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| Vermont Lemon Laws | |||
| Vehicles Must Conform to All Applicable Warranties | |||
| Every new motor vehicle as defined in section 4171 of this title sold in this state
must conform to all applicable warranties. It shall be the manufacturer's obligation under
this chapter to insure that all new motor vehicles sold, leased or registered 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. 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. 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. Uunable to Conform the Vehicle 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 downpayment, 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 lienholder, 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, any Vermont motor vehicle purchase and use tax paid 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 within 90 days of the effective date of the order. 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. Presumptions It shall be presumed that a reasonable number of attempts have been undertaken to conform a motor vehicle to the applicable warranties if 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 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. 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 the lessee elects a replacement vehicle, a collateral change with appropriate adjustments for any model year difference or excess mileage, or both, shall be incorporated into an amended lease agreement. 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: 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 the number of miles allowed in the lease contract and having as its numerator the number of miles that the vehicle traveled prior to the first attempt at repairing the vehicle. Any miles in excess of those allowed in the lease contract shall be added to the mileage at the first repair attempt or first day out of service prior to calculating the reasonable allowance for use. The manufacturer shall provide to the motor vehicle lessor the aggregate of the following the lessor's actual purchase cost, less payments made by the lessee; the freight cost, if applicable; the cost for dealer or manufacturer-installed accessories, if applicable; any fee paid to another to obtain the lease; an amount equal to five percent of the lessor's actual purchase cost. 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. Vermont motor vehicle 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 within 90 days of the effective date of the order. 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 as of the effective date of the order. The lessee shall not be liable for any further costs or charges to the manufacturer or motor vehicle lessor under the lease agreement. The motor vehicle lessor shall release the motor vehicle title to the manufacturer upon payment by the manufacturer under the provisions of this subsection. 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. Procedure to Obtain Refund or Replacement After reasonable 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 any 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 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. A consumer cannot pursue a remedy under this chapter if he or she has discontinued financing or lease payments. Time For Arbitration 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 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. Within the 45-day period set forth in subsection but at least five days prior to hearing, 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. Any right to a final repair attempt is waived if the manufacturer does not complete it at least five days prior to hearing. 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. The vehicle must be presented at the hearing site for an inspection or test drive, or both, by members of the board. The manufacturer shall refund the amounts provided for in section 4172(e) or (i) of this chapter within 30 days of the facsimile transmission confirmation receipt of a decision of the board or within 15 days of final adjudication. The consumer shall receive an additional 10 percent of the total award if the manufacturer fails to complete the transaction by the effective date of the order. See Vermont Statutes Title 9, Section 4173. |
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| Vermont Statutes by Title
CHAPTER 115: NEW MOTOR VEHICLE ARBITRATION Vermont
Statutes Title 9 Sections 4170-81 |
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