SECTION
56-28-10. Definitions.
As used in this chapter:
(1) "Consumer"
means the purchaser or lessor, other than for purposes of resale, of a
motor vehicle normally used for personal, family, or household purposes
and subject to the manufacturer's express warranty, and any other person
entitled by the warranty to enforce the obligations of the warranty.
(2) "Manufacturer"
means any person, resident, or nonresident, who manufactures or assembles
or imports or distributes new motor vehicles which are to be sold in the
State.
(3) "Manufacturer's
express warranty" or "warranty" means
the written warranty, so labeled, of the manufacturer of a new motor
vehicle, including any terms or conditions precedent to the enforcement of
obligations under that warranty.
(4) "Motor vehicle"
means a private passenger motor vehicle, as classified by Section
56-3-630, but excluding the living portion of recreational vehicles and
off-road vehicles, which is sold and registered in this State.
(5) A "new motor
vehicle" means a private passenger motor vehicle which has been
sold to a new motor vehicle dealer 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.
(6) "Nonconformity"
means a defect or condition that substantially impairs the use, value, or
safety of a motor vehicle, but does not include a defect or condition that
results from an accident, modification, or alteration of the motor vehicle
by persons other than the manufacturer or its authorized service agent.
SECTION
56-28-20. Manufacturers to provide annual
written summaries of certain motor vehicles; forms; records to be made
available; penalties.
Every manufacturer, in a format and a form that must be mailed annually to
each manufacturer approved by the Administrator of the Department of
Consumer Affairs, shall provide a written summary of all motor vehicles
repurchased or replaced under this chapter no less than once each calendar
year. In addition, every manufacturer shall make available any paperwork,
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reports, or other information regarding vehicles subject to this
chapter upon request by the administrator. Failure to supply either the
written summaries of repurchased vehicles or respond to reasonable
requests for information by the administrator subjects the manufacturer to
an administrative penalty not to exceed one thousand dollars for each
violation which the administrator in his discretion may impose.
SECTION
56-28-30. Nonconformity with express
warranties; notice required; repairs required.
If a new motor vehicle does not conform to all applicable express
warranties within the first twelve months of purchase or the first twelve
thousand miles of operation, whichever occurs first, and the consumer
reports the nonconformity to the manufacturer or its agent during the term
of the express warranties, the manufacturer, or its agent, shall make
those repairs as are necessary to conform the vehicle to the express
warranties at no cost to the consumer, notwithstanding the fact that the
repairs are made after the expiration of the term.
SECTION
56-28-40. Replacement of motor vehicle;
refund of purchase price.
If, within the term specified in Section 56-28-30, the manufacturer,
through its agents or authorized dealer, is unable to conform the motor
vehicle to any applicable express warranty by repairing or correcting any
defect or condition which substantially impairs the use, market value, or
safety of the motor vehicle to the consumer after a reasonable number of
attempts, the manufacturer shall replace the motor vehicle with a
comparable motor vehicle, or at its option, accept return of the vehicle
from the consumer and refund to the consumer the full purchase price as
delivered including applicable finance charges, sales taxes, license fees,
registration fees, and any other similar governmental charges, less a
reasonable allowance for the consumer's use of the vehicle. Refunds must
be made to the consumer and lienholder, if any, as their interest may
appear on the record of ownership kept by the Division of Motor Vehicles.
A reasonable allowance for use must be that amount directly attributable
to use by the consumer before his first report of the nonconformity to the
manufacturer, agent, or dealer, and must be calculated by multiplying the
full purchase price of the vehicle by a fraction having as its denominator
one hundred twenty thousand and having as its numerator the number of
miles that the vehicle traveled before the first report of nonconformity.
The consumer is not entitled to a refund or replacement if:
(1) the nonconformity does not substantially
impair the motor vehicle's use, market value, or safety;
(2) the nonconformity is the result of abuse,
neglect, or modification or alteration of the motor vehicle by the
consumer.
SECTION
56-28-50. Presumption of attempts to conform;
information to be provided to consumers; obligations of manufacturer;
costs and attorney's fees; notice requirements.
(A) It is presumed that a reasonable number
of attempts have been undertaken to conform a motor vehicle to the
applicable express warranties if:
(1) the same nonconformity has been subject
to repair three or more times by the manufacturer, or its agent, within
the express warranty term, but the nonconformity continues to exist; or
(2) the vehicle is out of service by reason
of repair for a cumulative total of thirty or more calendar days during
the express warranty. The term of an express warranty, and the twenty-day
period must be extended by any period of time during which repair services
are not available to the consumer because of a war, invasion, strike,
fire, flood, or other natural disaster.
(B) The manufacturer must provide information
regarding consumer complaint remedies with each new motor vehicle. It is
the responsibility of the consumer, or his representative, before availing
himself of the provisions of this chapter, to give written notification to
the manufacturer of the need for the repair of the nonconformity, in order
to allow the manufacturer a final opportunity to cure the alleged defect
if the manufacturer has clearly and prominently informed the consumer of
the requirement of written notification to the manufacturer at the time of
sale. The manufacturer, within ten business days, must notify the consumer
of a reasonably accessible repair facility of a franchised new vehicle
dealer to conform the new vehicle to the express warranty. After delivery
of the new vehicle to an authorized repair facility by the consumer, the
manufacturer must attempt immediately to repair the vehicle within a
period not to exceed ten business days in order to conform the new motor
vehicle to the express warranty. If the manufacturer is unable to repair
properly the vehicle within the final ten-business-day period, the
manufacturer must replace the vehicle with an identical or reasonably
equivalent vehicle or refund the purchase price subject to the provisions
of Section 56-28-40.
(C) Upon notification from the consumer that
the new vehicle has not been conformed to the express warranty, the
manufacturer shall inform the consumer if an informal dispute settlement
procedure has been established by the manufacturer as enumerated in
Section 56-28-60. However, if prior notice by the manufacturer of an
informal dispute settlement procedure has been given, no further notice is
required.
(D) Any consumer who finally prevails in any
action brought under this chapter, may be allowed by the court to recover
as part of the judgment a sum equal to the aggregate amount of cost and
expenses (including attorney's fees based on actual time expended) and
other such costs which are directly attributable to the nonconformity of
the motor vehicle determined by the court to have been reasonably incurred
by the plaintiff for or in connection with the commencement and
prosecution of such action, unless the court in its discretion determines
that such an award of attorney's fees would be inappropriate.
(E) All written notifications required by
this section shall be sent by registered, certified, or express mail.
SECTION
56-28-60. Informal dispute settlement
procedures.
If a manufacturer has established an informal dispute settlement procedure
which substantially complies with Title 16 of the Code of Federal
Regulations, Part 703, or if the manufacturer participates in a
consumer-industry appeals, arbitration, or mediation panel or board, whose
decisions are binding on the manufacturer, the provisions of Section
56-28-40 concerning refunds or replacement do not apply to any consumer
who has not first resorted to those procedures or to the alternate
procedure provided in Section 56-28-90.
SECTION
56-28-70. Limitation of actions.
Any action brought under this chapter must be commenced within three years
following the date of original delivery of the motor vehicle to the
consumer.
SECTION
56-28-80. Construction of chapter;
reimbursement from dealer prohibited; exception.
Nothing in this chapter may be construed as imposing any liability on a
motor vehicle dealer or creating a cause of action by a consumer against a
motor vehicle dealer under Section 56-28-40. 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 in the absence of
evidence that the related repairs had been carried out by the dealer in a
manner substantially inconsistent with the manufacturer's published
instructions.
SECTION
56-28-90. State arbitration board may be
established.
The Administrator of the Department of Consumer Affairs may establish by
regulation a state arbitration board consisting of five members appointed
by him to serve at his pleasure. The board shall review matters involving
manufacturers that have not created an informal dispute settlement
procedure that substantially complies with Title 16 of the Code of Federal
Regulations, Part 703. The cost of the arbitration board must be borne by
the manufacturer of the vehicle purchased or leased by the consumer.
SECTION
56-28-100. Repurchased vehicles not to be
resold; exceptions.
Any vehicle required to be repurchased by a manufacturer under this
chapter or any other provision of law relating to motor vehicle warranties
may not be resold, reassigned, or retransferred, either at wholesale or
retail in this State, unless:
(1) The manufacturer notifies the
Administrator of the Department of Consumer Affairs within thirty calendar
days, in writing, of the vehicle identification number of that motor
vehicle, the reason that the vehicle was repurchased, and provides a
statement that all necessary repairs and adjustments have been made and
that the vehicle meets acceptable operating standards.
(2) The manufacturer provides a written
warranty to the subsequent retail purchaser of the vehicle covering the
vehicle for twelve months or twelve thousand miles. The warranty must
expressly include any component related to the manufacturer's decision to
repurchase the vehicle.
(3) The manufacturer shall disclose to any
dealer or other wholesale purchaser of the fact that the vehicle was
required to be repurchased under this chapter or another provision of law
relating to motor vehicle warranties.
SECTION
56-28-110. Notification to subsequent
purchasers; penalties for failure to notify.
Every subsequent purchaser must be notified by the seller of the fact that
the vehicle was required to be repurchased under the terms of this chapter
or another provision of law relating to motor vehicle warranties. Failure
to notify properly any purchaser of the requirements of this section
subjects the seller to an administrative penalty to be imposed by the
administrator up to a maximum of five hundred dollars for each vehicle.
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