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South Carolina Lemon Law
South
Carolina Code Annotated, 56-28-10 to
56-28-110
56-28-10
Definitions.
As
used in this chapter:
(1)
"Consumer" means the purchaser or
lessor, other than for purposes of resale, of
a motor vehicle normally used for personal,
family, or household purposes and subject to
the manufacturer's express warranty, and any
other person entitled by the warranty to
enforce the obligations of the warranty.
(2)
"Manufacturer" means any person,
resident, or nonresident, who manufactures or
assembles or imports or distributes new motor
vehicles which are to be sold in the State.
(3)
"Manufacturer's express warranty"
or "warranty" means the written
warranty, so labeled, of the manufacturer of
a new motor vehicle, including any terms or
conditions precedent to the enforcement of
obligations under that warranty.
(4)
"Motor vehicle" means a private
passenger motor vehicle, as classified by
Section 56-3-630, but excluding the living
portion of recreational vehicles and off-road
vehicles, which is sold and registered in
this State.
(5)
A "new motor vehicle" means a
private passenger motor vehicle which has
been sold to a new motor vehicle dealer by a
manufacturer and which has not been used for
other than demonstration purposes and on
which the original title has not been issued
from the new motor vehicle dealer.
(6)
"Nonconformity" means a defect or
condition that substantially impairs the use,
value, or safety of a motor vehicle, but does
not include a defect or condition that
results from an accident, modification, or
alteration of the motor vehicle by persons
other than the manufacturer or its authorized
service agent.
56-28-20
Manufacturers to provide annual written
summaries of certain motor vehicles.
Forms;
records to be made available; penalties.
Every
manufacturer, in a format and a form that
must be mailed annually to each manufacturer
approved by the Administrator of the
Department of Consumer Affairs, shall provide
a written summary of all motor vehicles
repurchased or replaced under this chapter no
less than once each calendar year. In
addition, every manufacturer shall make
available any paperwork, reports, or other
information regarding vehicles subject to
this chapter upon request by the
administrator. Failure to supply either the
written summaries of repurchased vehicles or
respond to reasonable requests for
information by the administrator subjects the
manufacturer to an administrative penalty not
to exceed one thousand dollars for each
violation which the administrator in his
discretion may impose.
56-28-30
Nonconformity with express warranties.
Notice
required; repairs required.
If
a new motor vehicle does not conform to all
applicable express warranties within the
first twelve months of purchase or the first
twelve thousand miles of operation, whichever
occurs first, and the consumer reports the
nonconformity to the manufacturer or its
agent during the term of the express
warranties, the manufacturer, or its agent,
shall make those repairs as are necessary to
conform the vehicle to the express warranties
at no cost to the consumer, notwithstanding
the fact that the repairs are made after the
expiration of the term.
56-28-40
Replacement of motor vehicle.
Refund
of purchase price.
If,
within the term specified in Section
56-28-30, the manufacturer, through its
agents or authorized dealer, is unable to
conform the motor vehicle to any applicable
express warranty by repairing or correcting
any defect or condition which substantially
impairs the use, market value, or safety of
the motor vehicle to the consumer after a
reasonable number of attempts, the
manufacturer shall replace the motor vehicle
with a comparable motor vehicle, or at its
option, accept return of the vehicle from the
consumer and refund to the consumer the full
purchase price as delivered including
applicable finance charges, sales taxes,
license fees, registration fees, and any
other similar governmental charges, less a
reasonable allowance for the consumer's use
of the vehicle. Refunds must be made to the
consumer and lien holder, if any, as their
interest may appear on the record of
ownership kept by the Division of Motor
Vehicles. A reasonable allowance for use must
be that amount directly attributable to use
by the consumer before his first report of
the nonconformity to the manufacturer, agent,
or dealer, and must be calculated by
multiplying the full purchase price of the
vehicle by a fraction having as its
denominator one hundred twenty thousand and
having as its numerator the number of miles
that the vehicle traveled before the first
report of nonconformity. The consumer is not
entitled to a refund or replacement if:
(1)
the nonconformity does not substantially
impair the motor vehicle's use, market value,
or safety;
(2)
the nonconformity is the result of abuse,
neglect, or modification or alteration of the
motor vehicle by the consumer.
56-28-50
Presumption of attempts to conform.
Information
to be provided to consumers; obligations of
manufacturer; costs and attorney's fees;
notice requirements.
(A)
It is presumed that a reasonable number of
attempts have been undertaken to conform a
motor vehicle to the applicable express
warranties if:
(1)
the same nonconformity has been subject to
repair three or more times by the
manufacturer, or its agent, within the
express warranty term, but the nonconformity
continues to exist; or
(2)
the vehicle is out of service by reason of
repair for a cumulative total of thirty or
more calendar days during the express
warranty. The term of an express warranty,
and the twenty-day period must be extended by
any period of time during which repair
services are not available to the consumer
because of a war, invasion, strike, fire,
flood, or other natural disaster.
(B)
The manufacturer must provide information
regarding consumer complaint remedies with
each new motor vehicle. It is the
responsibility of the consumer, or his
representative, before availing himself of
the provisions of this chapter, to give
written notification to the manufacturer of
the need for the repair of the nonconformity,
in order to allow the manufacturer a final
opportunity to cure the alleged defect if the
manufacturer has clearly and prominently
informed the consumer of the requirement of
written notification to the manufacturer at
the time of sale. The manufacturer, within
ten business days, must notify the consumer
of a reasonably accessible repair facility of
a franchised new vehicle dealer to conform
the new vehicle to the express warranty.
After delivery of the new vehicle to an
authorized repair facility by the consumer,
the manufacturer must attempt immediately to
repair the vehicle within a period not to
exceed ten business days in order to conform
the new motor vehicle to the express
warranty. If the manufacturer is unable to
repair properly the vehicle within the final
ten-business-day period, the manufacturer
must replace the vehicle with an identical or
reasonably equivalent vehicle or refund the
purchase price subject to the provisions of
Section 56-28-40.
(C)
Upon notification from the consumer that the
new vehicle has not been conformed to the
express warranty, the manufacturer shall
inform the consumer if an informal dispute
settlement procedure has been established by
the manufacturer as enumerated in Section
56-28-60. However, if prior notice by the
manufacturer of an informal dispute
settlement procedure has been given, no
further notice is required.
(D)
Any consumer who finally prevails in any
action brought under this chapter, may be
allowed by the court to recover as part of
the judgment a sum equal to the aggregate
amount of cost and expenses (including
attorney's fees based on actual time
expended) and other such costs which are
directly attributable to the nonconformity of
the motor vehicle determined by the court to
have been reasonably incurred by the
plaintiff for or in connection with the
commencement and prosecution of such action,
unless the court in its discretion determines
that such an award of attorney's fees would
be inappropriate.
(E)
All written notifications required by this
section shall be sent by registered,
certified, or express mail.
56-28-60
Informal dispute settlement procedures.
If
a manufacturer has established an informal
dispute settlement procedure which
substantially complies with Title 16 of the
Code of Federal Regulations, Part 703, or if
the manufacturer participates in a
consumer-industry appeals, arbitration, or
mediation panel or board, whose decisions are
binding on the manufacturer, the provisions
of Section 56-28-40 concerning refunds or
replacement do not apply to any consumer who
has not first resorted to those procedures or
to the alternate procedure provided in
Section 56-28-90.
56-28-70
Limitation of actions.
Any
action brought under this chapter must be
commenced within three years following the
date of original delivery of the motor
vehicle to the consumer.
56-28-80
Construction of chapter.
Reimbursement
from dealer prohibited; exception.
Nothing
in this chapter may be construed as imposing
any liability on a motor vehicle dealer or
creating a cause of action by a consumer
against a motor vehicle dealer under Section
56-28-40. The manufacturer shall not charge
back or require reimbursement by the dealer
for any costs, including, but not limited to,
any refunds or vehicle replacements incurred
by the manufacturer arising out of this
chapter in the absence of evidence that the
related repairs had been carried out by the
dealer in a manner substantially inconsistent
with the manufacturer's published
instructions.
56-28-90
State arbitration board may be established.
The
Administrator of the Department of Consumer
Affairs may establish by regulation a state
arbitration board consisting of five members
appointed by him to serve at his pleasure.
The board shall review matters involving
manufacturers that have not created an
informal dispute settlement procedure that
substantially complies with Title 16 of the
Code of Federal Regulations, Part 703. The
cost of the arbitration board must be borne
by the manufacturer of the vehicle purchased
or leased by the consumer.
56-28-100
Repurchased vehicles not to be resold;
exceptions.
Any
vehicle required to be repurchased by a
manufacturer under this chapter or any other
provision of law relating to motor vehicle
warranties may not be resold, reassigned, or
retransferred, either at wholesale or retail
in this State, unless:
(1)
The manufacturer notifies the Administrator
of the Department of Consumer Affairs within
thirty calendar days, in writing, of the
vehicle identification number of that motor
vehicle, the reason that the vehicle was
repurchased, and provides a statement that
all necessary repairs and adjustments have
been made and that the vehicle meets
acceptable operating standards.
(2)
The manufacturer provides a written warranty
to the subsequent retail purchaser of the
vehicle covering the vehicle for twelve
months or twelve thousand miles. The warranty
must expressly include any component related
to the manufacturer's decision to repurchase
the vehicle.
(3)
The manufacturer shall disclose to any dealer
or other wholesale purchaser of the fact that
the vehicle was required to be repurchased
under this chapter or another provision of
law relating to motor vehicle warranties.
56-28-110
Notification to subsequent purchasers.
Penalties
for failure to notify.
Every
subsequent purchaser must be notified by the
seller of the fact that the vehicle was
required to be repurchased under the terms of
this chapter or another provision of law
relating to motor vehicle warranties. Failure
to notify properly any purchaser of the
requirements of this section subjects the
seller to an administrative penalty to be
imposed by the administrator up to a maximum
of five hundred dollars for each vehicle.
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