CHAPTER 32-6D
MANUFACTURER'S WARRANTY
32-6D-1
Definitions.
32-6D-2
Notice of nonconforming condition--Timeliness--Obligation to repair.
32-6D-3
Replacement of irreparable vehicle--Refund.
32-6D-4
Allowance for use of vehicle offset against monetary recovery.
32-6D-5
Reasonable attempts to correct nonconforming condition.
32-6D-6
Civil action against manufacturer.
32-6D-7
Affirmative defenses to claim against manufacturer.
32-6D-8
Attorney fees.
32-6D-9
Resale of returned vehicle.
32-6D-10
Liability of dealer.
32-6D-11
Time limit for action.
32-6D-1 Definitions.
32-6D-1.
Definitions.
Terms used in this chapter mean:
(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)
"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;
(3)
"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 twelve thousand miles of operation,
whichever first occurs;
(4)
"Manufacturer," the person, firm, or corporation engaged in the business of
manufacturing, importing, or distributing motor vehicles to be made available to a motor
vehicle dealer for retail sale;
(5)
"Motor vehicle," every vehicle intended primarily for use and operation on the public
highways which is self-propelled. The term does not apply to any motor home or to any
motor vehicle having a manufacturer's gross vehicle weight rating of ten thousand pounds
or more;
(6)
"Motor vehicle dealer" or "authorized dealer," any person operating under a dealer
agreement from a manufacturer and licensed pursuant to chapter 32-6B;
(7)
"Nonconforming condition," any condition of a motor vehicle which is not in conformity
with the terms of any express warranty issued by the manufacturer to a consumer and
which significantly impairs the use, value, or safety of the motor vehicle and 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 the motor vehicle was delivered by an authorized
dealer to the consumer;
(8)
"Notice of a nonconforming condition," a written statement delivered to the manufacturer
and which describes the motor vehicle, the nonconforming condition, and all previous
attempts to correct such nonconforming condition by identifying the person who made the
attempt and the time the attempt was made.
Source: SL 1993, ch 227, § 1.
32-6D-2 Notice of nonconforming condition--Timeliness--Obligation to repair.
32-6D-2.
Notice of nonconforming condition--Timeliness--Obligation to repair.
If a new
motor vehicle does not conform to any applicable express warranty and the consumer delivers the
motor vehicle to the manufacturer or its authorized dealer and gives notice of the nonconforming
condition during the lemon law rights period, the manufacturer of the motor vehicle shall make the
necessary repairs to the motor vehicle to remedy any such nonconforming condition. The repairs are
required even after the expiration of the lemon law rights period if notice of the nonconforming
condition was first given during the lemon law rights period. However, the manufacturer's obligation
to repair the nonconforming condition does not extend beyond the period of twenty-four months
following delivery of the vehicle or twenty-four thousand miles, whichever occurs first.
Source: SL 1993, ch 227, § 2.
32-6D-3 Replacement of irreparable vehicle--Refund.
32-6D-3.
Replacement of irreparable vehicle--Refund.
If, after reasonable attempts, the
manufacturer 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, through its authorized dealer, at the
option of the consumer, replace the motor vehicle with a comparable new motor vehicle and shall
refund the customer all collateral charges, including excise tax, license, and registration fees and
similar government charges or shall accept return of the vehicle from the consumer and refund to the
consumer the following:
(1)
The full contract price including 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 excise 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 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.
Source: SL 1993, ch 227, § 3; SL 2007, ch 178, § 1.
32-6D-4 Allowance for use of vehicle offset against monetary recovery.
32-6D-4.
Allowance for use of vehicle offset against monetary recovery.
Refunds shall be
made to the consumer and any lien holders, as their interests may appear. There shall be offset
against any monetary recovery of the consumer a reasonable allowance for the consumer's use of the
vehicle. 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 or authorized dealer and shall be
calculated by multiplying the full purchase price of the motor vehicle by a fraction having as its
denominator one hundred thousand and having as its numerator the number of miles that the vehicle
traveled before the first report of nonconformity.
Source: SL 1993, ch 227, § 4.
32-6D-5 Reasonable attempts to correct nonconforming condition.
32-6D-5.
Reasonable attempts to correct nonconforming condition.
It is presumed that
reasonable attempts to correct a nonconforming condition have been allowed by the consumer if,
during the period of twenty-four months following delivery of the vehicle or twenty-four thousand
miles, whichever first occurs, either of the following events occurred:
(1)
The same nonconforming condition was subject to repair attempts four or more times by
the manufacturer, 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 was out of service and in the custody of the manufacturer 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 thirty calendar days,
unless the repair could not be performed because of conditions beyond the control of the
manufacturer or authorized dealers, such as war, invasion, strike, fire, flood, or other
natural disaster.
Source: SL 1993, ch 227, § 5.
32-6D-6 Civil action against manufacturer.
32-6D-6.
Civil action against manufacturer.
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 shall give notice of a nonconforming
condition by certified mail to the manufacturer and demand correction or repair of the
nonconforming condition. If at the time the 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 fourteen calendar days. If a manufacturer has established an informal
dispute settlement procedure conducted within the state which is in compliance with federal rules
and regulations, a consumer shall 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.
Source: SL 1993, ch 227, § 6.
32-6D-7 Affirmative defenses to claim against manufacturer.
32-6D-7.
Affirmative defenses to claim against manufacturer.
It is an affirmative defense to
any claim against the manufacturer under this chapter that:
(1)
An alleged nonconforming condition does not significantly impair the use, market value,
or safety of the motor vehicle; or
(2)
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.
Source: SL 1993, ch 227, § 7.
32-6D-8 Attorney fees.
32-6D-8.
Attorney fees.
If the manufacturer has breached its obligations imposed under this
chapter, the consumer may recover, in addition to the remedy provided under §§ 32-6D-2 to 32-6D-5, inclusive, an additional award for reasonable attorney fees.
Source: SL 1993, ch 227, § 8.
32-6D-9 Resale of returned vehicle.
32-6D-9.
Resale of returned 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; and
(2)
The manufacturer returns the title of the motor vehicle to the Department of Revenue and
Regulation 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 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."
Source: SL 1993, ch 227, § 9; SL 2004, ch 17, § 95.
32-6D-10 Liability of dealer.
32-6D-10.
Liability of dealer.
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. No manufacturer may charge back or require reimbursement by a motor
vehicle dealer or authorized dealer for any costs, including any refunds or vehicle replacements,
incurred by the manufacturer arising out of this chapter.
Source: SL 1993, ch 227, § 10.
32-6D-11 Time limit for action.
32-6D-11.
Time limit for action.
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.
Source: SL 1993, ch 227, § 11.
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