|
Maryland Lemon Law
Maryland
Commercial Law Code Annotated, § 14-501 to
§ 14-504
§
14-1501.
(a)
In this subtitle the following words have the
meanings indicated.
(b)
"Consumer" means:
(1)
The purchaser, other than for purposes of
resale, of a new motor vehicle;
(2) Any person to whom a new motor vehicle is
transferred during the duration of the
warranty applicable to such motor vehicle; or
(3) Any other person who is entitled to
enforce the obligations of the warranty.
(c)
(1)
"Motor vehicle" means a vehicle
that is registered in this State as a:
(i)
Class A (passenger) vehicle;
(ii) Class D (motorcycle) vehicle;
(iii) Class E (truck) vehicle with a 3/4 ton
or less manufacturer's rated capacity; or
(iv) Class M (multipurpose) vehicle.
(2)
"Motor vehicle" does not include a
motor home. For the purpose of administering
this subtitle, the Motor Vehicle
Administration shall promulgate a regulation
defining a motor home.
(d)
"Dealer" has the meaning provided
in § 15-101(b) of the Transportation
Article.
(e)
"Manufacturer, factory branch, or
distributor" means a person,
partnership, association, corporation, or
entity engaged in the business of
manufacturing or assembling motor vehicles or
of distributing motor vehicles to motor
vehicle dealers as defined in § 15-201(b),
(c), and (e) of the Transportation Article.
(f)
"Warranty" means warranties as
defined in §§ 2-312, 2-313, 2-314, and
2-315 of this article.
(g)
(1)
"Manufacturer's warranty period"
means the earlier of:
(i)
The period of the motor vehicle's first
15,000 miles of operation; or
(ii) 15 months following the date of original
delivery of the motor vehicle to the
consumer.
(2)
This subsection does not extend any
manufacturer's express warranty.
§
14-1502.
(a)
If the manufacturer's warranty period is to
include those miles of operation when the new
motor vehicle is in the possession of any
person other than the consumer, the
manufacturer shall state that fact in 12
point bold face type in the manufacturer's
written warranty.
(b)
(1)
If a new motor vehicle does not conform to
all applicable warranties during the warranty
period, the consumer shall, during such
period, report the nonconformity, defect, or
condition by giving written notice to the
manufacturer or factory branch by certified
mail, return receipt requested. Notice of
this procedure shall be conspicuously
disclosed to the consumer in writing at the
time of sale or delivery of the motor
vehicle.
(2) The consumer shall provide an opportunity
for the manufacturer or factory branch, or
its agent to cure the nonconformity, defect,
or condition.
(3) The manufacturer or factory branch, its
agent, or its authorized dealer shall correct
the nonconformity, defect, or condition at no
charge to the consumer, even if repairs are
made after the expiration of the warranty
period. The corrections shall be completed
within 30 days of the manufacturer's receipt
of the consumer's notification of the
nonconformity, defect, or condition.
(c)
(1)
If, during the warranty period, the
manufacturer or factory branch, its agent, or
its authorized dealer is unable to repair or
correct any defect or condition that
substantially impairs the use and market
value of the motor vehicle to the consumer
after a reasonable number of attempts, the
manufacturer or factory branch, at the option
of the consumer, shall:
(i)
Replace the motor vehicle with a comparable
motor vehicle acceptable to the consumer; or
(ii) Accept return of the motor vehicle from
the consumer and refund to the consumer the
full purchase price including all license
fees, registration fees, and any similar
governmental charges, less:
1.
A reasonable allowance for the consumer's use
of the vehicle not to exceed 15 percent of
the purchase price; and
2. A reasonable allowance for damage not
attributable to normal wear but not to
include damage resulting from a
nonconformity, defect, or condition.
(2)
The manufacturer or factory branch shall make
refunds under this section to the consumer
and lienholder, if any, as their interests
appear on the records of ownership maintained
by the Motor Vehicle Administration.
(3) It is an affirmative defense to any claim
under this section that the nonconformity,
defect, or condition:
(i)
Does not substantially impair the use and
market value of the motor vehicle; or
(ii) Is the result of abuse, neglect, or
unauthorized modifications or alterations of
the motor vehicle.
(d)
It shall be presumed that a reasonable number
of attempts have been undertaken to conform a
motor vehicle to the applicable warranties
if:
(1)
The same nonconformity, defect, or condition
has been subject to repair 4 or more times by
the manufacturer or factory branch, or its
agents or authorized dealers, within the
warranty period but such nonconformity,
defect, or condition continues to exist;
(2) The vehicle is out of service by reason
of repair of 1 or more nonconformities,
defects, or conditions for a cumulative total
of 30 or more days during the warranty
period; or
(3) A nonconformity, defect, or condition
resulting in failure of the braking or
steering system has been subject to the same
repair at least once within the warranty
period, and the manufacturer has been
notified and given the opportunity to cure
the defect, and the repair does not bring the
vehicle into compliance with the motor
vehicle safety inspection laws of the State.
(e)
The term of any warranty, the warranty
period, and the 30 day out of service period
shall be extended by any time during which
repair services are not available to the
consumer by reason of war, invasion, strike,
or fire, flood, or other natural disaster.
(f)
(1)
(i)
It shall be the duty of a dealer to notify
the manufacturer of the existence of a
nonconformity, defect, or condition within 7
days when the motor vehicle is delivered to
the same dealer for a fourth time for repair
of the same nonconformity or when the vehicle
is out of service by reason of repair of one
or more nonconformities, defects, or
conditions for a cumulative total of 20 days.
(ii) The notification shall be sent by
certified mail and a copy of the notification
shall be sent to the Motor Vehicle
Administration; however, failure of the
dealer to give the required notice required
under this subsection shall not affect the
consumer's right under this subtitle.
(2)
If a motor vehicle is returned to a
manufacturer or factory branch either under
this subtitle, or by judgment, decree,
arbitration award, or by voluntary agreement,
the manufacturer or factory branch shall
notify the Motor Vehicle Administration in
writing within 15 days of the fact that the
vehicle was returned.
(g)
(1)
(i)
If a motor vehicle that is returned to the
manufacturer under either this subtitle or by
judgment, decree, arbitration award,
settlement agreement, or by voluntary
agreement in this or any other state and is
then transferred to a dealer in Maryland, the
manufacturer shall disclose this information
to the dealer.
(ii) The manufacturer's disclosure under this
paragraph shall be in writing on a separate
piece of paper in 10 point all capital type
and shall state in a clear and conspicuous
manner:
1.
That the motor vehicle was returned to the
manufacturer or factory branch;
2. The nature of the defect, if any, that
resulted in the return; and
3. The condition of the motor vehicle at the
time that it is transferred to the dealer.
(2)
(i)
If the returned vehicle is then made
available for resale, the seller shall
provide a copy of the manufacturer's
disclosure form to the consumer prior to
sale.
(ii) If the returned vehicle is sold, the
seller shall send a copy of the
manufacturer's disclosure form, signed by the
consumer, to the Administration.
(h)
This section does not limit the rights or
remedies that are otherwise available to a
consumer under any other law, including any
implied warranties.
(i)
(1)
If a manufacturer or factory branch has
established an informal dispute settlement
procedure which complies in all respects with
the provisions of Title 16, Code of Federal
Regulations, Part 703, as amended, a consumer
may resort to that procedure before
subsection (c) of this section applies.
(2) A consumer who has resorted to an
informal dispute settlement procedure may not
be precluded from seeking the rights or
remedies available by law.
(j)
(1)
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 section shall be void.
(2) The rights available to a consumer under
this section shall inure to a subsequent
transferee of a new motor vehicle for the
duration of the applicable warranties.
(k)
Any action brought under this section shall
be commenced within 3 years of the date of
original delivery of the motor vehicle to the
consumer.
(l)
(1)
A court may award reasonable attorney's fees
to a prevailing plaintiff under this section.
(2) If it appears to the satisfaction of the
court that an action is brought in bad faith
or is of a frivolous nature, the court may
order the offending party to pay to the other
party reasonable attorney's fees.
(m)
This subtitle does not apply to a fleet
purchase of five or more motor vehicles.
§
14-1502.1.
(a)
The Motor Vehicle Administration shall:
(1)
Develop a notice that describes the rights
provided to consumers under this subtitle;
(2) Make the notice available to all dealers
that sell new motor vehicles in the State;
and
(3) Adopt regulations as necessary to
implement the provisions of this section.
(b)
The notice shall:
(1)
Be written in simple and readable plain
language; and
(2) Contain sufficient detail to fully inform
consumers about the rights and remedies
available under this subtitle and the
procedures to follow to enforce those rights
and remedies.
(c)
Each dealer that sells a new motor vehicle in
the State shall provide to the purchaser, at
the time of the sale or delivery of the motor
vehicle, a copy of the notice developed by
the Motor Vehicle Administration under this
section.
§
14-1503.
(a)
(1)
If a dealer, manufacturer, factory branch, or
distributor is required under a judgment,
decree, arbitration award, or settlement
agreement to accept, or by voluntary
agreement accepts, return of a motor vehicle
from a consumer, the consumer shall be
entitled to recover from the Motor Vehicle
Administration the excise taxes originally
paid by the consumer, subject to subsection
(b) of this section.
(2)
(i)
If a dealer, manufacturer, factory branch, or
distributor replaces a motor vehicle with a
comparable motor vehicle under §
14-1502(c)(1)(i) of this subtitle, the Motor
Vehicle Administration shall allow a credit
against the excise tax imposed for the
replacement vehicle in the amount of the
excise taxes originally paid by the consumer
for the returned vehicle, subject to
subsection (b) of this section.
(ii)
1. If
the excise tax on the replacement vehicle
exceeds the credit allowed under subparagraph
(i) of this paragraph, the dealer shall
collect only that portion of excise tax due;
or
2. If the excise tax on the vehicle being
replaced exceeds the excise tax on the
replacement vehicle, the consumer shall be
entitled to recover from the Motor Vehicle
Administration the excess of the excise tax
paid.
(b)
The excise taxes that a consumer is entitled
to recover under this section shall be
calculated based on the amount of the
purchase price or any portion of the purchase
price of the motor vehicle that the dealer,
manufacturer, factory branch, or distributor
refunds to the consumer.
(c)
A dealer, manufacturer, factory branch, or
distributor who is required under a judgment,
decree, arbitration award, or settlement
agreement to accept, or who accepts, by
voluntary agreement, return of a motor
vehicle shall notify the consumer in writing
that the consumer is entitled to recover the
excise taxes from the Motor Vehicle
Administration.
§
14-1504.
(a)
A violation of this subtitle shall be an
unfair and deceptive trade practice under
Title 13 of the Commercial Law Article.
(b)
In addition to any other remedies that may be
available under this subtitle, if a
manufacturer, factory branch, or distributor
is found to have acted in bad faith, the
court may award the consumer damages of up to
$10,000.
|
