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The North Carolina Lemon Law statute 20-351 to 20-351.10 covers
what most consumers need to know regarding their rights in the state
of North Carolina concerning vehicles they believe to be lemons.
The below North Carolina Lemon Law Statute is from the official
Attorney General's Department of Justice website.
New Motor Vehicles Warranties Act
NCGS CHAPTER 20, ARTICLE 15A
§ 20-351. Purpose.
This Article shall provide State and private remedies against motor
vehicle manufacturers for persons injured by new motor vehicles
failing to conform to express warranties.
(1987, c. 385.)
§ 20-351.1. Definitions.
As used in this Article:
(1) "Consumer" means the purchaser, other than for purposes
of resale, or lessee from a commercial lender, lessor, or from a
manufacturer or dealer, of a motor vehicle, and any other person
entitled by the terms of an express warranty to enforce the obligations
of that warranty.
(2) "Manufacturer" means any person or corporation, resident
or nonresident, who manufactures or assembles or imports or distributes
new motor vehicles which are sold in the State of North Carolina.
(3) "Motor vehicle" includes a motor vehicle as defined
in G.S. 20-4.01 which is sold or leased in this State, but does
not include "house trailer" as defined in G.S. 20-4.01
or any motor vehicle with a gross vehicle weight of 10,000 pounds
or more.
(4) "New motor vehicle" means a motor vehicle for which
a certificate of origin, as required by G.S. 20-52.1 or a similar
requirement in another state, has never been supplied to a consumer,
or which a manufacturer, its agent, or its authorized dealer states
in writing is being sold as a new motor vehicle.
(1987, c. 385; 1989, c. 43, s. 2, c. 519, s. 2.)
§ 20-351.2. Require repairs; when mileage warranty begins to
accrue.
(a) Express warranties for a new motor vehicle shall remain in
effect at least one year or 12,000 miles. If a new motor vehicle
does not conform to all applicable express warranties for a period
of one year, or the term of the express warranties, whichever is
greater, following the date of original delivery of the motor vehicle
to the consumer, and the consumer reports the nonconformity to the
manufacturer, its agent, or its authorized dealer during such period,
the manufacturer shall make, or arrange to have made, repairs necessary
to conform the vehicle to the express warranties, whether or not
these repairs are made after the expiration of the applicable warranty
period.
(b) Any express warranty for a new motor vehicle expressed in terms
of a certain number of miles shall begin to accrue from the mileage
on the odometer at the date of original delivery to the consumer.
(1987, c. 385; 1989, c. 14.)
§ 20-351.3. Replacement or refund; disclosure requirement.
(a) When the consumer is the purchaser or a person entitled by
the terms of the express warranty to enforce the obligations of
the warranty, if the manufacturer is unable, after a reasonable
number of attempts, to conform the motor vehicle to any express
warranty by repairing or correcting, or arranging for the repair
or correction of, any defect or condition or series of defects or
conditions which substantially impair the value of the motor vehicle
to the consumer, and which occurred no later than 24 months or 24,000
miles following original delivery of the vehicle, the manufacturer
shall, at the option of the consumer, replace the vehicle with a
comparable new motor vehicle or accept return of the vehicle from
the consumer and refund to the consumer the following:
(1) The full contract price including, but not limited to, charges
for undercoating, dealer preparation and transportation, and installed
options, plus the non-refundable portions of extended warranties
and service contracts;
(2) All collateral charges, including but not limited to, sales
tax, license and registration fees, and similar government charges;
(3) All finance charges incurred by the consumer after he first
reports the nonconformity to the manufacturer, its agent, or its
authorized dealer; and
(4) Any incidental damages and monetary consequential damages.
(b) When consumer is a lessee, if the manufacturer is unable, after
a reasonable number of attempts, to conform the motor vehicle to
any express warranty by repairing or correcting, or arranging for
the repair or correction of, any defect or condition or series of
defects or conditions which substantially impair the value of the
motor vehicle to the consumer, and which occurred no later than
24 months or 24,000 miles following original delivery of the vehicle,
the manufacturer shall, at the option of the consumer, replace the
vehicle with a comparable new motor vehicle or accept return of
the vehicle from the consumer and refund the following:
(1) To the consumer:
a. All sums previously paid by the consumer under the terms of
the lease;
b. All sums previously paid by the consumer in connection with entering
into the lease agreement, including, but not limited to, any capitalized
cost reduction, sales tax, license and registration fees, and similar
government charges; and
c. Any incidental and monetary consequential damages.
(2) To the lessor, a full refund of the lease price, plus an additional
amount equal to five percent (5%) of the lease price, less eighty-five
percent (85%) of the amount actually paid by the consumer to the
lessor pursuant to the lease. The lease price means the actual purchase
cost of the vehicle to the lessor.
In the case of a refund, the leased vehicle shall be returned to
the manufacturer and the consumer's written lease shall be terminated
by the lessor without any penalty to the consumer. The lessor shall
transfer title of the motor vehicle to the manufacturer as necessary
to effectuate the consumer's rights pursuant to this Article, whether
the consumer chooses vehicle replacement or refund.
(c) Refunds shall be made to the consumer, lessor and any lienholders
as their interests may appear. The refund to the consumer shall
be reduced by 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 prior to his first report of
the nonconformity to the manufacturer, its agent, or its authorized
dealer, and during any subsequent period when the vehicle is not
out of service because of repair. "Reasonable allowance"
is presumed to be the cash price or the lease price, as the case
may be, of the vehicle multiplied by a fraction having as its denominator
100,000 miles and its numerator the number of miles attributed to
the consumer.
(d) If a manufacturer, its agent, or its authorized dealer resells
a motor vehicle that was returned pursuant to this Article or any
other State's applicable law, regardless of whether there was any
judicial determination that the motor vehicle had any defect or
that it failed to conform to all express warranties, the manufacturer,
its agent, or its authorized dealer shall disclose to the subsequent
purchaser prior to the sale:
(1) That the motor vehicle was returned pursuant to this Article
or pursuant to the applicable law of any other State; and
(2) The defect or condition or series of defects or conditions which
substantially impaired the value of the motor vehicle to the consumer.
Any subsequent purchaser who purchases the motor vehicle for resale
with notice of the return, shall make the required disclosures to
any person to whom he resells the motor vehicle.
(1987, c. 385; 1989, c. 43, s. 1, c. 519, s. 1.)
§ 20-351.4. Affirmative defenses.
It is an affirmative defense to any claim under this Article that
an alleged nonconformity or series of nonconformities are the result
of abuse, neglect, odometer tampering by the consumer or unauthorized
modifications or alterations of a motor vehicle.
(1987, c. 385.)
§ 20-351.5. Presumption.
(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 presented for repair to the
manufacturer, its agent, or its authorized dealer four or more times
but the same nonconformity continues to exist; or
(2) The vehicle was out of service to the consumer during or while
awaiting repair of the nonconformity or a series of nonconformities
for a cumulative total of 20 or more business days during any 12-month
period of the warranty, provided that the consumer has notified
the manufacturer directly in writing of the existence of the nonconformity
or series of nonconformities and allowed the manufacturer a reasonable
period, not to exceed 15 calendar days, in which to correct the
nonconformity or series of nonconformities. The manufacturer must
clearly and conspicuously disclose to the consumer in the warranty
or owners manual that written notification of a nonconformity is
required before a consumer may be eligible for a refund or replacement
of the vehicle and the manufacturer shall include in the warranty
or owners manual the name and address where the written notification
may be sent. Provided, further, that notice to the manufacturer
shall not be required if the manufacturer fails to make the disclosures
provided herein.
(b) The consumer may prove that a defect or condition substantially
impairs the value of the motor vehicle to the consumer in a manner
other than that set forth in subsection (a) of this section.
(c) The term of an express warranty, the one-year period, and the
20-day period shall be extended by any period of time during which
repair services are not available to the consumer because of war,
strike, or natural disaster.
(1987, c. 385.)
§ 20-351.6. Civil action by the Attorney General.
Whenever, in his opinion, the interests of the public require it,
it shall be the duty of the Attorney General upon his ascertaining
that any of the provisions of this Article have been violated by
the manufacturer to bring a civil action in the name of the State,
or any officer or department thereof as provided by law, or in the
name of the State on relation of the Attorney General.
(1987, c. 385.)
§ 20-351.7. Civil action by the consumer.
A consumer injured by reason of any violation of the provisions
of this Article may bring a civil action against the manufacturer;
provided, however, the consumer has given the manufacturer written
notice of his intent to bring an action against the manufacturer
at least 10 days prior to filing such suit. Nothing in this section
shall prevent a manufacturer from requiring a consumer to utilize
an informal settlement procedure prior to litigation if that procedure
substantially complies in design and operation with the Magnuson-Moss
Warranty Act, 15 USC § 2301 et seq., and regulations promulgated
thereunder, and that requirement is written clearly and conspicuously,
in the written warranty and any warranty instructions provided to
the consumer.
(1987, c. 385.)
§ 20-351.8. Remedies.
In any action brought under this Article, the court may grant as
relief:
(1) A permanent or temporary injunction or other equitable relief
as the court deems just;
(2) Monetary damages to the injured consumer in the amount fixed
by the verdict. Such damages shall be trebled upon a finding that
the manufacturer unreasonably refused to comply with G.S. 20-351.2
or G.S. 20-351.3. The jury may consider as damages all items listed
for refund under G.S. 20-351.3;
(3) A reasonable attorney's fee for the attorney of the prevailing
party, payable by the losing party, upon a finding by the court
that:
a. The manufacturer unreasonably failed or refused to fully resolve
the matter which constitutes the basis of such action; or
b. The party instituting the action knew, or should have known,
the action was frivolous and malicious.
(1987, c. 385.)
§ 20-351.9. Dealership liability.
No authorized dealer shall be held liable by the manufacturer for
any refunds or vehicle replacements in the absence of evidence indicating
that dealership repairs have been carried out in a manner substantially
inconsistent with the manufacturers' instructions. This Article
does not create any cause of action by a consumer against an authorized
dealer.
(1987, c. 385.)
§ 20-351.10. Preservation of other remedies.
This Article does not limit the rights or remedies which are otherwise
available to a consumer under any other law.
(1987, c.385.)
The North Carolina Lemon Law website is dedicated to bringing our
readers both information specific to the state of North Carolina
and more general information across all 50 states so that you can
make informed judgments concerning your rights and methods of achieving
retribution. The North Carolina Lemon Law website is a consumer
advocacy site that helps bring relevant information to the citizens
of North Carolina for the purpose of educating our visitors on consumer
law and consumer action.
We believe that the rights of the consumer are typically overlooked
in the favor of big business. It the belief of the North Carolina
Lemon Law website that a grassroots effort is necessary in order
to bring awareness of the plight of the consumer and change laws
to protect the consumer. The Federal Lemon Law, also called the
Magnuson-Moss Warranty Act, was put in effect in 1975 to protect
consumers and issue responsibilities to manufacturers in regards
to faulty products. This was a first step.
Since then, all 50 states have adopted some form of lemon law specific
to the automobile industry. More information may be found at the
Federal Trade Commission website in a section called "Facts
for Businesses." It is the belief of the North Carolina Lemon
Law website that the current laws governing the length of time one's
car can be out-of-commission are too lenient towards the manufacturers
and that consumer advocacy is in order. Write your state congresspersons
to let them know that you would like shorter time frames for the
North Carolina Lemon Law to kick in regarding your vehicle.
Disclaimer: The information on this website has been complied
by the North Carolina Lemon Law website from public sources. Use
of information from this website does not constitute an attorney-client
relationship. Please contact an attorney in your state or your Attorney
General to ensure that all your rights are protected.
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