Disclaimer:
These pages are created to inform and educate the public about lemon
law and under the lemon law in your state. They are not and
should not be considered legal opinions or advice as to whether
you have rights under lemon law or whether you should pursue
"a lemon law case". If after reading this
information, you believe you qualify, you should seek the advice
and counsel of an attorney specializing in lemon law in your
state. Remember that each state's lemon laws vary.
For purposes of this chapter, the
following terms have the following meanings:
(1) "Consumer" means
the purchaser or lessee, other than for purposes of resale or
sublease, of a new motor vehicle used for personal business use,
personal, family or household purposes, or a person to whom the
new motor vehicle is transferred for the same purposes during the
duration of an express warranty applicable to the motor vehicle.
(2) "Early termination
costs" means expenses and obligations incurred by a motor
vehicle lessor as a result of an early termination of a written
lease agreement and surrender of a motor vehicle to a manufacturer
under section 48-904, Idaho Code, including penalties for
prepayment of finance arrangements.
(3) "Informal dispute
settlement mechanism" means an arbitration process or
procedure by which the manufacturer attempts to resolve disputes
with consumers regarding motor vehicle nonconformities and repairs
that arise during the vehicle's warranty period.
(4) "Lease" means a
contract in the form of a lease or bailment for the use of
personal property by a natural person for a period of time
exceeding four (4) months, used for personal business use,
personal, family, or household purposes, whether or not the lessee
has the option to purchase or otherwise become the owner of the
property at the expiration of the lease.
(5) "Manufacturer"
means a person engaged in the business of manufacturing,
assembling or distributing motor vehicles, who will, under normal
business conditions during the year, manufacture, assemble or
distribute to dealers at least ten (10) new motor vehicles.
(6) "Manufacturer's express
warranty" and "warranty" mean the written warranty
of the manufacturer of a new motor vehicle of its condition and
fitness for use, including any terms or conditions precedent to
the enforcement of obligations under that warranty.
(7) "Motor vehicle"
means a motor vehicle as defined in chapter 1, title 49, Idaho
Code, which is sold or licensed in this state but does not
include:
(a) Motorcycle or farm tractor as
defined in sections 49-107 and 49-114, Idaho Code; or
(b) Trailer as defined in section 49-121, Idaho Code; or
(c) Any motor vehicle with a gross laden weight over twelve
thousand (12,000) pounds.
(8) "Motor vehicle
lessor" means a person who holds title to a motor vehicle
leased to a lessee under a written lease agreement or who holds
the lessor's rights under such agreement.
48-902. MANUFACTURER'S DUTY TO
REPAIR
If a new motor vehicle does not
conform to all applicable express warranties, and the consumer
reports the nonconformity to the manufacturer, its agent, or its
authorized dealer during the term of the applicable express
warranties or during the period of two (2) years following the
date of original delivery of the new motor vehicle to a consumer,
or during the period ending with the date on which the mileage on
the motor vehicle reaches twenty-four thousand (24,000) miles,
whichever is the earliest date, the manufacturer, its agent, or
its authorized dealer shall make the repairs necessary to conform
the vehicle to the applicable express warranties, notwithstanding
the fact that the repairs are made after the expiration of the
warranty term or the two (2) year period.
48-903. MANUFACTURER'S DUTY TO
REFUND OR REPLACE
(1) If the manufacturer, its
agents, or its authorized dealers are unable to conform the new
motor vehicle to any applicable express warranty by repairing or
correcting any defect or condition which impairs the use or market
value of the motor vehicle to the consumer after a reasonable
number of attempts, the manufacturer shall either replace the new
motor vehicle with a comparable motor vehicle or accept return of
the vehicle from the consumer and refund to the consumer the
amount the consumer paid for the vehicle, inclusive of the value
of any trade-in, not to exceed one hundred five percent (105%) of
the manufacturer's suggested retail price of the motor vehicle.
The manufacturer's suggested retail price shall include all
manufacturer installed options. The one hundred five percent
(105%) cap shall include the cost of any options or other
modifications arranged, installed, or made by the manufacturer's
agent, or its authorized dealer within thirty (30) days after the
date of original delivery. The manufacturer shall refund to the
consumer all other charges including, but not limited to, sales or
excise tax, license fees and registration fees, reimbursement for
towing and rental vehicle expenses incurred by the consumer as a
result of the vehicle being out of service for warranty repair. A
reasonable allowance for the consumer's use of the vehicle shall
be deducted from the refund to the consumer not to exceed the
number of miles attributable to the consumer up to the date of the
arbitration hearing multiplied by the purchase price of the
vehicle and divided by one hundred thousand (100,000). If the
manufacturer offers a replacement vehicle under this section, the
consumer has the option of rejecting the replacement vehicle and
requiring the manufacturer to provide a refund. Refunds must be
made to the consumer, and lienholder, if any, as their interests
appear on the records of the division of motor vehicles of the
Idaho transportation department. A manufacturer must give to the
consumer an itemized statement listing each of the amounts
refunded under this section. If the amount of sales or excise tax
refunded is not separately stated, or if the manufacturer does not
apply for a refund of the tax within one (1) year of the return of
the motor vehicle, the state tax commission may refund the tax, as
determined under subsection (8) of this section, directly to the
consumer and lienholder, if any, as their interests appear on the
records of the division of motor vehicles. It is an affirmative
defense to any claim under this chapter (a) that an alleged
nonconformity does not impair the use or market value, or (b) that
a nonconformity is the result of abuse, neglect, or unauthorized
modifications or alterations of a motor vehicle by anyone other
than the manufacturer, its agent or its authorized dealer.
(2) It is presumed that a
reasonable number of attempts have been undertaken to conform a
new motor vehicle to the applicable express warranties, if (a) the
same nonconformity has been subject to repair four (4) or more
times by the manufacturer, its agents, or its authorized dealers
within the applicable express warranty term or during the period
of two (2) years following the date of original delivery of the
new motor vehicle to a consumer or during the period ending with
the date on which the mileage on the motor vehicle reaches
twenty-four thousand (24,000) miles, whichever is the earliest
date, but the nonconformity continues to exist. However, the
manufacturer shall have at least one (1) opportunity to attempt to
repair the vehicle before it is presumed a reasonable number of
attempts have been undertaken to conform the vehicle to the
applicable express warranty; or (b) the vehicle is out of service
by reason of repair for a cumulative total of thirty (30) or more
business days during the term or during the period, whichever is
the earlier date.
(3) If the nonconformity results
in a complete failure of the braking or steering system of the new
motor vehicle and is likely to cause death or serious bodily
injury if the vehicle is driven, it is presumed that a reasonable
number of attempts have been undertaken to conform the vehicle to
the applicable express warranties if the nonconformity has been
subject to repair at least once by the manufacturer, its agents,
or its authorized dealers within the applicable express warranty
term or during the period of two (2) years following the date of
original delivery of the new motor vehicle to a consumer or during
the period ending with the date on which the mileage on the motor
vehicle reaches twenty-four thousand (24,000) miles, whichever is
the earliest date, and the nonconformity continues to exist.
However, the manufacturer shall have at least one (1) opportunity
to attempt to repair the vehicle before it is presumed a
reasonable number of attempts have been undertaken to conform the
vehicle to the applicable express warranty.
(4) The term of an applicable
express warranty, the two (2) year period and the thirty (30) day
period shall be extended by any period of time during which repair
services are not available to the consumer because of a war,
invasion, strike, or fire, flood, or other natural disaster.
(5) The presumption contained in
subsection (2) of this section applies against a manufacturer only
if the manufacturer, its agent, or its authorized dealer has
received prior written notification from or on behalf of the
consumer at least once and an opportunity to cure the defect
alleged. If the notification is received by the manufacturer's
agent or authorized dealer, the agent or dealer must forward it to
the manufacturer by certified mail, return receipt requested.
However, if the manufacturer is not notified either by the
consumer or the manufacturer's agent or authorized dealer, then
the manufacturer shall have at least one (1) opportunity to cure
the alleged defect.
(6) The expiration of the time
periods set forth in subsection (2) of this section does not bar a
consumer from receiving a refund or replacement vehicle under
subsection (1) of this section if the reasonable number of
attempts to correct the nonconformity causing the substantial
impairment occur within three (3) years following the date of
original delivery of the new motor vehicle to a consumer, provided
the consumer first reported the nonconformity to the manufacturer,
its agent, or its authorized dealer during the term of the
applicable express warranty.
(7) The manufacturer shall
provide to its agent or authorized dealer and, at the time of
purchase or lease, the manufacturer's agent or authorized dealer
shall provide a written statement to the consumer in the new motor
vehicle warranty guide, in 10-point all capital type, in
substantially the following form "IMPORTANT IF THIS VEHICLE
IS DEFECTIVE, YOU MAY BE ENTITLED UNDER THE STATE'S LEMON LAW TO
REPLACEMENT OF IT OR A REFUND OF ITS PURCHASE PRICE OR YOUR LEASE
PAYMENTS. HOWEVER, TO BE ENTITLED TO REFUND OR REPLACEMENT, YOU
MUST FIRST NOTIFY THE MANUFACTURER, ITS AGENT, OR ITS AUTHORIZED
DEALER OF THE PROBLEM IN WRITING AND GIVE THEM AN OPPORTUNITY TO
REPAIR THE VEHICLE. YOU ALSO HAVE A RIGHT TO SUBMIT YOUR CASE TO
THE CONSUMER ARBITRATION PROGRAM WHICH THE MANUFACTURER MUST OFFER
IN THIS STATE."
(8) The amount of the sales or
excise tax to be paid by the manufacturer to the consumer under
subsection (1) of this section shall be the tax paid by the
consumer when the vehicle was purchased less an amount equal to
the tax paid multiplied by a fraction, the denominator of which is
the purchase price of the vehicle and the numerator of which is
the allowance deducted from the refund for the consumer's use of
the vehicle.
48-904. MANUFACTURER'S DUTY TO
CONSUMERS WITH LEASED VEHICLES
A consumer who leases a new motor
vehicle has the same rights against the manufacturer under this
section as a consumer who purchases a new motor vehicle, except
that, if it is determined that the manufacturer must accept return
of the consumer's leased vehicle pursuant to section 48-903, Idaho
Code, then the consumer lessee is not entitled to a replacement
vehicle, but is entitled only to a refund as provided in this
section. In such a case, the consumer's leased vehicle shall be
returned to the manufacturer and the consumer's written lease with
the motor vehicle lessor must be terminated after all charges are
settled. The manufacturer shall provide the consumer with a full
refund of all costs and charges described below less a reasonable
allowance for use. The manufacturer shall provide to the consumer
a refund of the pro rata amount of any down payment paid by the
consumer on the written lease. The pro rata amount of such a
refund shall be the amount of the down payment divided by the
number of months of the lease agreement and that amount multiplied
by the number of months remaining after the date of the
arbitration. The manufacturer shall also refund to the consumer
amounts identified as additional charges set forth in section
48-903, Idaho Code, if actually paid by the consumer. The
reasonable allowance for use shall be the lease payments made by
the consumer until the time of the award of a refund. The
manufacturer shall provide the motor vehicle lessor or its
assignee with a full refund of the early termination charges plus
the residual value of the vehicle, as specified in the lease
agreement. The amount of any refund by the manufacturer to the
consumer for the pro rata portion of the down payment plus the
amount of the refund to the motor vehicle lessor or its assignee
by the manufacturer shall not exceed one hundred five percent
(105%) of the vehicle's original manufacturer's suggested retail
price.
48-905. RESALE OR RE-LEASE OF
RETURNED MOTOR VEHICLE
(1) If a motor vehicle has been
returned under the provisions of section 48-903, Idaho Code, 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 or re-leased in this state
unless:
(a) The manufacturer provides the
same express warranty it provided to the original purchaser,
except that the term of the warranty need only last for twelve
thousand (12,000) miles or twelve (12) months after the date of
resale, whichever is earlier; and
(b) The manufacturer provides the consumer with a written
statement on a separate piece of paper, in 10-point all capital
type, in substantially the following form "IMPORTANT THIS
VEHICLE WAS RETURNED TO THE MANUFACTURER BECAUSE IT DID NOT
CONFORM TO THE MANUFACTURER'S EXPRESS WARRANTY AND THE
NONCONFORMITY WAS NOT CURED WITHIN A REASONABLE TIME AS PROVIDED
BY IDAHO LAW."
The provisions of this chapter
apply to the resold or re-leased motor vehicle for full term of
the warranty required under this section. If a manufacturer has a
program similar to the requirements of this subsection and that
program provides, at a minimum, substantially the same protections
for subsequent consumers, then the manufacturer shall be
considered to be in compliance with this subsection.
(2) Notwithstanding the
provisions of subsection (1) of this section, if a new motor
vehicle has been returned under the provisions of section 48-903,
Idaho Code, or a similar statute of another state because of a
nonconformity resulting in a complete failure of the braking or
steering system of the motor vehicle likely to cause death or
serious bodily injury if the vehicle was driven and the failure
has not been repaired by the manufacturer, its agent or its
authorized dealer, the motor vehicle may not be resold in this
state.
48-906. ALTERNATIVE DISPUTE
SETTLEMENT MECHANISM
(1) Any manufacturer doing
business in this state, entering into franchise agreements for the
sale of its motor vehicles in this state, or offering express
warranties on its motor vehicles sold or distributed for sale in
this state shall operate, or participate in, an informal dispute
settlement mechanism located in the state of Idaho which complies
with the provisions of title 16, code of federal regulations, part
703, and the requirements of this section. The provisions of
section 48-903, Idaho Code, concerning refunds or replacement do
not apply to a consumer who has not first used this mechanism
before commencing a civil action, unless the manufacturer allows a
consumer to commence an action without first using this mechanism.
(2) An informal dispute
settlement mechanism provided for by this chapter shall, at the
time a request for arbitration is made, provide to the consumer
and to each person who will arbitrate the consumer's dispute,
information about this chapter as approved and directed by the
attorney general, in consultation with interested parties. The
informal dispute settlement mechanism shall permit the parties to
present or submit any arguments based on this chapter and shall
not prohibit or discourage the consideration of any such
arguments.
(3) If, in an informal dispute
settlement mechanism, it is decided that a consumer is entitled to
a replacement vehicle or refund under section 48-903, Idaho Code,
then any refund or replacement offered by the manufacturer or
selected by a consumer shall include and itemize all amounts
authorized by section 48-903, Idaho Code. If the amount of excise
tax refunded is not separately stated, or if the manufacturer does
not apply for a refund of the tax within one (1) year of the
return of the motor vehicle, the state tax commission may refund
the sales tax, as determined under subsection (8) of section
48-903, Idaho Code, directly to the consumer and lienholder, if
any, as their interests appear on the records of the division of
motor vehicles of the Idaho transportation department.
(4) No documents shall be
received by any informal dispute settlement mechanism unless those
documents have been provided to each of the parties in the dispute
at or prior to the mechanism's meeting, with an opportunity for
the parties to comment on the documents either in writing or
orally. If a consumer is present during the informal dispute
settlement mechanism's meeting, the consumer may request
postponement of the mechanism's meeting to allow sufficient time
to review any documents presented at the time of the meeting which
had not been presented to the consumer prior to the meeting.
(5) The informal dispute
settlement mechanism shall allow each party to appear and make an
oral presentation in the state of Idaho unless the consumer agrees
to submit the dispute for decision on the basis of documents alone
or by telephone, or unless the party fails to appear for an oral
presentation after reasonable prior written notice. However, the
manufacturer or its representative may participate in the informal
dispute settlement mechanism's meeting by telephone if it chooses.
If the consumer agrees to submit the dispute for decision on the
basis of documents alone, then manufacturer or dealer
representatives may not participate in the discussion or decision
of the dispute.
(6) Consumers shall be given an
adequate opportunity to contest a manufacturer's assertion that a
nonconformity falls within intended specifications for the vehicle
by having the basis of the manufacturer's claim appraised by a
technical expert selected and paid for by the consumer prior to
the informal dispute settlement hearing.
(7) Where there has been a recent
attempt by the manufacturer to repair a consumer's vehicle, but no
response has yet been received by the informal dispute mechanism
from the consumer as to whether the repairs were successfully
completed, the parties must be given the opportunity to present
any additional information regarding the manufacturer's recent
repair attempt before any final decision is rendered by the
informal dispute settlement mechanism. This provision shall not
prejudice a consumer's rights under this chapter.
(8) If the manufacturer knows
that a technical service bulletin directly applies to the specific
mechanical problem being disputed by the consumer, then the
manufacturer shall provide the technical service bulletin to the
consumer at reasonable cost upon request. The mechanism shall
review any such technical service bulletins submitted by either
party.
(9) A consumer may be charged a
fee to participate in an informal dispute settlement mechanism
required by this chapter, but the fee may not exceed the
conciliation court filing fee in the county where the arbitration
is conducted.
(10) Any party to the dispute has
the right to be represented by an attorney in an informal dispute
settlement mechanism.
(11) The informal dispute
settlement mechanism has all the evidence-gathering powers granted
an arbitrator under the uniform arbitration act.
(12) A decision issued in an
informal dispute settlement mechanism required by this section may
be in writing and signed.
48-907. EFFECT AND
ADMISSIBILITY OF DECISION BY INFORMAL DISPUTE SETTLEMENT MECHANISM
The decision issued in an
informal dispute settlement mechanism required by this chapter is
nonbinding on the parties involved, unless otherwise agreed by the
parties. Any party, upon application, may remove the decision to
district court for a trial de novo. If the manufacturer is
aggrieved by the decision of the informal dispute settlement
mechanism, an application to remove the decision must be filed in
the district court within thirty (30) days after the date the
decision is received by the parties. If the application to remove
is not made within thirty (30) days, then the district court
shall, upon application of a party, issue an order confirming the
decision. A written decision issued by an informal dispute
settlement mechanism, and any written findings upon which the
decision is based, are admissible as nonbinding evidence in any
subsequent legal action and are not subject to further foundation
requirements.
48-908. TREBLE DAMAGES FOR BAD
FAITH APPEAL OF DECISION
If the district court finds that
a party has removed a decision of an informal dispute settlement
mechanism in bad faith, by asserting a claim or defense that is
frivolous and costly to the other party, or by asserting an
unfounded position solely to delay recovery by the other party,
then the court shall award to the prevailing party three (3) times
the actual damages sustained, together with costs and attorney's
fees.
48-909. CIVIL REMEDY
Any consumer injured by a
violation of this chapter may bring a civil action to enforce this
chapter and recover costs and disbursements, including reasonable
attorney's fees incurred in the civil action. However, the
provisions of this section do not include recovery of attorney's
fees previously incurred in the course of informal dispute
resolution. In addition to the remedies provided herein, the
attorney general may, when in the public interest, bring an action
pursuant to the Idaho consumer protection act, chapter 6, title
48, Idaho Code, against any manufacturer for violation of this
chapter. For purposes of such action, violations of this chapter
shall be deemed to be violations of Idaho's consumer protection
act. In any such action, the attorney general and district court
shall have the same authority as is granted the attorney general
and district court under the Idaho consumer protection act.
48-910. LIMITATION ON ACTIONS
A civil action brought under this
chapter must be commenced within three (3) years of the date of
original delivery of the new motor vehicle to a consumer, except
that if the consumer applies to an informal dispute settlement
mechanism within three (3) years of the date of original delivery
of the new motor vehicle to a consumer, and if the consumer is
aggrieved by the decision of the informal dispute settlement
mechanism, then any appeal of that decision brought under this
chapter must be commenced within three (3) months after the date
of the final decision by the mechanism.
48-911. REMEDY NONEXCLUSIVE
Nothing in this chapter limits
the rights or remedies which are otherwise available to a consumer
under any other law.
48-912. DISCLOSURE REQUIREMENT
In addition to any investigative
powers authorized by law, the attorney general may inspect the
records of the informal dispute settlement mechanism upon
reasonable notice, during regular business hours, and may make
available to the public information about the operation of the
mechanism, but data on an individual case may not be disclosed
without the prior consent of the affected parties.
48-913. DEALER LIABILITY
Nothing in this chapter imposes
liability on a dealer or creates an additional cause of action by
a consumer against a dealer, except for written express warranties
made by the dealer apart from the manufacturer's warranties. 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, unless there is evidence that the related repairs
had not been carried out by the dealer in a timely manner or in a
manner substantially consistent with the manufacturer's published
instructions.
