Lemon Law - Vermont
Lemon Law
Lemon Law - "Lemon
law" is that body of state law which defines an automobile
owners rights when the manufacturer is not able to repair the
automobile within the limits specified. In
such cases, the automobile is referred to as a "lemon",
and is subject to the conditions of the state lemon law.
Your Lemon Law
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.
4170 Legislative Intent
The legislature finds and declares
that manufacturers, distributors and importers of new motor vehicles
should be obligated to provide speedy and less costly resolution of
automobile warranty problems. Manufacturers should be required to
provide in as expeditious a manner as possible a refund of the
consumer's purchase price or payments to a lessor and lessee or a
replacement vehicle that is acceptable to the consumer whenever the
manufacturer is unable to make the vehicle conform with its
applicable warranty. New motor vehicle dealers and used motor
vehicle dealers cannot be sued under this chapter.
4171 Definitions.
As used in this chapter:
(1) "Board" means,
unless otherwise indicated, the Vermont motor vehicle arbitration
board.
(2) "Consumer"
means the purchaser, other than for purposes of resale of a new
motor vehicle or lessee of a new motor vehicle, other than for the
purposes of sub-lease, which has not been previously leased by
another person, any person to whom such motor vehicle is transferred
during the duration of an express warranty applicable to the motor
vehicle, and any other person entitled by the terms of the warranty
to enforce the obligations of the warranty, but "consumer"
shall not include any governmental entity or any business or
commercial enterprise which registers or leases three or more motor
vehicles.
(3) "Early termination
costs" mean expenses and obligations incurred by a motor
vehicle lessee as a result of an early termination of a written
lease agreement and surrender of a motor vehicle to a manufacturer
under the provisions of 9 V.S.A. 4172(e), including penalties for
prepayment of finance arrangements.
(4) "Lease or
leased" means a written agreement with a lessee as defined in
subdivision (5) of this section, which shall be for the use of a
motor vehicle for consideration for a term of two or more years.
(5) "Lessee" means
any consumer who leases a motor vehicle pursuant to a written lease
agreement for a term of two or more years.
(6) "Motor
vehicle" means a motor vehicle which is purchased or leased, or
registered in the state of Vermont and is registered in Vermont
within 15 days of the date of purchase or lease and shall not
include tractors, motorized highway building equipment, road-making
appliances, snowmobiles, motorcycles, mopeds, or the living portion
of recreation vehicles, or trucks with a gross vehicle weight over
10,000 pounds.
(7) "Manufacturer"
means any person, resident or nonresident, who manufactures or
assembles new motor vehicles or imports for distribution through
distributors of motor vehicles or any partnership, firm,
association, joint venture, corporation or trust, resident or
nonresident, which is controlled by a manufacturer. Additionally,
the term "manufacturer" shall include:
(A) "distributor,"
meaning any person, resident or nonresident, who in whole or in part
offers for sale , sells, or distributes any new motor vehicle to new
motor vehicle dealers or new motor vehicle lessor's or maintains
factory representatives or who controls any person, firm,
association, corporation, or trust, resident or nonresident, who in
whole or in part offers for sale, sells or distributes any new motor
vehicle to new motor vehicle dealers or new motor vehicle lessor's;
and
(B) "factory
branch" meaning any branch office maintained by a manufacturer
for the purpose of selling, leasing, offering for sale or lease,
vehicles to a distributor or new motor vehicle dealer or for
directing or supervising, in whole or in part, factory distributor
representatives.
(8) "Motor vehicle
lessor" means a person who holds title to a motor vehicle
leased to a lessee under a written lease agreement for a term of two
or more years, or who holds the lessor's rights under such an
agreement.
(9) A "new motor
vehicle" means a passenger motor vehicle which has been sold to
a new motor vehicle dealer or motor vehicle lessor by a manufacturer
and which has not been used for other than demonstration purposes
and on which the original title has not been issued from the new
motor vehicle dealer other than to a motor vehicle lessor.
(10) Warranty shall be
defined as including the following:
"Express warranty" means
express warranties as defined in the Uniform Commercial Code2-313,
plus any written warranty of the manufacturer.
4172 Enforcement Of Warranties.
(a) Every new motor vehicle
as defined in section 4171 of this title sold in this state must
conform to all applicable warranties.
(b) It shall be the
manufacturer's obligation under this chapter to insure that all new
motor vehicles sold or leased in this state conform with
manufacturer's express warranties. The manufacturer may delegate
responsibility to its agents or authorized dealers provided,
however, in the event the manufacturer delegates its responsibility
under this chapter to its agents or authorized dealers, it shall
compensate the dealer for all work performed by the dealer in
satisfaction of the manufacturer's responsibility under this chapter
in the manner set forth in chapter 108 of this title known as the
"Motor Vehicle Manufacturers, Distributors and Dealers'
Franchising Practices Act" as that act may be from time to time
amended.
(c) 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
authorized dealer during the term of the warranty, the manufacturer
shall cause whatever repairs are necessary to conform the vehicle to
the warranties, notwithstanding the fact that the repairs are made
after the expiration of a warranty term.
(d) A manufacturer, its
agent or authorized dealer shall not refuse to provide a consumer
with a written repair order and shall provide to the consumer each
time the consumer's vehicle is brought in for examination or repair
of a defect, a written summary of the complaint and a fully itemized
statement indicating all work performed on the vehicle including,
but not limited to, examination of the vehicle, parts and labor.
(e) If, after a reasonable
number of attempts, the manufacturer, its agent or authorized dealer
or its delegate is unable to conform the motor vehicle to any
express warranty by repairing or correcting any defect or condition
covered by the warranty which substantially impairs the use, market
value, or safety of the motor vehicle to the consumer, the
manufacturer shall, at the option of the consumer within 30 days of
the effective date of the board's order, replace the motor vehicle
with a new motor vehicle from the same manufacturer, if available,
of comparable worth to the same make and model with all options and
accessories with appropriate adjustments being allowed for any model
year differences or shall accept return of the vehicle from the
consumer and refund to the consumer the full purchase price or to
the lessee in the case of leased vehicles, as provided in subsection
(i) of this section. In those instances in which a refund is
tendered, the manufacturer shall refund to the consumer the full
purchase price as indicated in the purchase contract and all credits
and allowances for any trade-in or down payment, license fees,
finance charges, credit charges, registration fees and any similar
charges and incidental and consequential damages or in the case of
leased vehicles, as provided in subsection (i) of this section.
Refunds shall be made to the consumer and lien holder, if any, as
their interests may appear or to the motor vehicle lessor and lessee
as provided in subsection (i) of this section. A reasonable
allowance for use shall be that amount directly attributable to use
by the consumer prior to his or her first repair attempt and shall
be calculated by multiplying the full purchase price of the vehicle
by a fraction having as its denominator 100,000 and having as its
numerator the number of miles that the vehicle traveled prior to the
first attempt at repairing the vehicle. If the manufacturer refunds
the purchase price or a portion of the price to the consumer, the
purchase and use tax shall be refunded by the state to the consumer
in the proportionate amount. To receive a refund, the consumer must
file a claim with the commissioner of motor vehicles.
(f) It shall be an
affirmative defense to any claim under this chapter that an alleged
nonconformity does not substantially impair the use, market value or
safety or that the nonconformity is the result of abuse, neglect, or
unauthorized modifications or alterations of a motor vehicle by a
consumer.
(g) It shall be presumed
that a reasonable number of attempts have been undertaken to conform
a motor vehicle to the applicable warranties if:
(1) the same nonconformity
as identified in any written examination or repair order has been
subject to repair at least three times by the manufacturer, its
agent or authorized dealer and at least the first repair attempt
occurs within the express warranty term and the same nonconformity
continues to exist, or
(2) the vehicle is out of
service by reason of repair of one or more nonconformities, defects
or conditions for a cumulative total of 30 or more calendar days
during the term of the express warranty. The term of any warranty
and the 30-day period shall be extended by any period of time during
which repair services were not available to the consumer because of
war, invasion, strike, fire, flood or other natural disaster. If an
extension of time is necessitated due to these conditions, the
manufacturer shall cause provision for the free use of a vehicle to
the consumer whose vehicle is out of service. A vehicle shall not be
deemed out of service if it is available to the consumer for a major
part of the day.
(h) In order for an attempt
at repair to qualify for the presumptions of this section, the
attempt at repair must be evidenced by a written examination or
repair order issued by the manufacturer, its agent or its authorized
dealer. The presumptions of this section shall only apply to three
attempts at repair evidenced by written examination or repair orders
undertaken by the same agent or authorized dealer, unless the
consumer shows good cause for taking the vehicle to a different
agent or authorized dealer.
(i) In cases in which a
refund is tendered by a manufacturer for a leased motor vehicle
under subsection (e) of this section, the refund and rights of the
motor vehicle lessor, lessee and manufacturer shall be in accordance
with the following:
(1) The manufacturer shall
provide to the lessee, the aggregate deposit and rental payments
previously paid to the motor vehicle lessor by the lessee, and
incidental and consequential damages, if applicable, minus a
reasonable allowance for use and allocated payments for purchase and
use tax. The aggregate deposit shall include, but not be limited to,
all cash payments and trade-in allowances tendered by the lessee to
the motor vehicle lessor under the lease agreement. The reasonable
allowance for use shall be calculated by multiplying the aggregate
deposit and rental payments made by the lessee on the motor vehicle
by a fraction having as its denominator 100,000 and having as its
numerator the number of miles that the vehicle traveled prior to the
first attempt at repairing the vehicle.
(2) The manufacturer shall
provide to the motor vehicle lessor the aggregate of the following:
(A) the lessor's actual
purchase cost, less payments made by the lessee;
(B) the freight cost, if
applicable;
(C) the cost for dealer or
manufacturer-installed accessories, if applicable;
(D) any fee paid to another
to obtain the lease;
(E) an amount equal to five
percent of the lessor's actual purchase cost as prescribed in
subdivision (2)(A) of this section. The amount in this subdivision
shall be instead of any early termination costs as defined in
4171(3) of this chapter or as described in the lease agreement.
(3) The purchase and use tax
shall be refunded by the state to whomever paid the tax. The party
must file a claim with the commissioner of the department of motor
vehicles.
(4) The lessee's lease
agreement with the motor vehicle lessor and all contractual
obligations shall be terminated upon a decision of the board in
favor of the lessee. The lessee shall not be liable for any further
costs or charges to the manufacturer or motor vehicle lessor under
the lease agreement.
(5) The motor vehicle lessor
shall release the motor vehicle title to the manufacturer upon
payment by the manufacturer under the provisions of this subsection.
(6) The board shall give
notice to the motor vehicle lessor of the lessee's filing of a
request for arbitration under this chapter and shall notify the
motor vehicle lessor of the date, time and place scheduled for a
hearing before the board. The motor vehicle lessor shall provide
testimony and evidence necessary to the arbitration proceedings. Any
decision of the board shall be binding upon the motor vehicle
lessor.
4173 Procedure To Obtain Refund
Or Replacement.
(a) After the third attempt
at repair or correction of the nonconformity, defect or condition,
or after the vehicle is out of service by reason of repair of one or
more nonconformities, defects or conditions for a cumulative total
of 30 or more calendar days as provided in this chapter, the
consumer shall notify the manufacturer and lessor in writing, on
forms to be provided by the manufacturer at the time the new motor
vehicle is delivered, of the nonconformity, defect or condition and
the consumer's election to proceed under this chapter. The forms
shall be made available by the manufacturer to the Vermont motor
vehicle arbitration board, and any other public or nonprofit
agencies that shall request them. Notice of consumer rights under
this chapter shall be conspicuously displayed by all authorized
dealers and agents of the manufacturer. The consumer shall in the
notice, elect whether to use the dispute settlement mechanism and/or
the arbitration provisions established by the manufacturer or to
proceed under the Vermont motor vehicle arbitration board as
established under this chapter. The consumer's election of whether
to proceed before the board or the manufacturer's mechanism shall
preclude his or her recourse to the method not selected.
(b) A consumer cannot pursue
a remedy under this chapter if he or she has discontinued financing
or lease payments if the payments have been discontinued due to the
manufacturer's breach of obligation under this chapter or of a
breach of the manufacturer's warranties.
(c) Arbitration of the
consumer's complaint, either through the manufacturer's dispute
settlement mechanism or the board, must be held within 45 days of
receipt by the manufacturer or the board and the manufacturer of the
consumer's notice electing the remedy of arbitration unless the
consumer or the manufacturer has good cause for an extension of
time, not to exceed an additional 30-day period. If the extension of
time is requested by the manufacturer, the manufacturer shall
provide free use of a vehicle to the consumer if the consumer's
vehicle is out of service. In the event the consumer elects to
proceed in accordance with the manufacturer's dispute settlement
mechanism and the arbitration of the dispute is not held within 45
days of the manufacturer's receipt of the consumer's notice and the
manufacturer is not able to establish good cause for the delay, the
consumer shall be entitled to receive the relief requested under
this chapter.
(d) Within the 45-day period
set forth in subsection (c) of this section, the manufacturer shall
have one final opportunity to correct and repair the defect which
the consumer claims entitles him or her to a refund or replacement
vehicle. If the consumer is satisfied with the corrective work done
by the manufacturer or his delegate, the arbitration proceedings
shall be terminated without prejudice to the consumer's right to
request arbitration be recommenced if the repair proves
unsatisfactory for the duration of the express warranty.
(e) The manufacturer shall
refund the amounts provided for in section 4172(e) or (i) of this
chapter within 30 days of a decision of the board or within 15 days
of final adjudication.
4174 Vermont Motor Vehicle
Arbitration Board.
(a) There is created a
Vermont motor vehicle arbitration board consisting of five members
and two alternate members to be appointed by the governor for terms
of three years. Board members may be appointed for two additional
three-year terms. One member of the board shall be a new car dealer
in Vermont, one member and one alternate shall be persons
knowledgeable in automobile mechanics, and three members and one
alternate shall be persons having no direct involvement in the
design, manufacture, distribution, sales or service of motor
vehicles or their parts. Board members shall be compensated in
accordance with the provisions of 32 V.S.A. 1010. The board shall be
attached to the transportation board and shall receive
administrative services from the transportation board.
(b) The board shall
promulgate rules under the provisions of 3 V.S.A. chapter 25 to
implement the provisions of this chapter.
(c) The board may issue
subpoenas to compel the attendance of witnesses to testify under
oath and to produce documents.
(d) The board shall render a
decision within 30 days of the conclusion of a hearing and has
authority to issue any and all damages as are provided by this
chapter.
4175 Fees And Costs.
There shall be no filing fee or
costs assessed against the consumer for using the Vermont motor
vehicle arbitration board or the manufacturer's dispute settlement
mechanism. In the event an authorized franchise dealer or any of its
employees including mechanics or service personnel are called upon
to testify or produce documents, repair orders or other materials in
any arbitration held before the Vermont motor vehicle arbitration
board or the manufacturer's dispute settlement mechanism, the person
who requests the participation of the authorized franchise dealer or
requests the production of documents must make arrangements in
advance to reasonably compensate the dealer for the actual expense
involved. Where a conflict arises as to actual expenses, the board
shall make that determination. In the event the consumer prevails,
these costs shall be reimbursed to the consumer by the manufacturer.
4176 Appeal From Board.
(a) The decision of the
board shall be final and shall not be modified or vacated unless, on
appeal to the superior court a party to the arbitration proceeding
proves, by clear and convincing evidence, that:
(1) the award was procured
by corruption, fraud or other undue means;
(2) there was evident
partiality by the board or corruption or misconduct prejudicing the
rights of any party by the board;
(3) the board exceeded its
powers;
(4) the board refused to
postpone a hearing after being shown sufficient cause to do so or
refused to hear evidence material to the controversy or otherwise
conducted the hearing contrary to the rules promulgated by the board
so as to prejudice substantially the rights of a party.
An application to vacate or modify
an award shall be made within 30 days after delivery of a copy of
the award to the applicant except that if predicated upon
corruption, fraud or other undue means, it may be made within 30
days after such grounds are known or should have been known. In the
event an award is confirmed, the party who prevails shall be awarded
the attorney's fees incurred in obtaining confirmation of the award
together with all costs.
(b) When a judgment of the
superior court affirms an award of the board, permission of the
presiding judge shall be required for review. Review may be
conditioned upon the appellant paying appellee's appellate
attorney's fees (sic), giving security for costs, expenses
and financial loss resulting from the passage of time for review.
4177 Unfair And Deceptive Acts
And Practices.
Failure of the manufacturer, its
agents, authorized dealers, or motor vehicle lessor's to comply with
a decision of the board shall constitute an unfair or deceptive act
or practice under 9 V.S.A. chapter 63.
4178 Limitations.
Nothing in this chapter shall be
construed as imposing any liability on a manufacturer's authorized
dealers or creating a cause of action by a manufacturer against its
authorized agents or dealers. It shall be a violation of 9 V.S.A.
chapter 108 for a manufacturer to engage in reprisals or threats of
reprisals, directly or indirectly, against any authorized dealer
arising out of the dealer's efforts to repair a motor vehicle under
the provisions of this chapter.
4179 Effective Date;
Limitations.
(a) This chapter shall apply
to motor vehicles beginning with the model year following July 1,
1984. Any proceedings initiated under this chapter shall be
commenced within one year following:
(1) the expiration of the
express warranty term; or
(2) one year following the
manufacturer's last attempt at repair of the nonconformity which
gives rise to the consumer's request that the vehicle be replaced or
the money refunded, whichever comes later.
(b) Nothing in this chapter
shall in any way limit the rights or remedies which are otherwise
available to a consumer under any other law.
4180 Notification To Consumers.
The manufacturer of every motor
vehicle sold in this state beginning with the model year following
July 1, 1984 shall provide a clear and conspicuous written notice of
the consumer's rights under this chapter and at the time of the
delivery of every new motor vehicle in this state beginning with the
model year following July 1, 1984 shall provide the consumer with a
stamped self-addressed notice in a form satisfactory to the Vermont
motor vehicle arbitration board sufficient to notify the
manufacturer of the consumer's election to proceed under this
chapter. The manufacturer shall not delegate this responsibility to
its authorized dealers. The manufacturer of every new motor vehicle
sold in this state beginning with the effective date of this chapter
shall also provide a clear and conspicuous notice that informs
consumers of their rights under this chapter.
4181 Sale Of Defective Motor
Vehicles.
Any manufacturer, its agent or
authorized dealer who attempts to resell a motor vehicle after final
determination, adjudication or settlement, pursuant to the
provisions of this chapter or after final determination,
adjudication or settlement under similar laws of any other state
shall apprise prospective buyers in Vermont by means of a clearly
visible window sticker and such manufacturers are prohibited from
reselling in Vermont any vehicle determined or adjudicated as having
a serious safety defect. Notice that a vehicle has been returned
pursuant to such law shall also be conspicuously printed on the
motor vehicle certificate of title.
Find other Lemon Laws in these
states:
Lemon Law
Lemon Law - "Lemon
law" is that body of state law which defines an automobile
owners rights when the manufacturer is not able to repair the
automobile within the limits specified by state lemon law. In
such cases, the automobile is referred to as a "lemon",
and is subject to the conditions of the state lemon law.
Your Lemon Law
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.
Lemon Law - Lemon
Law - Lemon Law- Lemon Law
