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Alabama Lemon
Law
Alabama Code § 8-20A-1
through § 8-20A-6
Section 8-20A-1 Definitions.
As used in this chapter, the following
terms shall have the respective meanings as indicated:
(1) CONSUMER. The purchaser, other than for
purposes of resale, of a new or previously untitled motor vehicle
used in substantial part for personal, family, or household
purposes, and any other person entitled by the terms of such
warranty to enforce the obligations of the warranty.
(2) MOTOR VEHICLE. Every vehicle intended
primarily for use and operation on the public highways which is
self-propelled; provided, however, that the term "motor
vehicle" shall not apply to motor homes or to any motor
vehicle having a manufacturer's gross vehicle weight rating (GVWR)
of 10,000 pounds or more.
(3) MANUFACTURER. The person, firm, or
corporation engaged in the business of manufacturing, importing
and/or distributing motor vehicles to be made available to a
motor vehicle dealer for retail sale.
(4) MOTOR VEHICLE DEALER or AUTHORIZED
DEALER. The person, firm, or corporation operating under a dealer
agreement from a manufacturer, importer, or distributor and who
is engaged regularly in the business of buying, selling or
exchanging motor vehicles in this state and who has in this state
an established place of business.
(5) EXPRESS WARRANTY. A written warranty,
so labeled, issued by the manufacturer of a new motor vehicle,
including any terms or conditions precedent to the enforcement of
obligations under that warranty.
(6) NONCONFORMING CONDITION. Any condition
of a motor vehicle which shall not be in conformity with the
terms of any express warranty issued by the manufacturer to a
consumer and which: (i) significantly impairs the use, value or
safety of the motor vehicle and (ii) occurs or arises solely in
the course of the ordinary use of the motor vehicle, and which
does not arise or occur as a result of abuse, neglect,
modification, or alteration of the motor vehicle not authorized
by the manufacturer, nor from any accident or other damage to the
motor vehicle which occurs or arises after such motor vehicle was
delivered by an authorized dealer to the consumer.
(7) NOTICE OF A NONCONFORMING CONDITION.
A written statement which shall be delivered to the manufacturer
and which shall describe the subject motor vehicle, the
nonconforming condition, and shall describe all previous attempts
to correct such nonconforming condition by identifying the person,
firm or corporation who or which made such attempt, and the time
when such attempt was made.
(8) LEMON LAW RIGHTS PERIOD. The period
ending one year after the date of the original delivery of a
motor vehicle to a consumer or the first 12,000 miles of
operation, whichever first occurs.
Section 8-20A-2 Obligations of
manufacturer.
(a) If a new motor vehicle does not conform
to any applicable express warranty, and the consumer delivers the
motor vehicle to the manufacturer, its agent, or its authorized
dealer, and gives notice of the nonconforming condition during
the lemon law rights period, the manufacturer of the motor
vehicle shall be obligated to make such repairs to the motor
vehicle as shall be necessary to remedy any nonconforming
condition thereof. Such repairs shall be required even after the
expiration of the lemon law rights period provided that notice of
the nonconforming condition was first given during the lemon law
rights period and provided further that the manufacturer's
obligation to repair the nonconforming condition shall not extend
beyond the period of 24 months following delivery of the vehicle
or 24,000 miles, whichever occurs first.
(b) If, after reasonable attempts, the
manufacturer, its agent, or its authorized dealer is unable to
conform the motor vehicle to any express warranty by repairing or
correcting a nonconforming condition of the motor vehicle which
first occurred during the lemon law rights period, the
manufacturer shall, at the option of the consumer, replace the
motor vehicle with a comparable new motor vehicle or shall accept
return of the vehicle from the consumer and refund to the
consumer the following:
(1) The full contract price including, but
not limited to, charges for undercoating, dealer preparation and
transportation charges, and installed options, plus the
nonrefundable portions of extended warranties and service
contracts;
(2) All collateral charges, including but
not limited to, sales tax, license and registration fees, and
similar government charges;
(3) All finance charges incurred by the
consumer after he first reported the nonconformity to the
manufacturer, its agent, or its authorized dealer; and
(4) Any incidental damages which shall
include the reasonable cost of alternative transportation during
the period that the consumer is without the use of the motor
vehicle because of the nonconforming condition. There shall be
offset against any monetary recovery of the consumer a reasonable
allowance for the consumer's use of the vehicle. Refunds shall be
made to the consumer, and any lien holders, as their interests
may appear. A reasonable allowance for use is that amount
directly attributable to use by the consumer before his first
report of the nonconformity to the manufacturer, agent, or
authorized dealer, and must be calculated by multiplying the full
purchase price of the motor vehicle by a fraction having as its
denominator 100,000 and having as its numerator the number of
miles that the vehicle travelled before the first report of
nonconformity.
(c) It shall be presumed that reasonable
attempts to correct a nonconforming condition have been allowed
by the consumer if, during the period of 24 months following
delivery of the vehicle or 24,000 miles, whichever first occurs,
either of the following events shall have occurred:
(1) The same nonconforming condition has
been subject to repair attempts three or more times by the
manufacturer, its agents or its authorized dealers, at least one
of which occurred during the lemon law rights period, plus a
final attempt by the manufacturer, and the same nonconforming
condition continues to exist; or
(2) The motor vehicle is out of service and
in the custody of the manufacturer, its agent, or an authorized
dealer due to repair attempts (including the final repair attempt),
one of which occurred during the lemon law rights period, for a
cumulative total of 30 calendar days, unless such repair could
not be performed because of conditions beyond the control of the
manufacturer, its agents or authorized dealers, such as war,
invasion, strike, fire, flood, or other natural disaster.
Section 8-20A-3 Cause of action against
manufacturer.
(a) A consumer sustaining damages as a
proximate consequence of the failure by a manufacturer to perform
its obligations imposed under this chapter may bring a civil
action against the manufacturer to enforce the provisions of this
chapter. Prior to the commencement of any such proceeding a
consumer must give notice of a nonconforming condition by
certified United States mail to the manufacturer and demand
correction or repair of the nonconforming condition. If at the
time such notice of a nonconforming condition is given to the
manufacturer, a presumption has arisen that reasonable attempts
to correct a nonconforming condition have been allowed, the
manufacturer shall be given a final opportunity to cure the
nonconforming condition. The manufacturer shall within seven
calendar days of receiving the written notice of nonconforming
condition notify the consumer of a reasonably accessible repair
facility. After delivery of the new vehicle to the authorized
repair facility by the consumer, the manufacturer shall attempt
to correct the nonconforming condition and conform the vehicle to
the express warranty within a period not to exceed 14 calendar
days. If a manufacturer has established an informal dispute
settlement procedure which is in compliance with federal rules
and regulations, a consumer must first exhaust any remedy
afforded to the consumer under the informal dispute procedure of
the manufacturer before a cause of action may be instituted under
the provisions of this chapter.
(b) It shall be an affirmative defense to
any claim against the manufacturer under this chapter that: (i)
an alleged nonconforming condition does not significantly impair
the use, market value, or safety of the motor vehicle; or (ii) a
nonconforming condition is a result of abuse, neglect, or any
modification or alteration of a motor vehicle by a consumer that
is not authorized by the manufacturer.
(c) If it is determined that the
manufacturer has breached its obligations imposed under this
chapter, then the consumer shall be entitled to recover, in
addition to the remedy provided under Section 8-20A-2 above, an
additional award for reasonable attorneys fees.
Section 8-20A-4 Resale of returned motor
vehicle.
If a motor vehicle has been returned to the
manufacturer under the provisions of this chapter 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 in this state unless:
(1) The manufacturer discloses in writing
to the subsequent purchaser the fact that the motor vehicle was
returned under the provisions of this chapter and the nature of
the nonconformity to the vehicle warranty.
(2) The manufacturer returns the title of
the motor vehicle to the Alabama Department of Revenue advising
of the return of the motor vehicle under provisions of this
chapter with an application for title in the name of the
manufacturer. The Department of Revenue shall brand the title
issued to the manufacturer and all subsequent titles to the motor
vehicle with the following statement:
THIS VEHICLE WAS RETURNED TO THE
MANUFACTURER BECAUSE IT DID NOT CONFORM TO ITS WARRANTY.
Section 8-20A-5 No dealership liability.
Nothing in this chapter imposes any
liability upon a motor vehicle dealer or authorized dealer or
creates a cause of action by a consumer against a motor vehicle
dealer or authorized dealer. A motor vehicle dealer or authorized
dealer may not be made a party defendant in any action involving
or relating to this chapter. The manufacturer shall not charge
back or require reimbursement by a motor vehicle dealer or
authorized dealer for any costs, including, but not limited to,
any refunds or vehicle replacements, incurred by the manufacturer
arising out of this chapter.
Section 8-20A-6 Statute of limitations.
Any action brought under this chapter
against the manufacturer shall be commenced within three years
following the date of original delivery of the motor vehicle to
the consumer.
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