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Virginia Lemon Law
Virginia
Code, § 59.1-207.9 to 207.16:1
59.1-207.9
Short title.
This
chapter may be cited as the Virginia Motor
Vehicle Warranty Enforcement Act.
59.1-207.10
Intent.
The
General Assembly recognizes that a motor
vehicle is a major consumer purchase, and
there is no doubt that a defective motor
vehicle creates a hardship for the consumer.
It is the intent of the General Assembly that
a good faith motor vehicle warranty complaint
by a consumer should be resolved by the
manufacturer, or its agent, within a
specified period of time. It is further the
intent of the General Assembly to provide the
statutory procedures whereby a consumer may
receive a replacement motor vehicle, or a
full refund, for a motor vehicle which cannot
be brought into conformity with the express
warranty issued by the manufacturer. However,
nothing in this chapter shall in any way
limit the rights or remedies which are
otherwise available to a consumer under any
other law.
59.1-207.11
Definitions.
As
used in this chapter, the following terms
shall have the following meanings:
"Collateral
charges" means any sales-related or
lease-related charges including but not
limited to sales tax, license fees,
registration fees, title fees, finance
charges and interest, transportation charges,
dealer preparation charges or any other
charges for service contracts, undercoating,
rust proofing or installed options, not
recoverable from a third party. If a refund
involves a lease, "collateral
charges" means, in addition to any of
the above, capitalized cost reductions,
credits and allowances for any trade-in
vehicles, fees to another to obtain the
lease, and insurance or other costs expended
by the lessor for the benefit of the lessee.
"Comparable
motor vehicle" means a 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 with an offset from
this value for a reasonable allowance for its
use.
"Consumer"
means the purchaser, other than for purposes
of resale, or the lessee, of a motor vehicle
used in substantial part for personal,
family, or household purposes, and any person
to whom such motor vehicle is transferred for
the same purposes during the duration of any
warranty applicable to such motor vehicle,
and any other person entitled by the terms of
such warranty to enforce the obligations of
the warranty.
"Incidental
damages" shall have the same meaning as
provided in 8.2-715.
"Lemon
law rights period" means the period
ending eighteen months after the date of the
original delivery to the consumer of a new
motor vehicle. This shall be the period
during which the consumer can report any
nonconformity to the manufacturer and pursue
any rights provided for under this chapter.
"Lien"
means a security interest in a motor vehicle.
"lien
holder" means a person, partnership,
association, corporation or entity with a
security interest in a motor vehicle pursuant
to a lien.
"Manufacturer"
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.
"Manufacturer's
express 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 that warranty.
"Motor
vehicle" means only passenger cars,
pickup or panel trucks, motorcycles,
self-propelled motorized chassis of motor
homes and mopeds as those terms are defined
in 46.2-100 and demonstrators or leased
vehicles with which a warranty was issued.
"Motor
vehicle dealer" shall have the same
meaning as provided in 46.2-1500.
"Nonconformity"
means a failure to conform with a warranty, a
defect or a condition, including those that
do not affect the drivability of the vehicle,
which significantly impairs the use, market
value, or safety of a motor vehicle.
"Notify"
or "notification" means that the
manufacturer shall be deemed to have been
notified under this chapter if a written
complaint of the defect or defects has been
mailed to it or it has responded to the
consumer in writing regarding a complaint, or
a factory representative has either inspected
the vehicle or met with the consumer or an
authorized dealer regarding the
nonconformity.
"Reasonable
allowance for use" shall not exceed
one-half of the amount allowed per mile by
the Internal Revenue Service, as provided by
regulation, revenue procedure, or revenue
ruling promulgated pursuant to 162 of the
Internal Revenue Code, for use of a personal
vehicle for business purposes, plus an amount
to account for any loss to the fair market
value of the vehicle resulting from damage
beyond normal wear and tear, unless the
damage resulted from nonconformity to any
warranty.
"Serious
safety defect" means a life-threatening
malfunction or nonconformity that impedes the
consumer's ability to control or operate the
new motor vehicle for ordinary use or
reasonable intended purposes or creates a
risk of fire or explosion.
"Significant
impairment" means to render the new
motor vehicle unfit, unreliable or unsafe for
ordinary use or reasonable intended purposes.
"Warranty"
means any implied warranty or any written
warranty of the manufacturer, or any
affirmations of fact or promise made by the
manufacturer in connection with the sale or
lease of a motor vehicle that become part of
the basis of the bargain. The term
"warranty" pertains to the
obligations of the manufacturer in relation
to materials, workmanship, and fitness of a
motor vehicle for ordinary use or reasonable
intended purposes throughout the duration of
the lemon law rights period as defined under
this section.
59.1-207.12
Conformity to all warranties.
If
a new motor vehicle does not conform to all
warranties, and the consumer reports the
nonconformity to the manufacturer, its
agents, or its authorized dealer during the
manufacturer's warranty period, the
manufacturer, its agent or its authorized
dealer shall make such repairs as are
necessary to conform the vehicle to such
warranties, notwithstanding the fact that
such repairs are made after the expiration of
such manufacturer's warranty period.
59.1-207.13 Nonconformity of motor
vehicles.
A.
If the manufacturer, its agents or authorized
dealers do not conform the motor vehicle to
any applicable warranty by repairing or
correcting any defect or condition, including
those that do not affect the drivability of
the vehicle, which significantly impairs the
use, market value, or safety of the motor
vehicle to the consumer after a reasonable
number of attempts during the lemon law
rights period, the manufacturer shall:
1.
Replace the motor vehicle with a comparable
motor vehicle acceptable to the consumer, or
2.
Accept return of the motor vehicle and refund
to the consumer, lessor, and any lien holder
as their interest may appear the full
contract price, including all collateral
charges, incidental damages, less a
reasonable allowance for the consumer's use
of the vehicle up to the date of the first
notice of nonconformity that is given to the
manufacturer, its agents or authorized
dealer. Refunds or replacements shall be made
to the consumer, lessor or lien holder, if
any, as their interests may appear. The
consumer shall have the unconditional right
to choose a refund rather than a replacement
vehicle and to drive the motor vehicle until
he receives either the replacement vehicle or
the refund. The subtraction of a reasonable
allowance for use shall apply to either a
replacement or refund of the motor vehicle.
Mileage, expenses, and reasonable loss of use
necessitated by attempts to conform such
motor vehicle to the express warranty may be
recovered by the consumer.
A1.
In the case of a replacement of or refund for
a leased vehicle, in addition to any other
damages provided in this chapter, the motor
vehicle shall be returned to the manufacturer
and the consumer's written lease shall be
terminated by the lessor without penalty to
the consumer. The lessor shall transfer title
to the manufacturer as necessary to
effectuate the consumer's rights pursuant to
this chapter, whether the consumer chooses
vehicle replacement or a refund.
B.
It shall be presumed that a reasonable number
of attempts have been undertaken to conform a
motor vehicle to any warranty and that the
motor vehicle is significantly impaired if
during the period of eighteen months
following the date of original delivery of
the motor vehicle to the consumer either:
1.
The same nonconformity has been subject to
repair three or more times by the
manufacturer, its agents or its authorized
dealers and the same nonconformity continues
to exist;
2.
The nonconformity is a serious safety defect
and has been subject to repair one or more
times by the manufacturer, its agent or its
authorized dealer and the same nonconformity
continues to exist; or
3.
The motor vehicle is out of service due to
repair for a cumulative total of thirty
calendar days, unless such repairs could not
be performed because of conditions beyond the
control of the manufacturer, its agents or
authorized dealers, including war, invasion,
strike, fire, flood or other natural
disasters.
C.
The lemon law rights period shall be extended
if the manufacturer has been notified but the
nonconformity has not been effectively
repaired by the manufacturer, or its agent,
by the expiration of the lemon law rights
period.
D.
The manufacturer shall clearly and
conspicuously disclose to the consumer, in
the warranty or owner's manual, that written
notification of the nonconformity to the
manufacturer is required before the consumer
may be eligible for a refund or replacement
of the vehicle under this chapter. The
manufacturer shall include with the warranty
or owner's manual the name and address to
which the consumer shall send such written
notification.
E.
It shall be the responsibility of the
consumer, or his representative, prior to
availing himself of the provisions of this
section, to notify the manufacturer of the
need for the correction or repair of the
nonconformity, unless the manufacturer has
been notified as defined in 59.1-207.11. If
the manufacturer or factory representative
has not been notified of the conditions set
forth in subsection B of this section and any
of the conditions set forth in subsection B
of this section already exists, the
manufacturer shall be given an additional
opportunity, not to exceed fifteen days, to
correct or repair the nonconformity. If
notification shall be mailed to an authorized
dealer, the authorized dealer shall upon
receipt forward such notification to the
manufacturer.
F.
Nothing in this chapter shall be construed to
limit or impair the rights and remedies of a
consumer under any other law.
G.
It is an affirmative defense to any claim
under this chapter that:
1.
An alleged nonconformity does not
significantly impair the use, market value,
or safety of the motor vehicle; or
2.
A nonconformity is the result of abuse,
neglect or unauthorized modification or
alteration of a motor vehicle by a consumer.
59.1-207.14
Action to enforce provisions of chapter.
Any
consumer who suffers loss by reason of a
violation of any provision of this chapter
may bring a civil action to enforce such
provision. Any consumer who is successful in
such an action or any defendant in any
frivolous action brought by a consumer shall
recover reasonable attorney's fees, expert
witness fees and court costs incurred by
bringing such actions.
59.1-207.15
Informal dispute settlement procedure.
A.
If a manufacturer provides an informal
dispute settlement procedure, it shall be the
consumer's choice whether or not to use it
prior to availing himself of his rights under
this chapter.
B.
If a dispute settlement procedure is resorted
to by the consumer and the decision is for a
refund or a comparable motor vehicle, the
manufacturer shall have forty days from its
receipt of the consumer's acceptance of the
decision or from the date of a court order to
comply with the terms of the decision.
C.
In any action brought because of the
manufacturer's failure to comply with the
decision, within the scope of the procedure's
authority, rendered as a result of a dispute
resolution proceeding or a court order, the
court may triple the value of the award
stipulated in the decision as provided for in
this chapter, plus award other equitable
relief the court deems appropriate, including
additional attorney's fees.
59.1-207.16
Action to be brought within certain time.
Any
action brought under this chapter shall be
commenced within the lemon law rights period
following the date of original delivery of
the motor vehicle to the consumer; however,
any consumer whose good faith attempts to
settle the dispute have not resulted in the
satisfactory correction or repair of the
nonconformity, replacement of the motor
vehicle or refund to the consumer of the
amount described in subdivision 2 of
subsection A of 59.1-207.13, shall have
twelve months from the date of the final
action taken by the manufacturer in its
dispute settlement procedure or within the
lemon law rights period, whichever is longer,
to file an action in the proper court,
provided the consumer has rejected the
manufacturer's final action.
59.1-207.16:1
Disclosure of returned vehicles; penalty.
A.
If a motor vehicle that is returned to the
manufacturer or distributor either under this
chapter or by judgment, decree, or
arbitration award in this or any other state
and is then transferred by a manufacturer or
distributor to a dealer, licensed under
Chapter 15 (46.2-1500 et seq.) of Title 46.2,
in Virginia, the manufacturer or distributor
shall disclose this information to the
Virginia dealer.
B.
If the returned vehicle is then made
available for resale or for another lease,
the manufacturer shall, prior to sale or
lease, disclose in writing in a clear and
conspicuous manner, on a separate piece of
paper in ten-point capital type, to the
Virginia dealer that this motor vehicle was
returned to the manufacturer, distributor or
factory branch, the nature of the defect
which resulted in the return, and the
condition of the motor vehicle at the time of
transfer to the Virginia dealer. It shall be
the responsibility of the dealer that
receives this disclosure to give notice of
its contents to any prospective purchaser or
lessee prior to sale or lease, and to
transfer the disclosure, or a copy thereof,
to the next purchaser or lessee. A dealer's
responsibility under this section shall cease
upon the sale or lease of the affected motor
vehicle to the first purchaser or lessee not
for resale or lease.
C.
Any manufacturer or distributor who violates
this section of the Motor Vehicle Warranty
Enforcement Act shall be guilty of a Class 3
misdemeanor.
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