconformity does not impair
the use or market value, or
(b)
that a nonconformity is the result of abuse,
neglect, or unauthorized modifications or
alterations of a motor vehicle by anyone
other than the manufacturer, its agent or its
authorized dealer.
(2)
It is presumed that a reasonable number of
attempts have been undertaken to conform a
new motor vehicle to the applicable express
warranties, if
(a)
the same nonconformity has been subject to
repair four (4) or more times by the
manufacturer, its agents, or its authorized
dealers within the applicable express
warranty term or during the period of two (2)
years following the date of original delivery
of the new motor vehicle to a consumer or
during the period ending with the date on
which the mileage on the motor vehicle
reaches twenty-four thousand (24,000) miles,
whichever is the earliest date, but the
nonconformity continues to exist. However,
the manufacturer shall have at least one (1)
opportunity to attempt to repair the vehicle
before it is presumed a reasonable number of
attempts have been undertaken to conform the
vehicle to the applicable express warranty;
or
(b)
the vehicle is out of service by reason of
repair for a cumulative total of thirty (30)
or more business days during the term or
during the period, whichever is the earlier
date.
(3)
If the nonconformity results in a complete
failure of the braking or steering system of
the new motor vehicle and is likely to cause
death or serious bodily injury if the vehicle
is driven, it is presumed that a reasonable
number of attempts have been undertaken to
conform the vehicle to the applicable express
warranties if the nonconformity has been
subject to repair at least once by the
manufacturer, its agents, or its authorized
dealers within the applicable express
warranty term or during the period of two (2)
years following the date of original delivery
of the new motor vehicle to a consumer or
during the period ending with the date on
which the mileage on the motor vehicle
reaches twenty-four thousand (24,000) miles,
whichever is the earliest date, and the
nonconformity continues to exist. However,
the manufacturer shall have at least one (1)
opportunity to attempt to repair the vehicle
before it is presumed a reasonable number of
attempts have been undertaken to conform the
vehicle to the applicable express warranty.
(4)
The term of an applicable express warranty,
the two (2) year period and the thirty (30)
day period shall be extended by any period of
time during which repair services are not
available to the consumer because of a war,
invasion, strike, or fire, flood, or other
natural disaster.
(5)
The presumption contained in subsection (2)
of this section applies against a
manufacturer only if the manufacturer, its
agent, or its authorized dealer has received
prior written notification from or on behalf
of the consumer at least once and an
opportunity to cure the defect alleged. If
the notification is received by the
manufacturer's agent or authorized dealer,
the agent or dealer must forward it to the
manufacturer by certified mail, return
receipt requested. However, if the
manufacturer is not notified either by the
consumer or the manufacturer's agent or
authorized dealer, then the manufacturer
shall have at least one (1) opportunity to
cure the alleged defect.
(6)
The expiration of the time periods set forth
in subsection (2) of this section does not
bar a consumer from receiving a refund or
replacement vehicle under subsection (1) of
this section if the reasonable number of
attempts to correct the nonconformity causing
the substantial impairment occur within three
(3) years following the date of original
delivery of the new motor vehicle to a
consumer, provided the consumer first
reported the nonconformity to the
manufacturer, its agent, or its authorized
dealer during the term of the applicable
express warranty.
(7)
The manufacturer shall provide to its agent
or authorized dealer and, at the time of
purchase or lease, the manufacturer's agent
or authorized dealer shall provide a written
statement to the consumer in the new motor
vehicle warranty guide, in 10-point all
capital type, in substantially the following
form:
"IMPORTANT
IF THIS VEHICLE IS DEFECTIVE, YOU MAY BE
ENTITLED UNDER THE STATE'S LEMON LAW TO
REPLACEMENT OF IT OR A REFUND OF ITS PURCHASE
PRICE OR YOUR LEASE PAYMENTS. HOWEVER, TO BE
ENTITLED TO REFUND OR REPLACEMENT, YOU MUST
FIRST NOTIFY THE MANUFACTURER, ITS AGENT, OR
ITS AUTHORIZED DEALER OF THE PROBLEM IN
WRITING AND GIVE THEM AN OPPORTUNITY TO
REPAIR THE VEHICLE. YOU ALSO HAVE A RIGHT TO
SUBMIT YOUR CASE TO THE CONSUMER ARBITRATION
PROGRAM WHICH THE MANUFACTURER MUST OFFER IN
THIS STATE."
(8)
The amount of the sales or excise tax to be
paid by the manufacturer to the consumer
under subsection (1) of this section shall be
the tax paid by the consumer when the vehicle
was purchased less an amount equal to the tax
paid multiplied by a fraction, the
denominator of which is the purchase price of
the vehicle and the numerator of which is the
allowance deducted from the refund for the
consumer's use of the vehicle.
48-904
Manufacturer's duty to consumers with leased
vehicles.
A
consumer who leases a new motor vehicle has
the same rights against the manufacturer
under this section as a consumer who
purchases a new motor vehicle, except that,
if it is determined that the manufacturer
must accept return of the consumer's leased
vehicle pursuant to section 48-903, Idaho
Code, then the consumer lessee is not
entitled to a replacement vehicle, but is
entitled only to a refund as provided in this
section. In such a case, the consumer's
leased vehicle shall be returned to the
manufacturer and the consumer's written lease
with the motor vehicle lessor must be
terminated after all charges are settled. The
manufacturer shall provide the consumer with
a full refund of all costs and charges
described below less a reasonable allowance
for use. The manufacturer shall provide to
the consumer a refund of the pro rata amount
of any down payment paid by the consumer on
the written lease. The pro rata amount of
such a refund shall be the amount of the down
payment divided by the number of months of
the lease agreement and that amount
multiplied by the number of months remaining
after the date of the arbitration. The
manufacturer shall also refund to the
consumer amounts identified as additional
charges set forth in section 48-903, Idaho
Code, if actually paid by the consumer. The
reasonable allowance for use shall be the
lease payments made by the consumer until the
time of the award of a refund. The
manufacturer shall provide the motor vehicle
lessor or its assignee with a full refund of
the early termination charges plus the
residual value of the vehicle, as specified
in the lease agreement. The amount of any
refund by the manufacturer to the consumer
for the pro rata portion of the down payment
plus the amount of the refund to the motor
vehicle lessor or its assignee by the
manufacturer shall not exceed one hundred
five percent (105%) of the vehicle's original
manufacturer's suggested retail price.
48-905
Resale or re-lease of returned motor vehicle.
(1)
If a motor vehicle has been returned under
the provisions of section 48-903, Idaho Code,
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 or re-leased
in this state unless:
(a)
The manufacturer provides the same express
warranty it provided to the original
purchaser, except that the term of the
warranty need only last for twelve thousand
(12,000) miles or twelve (12) months after
the date of resale, whichever is earlier; and
(b)
The manufacturer provides the consumer with a
written statement on a separate piece of
paper, in 10-point all capital type, in
substantially the following form
"IMPORTANT THIS VEHICLE WAS RETURNED TO
THE MANUFACTURER BECAUSE IT DID NOT CONFORM
TO THE MANUFACTURER'S EXPRESS WARRANTY AND
THE NONCONFORMITY WAS NOT CURED WITHIN A
REASONABLE TIME AS PROVIDED BY IDAHO
LAW."
The
provisions of this chapter apply to the
resold or re-leased motor vehicle for full
term of the warranty required under this
section. If a manufacturer has a program
similar to the requirements of this
subsection and that program provides, at a
minimum, substantially the same protections
for subsequent consumers, then the
manufacturer shall be considered to be in
compliance with this subsection.
(2)
Notwithstanding the provisions of subsection
(1) of this section, if a new motor vehicle
has been returned under the provisions of
section 48-903, Idaho Code, or a similar
statute of another state because of a
nonconformity resulting in a complete failure
of the braking or steering system of the
motor vehicle likely to cause death or
serious bodily injury if the vehicle was
driven and the failure has not been repaired
by the manufacturer, its agent or its
authorized dealer, the motor vehicle may not
be resold in this state.
48-906
Alternative dispute settlement mechanism.
(1)
Any manufacturer doing business in this
state, entering into franchise agreements for
the sale of its motor vehicles in this state,
or offering express warranties on its motor
vehicles sold or distributed for sale in this
state shall operate, or participate in, an
informal dispute settlement mechanism located
in the state of Idaho which complies with the
provisions of title 16, code of federal
regulations, part 703, and the requirements
of this section. The provisions of section
48-903, Idaho Code, concerning refunds or
replacement do not apply to a consumer who
has not first used this mechanism before
commencing a civil action, unless the
manufacturer allows a consumer to commence an
action without first using this mechanism.
(2)
An informal dispute settlement mechanism
provided for by this chapter shall, at the
time a request for arbitration is made,
provide to the consumer and to each person
who will arbitrate the consumer's dispute,
information about this chapter as approved
and directed by the attorney general, in
consultation with interested parties. The
informal dispute settlement mechanism shall
permit the parties to present or submit any
arguments based on this chapter and shall not
prohibit or discourage the consideration of
any such arguments.
(3)
If, in an informal dispute settlement
mechanism, it is decided that a consumer is
entitled to a replacement vehicle or refund
under section 48-903, Idaho Code, then any
refund or replacement offered by the
manufacturer or selected by a consumer shall
include and itemize all amounts authorized by
section 48-903, Idaho Code. If the amount of
excise tax refunded is not separately stated,
or if the manufacturer does not apply for a
refund of the tax within one (1) year of the
return of the motor vehicle, the state tax
commission may refund the sales tax, as
determined under subsection (8) of section
48-903, Idaho Code, directly to the consumer
and lien holder, if any, as their interests
appear on the records of the division of
motor vehicles of the Idaho transportation
department.
(4)
No documents shall be received by any
informal dispute settlement mechanism unless
those documents have been provided to each of
the parties in the dispute at or prior to the
mechanism's meeting, with an opportunity for
the parties to comment on the documents
either in writing or orally. If a consumer is
present during the informal dispute
settlement mechanism's meeting, the consumer
may request postponement of the mechanism's
meeting to allow sufficient time to review
any documents presented at the time of the
meeting which had not been presented to the
consumer prior to the meeting.
(5)
The informal dispute settlement mechanism
shall allow each party to appear and make an
oral presentation in the state of Idaho
unless the consumer agrees to submit the
dispute for decision on the basis of
documents alone or by telephone, or unless
the party fails to appear for an oral
presentation after reasonable prior written
notice. However, the manufacturer or its
representative may participate in the
informal dispute settlement mechanism's
meeting by telephone if it chooses. If the
consumer agrees to submit the dispute for
decision on the basis of documents alone,
then manufacturer or dealer representatives
may not participate in the discussion or
decision of the dispute.
(6)
Consumers shall be given an adequate
opportunity to contest a manufacturer's
assertion that a nonconformity falls within
intended specifications for the vehicle by
having the basis of the manufacturer's claim
appraised by a technical expert selected and
paid for by the consumer prior to the
informal dispute settlement hearing.
(7)
Where there has been a recent attempt by the
manufacturer to repair a consumer's vehicle,
but no response has yet been received by the
informal dispute mechanism from the consumer
as to whether the repairs were successfully
completed, the parties must be given the
opportunity to present any additional
information regarding the manufacturer's
recent repair attempt before any final
decision is rendered by the informal dispute
settlement mechanism. This provision shall
not prejudice a consumer's rights under this
chapter.
(8)
If the manufacturer knows that a technical
service bulletin directly applies to the
specific mechanical problem being disputed by
the consumer, then the manufacturer shall
provide the technical service bulletin to the
consumer at reasonable cost upon request. The
mechanism shall review any such technical
service bulletins submitted by either party.
(9)
A consumer may be charged a fee to
participate in an informal dispute settlement
mechanism required by this chapter, but the
fee may not exceed the conciliation court
filing fee in the county where the
arbitration is conducted.
(10)
Any party to the dispute has the right to be
represented by an attorney in an informal
dispute settlement mechanism.
(11)
The informal dispute settlement mechanism has
all the evidence-gathering powers granted an
arbitrator under the uniform arbitration act.
(12)
A decision issued in an informal dispute
settlement mechanism required by this section
may be in writing and signed.
48-907
Effect and admissibility of decision by
informal dispute settlement mechanism.
The
decision issued in an informal dispute
settlement mechanism required by this chapter
is non-binding on the parties involved,
unless otherwise agreed by the parties. Any
party, upon application, may remove the
decision to district court for a trial de
novo. If the manufacturer is aggrieved by the
decision of the informal dispute settlement
mechanism, an application to remove the
decision must be filed in the district court
within thirty (30) days after the date the
decision is received by the parties. If the
application to remove is not made within
thirty (30) days, then the district court
shall, upon application of a party, issue an
order confirming the decision. A written
decision issued by an informal dispute
settlement mechanism, and any written
findings upon which the decision is based,
are admissible as non-binding evidence in any
subsequent legal action and are not subject
to further foundation requirements.
48-908
Treble damages for bad faith appeal of
decision.
If
the district court finds that a party has
removed a decision of an informal dispute
settlement mechanism in bad faith, by
asserting a claim or defense that is
frivolous and costly to the other party, or
by asserting an unfounded position solely to
delay recovery by the other party, then the
court shall award to the prevailing party
three (3) times the actual damages sustained,
together with costs and attorney's fees.
48-909
Civil remedy.
Any
consumer injured by a violation of this
chapter may bring a civil action to enforce
this chapter and recover costs and
disbursements, including reasonable
attorney's fees incurred in the civil action.
However, the provisions of this section do
not include recovery of attorney's fees
previously incurred in the course of informal
dispute resolution. In addition to the
remedies provided herein, the attorney
general may, when in the public interest,
bring an action pursuant to the Idaho
consumer protection act, chapter 6, title 48,
Idaho Code, against any manufacturer for
violation of this chapter. For purposes of
such action, violations of this chapter shall
be deemed to be violations of Idaho's
consumer protection ac
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