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Washington Revised Code
Annotated, 19.118.005 to 19.118.170
19.118.005 Legislative intent.
The legislature recognizes that a new motor vehicle is a major
consumer purchase and that a defective motor vehicle is likely to
create hardship for, or may cause injury to, the consumer. The
legislature further recognizes that good cooperation and
communication between a manufacturer and a new motor vehicle
dealer will considerably increase the likelihood that a new motor
vehicle will be repaired within a reasonable number of attempts.
It is the intent of the legislature to ensure that the consumer
is made aware of his or her rights under this chapter and is not
refused information, documents, or service that would otherwise
obstruct the exercise of his or her rights.
In enacting these comprehensive measures,
it is the intent of the legislature to create the proper blend of
private and public remedies necessary to enforce this chapter,
such that a manufacturer will be sufficiently induced to take
necessary steps to improve quality control at the time of
production or provide better warranty service for the new motor
vehicles that it sells in this state.
19.118.010 Motor vehicle manufacturers --
Express warranties; Service and repair facilities.
Every manufacturer of motor vehicles sold in this state and for
which the manufacturer has made an express warranty shall
maintain in this state sufficient service and repair facilities
reasonably close to all areas in which its motor vehicles are
sold to carry out the terms of the warranties or designate and
authorize in this state as service and repair facilities
independent repair or service facilities reasonably close to all
areas in which its motor vehicles are sold to carry out the terms
of the warranties. As a means of complying with this section, a
manufacturer may enter into warranty service contracts with
independent service and repair facilities.
19.118.021 Definitions.
Unless the context clearly requires otherwise, the definitions in
this section apply throughout this chapter.
(1) "Board" means new motor
vehicle arbitration board.
(2) "Collateral charges" means
any sales or lease related charges including but not limited to
sales tax, use tax, arbitration service fees, unused license fees,
unused registration fees, unused title fees, finance charges,
prepayment penalties, credit disability and credit life insurance
costs not otherwise refundable, any other insurance costs
prorated for time out of service, transportation charges, dealer
preparation charges, or any other charges for service contracts,
undercoating, rust proofing, or factory or dealer installed
options.
(3) "Condition" means a general
problem that results from a defect or malfunction of one or more
parts, or their improper installation by the manufacturer, its
agents, or the new motor vehicle dealer.
(4) "Consumer" means any person
who has entered into an agreement or contract for the transfer,
lease, or purchase of a new motor vehicle, other than for
purposes of resale or sublease, during the duration of the
warranty period defined under this section.
(5) "Court" means the superior
court in the county where the consumer resides, except if the
consumer does not reside in this state, then the superior court
in the county where an arbitration hearing or determination was
conducted or made pursuant to this chapter.
(6) "Incidental costs" means any
reasonable expenses incurred by the consumer in connection with
the repair of the new motor vehicle, including any towing charges
and the costs of obtaining alternative transportation.
(7) "Manufacturer" means any
person engaged in the business of constructing or assembling new
motor vehicles or engaged in the business of importing new motor
vehicles into the United States for the purpose of selling or
distributing new motor vehicles to new motor vehicle dealers.
"Manufacturer" does not include any person engaged in
the business of set-up of motorcycles as an agent of a new motor
vehicle dealer if the person does not otherwise construct or
assemble motorcycles.
(8) "Motorcycle" means any
motorcycle as defined in RCW 46.04.330 which has an engine
displacement of at least seven hundred fifty cubic centimeters.
(9) "Motor home" means a
vehicular unit designed to provide temporary living quarters for
recreational, camping, or travel use, built on or permanently
attached to a self-propelled motor vehicle chassis or on a
chassis cab or van that is an integral part of the completed
vehicle.
(10) "Motor home manufacturer"
means the first stage manufacturer, the component manufacturer,
and the final stage manufacturer.
(a) "First stage manufacturer" means a person who
manufactures incomplete new motor vehicles such as chassis,
chassis cabs, or vans, that are directly warranted by the first
stage manufacturer to the consumer, and are completed by a final
stage manufacturer into a motor home.
(b) "Component manufacturer" means a person who
manufactures components used in the manufacture or assembly of a
chassis, chassis cab, or van that is completed into a motor home
and whose components are directly warranted by the component
manufacturer to the consumer.
(c) "Final stage manufacturer" means a person who
assembles, installs, or permanently affixes a body, cab, or
equipment to an incomplete new motor vehicle such as a chassis,
chassis cab, or van provided by a first stage manufacturer, to
complete the vehicle into a motor home.
(11) "New motor vehicle" means
any new self-propelled vehicle, including a new motorcycle,
primarily designed for the transportation of persons or property
over the public highways that was originally purchased or leased
at retail from a new motor vehicle dealer or leasing company in
this state, and that was initially registered in this state or
for which a temporary motor vehicle license was issued pursuant
to RCW 46.16.460, but does not include vehicles purchased or
leased by a business as part of a fleet of ten or more vehicles
at one time or under a single purchase or lease agreement. If the
motor vehicle is a motor home, this chapter shall apply to the
self-propelled vehicle and chassis, but does not include those
portions of the vehicle designated, used, or maintained primarily
as a mobile dwelling, office, or commercial space. The term
"new motor vehicle" does not include trucks with
nineteen thousand pounds or more gross vehicle weight rating. The
term "new motor vehicle" includes a demonstrator or
lease-purchase vehicle as long as a manufacturer's warranty was
issued as a condition of sale.
(12) "New motor vehicle dealer"
means a person who holds a dealer agreement with a manufacturer
for the sale of new motor vehicles, who is engaged in the
business of purchasing, selling, servicing, exchanging, or
dealing in new motor vehicles, and who is licensed or required to
be licensed as a vehicle dealer by the state of Washington.
(13) "Nonconformity" means a
defect, serious safety defect, or condition that substantially
impairs the use, value, or safety of a new motor vehicle, but
does not include a defect or condition that is the result of
abuse, neglect, or unauthorized modification or alteration of the
new motor vehicle.
(14) "Purchase price" means the
cash price of the new motor vehicle appearing in the sales
agreement or contract.
(a) "Purchase price" in the instance of a lease means
the actual written capitalized cost disclosed to the consumer
contained in the lease agreement. If there is no disclosed
capitalized cost in the lease agreement the "purchase price"
is the manufacturer's suggested retail price including
manufacturer installed accessories or items of optional equipment
displayed on the manufacturer label, required by 15 U.S.C. Sec.
1232.
(b) "Purchase price" in the instance of both a vehicle
purchase or lease agreement includes any allowance for a trade-in
vehicle but does not include any manufacturer-to-consumer rebate
appearing in the agreement or contract that the consumer received
or that was applied to reduce the purchase or lease cost. Where
the consumer is a subsequent transferee and the consumer selects
repurchase of the motor vehicle, "purchase price" means
the consumer's subsequent purchase price. Where the consumer is a
subsequent transferee and the consumer selects replacement of the
motor vehicle, "purchase price" means the original
purchase price.
(15) "Reasonable offset for use"
means the definition provided in RCW 19.118.041(1)(c) for a new
motor vehicle other than a new motorcycle. The reasonable offset
for use for a new motorcycle shall be computed by the number of
miles that the vehicle traveled before the manufacturer's
acceptance of the vehicle upon repurchase or replacement
multiplied by the purchase price, and divided by twenty-five
thousand.
(16) "Reasonable number of attempts"
means the definition provided in RCW 19.118.041.
(17) "Replacement motor vehicle"
means a new 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 original purchase
or lease, including any service contract, undercoating,
rustproofing, and factory or dealer installed options.
(18) "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.
(19) "Subsequent transferee"
means a consumer who acquires a motor vehicle, within the
warranty period, as defined in this section, with an applicable
manufacturer's written warranty and where the vehicle otherwise
met the definition of a new motor vehicle at the time of original
retail sale or lease.
(20) "Substantially impair" means
to render the new motor vehicle unreliable, or unsafe for
ordinary use, or to diminish the resale value of the new motor
vehicle below the average resale value for comparable motor
vehicles.
(21) "Warranty" means any implied
warranty, any written warranty of the manufacturer, or any
affirmation of fact or promise made by the manufacturer in
connection with the sale of a new motor vehicle that becomes 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 new motor vehicle for
ordinary use or reasonably intended purposes throughout the
duration of the warranty period as defined under this section.
(22) "Warranty period" means the
period ending two years after the date of the original delivery
to the consumer of a new motor vehicle, or the first twenty-four
thousand miles of operation, whichever occurs first.
19.118.031 Manufacturers and new motor vehicle dealers --
Responsibilities to consumers; Extension of warranty period.
(1) The manufacturer shall publish an owner's manual and provide
it to the new motor vehicle dealer or leasing company. The owner's
manual shall include a list of the addresses and phone numbers
for the manufacturer's customer assistance division, or zone or
regional offices. A manufacturer shall provide to the new motor
vehicle dealer or leasing company all applicable manufacturer's
written warranties. The dealer or leasing company shall transfer
to the consumer, at the time of original retail sale or lease,
the owner's manual and applicable written warranties as provided
by a manufacturer.
(2) At the time of purchase, the new motor
vehicle dealer shall provide the consumer with a written
statement that explains the consumer's rights under this chapter.
The written statement shall be prepared and supplied by the
attorney general and shall contain a toll-free number that the
consumer can contact for information regarding the procedures and
remedies under this chapter.
(3) For the purposes of this chapter, if a
new motor vehicle does not conform to the warranty and the
consumer reports the nonconformity during the term of the
warranty period or the period of coverage of the applicable
manufacturer's written warranty, whichever is less, to the
manufacturer, its agent, or the new motor vehicle dealer who sold
the new motor vehicle, the manufacturer, its agent, or the new
motor vehicle dealer shall make repairs as are necessary to
conform the vehicle to the warranty, regardless of whether such
repairs are made after the expiration of the warranty period. Any
corrections or attempted repairs undertaken by a new motor
vehicle dealer under this chapter shall be treated as warranty
work and billed by the dealer to the manufacturer in the same
manner as other work under the manufacturer's written warranty is
billed. For purposes of this subsection, the manufacturer's
written warranty shall be at least one year after the date of the
original delivery to the consumer of the vehicle or the first
twelve thousand miles of operation, whichever occurs first.
(4) Upon request from the consumer, the
manufacturer or new motor vehicle dealer shall provide a copy of
any report or computer reading compiled by the manufacturer's
field or zone representative regarding inspection, diagnosis, or
test-drive of the consumer's new motor vehicle, or shall provide
a copy of any technical service bulletin issued by the
manufacturer regarding the year and model of the consumer's new
motor vehicle as it pertains to any material, feature, component,
or the performance thereof.
(5) The new motor vehicle dealer shall
provide to the consumer each time the consumer's vehicle is
returned from being diagnosed or repaired under the warranty, a
fully itemized, legible statement or repair order indicating any
diagnosis made, and all work performed on the vehicle including
but not limited to, a general description of the problem reported
by the consumer or an identification of the defect or condition,
parts and labor, the date and the odometer reading when the
vehicle was submitted for repair, and the date when the vehicle
was made available to the consumer.
(6) No manufacturer, its agent, or the new
motor vehicle dealer may refuse to diagnose or repair any
nonconformity covered by the warranty for the purpose of avoiding
liability under this chapter.
(7) For purposes of this chapter, consumers
shall have the rights and remedies, including a cause of action,
against manufacturers as provided in this chapter.
(8) The warranty period and thirty-day out-of-service
period, and sixty-day out-of-service period in the case of a
motor home, shall be extended by any time that repair services
are not available to the consumer as a direct result of a strike,
war, invasion, fire, flood, or other natural disaster.
19.118.041 Replacement or repurchase of
nonconforming new motor vehicle -- Reasonable number of attempts;
Notice by consumer regarding motor home nonconformity;
Liabilities and rights of parties; Application of consumer
protection act.
(1) If the manufacturer, its agent, or the new motor vehicle
dealer is unable to conform the new motor vehicle to the warranty
by repairing or correcting any nonconformity after a reasonable
number of attempts, the manufacturer, within forty calendar days
of a consumer's written request to the manufacturer's corporate,
dispute resolution, zone, or regional office address shall, at
the option of the consumer, replace or repurchase the new motor
vehicle.
(a) The replacement motor vehicle shall be identical or
reasonably equivalent to the motor vehicle to be replaced as the
motor vehicle to be replaced existed at the time of original
purchase or lease, including any service contract, undercoating,
rust proofing, and factory or dealer installed options. Where the
manufacturer supplies a replacement motor vehicle, the
manufacturer shall be responsible for sales tax, license,
registration fees, and refund of any incidental costs.
Compensation for a reasonable offset for use shall be paid by the
consumer to the manufacturer in the event that the consumer
accepts a replacement motor vehicle.
(b) When repurchasing the new motor vehicle, the manufacturer
shall refund to the consumer the purchase price, all collateral
charges, and incidental costs, less a reasonable offset for use.
When repurchasing the new motor vehicle, in the instance of a
lease, the manufacturer shall refund to the consumer all payments
made by the consumer under the lease including but not limited to
all lease payments, trade-in value or inception payment, security
deposit, all collateral charges and incidental costs less a
reasonable offset for use. The manufacturer shall make such
payment to the lessor and/or lien holder of record as necessary
to obtain clear title to the motor vehicle and upon the lessor's
and/or lien holder's receipt of that payment and payment by the
consumer of any late payment charges, the consumer shall be
relieved of any future obligation to the lessor and/or lien
holder.
(c) The reasonable offset for use shall be computed by
multiplying the number of miles that the vehicle traveled
directly attributable to use by the consumer times the purchase
price, and dividing the product by one hundred twenty thousand,
except in the case of a motor home, in which event it shall be
divided by ninety thousand. However, the reasonable offset for
use calculation total for a motor home is subject to modification
by the board by decreasing or increasing the offset total up to a
maximum of one- third of the offset total. The board may modify
the offset total in those circumstances where the board
determines that the wear and tear on those portions of the motor
home designated, used, or maintained primarily as a mobile
dwelling, office, or commercial space are significantly greater
or significantly less than that which could be reasonably
expected based on the mileage attributable to the consumer's use
of the motor home. Where the consumer is a second or subsequent
purchaser, lessee, or transferee of the motor vehicle and the
consumer selects repurchase of the motor vehicle, "the
number of miles that the vehicle traveled" shall be
calculated from the date of purchase or lease by the consumer.
Where the consumer is a second or subsequent purchaser, lessee,
or transferee of the motor vehicle and the consumer selects
replacement of the motor vehicle, "the number of miles that
the vehicle traveled" shall be calculated from the original
purchase, lease, or in-service date.
(2) Reasonable number of attempts, except
in the case of a new motor vehicle that is a motor home acquired
after June 30, 1998, shall be deemed to have been undertaken by
the manufacturer, its agent, or the new motor vehicle dealer to
conform the new motor vehicle to the warranty within the warranty
period, if:
(a) The same serious safety defect has been subject to diagnosis
or repair two or more times, at least one of which is during the
period of coverage of the applicable manufacturer's written
warranty, and the serious safety defect continues to exist;
(b) the same nonconformity has been subject to diagnosis or
repair four or more times, at least one of which is during the
period of coverage of the applicable manufacturer's written
warranty, and the nonconformity continues to exist; or
(c) the vehicle is out of service by reason of diagnosis or
repair of one or more nonconformities for a cumulative total of
thirty calendar days, at least fifteen of them during the period
of the applicable manufacturer's written warranty. For purposes
of this subsection, the manufacturer's written warranty shall be
at least one year after the date of the original delivery to the
consumer of the vehicle or the first twelve thousand miles of
operation, whichever occurs first.
(3) (a) In the case of a new motor vehicle
that is a motor home acquired after June 30, 1998, a reasonable
number of attempts shall be deemed to have been undertaken by the
motor home manufacturers, their respective agents, or their
respective new motor vehicle dealers to conform the new motor
vehicle to the warranty within the warranty period, if:
i) The same serious safety defect has been subject to
diagnosis or repair one or more times during the period of
coverage of the applicable motor home manufacturer's written
warranty, plus a final attempt to repair the vehicle as provided
for in (b) of this subsection, and the serious safety defect
continues to exist,
ii) the same nonconformity has been subject to repair three or
more times, at least one of which is during the period of
coverage of the applicable motor home manufacturer's written
warranty, plus a final attempt to repair the vehicle as provided
for in (b) of this subsection, and the nonconformity continues to
exist; or
iii) the vehicle is out of service by reason of diagnosis or
repair of one or more nonconformities for a cumulative total of
sixty calendar days aggregating all motor home manufacturer days
out of service, and the motor home manufacturers have had at
least one opportunity to coordinate and complete an inspection
and any repairs of the vehicle's nonconformities after receipt of
notification from the consumer as provided for in (c) of this
subsection. For purposes of this subsection, each motor home
manufacturer's written warranty must be at least one year after
the date of the original delivery to the consumer of the vehicle
or the first twelve thousand miles of operation, whichever occurs
first.
(b) In the case of a new motor vehicle that is a motor home,
after one attempt has been made to repair a serious safety defect,
or after three attempts have been made to repair the same
nonconformity, the consumer shall give written notification of
the need to repair the nonconformity to each of the motor home
manufacturers at their respective corporate, zone, or regional
office addresses to allow the motor home manufacturers to
coordinate and complete a final attempt to cure the nonconformity.
The motor home manufacturers each have fifteen days, commencing
upon receipt of the notification, to respond and inform the
consumer of the location of the facility where the vehicle will
be repaired. If the vehicle is unsafe to drive due to a serious
safety defect, or to the extent the repair facility is more than
one hundred miles from the motor home location, the motor home
manufacturers are responsible for the cost of transporting the
vehicle to and from the repair facility. The motor home
manufacturers have a cumulative total of thirty days, commencing
upon delivery of the vehicle to the designated repair facility by
the consumer, to conform the vehicle to the applicable motor home
manufacturer's written warranty. This time period may be extended
if the consumer agrees in writing. If a motor home anufacturer
fails to respond to the consumer or perform the repairs within
the time period prescribed, that motor home manufacturer is not
entitled to a final attempt to cure the nonconformity.
(c) In the case of a new motor vehicle that is a motor home, if
the vehicle is out of service by reason of diagnosis or repair of
one or more nonconformities by the motor home manufacturers,
their respective agents, or their respective new motor vehicle
dealers for a cumulative total of thirty or more days aggregating
all motor home manufacturer days out of service, the consumer
shall so notify each motor home manufacturer in writing at their
respective corporate, zone, or regional office addresses to allow
the motor home manufacturers, their respective agents, or their
respective new motor vehicle dealers an opportunity to coordinate
and complete an inspection and any repairs of the vehicle's
nonconformities. The motor home manufacturers have fifteen days,
commencing upon receipt of the notification, to respond and
inform the consumer of the location of the facility where the
vehicle will be repaired. If the vehicle is unsafe to drive due
to a serious safety defect, or to the extent the repair facility
is more than one hundred miles from the motor home location, the
motor home manufacturers are responsible for the cost of
transporting the vehicle to and from the repair facility. Once
the buyer delivers the vehicle to the designated repair facility,
the inspection and repairs must be completed by the motor home
manufacturers either (i) within ten days or (ii) before the
vehicle is out of service by reason of diagnosis or repair of one
or more nonconformities for sixty days, whichever time period is
longer. This time period may be extended if the consumer agrees
in writing. If a motor home manufacturer fails to respond to the
consumer or perform the repairs within the time period prescribed,
that motor home manufacturer is not entitled to at least one
opportunity to inspect and repair the vehicle's nonconformities
after receipt of notification from the buyer as provided for in
this subsection (3)(c).
(4) No new motor vehicle dealer may be held liable by the
manufacturer for any collateral charges, incidental costs,
purchase price refunds, or vehicle replacements. Manufacturers
shall not have a cause of action against dealers under this
chapter. Consumers shall not have a cause of action against
dealers under this chapter, but a violation of any
responsibilities imposed upon dealers under this chapter is a per
se violation of chapter 19.86 RCW. Consumers may pursue rights
and remedies against dealers under any other law, including
chapters 46.70 and 46.71 RCW. Manufacturers and consumers may not
make dealers parties to arbitration board proceedings under this
chapter.
19.118.061. Vehicle with nonconformities or
out of service Notification of correction; Resale or
transfer of title; Issuance of new title; Disclosure to buyer;
Intervening transferor
(1) A manufacturer shall be prohibited from reselling any
motor vehicle determined or adjudicated as having a serious
safety defect unless the serious safety defect has been corrected
and the manufacturer warrants upon the first subsequent resale
that the defect has been corrected.
(2) Before any sale or transfer of a vehicle that has been
replaced or repurchased by the manufacturer that was determined
or adjudicated as having a nonconformity or to have been out of
service for thirty or more calendar days, or sixty or more
calendar days in the case of a motor home, under this chapter,
the manufacturer shall:
(a) Notify the attorney general and the department of licensing,
by certified mail or by personal service, upon receipt of the
motor vehicle;
(b) Attach a resale disclosure notice to the vehicle in a manner
and form to be specified by the attorney general. Only the
retail purchaser may remove the resale disclosure notice after
execution of the disclosure form required under subsection (3) of
this section; and
(c) Notify the attorney general and the department of licensing
if the nonconformity in the motor vehicle is corrected.
(3) Upon the first subsequent resale, either at wholesale or
retail, or transfer of title of a motor vehicle and which was
previously returned after a final determination, adjudication, or
settlement under this chapter or under a similar statute of any
other state, the manufacturer, its agent, or the new motor
vehicle dealer who has actual knowledge of said final
determination, adjudication or settlement, shall execute and
deliver to the buyer before sale an instrument in writing setting
forth information identifying the nonconformity in a manner to be
specified by the attorney general, and the department of
licensing shall place on the certificate of title information
indicating the vehicle was returned under this chapter.
(4) Upon receipt of the manufacturer's notification under
subsection (2) of this section that the nonconformity has been
corrected and upon the manufacturer's request and payment of any
fees, the department of licensing shall issue a new title with
information indicating the vehicle was returned under this
chapter and that the nonconformity has been corrected. Upon
the first subsequent resale, either at wholesale or retail, or
transfer of title of a motor vehicle, as provided under
subsection (2)(c) of this section, the manufacturer shall warrant
upon the resale that the nonconformity has been corrected, and
the manufacturer, its agent, or the new motor vehicle dealer who
has actual knowledge of the corrected nonconformity, shall
execute and deliver to the buyer before sale an instrument in
writing setting forth information identifying the nonconformity
and indicating that it has been corrected in a manner to be
specified by the attorney general.
(5) After repurchase or replacement and following a manufacturer's
receipt of a vehicle under this section and prior to a vehicle's
first subsequent retail transfer by resale or lease, any
intervening transferor of a vehicle subject to the requirements
of this section who has received the disclosure, correction and
warranty documents, as specified by the attorney general and
required under this chapter, shall deliver the documents with the
vehicle to the next transferor, purchaser or lessee to ensure
proper and timely notice and disclosure. Any intervening
transferor who fails to comply with this subsection shall, at the
option of the subsequent transferor or first subsequent retail
purchaser or lessee: (a) Indemnify any subsequent
transferor or first subsequent retail purchaser for all damages
caused by such violation; or (b) repurchase the vehicle at the
full purchase price including all fees, taxes and costs incurred
for goods and services which were included in the subsequent
transaction.
19.118.070. Remedies
The remedies provided under this chapter are cumulative and are
in addition to any other remedies provided by law.
19.118.080. New motor vehicle arbitration boards Board
proceedings; Prerequisite to filing action in superior court
(1) Except as provided in RCW 19.118.160, the attorney
general shall contract with one or more private entities to
conduct arbitration proceedings in order to settle disputes
between consumers and manufacturers as provided in this chapter,
and each private entity shall constitute a new motor vehicle
arbitration board for purposes of this chapter. The
entities shall not be affiliated with any manufacturer or new
motor vehicle dealer and shall have available the services of
persons with automotive technical expertise to assist in
resolving disputes under this chapter. No private entity or
its officers or employees conducting board proceedings and no
arbitrator presiding at such proceedings shall be directly
involved in the manufacture, distribution, sale, or warranty
service of any motor vehicle. Payment to the entities for
the arbitration services shall be made from the new motor vehicle
arbitration account.
(2) The attorney general shall adopt rules for the uniform
conduct of the arbitrations by the boards whether conducted by a
private entity or by the attorney general pursuant to RCW 19.118.160,
which rules shall include but not be limited to the following
procedures:
(a) At all arbitration proceedings, the parties are entitled to
present oral and written testimony, to present witnesses and
evidence relevant to the dispute, to cross-examine witnesses, and
to be represented by counsel.
(b) A dealer, manufacturer, or other persons shall produce
records and documents requested by a party which are reasonably
related to the dispute. If a dealer, manufacturer, or other
person refuses to comply with such a request, a party may present
a request to the board for the attorney general to issue a
subpoena on behalf of the board.
The subpoena shall be issued only for the production of records
and documents which the board has determined are reasonably
related to the dispute, including but not limited to documents
described in RCW 19.118.031 (4) or (5).
If a party fails to comply with the subpoena, the arbitrator may
at the outset of the arbitration hearing impose any of the
following sanctions: (i) Find that the matters which were
the subject of the subpoena, or any other designated facts, shall
be taken to be established for purposes of the hearing in
accordance with the claim of the party which requested the
subpoena; (ii) refuse to allow the disobedient party to
support or oppose the designated claims or defenses, or prohibit
that party from introducing designated matters into evidence;
(iii) strike claims or defenses, or parts thereof; or (iv)
render a decision by default against the disobedient party.
If a nonparty fails to comply with a subpoena and upon an
arbitrator finding that without such compliance there is
insufficient evidence to render a decision in the dispute, the
attorney general shall enforce such subpoena in superior court
and the arbitrator shall continue the arbitration hearing until
such time as the nonparty complies with the subpoena or the
subpoena is quashed.
(c) A party may obtain written affidavits from employees and
agents of a dealer, a manufacturer or other party, or from other
potential witnesses, and may submit such affidavits for
consideration by the board.
(d) Records of the board proceedings shall be open to the public.
The hearings shall be open to the public to the extent
practicable.
(e) Where the board proceedings are conducted by one or more
private entities, a single arbitrator may be designated to
preside at such proceedings.
(3) A consumer shall exhaust the new motor vehicle arbitration
board remedy or informal dispute resolution settlement procedure
under RCW 19.118.150 before filing any superior court action.
(4) The attorney general shall maintain records of each dispute
submitted to the new motor vehicle arbitration board, including
an index of new motor vehicles by year, make, and model.
(5) The attorney general shall compile aggregate annual
statistics for all disputes submitted to, and decided by, the new
motor vehicle arbitration board, as well as annual statistics for
each manufacturer that include, but shall not be limited to, the
number and percent of: (a) Replacement motor vehicle
requests; (b) purchase price refund requests; (c)
replacement motor vehicles obtained in prehearing settlements;
(d) purchase price refunds obtained in prehearing settlements;
(e) replacement motor vehicles awarded in arbitration; (f)
purchase price refunds awarded in arbitration; (g) board
decisions neither complied with during the forty calendar day
period nor petitioned for appeal within the thirty calendar day
period; (h) board decisions appealed categorized by
consumer or manufacturer; (i) the nature of the court
decisions and who the prevailing party was; (j) appeals
that were held by the court to be brought without good cause;
and (k) appeals that were held by the court to be brought solely
for the purpose of harassment. The statistical compilations
shall be public information.
(6) The attorney general shall adopt rules to implement this
chapter. Such rules shall include uniform standards by
which the boards shall make determinations under this chapter,
including but not limited to rules which provide:
(a) A board shall find that a nonconformity exists if it
determines that the consumer's new motor vehicle has a defect,
serious safety defect, or condition that substantially impairs
the use, value, or safety of the vehicle.
(b) A board shall find that a reasonable number of attempts to
repair a nonconformity have been undertaken if: (i) The
same serious safety defect has been subject to diagnosis or
repair two or more times, at least one of which is during the
period of coverage of the applicable manufacturer's written
warranty, and the serious safety defect continues to exist;
(ii) the same nonconformity has been subject to diagnosis or
repair four or more times, at least one of which is during the
period of coverage of the applicable manufacturer's written
warranty, and the nonconformity continues to exist; or (iii)
the vehicle is out of service by reason of diagnosis or repair of
one or more nonconformities for a cumulative total of thirty
calendar days, at least fifteen of them during the period of the
applicable manufacturer's written warranty. For purposes of
this subsection, the manufacturer's written warranty shall be at
least one year after the date of the original delivery to the
consumer of the vehicle or the first twelve thousand miles of
operation, whichever occurs first.
(c) A board shall find that a manufacturer has failed to comply
with RCW 19.118.041 if it finds that the manufacturer, its agent,
or the new motor vehicle dealer has failed to correct a
nonconformity after a reasonable number of attempts and the
manufacturer has failed, within forty days of the consumer's
written request, to repurchase the vehicle or replace the vehicle
with a vehicle identical or reasonably equivalent to the vehicle
being replaced.
(7) The attorney general shall provide consumers with information
regarding the procedures and remedies under this chapter.
19.118.090. Request for arbitration Eligibility; Rejection;
Manufacturer's response; Remedies; Defenses; Acceptance or appeal
(1) A consumer may request arbitration under this chapter
by submitting the request to the attorney general. Within ten
days after receipt of an arbitration request, the attorney
general shall make a reasonable determination of the cause of the
request for arbitration and provide necessary information to the
consumer regarding the consumer's rights and remedies under this
chapter. The attorney general shall assign the dispute to a board,
except that if it clearly appears from the materials submitted by
the consumer that the dispute is not eligible for arbitration,
the attorney general may refuse to assign the dispute and shall
explain any required procedures to the consumer.
(2) Manufacturers shall submit to arbitration if such arbitration
is requested by the consumer within thirty months from the date
of the original delivery of the new motor vehicle to a consumer
at retail and if the consumer's dispute is deemed eligible for
arbitration by the board. In the case of a motor home, the thirty-month
period will be extended by the amount of time it takes the motor
home manufacturers to complete the final repair attempt at the
designated repair facility as provided for in RCW 19.118.041(3)(b).
(3) The new motor vehicle arbitration board may reject for
arbitration any dispute that it determines to be frivolous,
fraudulent, filed in bad faith, res judicata or beyond its
authority. Any dispute deemed by the board to be ineligible for
arbitration due to insufficient evidence may be reconsidered by
the board upon the submission of other information or documents
regarding the dispute that would allegedly qualify for relief
under this chapter. Following a second review, the board may
reject the dispute for arbitration if evidence is still clearly
insufficient to qualify the dispute for relief under this chapter.
A rejection by the board is subject to review by the attorney
general or may be appealed under RCW 19.118.100.
A decision to reject any dispute for arbitration shall be sent by
certified mail to the consumer and the manufacturer, and shall
contain a brief explanation as to the reason therefor.
(4) The manufacturer shall complete a written manufacturer
response to the consumer's request for arbitration. The
manufacturer shall provide a response to the consumer and the
board within ten calendar days from the date of the manufacturer's
receipt of the board's notice of acceptance of a dispute for
arbitration. The manufacturer response shall include all issues
and affirmative defenses related to the nonconformities
identified in the consumer's request for arbitration that the
manufacturer intends to raise at the arbitration hearing.
(5) The arbitration board shall award the remedies under RCW 19.118.041
if it finds a nonconformity and that a reasonable number of
attempts have been undertaken to correct the nonconformity. The
board shall award reasonable costs and attorneys' fees incurred
by the consumer where the manufacturer has been directly
represented by counsel: (a) In dealings with the consumer in
response to a request to repurchase or replace under RCW 19.118.041;
(b) in settlement negotiations; (c) in preparation of the
manufacturer's statement; or (d) at an arbitration board hearing
or other board proceeding.
In the case of an arbitration involving a motor home, the board
may allocate liability among the motor home manufacturers.
(6) It is an affirmative defense to any claim under this chapter
that: (a) The alleged nonconformity does not substantially impair
the use, value, or safety of the new motor vehicle; or (b) the
alleged nonconformity is the result of abuse, neglect, or
unauthorized modifications or alterations of the new motor
vehicle.
(7) The board shall have forty-five calendar days from the date
the board receives the consumer's request for arbitration to hear
the dispute. If the board determines that additional information
is necessary, the board may continue the arbitration proceeding
on a subsequent date within ten calendar days of the initial
hearing. The board shall decide the dispute within sixty calendar
days from the date the board receives the consumer's request for
arbitration.
The decision of the board shall be delivered by certified mail or
personal service to the consumer and the manufacturer, and shall
contain a written finding of whether the new motor vehicle meets
the standards set forth under this chapter.
(8) The consumer may accept the arbitration board decision or
appeal to superior court, pursuant to RCW 19.118.100. Upon
acceptance by the consumer, the arbitration board decision shall
become final. The consumer shall send written notification of
acceptance or rejection to the arbitration board within sixty
days of receiving the decision and the arbitration board shall
immediately deliver a copy of the consumer's acceptance to the
manufacturer by certified mail, return receipt requested, or by
personal service. Failure of the consumer to respond to the
arbitration board within sixty calendar days of receiving the
decision shall be considered a rejection of the decision by the
consumer. The consumer shall have one hundred twenty calendar
days from the date of rejection to file a petition of appeal in
superior court. At the time the petition of appeal is filed, the
consumer shall deliver, by certified mail or personal service, a
conformed copy of such petition to the attorney general.
(9) Upon receipt of the consumer's acceptance, the manufacturer
shall have forty calendar days to comply with the arbitration
board decision or thirty calendar days to file a petition of
appeal in superior court. At the time the petition of appeal is
filed, the manufacturer shall deliver, by certified mail or
personal service, a conformed copy of such petition to the
attorney general. If the attorney general receives no notice of
petition of appeal after forty calendar days, the attorney
general shall contact the consumer to verify compliance.
19.118.095. Arbitration decision Compliance;
Accomplishment; Dispute; Failure; Fine--Costs; Attorneys'
fees
(1) Compliance with an arbitration board decision under
this chapter must be accomplished at a time, place, and in a
manner to be determined by the mutual agreement of the consumer
and manufacturer.
(a) The consumer shall make the motor vehicle available to the
manufacturer free of damage other than that related to any
nonconformity, defect, or condition to which a warranty applied,
or that can reasonably be expected in the use of the vehicle for
ordinary or reasonably intended purposes and in consideration of
the mileage attributable to the consumer's use. Any insurance
claims or settlement proceeds for repair of damage to the vehicle
due to fire, theft, vandalism, or collision must be assigned to
the manufacturer or, at the consumer's option, the repair must be
completed before return of the vehicle to the manufacturer.
The consumer may not remove any equipment or option that was
included in the original purchase or lease of the vehicle or that
is otherwise included in the repurchase or replacement award. In
removing any equipment not included in the original purchase or
lease, the consumer shall exercise reasonable care to avoid
further damage to the vehicle but is not required to return the
vehicle to original condition.
(b) At the time of compliance with an arbitration board decision
that awards repurchase, the manufacturer shall make full payment
to the consumers and either the lessor or lienholder, or both, or
provide verification to the consumer of prior payment to either
the lessor or lienholder, or both.
At the time of compliance with an arbitration board decision that
awards replacement, the manufacturer shall provide the
replacement vehicle together with any refund of incidental costs.
(c) At any time before compliance a party may request the board
to resolve disputes regarding compliance with the arbitration
board decision including but not limited to time and place for
compliance, condition of the vehicle to be returned,
clarification or recalculation of refund amounts under the award,
or a determination if an offered vehicle is reasonably equivalent
to the vehicle being replaced. In resolving compliance disputes
the board may not review, alter, or otherwise change the findings
of a decision or extend the time for compliance beyond the time
necessary for the board to resolve the dispute.
(d) Failure of the consumer to make the vehicle available within
sixty calendar days in response to a manufacturer's unconditional
tender of compliance is considered a rejection of the arbitration
decision by the consumer, except as provided in (c) of this
subsection or subsection (2) of this section.
(2) If, at the end of the forty calendar day period, neither
compliance with nor a petition to appeal the board's decision has
occurred, the attorney general may impose a fine of up to one
thousand dollars per day until compliance occurs or a maximum
penalty of one hundred thousand dollars accrues unless the
manufacturer can provide clear and convincing evidence that any
delay or failure was beyond its control or was acceptable to the
consumer as evidenced by a written statement signed by the
consumer. If the manufacturer fails to provide the evidence or
fails to pay the fine, the attorney general may initiate
proceedings against the manufacturer for failure to pay any fine
that accrues until compliance with the board's decision occurs or
the maximum penalty of one hundred thousand dollars results. If
the attorney general prevails in an enforcement action regarding
any fine imposed under this subsection, the attorney general is
entitled to reasonable costs and attorneys' fees. Fines and
recovered costs and fees shall be returned to the new motor
vehicle arbitration account.
19.118.100. Trial de novo --Posting security; Recovery
(1) The consumer or the manufacturer may request a trial de
novo of the arbitration decision, including a rejection, in
superior court.
(2) If the manufacturer appeals, the court may require the
manufacturer to post security for the consumer's financial loss
due to the passage of time for review.
(3) If the consumer prevails, recovery shall include the monetary
value of the award, attorneys' fees and costs incurred in the
superior court action, and, if the board awarded the consumer
replacement or repurchase of the vehicle and the manufacturer did
not comply, continuing damages in the amount of twenty-five
dollars per day for all days beyond the forty calendar day period
following the manufacturer's receipt of the consumer's acceptance
of the board's decision in which the manufacturer did not provide
the consumer with the free use of a comparable loaner replacement
motor vehicle. If it is determined by the court that the party
that appealed acted without good cause in bringing the appeal or
brought the appeal solely for the purpose of harassment, the
court may triple, but at least shall double, the amount of the
total award.
19.118.110. Arbitration fee--New motor vehicle arbitration
account; Report by attorney general
A three-dollar arbitration fee shall be collected by either the
new motor vehicle dealer or vehicle lessor from the consumer upon
execution of a retail sale or lease agreement. The fee shall be
forwarded to the department of licensing at the time of title
application for deposit in the new motor vehicle arbitration
account hereby created in the state treasury. Moneys in the
account shall be used for the purposes of this chapter, subject
to appropriation. During the 1995-97 fiscal biennium, the
legislature may transfer moneys from the account to the extent
that the moneys are not necessary for the purposes of this
chapter.
At the end of each fiscal year, the attorney general shall
prepare a report listing the annual revenue generated and the
expenses incurred in implementing and operating the arbitration
program under this chapter.
19.118.120. Application of consumer protection act
A violation of this chapter shall constitute an unfair or
deceptive trade practice affecting the public interest under
chapter 19.86 RCW. All public and private remedies provided under
that chapter shall be available to enforce this chapter.
19.118.130. Waivers, limitations, disclaimers --Void
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 RCW 19.118.021 through 19.118.140 shall be void as
contrary to public policy. Said rights shall extend to a
subsequent transferee of such new motor vehicle.
19.118.140. Other rights and remedies not precluded
Nothing in this chapter limits the consumer from pursuing other
rights or remedies under any other law.
19.118.150. Informal dispute resolution settlement procedure
If a manufacturer has established an informal dispute resolution
settlement procedure which substantially complies with the
applicable provision of Title 16, Code of Federal Regulations
Part 703, as from time to time amended, a consumer may choose to
first submit a dispute under this chapter to the informal dispute
resolution settlement procedure.
19.118.160. New motor vehicle arbitration boards--When
established by attorney general; Membership; Travel expenses and
compensation
If the attorney general is unable at any time to contract with
private entities to conduct arbitrations under the procedures and
standards in this chapter, the attorney general shall establish
one or more new motor vehicle arbitration boards. Each such board
shall consist of three members appointed by the attorney general,
only one of whom may be directly involved in the manufacture,
distribution, sale, or service of any motor vehicle. Board
members shall be reimbursed for travel expenses in accordance
with RCW 43.03.050 and 43.03.060 and shall be compensated
pursuant to RCW 43.03.240.
19.118.170. History of vehicle--Availability to owner
Notwithstanding RCW 46.12.380, the department of licensing shall
make available to the registered owner all title history
information regarding the vehicle upon request of the registered
owner and receipt of a statement that he or she is investigating
or pursuing rights under this chapter.
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