Delaware
Lemon Law
Title 6, Subtitle II, Chapter
50, Sections 5001 - 5009
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§ 5001. Definitions.
As used in this chapter:
(1) "Consumer" means the
purchaser, other than for purposes
of resale, of an automobile; a person
to whom an automobile is transferred
during the duration of an express
warranty applicable to the automobile;
or any other person entitled by the
terms of the warranty to enforce the
obligations of the warranty.
(2) "Dealer" means a person
actively engaged in the business of
buying, selling or exchanging automobiles
at retail and who has an established
place of business.
(3) "Manufacturer" means
a person engaged in the business of
manufacturing, assembling or distributing
automobiles, who will, under normal
business conditions during the year,
manufacture, assemble or distribute
to dealers at least 10 new automobiles.
(4) "Manufacturer's express warranty"
or "warranty" means the
written warranty of the manufacturer
of a new automobile of its condition
and fitness for use, including any
terms or conditions precedent to the
enforcement of obligations under that
warranty.
(5) "Automobile" means any
passenger motor vehicle, except motorcycles,
which is leased or bought in Delaware
or registered by the Division of Motor
Vehicles in the Department of Public
Safety except the living facilities
of motor homes.
(6) "Nonconformity" means
a defect or condition which substantially
impairs the use, value or safety of
an automobile.
(7) "Lien" means a security
interest in an automobile.
(8) "Lienholder" means a
person with a security interest in
an automobile pursuant to a lien.
(64 Del. Laws, c. 173, § 1; 66
Del. Laws, c. 36, § 1; 74 Del.
Laws, c. 110, § 1.)
§ 5002. Duty to
repair nonconforming automobiles.
If a new automobile does not conform
to the manufacturer's express warranty,
and the consumer reports the nonconformity
to the manufacturer or its agent or
dealer during the term of the warranty
or during the period of 1 year following
the date of original delivery of an
automobile to the consumer, whichever
is earlier, the manufacturer shall make,
or arrange with its dealer or agent
to make, within a reasonable period
of time, all repairs necessary to conform
the new automobile to the warranty,
notwithstanding that the repairs or
corrections are made after the expiration
of the term of the warranty or the 1-year
period.
(64 Del. Laws, c. 173,
§ 1.)
§ 5003. Remedies
upon failure to repair.
(a) If the manufacturer, its agent or
its authorized dealer does not conform
the automobile to any applicable express
warranty by repairing or correcting
any nonconformity after a reasonable
number of attempts, the manufacturer
shall either replace the automobile
with a comparable new automobile acceptable
to the consumer or repurchase the automobile
from the consumer and refund to the
consumer the full purchase, including
all credits and allowances for any trade-in
vehicle; provided, however, that the
consumer shall have the unqualified
right to decline a replacement automobile
and to demand instead a repurchase.
(b) In instances in which an automobile
is replaced by a manufacturer under
this section, said manufacturer shall
accept return of the automobile and
reimburse the consumer for any incidental
costs, including dealer preparation
fees, fees for transfer of registration,
sales taxes or other charges or fees
incurred by the consumer as a result
of such replacement. In instances in
which an automobile which was financed
by the manufacturer or its subsidiary
or agent is replaced under this section,
said manufacturer, subsidiary or agent
shall not require the consumer to enter
into any refinancing agreement for a
replacement automobile which would create
any financial obligations upon such
consumer beyond those created by the
original financing agreement.
(c) In instances in which a refund is
tendered under this section, the manufacturer
shall accept return of the automobile
from the consumer and shall reimburse
the consumer for related purchase costs,
including sales taxes, registration
fees and dealer preparation fees, less:
(1) A reasonable allowance for the consumer's
use of the automobile, not to exceed
the full purchase price of the automobile
multiplied by a fraction which consists
of the number of miles driven before
the consumer first reported the nonconformity
to the manufacturer, its agent or dealer
divided by 100,000 miles; and
(2) A reasonable allowance for damage
not attributable to normal wear and
tear, but not to include damage resulting
from a nonconformity.
(d) Refunds shall be
made to the consumer, and lienholder,
if any, as their interests may appear.
(e) No authorized dealer shall be held
liable by the manufacturer for any refunds
or automobile replacements in the absence
of evidence indicating that dealership
repairs have been carried out in a manner
inconsistent with the manufacturer's
instructions.
(64 Del. Laws, c. 173,
§ 1; 66 Del. Laws, c. 36, §
3.)
§ 5004. Presumptions.
(a) It shall be presumed that a reasonable
number of attempts have been undertaken
to conform a new automobile to the manufacturer's
express warranty if, within the warranty
term or during the period of 1 year
following the date of original delivery
of the motor vehicle to a consumer,
whichever is the earlier date:
(1) Substantially the same nonconformity
has been subject to repair or correction
4 or more times by the manufacturer,
its agents or its dealers and the nonconformity
continues to exist; or
(2) The automobile is out of service
by reason of repair or correction of
a nonconformity by the manufacturer,
its agents or its dealers for a cumulative
total of more than 30 calendar days
since the original delivery of the motor
vehicle to the consumer. This 30-day
limit shall commence with the first
day on which the consumer presents the
automobile to the manufacturer, its
agent or dealer for service of the nonconformity
and a written document describing the
nonconformity is prepared by the manufacturer,
its agent or dealer. The 30-day limit
shall be extended only if repairs cannot
be performed due to conditions beyond
the control of the manufacturer, its
agents or its dealers, including war,
invasion, strike, fire, flood or other
natural disaster.
(b) The presumption
provided in this section shall not apply
against a manufacturer unless the manufacturer
has received prior direct written notification
from or on behalf of the consumer and
has had an opportunity to repair or
correct the nonconformity; provided,
however, that if the manufacturer does
not directly attempt or arrange with
its dealer or agent to repair or correct
the nonconformity, the manufacturer
may not defend a claim by a consumer
under this chapter on the ground that
the agent or dealer failed to properly
repair or correct the nonconformity
or that the repairs or corrections made
by the agent or dealer caused or contributed
to the nonconformity.
(64 Del. Laws, c. 173, § 1; 66
Del. Laws, c. 36, § 4.)
§ 5005. Costs
and attorney's fees in breach of warranty
actions.
In any court action brought under this
chapter by a consumer against the manufacturer
of an automobile, or the manufacturer's
agent or authorized dealer, based upon
the alleged breach of an express warranty
made in connection with the sale of
such automobile, the court, in its discretion,
may award to the plaintiff his costs
and reasonable attorney's fees or, if
the court determines that the action
is brought in bad faith or is frivolous
in nature, may award reasonable attorney's
fees to the defendant.
(64 Del. Laws, c. 173,
§ 1; 66 Del. Laws, c. 36, §
5; 70 Del. Laws, c. 186, § 1.)
§ 5006. Affirmative
defense to claim.
It shall be an affirmative defense to
a claim under this chapter that the
alleged nonconformity does not substantially
impair the use, value or safety of the
new automobile or that the nonconformity
is the result of abuse or neglect or
of unauthorized modifications or alterations
of the new automobile by anyone other
than the manufacturer, its agent or
dealer.
(64 Del. Laws, c. 173,
§ 1.)
§ 5007. Informal
dispute settlement procedure.
(a) If a manufacturer has established
an informal settlement procedure that
has a certificate of approval by the
Division of Consumer Protection, the
remedies provided by this chapter shall
not be available to any consumer who
has not first resorted to such procedure.
In the event a manufacturer's informal
dispute settlement procedure does not
have a certificate of approval from
the Division of Consumer Protection,
a consumer may immediately and directly
seek the remedies provided by this chapter.
(b) The Division of Consumer Protection
shall annually evaluate the operation
of informal dispute settlement procedures
established by manufacturers and shall
issue an annual certificate of approval
to those manufacturers whose procedures
comply with Title 16, Code of Federal
Regulations, Part 703 and with subsections
(c), (d) and (e) of this section. The
Division of Consumer Protection shall
suspend the certification of, or decertify,
any informal dispute settlement which
no longer complies with said provisions.
(c) Any manufacturer who has established
an informal settlement procedure shall
file with the Division of Consumer Protection
a copy of each decision of the informal
dispute settlement procedure within
30 days after the decision is rendered.
(d) In order to obtain the certification
of the Division of Consumer Protection,
a manufacturer's informal dispute settlement
procedure shall not convene any informal
dispute settlement hearing or meeting
outside the State and shall refrain
from any practices which:
(1) Delay a decision in any dispute
beyond 65 days after the date on which
the consumer initially resorts to the
informal dispute settlement procedure
by written notification that a dispute
exists; or
(2) Delay performance of remedies awarded
in a settlement beyond 30 days after
receipt of notice of the consumer's
acceptance of the decision; provided,
however, that such time limits shall
not include periods of time when the
consumer or the consumer's car is unavailable
for the remedies specified in the settlement;
or
(3) Require the consumer to make the
automobile available more than once
for inspection by a manufacturer's representative
or more than once for repair of the
same nonconformity; or
(4) Fail to consider in decisions any
remedies provided by this chapter, such
remedies to include:
a. Repair, replacement
and refund;
b. Reimbursement for related purchase
costs; or
(5) Require the consumer
to take any action or assume any obligation
not specifically authorized under the
provisions of Title 16, Code of Federal
Regulations, Part 703.
(e) A manufacturer
desiring annual certification of an
informal dispute settlement procedure
shall make application to the Division
of Consumer Protection on forms developed
by, and shall provide such information
as required by, the Division of Consumer
Protection.
(64 Del. Laws, c. 173,
§ 1; 66 Del. Laws, c. 36, §
6; 69 Del. Laws, c. 291, § 98(c).)
§ 5008. Remedies
cumulative.
Nothing in this chapter shall in any
way limit the rights or remedies available
to a consumer under Subtitle I of this
title.
(64 Del. Laws, c. 173,
§ 1.)
§ 5009. Enforcement.
In addition to any remedies the consumer
may have at law or in equity, a violation
of this chapter shall be an unlawful
practice as defined in § 2513 of
this title. The Division of Consumer
Protection shall promulgate rules and
regulations in order to implement the
purposes of this chapter.
(64 Del. Laws, c. 173,
§ 1; 66 Del. Laws, c. 36, §
7; 69 Del. Laws, c. 291, § 98(c).)