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Kentucky Lemon Law
Kentucky
Revised Statutes, § 367.840 to 367.846
367.840
Purposes.
KRS
367.841 to 367.844 shall be liberally
construed and applied to promote the
underlying purposes of KRS 367.841 to
367.844, which purposes are:
(1)
To protect consumers who buy or lease new
motor vehicles that do not conform to
applicable warranties by holding
manufacturers accountable for certain
nonconformities;
(2)
To limit the number of attempts and the
amount of times that a manufacturer or its
agents shall have to cure such
nonconformities; and
(3)
To require manufacturers to provide, in as
expeditious a manner as possible, a refund,
not to exceed the amount in KRS 367.842, or
replacement vehicle that is acceptable to the
aggrieved consumer when the manufacturer or
its agents fail to cure any nonconformity
within the specified limits.
367.841
Definitions.
(1)
"Buyer" means any resident person
who buys, contracts to buy, or leases a new
motor vehicle in the Commonwealth of
Kentucky. In the case of the lease of a new
motor vehicle, "buyer" shall mean
the lessor, lessee, or both.
(2)
"Manufacturer" means any person or
corporation, resident or nonresident, who
manufactures or assembles new motor vehicles,
including new conversion van manufacturers,
which are sold in the Commonwealth of
Kentucky.
(3)
"Motor vehicle" means every vehicle
which is self-propelled, and which is
intended primarily for use and operation on
the public highways and required to be
registered or licensed in the Commonwealth
prior to such use or operation; however,
"motor vehicle" shall not include:
(a)
Any vehicle substantially altered after its
initial sale from a dealer to an individual;
(b)
Motor homes;
(c)
Motorcycles;
(d)
Mopeds;
(e)
Farm tractors and other machines used in the
production, harvesting, and care of farm
products; or
(f)
Vehicles which have more than two (2) axles.
(4)
"New motor vehicle" means a motor
vehicle which has been finally and completely
assembled and is in the possession of a
manufacturer, factory branch, distributor,
wholesaler, or an authorized motor vehicle
dealer operating under a valid sales and
service agreement, franchise, or contract for
the sale of such vehicle granted by the
manufacturer, factory branch, distributor, or
wholesaler which is, in fact, new and on
which the original title has never been
issued.
(5)
"Express warranty" or
"warranty" means the written
warranty, so labeled, of the manufacturer of
a new automobile, including any terms or
conditions precedent to the enforcement of
obligations under the warranty.
(6)
"Nonconformity" means a failure to
conform with an express warranty in a manner
which substantially impairs the use, value,
or safety of the motor vehicle.
(7)
"Reasonable allowance for use"
means the amount directly attributable to a
consumer's use of the vehicle other than
those time periods when the vehicle is out of
service due to the nonconformity.
367.842
Options of buyer.
If
manufacturer unable to repair nonconformity
in new motor vehicle; Rights of lien holder;
Resolution of disputes; Dealer not liable.
(1)
If, after a reasonable number of attempts,
the manufacturer or its agents are unable to
repair the nonconformity in the motor vehicle
to the express warranty during the first
twelve thousand (12,000) miles of operation
or during the first twelve (12) months
following the date of delivery to the buyer,
whichever is the earlier date, that buyer
shall report the nonconformity, in writing,
to the manufacturer.
(2)
If, within the period specified in subsection
(1) of this section, the manufacturer or its
agents, are unable to repair or correct any
nonconformity or defect that substantially
impairs the use, value, or safety of the
motor vehicle, after a reasonable number of
attempts, the manufacturer, at the option of
the buyer, shall replace the motor vehicle
with a comparable motor vehicle, or accept
return of the vehicle from the buyer and
refund to the buyer the full purchase price.
The full purchase price shall include the
amount paid for the motor vehicle, finance
charge, all sales tax, license fee,
registration fee, and any similar
governmental charges plus all collateral
charges, less a reasonable allowance for the
buyer's use of the vehicle. Refunds shall be
made to the buyer and lien holder, if any, as
their interests may appear on the records of
ownership kept by the Department of Vehicle
Regulation. The provisions of this section
shall not affect the interests of a lien
holder, unless the lien holder consents to
the replacement of the lien with a
corresponding lien on the automobile accepted
by the consumer in exchange for the
automobile having a nonconformity, the lien
holder shall be paid in full the amount due
on the lien, including finance charges and
other charges, before an exchange of
automobiles or a refund to the consumer is
made. It shall be an affirmative defense to
any claim under this section that:
(a)
The nonconformity, defect, or condition does
not substantially impair the use, value, or
safety of the motor vehicle; or
(b)
The nonconformity, defect, or condition is
the result of abuse, neglect, or unauthorized
modification or alteration of the motor
vehicle by the buyer.
(3)
It shall be presumed that a reasonable number
of attempts have been undertaken to conform a
motor vehicle to the applicable express
warranty if, within the first twelve thousand
(12,000) miles of operation or during the
period of, twelve (12) months following the
date of original delivery of the motor
vehicle to the buyer, whichever is the
earlier date:
(a)
The same nonconformity, defect, or condition
has been subject to repair four (4) or more
times by the manufacturer, but such
nonconformity, defect, or condition continues
to exist; or
(b)
The vehicle is out of service/use by reason
of repair of the same nonconformity, defect,
or condition for a cumulative total of at
least thirty (30) calendar days.
(4)
Disputes arising under subsection (2) of this
section concerning refund or replacement
shall be resolved through the dispute
resolution system established under either
KRS 367.860 to 367.870, or 16 C.F.R. part
703. Such remedy shall be pursued prior to
seeking any judicial relief under KRS
367.843.
(5)
Nothing in this chapter may be construed as
imposing any liability on a dealer or
creating a cause of action by a consumer
against a dealer.
(6)
Nothing in this section shall in any way
limit the rights or remedies which are
otherwise available to a buyer under any
other law.
(7)
Any agreement entered into by a buyer for the
purchase of a new motor vehicle which waives,
limits, or disclaims the rights set forth in
this section shall be void as contrary to
public policy.
(8)
Any action brought pursuant to this section
shall be commenced within two (2) years after
the date of original delivery of the new
motor vehicle to the buyer.
(9)
A court may award reasonable attorney's fees
to a prevailing plaintiff.
367.843
Action for relief by purchaser.
Any
person who purchases a motor vehicle and
thereby suffers any ascertainable loss of
money or property, real or personal, as a
result of a violation of KRS 367.842, may
bring an action under the provisions of KRS
367.220 for relief.
367.844
Manufacturer prohibited from exposing
franchised dealer to liability.
No
manufacturer shall, directly or indirectly,
by any means or methods, expose or attempt to
expose any franchised dealer to liability as
forbidden in KRS 367.842(4) and (5). Any
violation of this section shall be subject to
all applicable provisions of the law,
including but not limited to the provisions
of KRS 190.062(2).
367.845
Enforcement of provisions of KRS 367.842 to
367.844 by Attorney General.
Noncompliance
with the provisions of KRS 367.842 to 367.844
by a manufacturer shall be unlawful. The
Attorney General shall have authority to
enforce KRS 367.842 to 367.844 in accordance
with powers provided by KRS 367.190 and
367.230, pertaining to acts declared unlawful
by KRS 367.170. Any expenses accruing to the
Attorney General from the provisions of KRS
367.842 to 367.844 shall be assessed by his
office upon the motor vehicle manufacturer
involved in any action cited in the
provisions herein.
367.846
Application of KRS 367.840 to 367.845.
KRS
367.840 to 367.845 shall apply to new motor
vehicles purchased after July 15, 1986, and
to motor vehicles leased after July 15, 1998.
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