Alabama
Lemon Law Statutes
Article 8, Chapter 20A
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Section 8-20A-1
Definitions.
As used in this chapter, the following
terms shall have the respective meanings
as indicated:
(1) Consumer.
The purchaser, other than for purposes
of resale, of a new or previously untitled
motor vehicle used in substantial part
for personal, family, or household purposes,
and any other person entitled by the terms
of such warranty to enforce the obligations
of the warranty.
(2) Motor vehicle.
Every vehicle intended primarily for use
and operation on the public highways which
is self-propelled; provided, however,
that the term "motor vehicle"
shall not apply to motor homes or to any
motor vehicle having a manufacturer's
gross vehicle weight rating (GVWR) of
10,000 pounds or more.
(3) Manufacturer.
The person, firm, or corporation engaged
in the business of manufacturing, importing
and/or distributing motor vehicles to
be made available to a motor vehicle dealer
for retail sale.
(4) Motor vehicle dealer or Authorized
dealer.
The person, firm, or corporation operating
under a dealer agreement from a manufacturer,
importer, or distributor and who is engaged
regularly in the business of buying, selling
or exchanging motor vehicles in this state
and who has in this state an established
place of business.
(5) Express warranty.
A written warranty, so labeled, issued
by the manufacturer of a new motor vehicle,
including any terms or conditions precedent
to the enforcement of obligations under
that warranty.
(6) Nonconforming condition.
Any condition of a motor vehicle which
shall not be in conformity with the terms
of any express warranty issued by the
manufacturer to a consumer and which:
(i) significantly impairs the use, value
or safety of the motor vehicle and (ii)
occurs or arises solely in the course
of the ordinary use of the motor vehicle,
and which does not arise or occur as a
result of abuse, neglect, modification,
or alteration of the motor vehicle not
authorized by the manufacturer, nor from
any accident or other damage to the motor
vehicle which occurs or arises after such
motor vehicle was delivered by an authorized
dealer to the consumer.
(7) Notice of a nonconforming condition.
A written statement which shall be delivered
to the manufacturer and which shall describe
the subject motor vehicle, the nonconforming
condition, and shall describe all previous
attempts to correct such nonconforming
condition by identifying the person, firm
or corporation who or which made such
attempt, and the time when such attempt
was made.
(8) Lemon law rights period.
The period ending one year after the date
of the original delivery of a motor vehicle
to a consumer or the first 12,000 miles
of operation, whichever first occurs.
Section 8-20A-2
Obligations of manufacturer.
(a) If a new motor vehicle does not conform
to any applicable express warranty, and
the consumer delivers the motor vehicle
to the manufacturer, its agent, or its
authorized dealer, and gives notice of
the nonconforming condition during the
lemon law rights period, the manufacturer
of the motor vehicle shall be obligated
to make such repairs to the motor vehicle
as shall be necessary to remedy any nonconforming
condition thereof. Such repairs shall
be required even after the expiration
of the lemon law rights period provided
that notice of the nonconforming condition
was first given during the lemon law rights
period and provided further that the manufacturer's
obligation to repair the nonconforming
condition shall not extend beyond the
period of 24 months following delivery
of the vehicle or 24,000 miles, whichever
occurs first.
(b) If, after reasonable
attempts, the manufacturer, its agent,
or its authorized dealer is unable to
conform the motor vehicle to any express
warranty by repairing or correcting a
nonconforming condition of the motor vehicle
which first occurred during the lemon
law rights period, the manufacturer shall,
at the option of the consumer, replace
the motor vehicle with a comparable new
motor vehicle or shall 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 charges, and installed
options, plus the nonrefundable 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 reported the nonconformity
to the manufacturer, its agent, or its
authorized dealer; and
(4) Any incidental damages which shall
include the reasonable cost of alternative
transportation during the period that
the consumer is without the use of the
motor vehicle because of the nonconforming
condition. There shall be offset against
any monetary recovery of the consumer
a reasonable allowance for the consumer's
use of the vehicle. Refunds shall be made
to the consumer, and any lien holders,
as their interests may appear. A reasonable
allowance for use is that amount directly
attributable to use by the consumer before
his first report of the nonconformity
to the manufacturer, agent, or authorized
dealer, and must be calculated by multiplying
the full purchase price of the motor vehicle
by a fraction having as its denominator
100,000 and having as its numerator the
number of miles that the vehicle travelled
before the first report of nonconformity.
(c) It shall be presumed that reasonable
attempts to correct a nonconforming condition
have been allowed by the consumer if,
during the period of 24 months following
delivery of the vehicle or 24,000 miles,
whichever first occurs, either of the
following events shall have occurred:
(1) The same nonconforming
condition has been subject to repair attempts
three or more times by the manufacturer,
its agents or its authorized dealers,
at least one of which occurred during
the lemon law rights period, plus a final
attempt by the manufacturer, and the same
nonconforming condition continues to exist;
or
(2) The motor vehicle is out of service
and in the custody of the manufacturer,
its agent, or an authorized dealer due
to repair attempts (including the final
repair attempt), one of which occurred
during the lemon law rights period, for
a cumulative total of 30 calendar days,
unless such repair could not be performed
because of conditions beyond the control
of the manufacturer, its agents or authorized
dealers, such as war, invasion, strike,
fire, flood, or other natural disaster.
Section 8-20A-3
Cause of action against manufacturer.
(a) A consumer sustaining damages as a
proximate consequence of the failure by
a manufacturer to perform its obligations
imposed under this chapter may bring a
civil action against the manufacturer
to enforce the provisions of this chapter.
Prior to the commencement of any such
proceeding a consumer must give notice
of a nonconforming condition by certified
United States mail to the manufacturer
and demand correction or repair of the
nonconforming condition. If at the time
such notice of a nonconforming condition
is given to the manufacturer, a presumption
has arisen that reasonable attempts to
correct a nonconforming condition have
been allowed, the manufacturer shall be
given a final opportunity to cure the
nonconforming condition. The manufacturer
shall within seven calendar days of receiving
the written notice of nonconforming condition
notify the consumer of a reasonably accessible
repair facility. After delivery of the
new vehicle to the authorized repair facility
by the consumer, the manufacturer shall
attempt to correct the nonconforming condition
and conform the vehicle to the express
warranty within a period not to exceed
14 calendar days. If a manufacturer has
established an informal dispute settlement
procedure which is in compliance with
federal rules and regulations, a consumer
must first exhaust any remedy afforded
to the consumer under the informal dispute
procedure of the manufacturer before a
cause of action may be instituted under
the provisions of this chapter.
(b) It shall be an affirmative
defense to any claim against the manufacturer
under this chapter that: (i) an alleged
nonconforming condition does not significantly
impair the use, market value, or safety
of the motor vehicle; or (ii) a nonconforming
condition is a result of abuse, neglect,
or any modification or alteration of a
motor vehicle by a consumer that is not
authorized by the manufacturer.
(c) If it is determined
that the manufacturer has breached its
obligations imposed under this chapter,
then the consumer shall be entitled to
recover, in addition to the remedy provided
under Section 8-20A-2 above, an additional
award for reasonable attorneys fees.
Section 8-20A-4
Resale of returned motor vehicle.
If a motor vehicle has been returned to
the manufacturer under the provisions
of this chapter 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 in this state unless:
(1) The manufacturer
discloses in writing to the subsequent
purchaser the fact that the motor vehicle
was returned under the provisions of this
chapter and the nature of the nonconformity
to the vehicle warranty.
(2) The manufacturer returns the title
of the motor vehicle to the Alabama Department
of Revenue advising of the return of the
motor vehicle under provisions of this
chapter with an application for title
in the name of the manufacturer. The Department
of Revenue shall brand the title issued
to the manufacturer and all subsequent
titles to the motor vehicle with the following
statement:
THIS VEHICLE WAS RETURNED TO THE MANUFACTURER
BECAUSE IT DID NOT CONFORM TO ITS WARRANTY.
Section 8-20A-5
No dealership liability.
Nothing in this chapter imposes any liability
upon a motor vehicle dealer or authorized
dealer or creates a cause of action by
a consumer against a motor vehicle dealer
or authorized dealer. A motor vehicle
dealer or authorized dealer may not be
made a party defendant in any action involving
or relating to this chapter. The manufacturer
shall not charge back or require reimbursement
by a motor vehicle dealer or authorized
dealer for any costs, including, but not
limited to, any refunds or vehicle replacements,
incurred by the manufacturer arising out
of this chapter.
Section 8-20A-6
Statute of limitations.
Any action brought under this chapter
against the manufacturer shall be commenced
within three years following the date
of original delivery of the motor vehicle
to the consumer.
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