Georgia
Lemon Law
GA Code 10-1-780
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10-1-780. Short Title
This article shall
be known and may be cited as the "Motor
Vehicle Warranty Rights Act."
(Code 1981, §
10-1-780, enacted by Ga. L. 1990,
p. 1013, § 1.)
10-1-781. Legislative
intent.
The General Assembly
recognizes that a new motor vehicle
is a major consumer purchase and that
a defective motor vehicle is likely
to create hardship for, or may cause
injury to, the consumer.It is the
intent of the General Assembly to
ensure that the consumer is made aware
of his or her rights under this article.In
enacting these comprehensive measures,
it is the intent of the General Assembly
to create the proper blend of private
and public remedies necessary to enforce
this article.
(Code 1981, §
10-1-781, enacted by Ga. L. 1990,
p. 1013, § 1.)
10-1-782. Definitions.
Unless the context
clearly requires otherwise, the definitions
in this Code section apply throughout
this article. As used in this article,
the term:
(1) "Administrator"
means the administrator appointed
pursuant to Code Section 10-1-395.
(2) "Collateral
charges" means those additional
charges to a consumer or lessor wholly
incurred as a result of the acquisition
purchase of the motor vehicle. For
the purposes of this article, collateral
charges include but are not limited
to manufacturer installed or dealer
installed items or service charges,
earned finance charges incurred by
a consumer in the case of a purchase,
and by the lessor in the case of a
lease, sales tax, and title charges.
(3) "Consumer"
means any person who has entered into
an agreement or contract for the transfer,
lease, or purchase of a new motor
vehicle primarily for personal, family,
or household purposes, regardless
of how the documents characterize
the transaction. The term shall also
mean and include any sole proprietorship,
partnership, or corporation which
is a commercial owner or lessee of
no more than three new motor vehicles
and which has ten or fewer employees
and a net income after taxes of $100,000.00
per annum or less for federal income
tax purposes. For the limited purpose
of enforcing the rights granted under
this article, the term "consumer"
will also include any person or entity
regularly engaged in the business
of leasing new motor vehicles to consumers.
(4) "Court"
means the superior court in the county
where the consumer resides, except
if the consumer does not reside in
this state, then the superior court
in the county where an arbitration
hearing or determination was conducted
or made pursuant to this article.
(5) "Distributor"
means a person or entity holding a
distribution agreement with a manufacturer
for the distribution of new motor
vehicles to new motor vehicle dealers
or who is licensed or otherwise authorized
to utilize trademarks or service marks
associated with one or more makes
of motor vehicles in connection with
such distribution, who is not responsible
to the manufacturer for honoring the
manufacturer's express warranty, and
who does not issue an express warranty
to consumers.
(6) "Express
warranty" means a warranty which
is given by the manufacturer in writing.
(7) "Incidental
costs" means any reasonable expenses
incurred by the consumer in connection
with the repair of the new motor vehicle,
including but not limited to payments
to dealers for attempted repairs of
nonconformities, towing charges, and
the costs of obtaining alternative
transportation.
(8) "Informal
dispute resolution settlement mechanism"
means any procedure established, employed,
utilized, or run by a manufacturer
for the purpose of resolving disputes
with consumers regarding any warranty.
(9) "Lemon law
rights period" means the period
ending one year after the date of
the original delivery of a new motor
vehicle to a consumer or the first
12,000 miles of operation after delivery
of a new motor vehicle to a consumer,
whichever occurs first.
(10) "Manufacturer"
means any person engaged in the business
of constructing or assembling new
motor vehicles or engaged in the business
of importing new motor vehicles into
the United States for the purpose
of selling or distributing new motor
vehicles to new motor vehicle dealers.
(11) "New motor
vehicle" means any self-propelled
vehicle, primarily designed for the
transportation of persons or property
over the public highways, that was
leased or purchased in this state
or registered by the original consumer
in this state and on which the original
motor vehicle title was issued to
the lessor or purchaser without having
been previously issued to any person
other than the selling dealer. If
the motor vehicle is a motor home,
this article shall apply to the self-propelled
vehicle and chassis, but does not
include those portions of the vehicle
designated, used, or maintained primarily
as a mobile dwelling, office, or commercial
space. The term "new motor vehicle"
does not include motorcycles or trucks
with 10,000 pounds or more gross vehicle
weight rating. The term "new
motor vehicle" shall not include
any vehicle on which the title and
other transfer documents show a used,
rather than new, vehicle. The term
"new motor vehicle" includes
a demonstrator or lease-purchase,
as long as a manufacturer's warranty
was issued as a condition of sale,
unless specifically excluded under
this definition.
(12) "New motor
vehicle dealer" means a person
who holds a dealer agreement with
a manufacturer for the sale of new
motor vehicles, who is engaged in
the business of purchasing, selling,
servicing, exchanging, leasing, distributing,
or dealing in new motor vehicles,
or who is licensed or otherwise authorized
to utilize trademarks or service marks
associated with one or more makes
of motor vehicles in connection with
such sales. For the purposes of subsection
(d) of Code Section 10-1-784, concerning
private civil actions for violations
of this article, the term "new
motor vehicle dealer" shall include
any person or entity regularly engaged
in the business of leasing new motor
vehicles to consumers.
(13) "Nonconformity"
means a defect, serious safety defect,
or condition that substantially impairs
the use, value, or safety of a new
motor vehicle to the consumer, but
does not include a defect or condition
that is the result of abuse, neglect,
or unauthorized modification or alteration
of the new motor vehicle.
(14) "Panel"
means a new motor vehicle arbitration
panel as designated in Code Sections
10-1-786 and 10-1-794.
(15) "Purchase
price" means in the case of a
sale of a new motor vehicle to a consumer
the cash price of the new motor vehicle
appearing in the sales agreement,
contract, or leasing agreement, including
any reasonable allowance for a trade-in
vehicle. In determining whether the
trade-in allowance was reasonable,
the panel may take into account whether
the purchase price of the vehicle
was at fair market value or not and
make appropriate adjustments to ensure
that the consumer is made whole but
not unjustly enriched. In the case
of a consumer lease of a new motor
vehicle, "purchase price"
means the cash price paid by the lessor
to a dealer or distributor to purchase
the new motor vehicle.
(16) "Reasonable
offset for use" means an amount
directly attributable to use by the
consumer before the consumer requests
repurchase or replacement by the manufacturer
pursuant to Code Section 10-1-784.
The reasonable offset for use shall
be computed by the number of miles
that the vehicle traveled before the
consumer's request of repurchase or
replacement multiplied by the purchase
price and divided by 100,000.
(17) "Reasonable
number of attempts" under the
lemon law rights period means the
definition as provided in Code Section
10-1-784.
(18) "Replacement
motor vehicle" means a new motor
vehicle that is identical or reasonably
equivalent to the motor vehicle to
be replaced, as the motor vehicle
to be replaced existed at the time
of purchase or lease.
(19) "Serious
safety defect" means a life-threatening
malfunction or nonconformity.
(20) "Substantially
impair" means to render the new
motor vehicle unreliable, or unsafe
for ordinary use, or to diminish the
resale value of the new motor vehicle
more than a meaningful amount below
the average resale value for comparable
motor vehicles.
(21) "Warranty"
means any express written warranty
of the manufacturer but shall not
include any extended coverage purchased
by the consumer as a separate item.
(Code 1981, §
10-1-782, enacted by Ga. L. 1990,
p. 1013, § 1; Ga. L. 1991, p.
94, § 10.)
10-1-783. Dealers
to provide owner's manual with customer
service information; written statement
of consumer's rights; reporting nonconformity;
copies of reports; refusal to diagnose
or repair; extension of lemon law
rights and 30 day out-of-service periods.
(a) Each new motor
vehicle dealer shall provide an owner's
manual which shall be published by
the manufacturer and include a list
of the addresses and phone numbers
at which consumers may, at no cost,
contact the manufacturer's customer
service personnel who are authorized
to direct activities regarding repair
of the consumer's vehicle.
(b) At the time of
purchase, the new motor vehicle dealer
shall provide the consumer with a
written statement that explains the
consumer's rights under this article.
The statement shall be written by
the administrator and shall contain
information regarding the procedures
and remedies under this article.
(c) For the purposes
of this article, if a new motor vehicle
has a nonconformity and the consumer
reports the nonconformity during the
lemon law rights period to the manufacturer,
its agent, or the new motor vehicle
dealer who sold the new motor vehicle,
the vehicle shall be repaired at the
manufacturer's expense to correct
the nonconformity regardless of whether
such repairs are made after the expiration
of the lemon law rights period. If
in any subsequent proceeding under
this article it is determined that
the consumer's repair did not qualify
under this article, and the manufacturer
was not otherwise obligated to repair
the vehicle, the consumer shall be
liable to the manufacturer for the
costs of the repair.
(d) Upon request
from the consumer, the manufacturer
or new motor vehicle dealer shall
provide a copy of any report or computer
reading compiled by the manufacturer's
field or zone representative regarding
inspection, diagnosis, or test-drive
of the consumer's new motor vehicle.
(e) Each time the
consumer's vehicle is returned from
being diagnosed or repaired under
the lemon law rights period or under
a warranty, the new motor vehicle
dealer shall provide to the consumer
a fully itemized, legible statement
or repair order indicating any diagnosis
made, and all work performed on the
vehicle, including but not limited
to a general description of the problem
reported by the consumer or an identification
of the defect or condition, parts
and labor, the date and the odometer
reading when the vehicle was submitted
for repair, and the date when the
vehicle was made available to the
consumer.
(f) No manufacturer,
its agent, or new motor vehicle dealer
may refuse to diagnose or repair any
nonconformity for the purpose of avoiding
liability under this article.
(g) The lemon law
rights period and 30 day out-of-service
period shall be extended by any time
that repair services are not available
to the consumer as a direct result
of a strike, war, invasion, fire,
flood, or other natural disaster.
(Code 1981, §
10-1-783, enacted by Ga. L. 1990,
p. 1013, § 1.)
10-1-784. Nonrepair
of vehicle; contractual obligations
between lessor and consumer; replacement
of vehicle; attempts to correct nonconformity;
duration of lemon law rights period;
liability of dealer or distributor;
enforcement of violations; election
of remedies; effect of article on
dealer franchise or distributor agreement.
(a)
(1) If the manufacturer,
its agent, or the new motor vehicle
dealer is unable to repair or correct
any nonconformity in a new motor vehicle
after a reasonable number of attempts,
the consumer shall notify the manufacturer
by certified mail, return receipt
requested, at the address provided
by the manufacturer. The manufacturer
shall, within seven days after receipt
of such notification, notify the consumer
of a reasonably accessible repair
facility and after delivery of the
vehicle to the designated repair facility
by the consumer, the manufacturer
shall, within 14 days, conform the
motor vehicle to the warranty. If
the manufacturer is unable to repair
or correct any nonconformity of the
new motor vehicle, the manufacturer
shall, within 30 days of the consumer's
written request, by certified mail,
return receipt requested, at the option
of the consumer, or the lessor in
the event of a leased motor vehicle,
replace or repurchase the new motor
vehicle. If the manufacturer fails
to notify the consumer of a reasonably
accessible repair facility or perform
the repairs within the time periods
prescribed in this subsection, the
requirement that the manufacturer
be given a final attempt to cure the
nonconformity does not apply.
(2) If a lessor elects replacement,
the contractual obligation, except
for those terms of the agreement which
identify the vehicle, between the
lessor and the consumer shall not
be altered. If a lessor elects repurchase,
it shall return to the consumer a
sum equal to the allowance for any
trade-in, and down payment or initial
balloon payment, made by the consumer,
and all future obligations of the
consumer to the lessor shall cease.
In the event a lessor elects to require
the manufacturer to repurchase a leased
vehicle, the consumer will remain
liable for all lease obligations arising
prior to the date that the lessor
elects such replacement, but will
have no future obligations under the
lease, and will be liable for no penalty
for early termination. A lessor must
elect either a repurchase or replacement
within 30 days of receiving written
notice from the consumer that such
an election is desired; if the lessor
fails to make such an election within
the 30 days, the consumer may make
the election to repurchase or replace
and the lessor shall be bound by the
consumer's election.
(3) The replacement
motor vehicle shall be identical or
reasonably equivalent to the motor
vehicle to be replaced. Such replacement
shall include payment of all collateral
charges which the consumer or lessor
will incur a second time which would
not have been incurred again except
for the replacement, and any and all
incidental costs incurred by the consumer
or lessor. In the case of a replacement
motor vehicle, the reasonable offset
for use shall be paid by the consumer
to the manufacturer. Compensation
for a reasonable offset for use shall
be paid by the consumer to the manufacturer
in the event that a replacement motor
vehicle is elected. In the case of
a lease where the consumer either
has no option to purchase the motor
vehicle at the end of the lease term,
or the consumer has an option to purchase
the motor vehicle at the end of the
lease term but does not exercise the
option, the lessor shall refund to
the consumer the lesser of (A) the
offset for use paid by the consumer
to the manufacturer at the time of
delivery of the replacement vehicle,
or (B) the gain realized by the lessor
by reason of the difference, if any,
between the anticipated residual value
of the original motor vehicle as determined
at the inception of the lease and
the realized value of the replacement
motor vehicle at the end of the lease.
If the lessor does not realize any
gain from the disposition of the replacement
vehicle, there will be no refund due
to the consumer from the lessor. The
foregoing rules apply only to leases
where the consumer performs all of
the consumer's obligations under the
lease agreement and the lease terminates
upon the scheduled expiration of the
lease term as set forth in the lease
agreement or any mutually agreed upon
extension of the lease term. The administrator
may provide by rule under Chapter
13 of Title 50, the "Georgia
Administrative Procedure Act,"
for determining the manner of calculating
the amount of any further charges
or refunds that may apply in the case
of leases terminated prematurely either
by the voluntary election of the parties,
or involuntarily by the lessor in
the event of the lessee's default,
the loss or destruction of the vehicle,
or for any other reason.
(4) When repurchasing
the new motor vehicle, the manufacturer
shall refund to the consumer all collateral
charges and incidental costs. In the
event of a repurchase, purchase price
refunds shall be made to the consumer
and lienholder of record, if any,
as his or her interests may appear,
less a reasonable offset for use.
In the event of a lease, purchase
price refunds shall be made to the
lessor, less a reasonable offset for
use. If it is determined that the
lessee is entitled to a refund, the
consumer's lease agreement with the
lessor shall be terminated upon payment
of the refund and no penalty for early
termination shall be assessed.
(b) A reasonable
number of attempts shall be presumed
as a matter of law to have been undertaken
by the manufacturer, its agent, or
the new motor vehicle dealer to repair
or correct any nonconformity of a
new motor vehicle, if: (1) a serious
safety defect in the braking or steering
system has been subject to repair
at least once during the lemon law
rights period and has not been corrected;
(2) during any period of 24 months
or less, or during any period in which
the vehicle has been driven 24,000
miles or less, whichever occurs first,
any other serious safety defect has
been subject to repair two or more
times, at least one of which is during
the lemon law rights period, and the
nonconformity continues to exist;
(3) during any period of 24 months
or less or during any period in which
the vehicle has been driven 24,000
miles or less, whichever occurs first,
the same nonconformity has been subject
to repair, three or more times, at
least one of which is during the lemon
law rights period, and the nonconformity
continues to exist; or (4) during
any period of 24 months or less or
during any period in which the vehicle
has been driven 24,000 miles or less,
whichever occurs first, the vehicle
is out of service by reason of repair
of one or more nonconformities for
a cumulative total of 30 calendar
days, at least 15 of them during the
lemon law rights period.If less than
15 days remain under the lemon law
rights period when the new motor vehicle
is first brought in for diagnosis
or repair, the lemon law rights period
as regards the problem to be diagnosed
or repaired shall be extended for
a period of 90 days.
(c) For purposes
of this article, the lemon law rights
period regarding nonconformities on
all new motor vehicles sold in this
state shall be for 12 months following
the purchase of the vehicle or for
12,000 miles following the purchase
of the vehicle, whichever occurs first.
(d) This article
shall not create and shall not give
rise to any cause of action against
and shall not impose any liability
upon any new motor vehicle dealer
or distributor except as provided
in this Code section. No new motor
vehicle dealer or distributor shall
be held liable by the manufacturer
or by the consumer for any collateral
charges, damages, costs, purchase
price refunds, or vehicle replacements,
and manufacturers and consumers shall
not have a cause of action against
a new motor vehicle dealer or distributor
under this article.A violation of
any duty or responsibility imposed
upon a new motor vehicle dealer or
distributor under this article shall
constitute a per se violation of Code
Section 10-1-393; provided, however,
that enforcement against such violations
shall be by public enforcement by
the administrator and shall not be
enforceable through private enforcement
under the provisions of Code Section
10-1-399, except that a knowing violation
of Code Section 10-1-785 shall be
enforceable through private enforcement
under the provisions of Code Section
10-1-399.The provisions of Code Sections
11-2-602 through 11-2-609 shall not
apply to the sale of a new motor vehicle
if the consumer seeks to use the remedies
provided for in this article.A consumer
shall be deemed to have used the remedies
provided for in this article when
he or she completes, signs, and returns
forms prescribed by the administrator
for the submission of disputes to
an informal dispute resolution settlement
mechanism or to a panel, whichever
occurs first. Such forms shall contain
a conspicuous statement clearly advising
the consumer of the rights the consumer
is waiving by participating in the
procedures under this article. A consumer
may not use the remedies provided
for in this article if the consumer
has already sought to use the remedies
provided for in Code Sections 11-2-602
through 11-2-609, unless the nonconformity
did not exist or was not known at
the time of using the remedies provided
for in such Code sections. Manufacturers
and consumers may not make new motor
vehicle dealers or distributors parties
to arbitration panel proceedings or
any other proceedings under this article.
The provisions of this article shall
not impair any obligation under any
manufacturer-dealer franchise agreement
or manufacturer-distributor agreement;
provided, however, that any provision
of any manufacturer-dealer franchise
agreement or manufacturer-distributor
agreement which attempts to shift
any duty, obligation, responsibility,
or liability imposed upon a manufacturer
by this article to a new motor vehicle
dealer or distributor, either directly
or indirectly, shall be void and unenforceable,
except for any liability imposed upon
a manufacturer by this article which
is directly caused by the gross negligence
of the dealer in attempting to repair
the motor vehicle after such gross
negligence has been determined by
the hearing officer, as provided in
Article 22 of this chapter, the "Georgia
Motor Vehicle Franchise Practices
Act."
(Code 1981, §
10-1-784, enacted by Ga. L. 1990,
p. 1013, § 1; Ga. L. 1991, p.
94, § 10.)
10-1-785. Resale
of nonconforming vehicle.
(a) No manufacturer
or other transferor shall knowingly
resell, either at wholesale or retail,
lease, transfer a title, or otherwise
transfer, except to sell for scrap,
any motor vehicle which has been determined
to have a serious safety defect by
reason of a determination, adjudication,
or settlement decision pursuant to
this article or similar statute of
any other state, unless the serious
safety defect has been corrected;
the manufacturer warrants in writing
upon the resale, transfer, or lease
that the defect has been corrected;
and the transferor provides the manufacturer's
written warranty under this Code section
to the consumer.
(b) After replacement
or repurchase pursuant to this article
of a motor vehicle with a nonconformity,
other than a serious safety defect,
which has not been corrected, the
manufacturer shall notify the administrator,
by certified mail, upon receipt of
the manufacturer's motor vehicle.If
such nonconformity is corrected, the
manufacturer shall notify the administrator
in the same manner of such correction.If
the two events described in this subsection
occur within 30 days of one another,
both notices may be combined into
the same notice.
(c) Upon the resale,
either at wholesale or retail, lease,
transfer of title, or other transfer
of a motor vehicle with a nonconformity,
other than a serious safety defect,
which has not been corrected and which
was previously returned after a final
determination, adjudication, or settlement
under this article or under a similar
statute of any other state, the manufacturer
shall execute and deliver to the transferee
before transfer to a consumer an instrument
in writing setting forth information
identifying the nonconformity in a
manner to be specified by the administrator;
the transferor shall deliver the instrument
to the consumer before transfer.
(d) Upon the resale,
either at wholesale or retail, lease,
transfer of title, or other transfer
of a motor vehicle found to have a
nonconformity under this article which
has been corrected, the manufacturer
shall warrant in writing on forms
prescribed by the administrator upon
the transfer that the nonconformity
has been corrected, and the manufacturer,
its agent, the new motor vehicle dealer,
or other transferor shall execute
and deliver to the transferee before
transfer an instrument in writing
setting forth information identifying
the nonconformity and indicating in
a manner to be specified by the administrator
that it has been corrected and providing
an express manufacturer's warranty
on the vehicle regarding the nonconformity
for 12 months or 12,000 miles, whichever
occurs first.
(e) For purposes
of this Code section, the term "settlement"
includes an agreement entered into
between the manufacturer and the consumer
that occurs after the dispute has
been submitted to an informal dispute
resolution settlement mechanism or
has been deemed eligible by the administrator
for arbitration before a panel.
(Code 1981, §
10-1-785, enacted by Ga. L. 1990,
p. 1013, § 1.)
10-1-786. New motor
vehicle arbitration panel.
(a) As provided in
Code Section 10-1-794, the administrator
may establish a new motor vehicle
arbitration panel or panels to settle
disputes between consumers and manufacturers
as provided in this article. The panels
shall not be affiliated with any manufacturer
or new motor vehicle dealer and shall
have available the services of persons
with automotive technical expertise
to assist in resolving disputes under
this article.
(b) The administrator
may adopt rules under Chapter 13 of
Title 50, the "Georgia Administrative
Procedure Act," for the uniform
conduct of arbitrations by panels
and by informal dispute resolution
settlement mechanisms under this article,
which rules may include, but not be
limited to, the following:
(1) Procedures regarding
presentation of oral and written testimony,
witnesses and evidence relevant to
the dispute, cross-examination of
witnesses, and representation by counsel.
The administrator shall provide by
rule for oral hearings, when appropriate,
in panel or informal dispute resolution
settlement mechanism proceedings;
(2) Procedures for production of records
and documents requested by a party
which the panel finds are reasonably
related to the dispute;
(3) Procedures for
issuance of subpoenas on behalf of
the panel by the administrator, which
shall be enforced by the superior
courts as in Code Section 10-1-398;
(4) Procedures regarding
written affidavits from employees
and agents of a dealer, a manufacturer,
any party, or from other potential
witnesses and the consideration of
such affidavits by a panel; and
(5) Records of panel
proceedings and hearings shall be
open to the public.
(c) A consumer shall
exhaust any certified informal dispute
resolution settlement procedure under
Code Section 10-1-793 and the new
motor vehicle arbitration panel remedy
before filing any superior court action
pursuant to Code Section 10-1-788.
(d) The administrator
may adopt rules under Chapter 13 of
Title 50, the "Georgia Administrative
Procedure Act," to implement
this article. Such rules may include
uniform standards by which the panel
and any informal dispute resolution
settlement mechanism under Code Section
10-1-793 shall make determinations
under this article, including but
not limited to rules which may provide
for:
(1) Determining that
a nonconformity exists;
(2) Determining that a reasonable
number of attempts to repair a nonconformity
have been undertaken; or
(3) Determining that
a manufacturer has failed to comply
with Code Section 10-1-784.
(Code 1981, §
10-1-786, enacted by Ga. L. 1990,
p. 1013, § 1; Ga. L. 1991, p.
94, § 10; Ga. L. 1996, p. 6,
§ 10.)
10-1-787. Arbitration
procedure.
(a) A consumer shall
request arbitration under this article
by submitting a request in writing
to the administrator.Except as otherwise
provided in this article, disputes
under the lemon law rights period
shall be eligible for arbitration.The
administrator shall make a reasonable
determination of the eligibility of
the request for arbitration and may
provide necessary information to the
consumer regarding the consumer's
rights and remedies under this article.The
administrator may adopt rules under
Chapter 13 of Title 50, the "Georgia
Administrative Procedure Act,"
regarding the eligibility of requests
for arbitration. The administrator
shall assign a dispute he deems eligible
to a panel.
(b) Manufacturers
shall submit to arbitration under
this article if the consumer's dispute
is deemed eligible for arbitration
by the administrator and by the panel.
(c) The new motor
vehicle arbitration panel may reject
for arbitration any dispute that it
determines to be frivolous, fraudulent,
filed in bad faith, res judicata,
or beyond its authority.Any dispute
deemed by the panel to be ineligible
for arbitration due to insufficient
evidence may be reconsidered by the
panel upon the submission of other
information or documents regarding
the dispute that would allegedly qualify
for relief under this article.Following
a second review, the panel may reject
the dispute for arbitration if evidence
is still clearly insufficient to qualify
the dispute for relief under this
article.The administrator may adopt
rules under Chapter 13 of Title 50,
the "Georgia Administrative Procedure
Act," governing rejection of
disputes by a panel.A decision to
reject any dispute for arbitration
shall be sent by certified mail, return
receipt requested, to the consumer
and the manufacturer.
(d) An arbitration
panel shall award the remedies under
Code Section 10-1-784 if it finds
a nonconformity and that a reasonable
number of attempts have been undertaken
to correct the nonconformity.The panel
may in its discretion award attorney's
fees and technical or expert witness
costs to a consumer.
(e) It is an affirmative
defense to any claim under this article
that: (1) the alleged nonconformity
does not substantially impair the
use, value, or safety of the new motor
vehicle to the consumer; or (2) the
alleged nonconformity is the result
of abuse, neglect, or unauthorized
modifications or alterations of the
new motor vehicle.
(f) The panel's decision
shall be sent by certified mail, return
receipt requested, to the consumer.The
consumer must reject the decision
in writing by certified mail, return
receipt requested, addressed to the
panel within 30 days of receipt of
the panel's decision, or he or she
shall be deemed to have accepted the
panel's decision.The panel shall immediately
notify the manufacturer by certified
mail, return receipt requested, whether
the consumer has accepted, rejected,
or has been deemed to have accepted.
(g) Upon receipt
of the panel's notice, the manufacturer
shall have 40 calendar days to comply
with the arbitration panel decision
or to file a petition of appeal in
superior court.At the time the petition
of appeal is filed, the manufacturer
shall send, by certified mail, a conformed
copy of such petition to the administrator.
(h) If, at the end
of the 40 calendar day period, neither
compliance with nor a petition to
appeal the panel's decision has occurred,
the administrator may impose a fine
of up to $1,000.00 per day until compliance
occurs or until a maximum penalty
of double the value of the vehicle
or $100,000.00, whichever is less,
accrues.If the manufacturer can provide
clear and convincing evidence either
that any delay or failure was beyond
its control, or that any delay was
acceptable to the consumer, the fine
shall not be imposed.If the manufacturer
fails to provide such evidence or
fails to pay the fine, the administrator
may initiate proceedings against the
manufacturer for failure to pay any
accrued fine and may initiate proceedings
on behalf of the state to require
specific performance of an arbitration
decision under this article.The administrator
shall deposit any fines in the state
treasury.
(Code 1981, §
10-1-787, enacted by Ga. L. 1990,
p. 1013, § 1.)
10-1-788. Appeal
of arbitration decision.
(a) After the manufacturer
has received notice of the consumer's
acceptance or rejection, the consumer
or the manufacturer shall have 40
days to request a trial de novo of
the arbitration decision in superior
court.
(b) If the manufacturer
appeals, the court may require the
manufacturer to post security for
the consumer's financial loss due
to the passage of time for review.
(c) If the manufacturer
appeals and the consumer prevails,
recovery may include the monetary
value of the award, collateral charges,
continuing incidental costs, if any,
and attorney's fees and costs.
(Code 1981, §
10-1-788, enacted by Ga. L. 1990,
p. 1013, § 1.)
10-1-789. Collection
of consumer fee for operating arbitration
program.
(a) Effective July
1, 1990, a fee of $3.00 shall be collected
by the new motor vehicle dealer from
the consumer at completion of a sale
or a lease of each new motor vehicle.The
fee shall be forwarded quarterly to
the Office of Planning and Budget
for deposit in the new motor vehicle
arbitration account created in the
state treasury. The first quarterly
payments are due and payable on October
1, 1990, and shall be mailed by the
dealer not later than October 10;
thereafter, all payments are due and
payable the first of the month in
each quarter and shall be mailed by
the dealer not later than the tenth
day of such month.Moneys in the account
shall be used for the purposes of
this article, subject to appropriation.
Funds in the new motor vehicle arbitration
account shall be transferred to the
general treasury at the end of each
fiscal year. One dollar of each fee
collected shall be retained by the
dealer to cover administrative costs.
(b) At the end of
each fiscal year, the administrator
shall prepare a report listing the
annual revenue generated and the expenses
incurred in implementing and operating
the arbitration program under this
chapter.The Office of Planning and
Budget shall provide the administrator
with the figures regarding revenue
generated.
(c) It is the intent
of the General Assembly that any consumer
who, on or after July 1, 1990, but
prior to January 1, 1991, pays or
should have paid the fee designated
in this Code section shall be entitled
to utilize the remedies provided in
Code Sections 10-1-786, 10-1-787,
and 10-1-788 in addition to any other
remedies which exist in law or in
equity regarding defective automobiles,
notwithstanding the effective dates
of this article or the effective dates
of any provisions of this article.
(Code 1981, §
10-1-789, enacted by Ga. L. 1990,
p. 1013, § 1; Ga. L. 1991, p.
604, § 1.)
10-1-790. Violation
of article.
A violation of this
article, or any failure of any person,
including a manufacturer or its agents,
to honor any express warranty, automotive
or otherwise, issued by that person,
regardless of whether or not such
warranty was purchased as a separate
item by the consumer and regardless
of whether or not any dispute under
the warranty is deemed eligible for
arbitration under this article, shall
constitute an unfair and deceptive
act or practice and a consumer transaction
under Part 2 of Article 15 of this
chapter.In determining whether there
is an unfair and deceptive act or
practice under this Code section,
the principles in this article regarding
a reasonable number of attempts may
serve as guidelines. All public and
private remedies provided under Part
2 of Article 15 of this chapter shall
be available to enforce this article,
subject to the affirmative defenses
provided in Code Section 10-1-787,
and except as provided in Code Section
10-1-784.
(Code 1981, §
10-1-790, enacted by Ga. L. 1990,
p. 1013, § 1; Ga. L. 1991, p.
94, § 10.)
10-1-791. Waiver
of rights under article as contrary
to public policy.
Any agreement entered
into by a consumer for the purchase
of a new motor vehicle that waives,
limits, or disclaims the rights set
forth in this article shall be void
as contrary to public policy. Said
rights shall extend to a subsequent
transferee of a new motor vehicle.
(Code 1981, §
10-1-791, enacted by Ga. L. 1990,
p. 1013, § 1.)
10-1-792. Other rights
and remedies.
Nothing in this article
shall limit anyone from pursuing other
rights or remedies under any other
law, except as otherwise provided
in this article.
(Code 1981, §
10-1-792, enacted by Ga. L. 1990,
p. 1013, § 1.)
10-1-793. Informal
dispute resolution settlement mechanism.
(a) If a manufacturer
has established an informal dispute
resolution settlement mechanism in
this state and is operating in accordance
with rules promulgated by the administrator
under this article, and the administrator
has certified that the informal dispute
resolution settlement procedure complies
with and is operating in accordance
with such rules, a consumer must submit
a dispute under this article to the
informal dispute resolution settlement
procedure before submitting it to
the new motor vehicle arbitration
panel.The administrator may adopt
rules consistent with this article
under Chapter 13 of Title 50, the
"Georgia Administrative Procedure
Act," regarding the informal
dispute resolution settlement mechanisms,
including but not limited to the composition,
function, training, procedures, and
conduct of informal dispute resolution
settlement mechanisms and including
eligibility requirements and procedures
for appeals to a panel.Such rules
must be complied with prior to certification.
(b) Informal dispute
resolution settlement mechanisms shall
take into account the principles contained
in this article and in any rules promulgated
thereunder and shall take into account
all legal and equitable factors germane
to a fair and just decision.A decision
shall include any remedies appropriate
under the circumstances, including
repair, replacement, refund, reimbursement
for collateral and incidental charges,
and compensation for loss of value.For
purposes of this Code section, the
phrase: "Take into account the
principles contained in this article"
means to be aware of the provisions
of this article, to understand how
they might apply to the circumstances
of the particular dispute, and to
apply them if it is appropriate and
fair to both parties to do so.
(c) At any time the
administrator has reason to believe
that a certified informal dispute
resolution settlement mechanism is
not acting in conformity with this
article or with rules promulgated
thereunder, he may initiate proceedings
under Chapter 13 of Title 50, the
"Georgia Administrative Procedure
Act," to revoke the certification
of the informal dispute resolution
settlement mechanism.An informal dispute
resolution settlement mechanism shall
keep such records as prescribed by
the administrator in rules under this
article and shall submit without notice
to inspection and copying of these
records by the administrator's employees.Expenses
of any copying shall be borne by the
informal dispute resolution settlement
mechanism.
(Code 1981, §
10-1-793, enacted by Ga. L. 1990,
p. 1013, § 1; Ga. L. 1991, p.
94, § 10.)
10-1-794. Establishment
and operation of arbitration panels;
panel membership; staff.
The new motor vehicle
arbitration panel or panels shall
begin operating on January 2, 1991.The
administrator in his discretion may
establish and operate the panel or
panels under any of the following
procedures, provided that disputes
filed during the same time period
shall not be handled under different
procedures: (1) contracting with private
or public entities to conduct arbitrations
under the procedures and standards
in this article, (2) appointing private
citizens to serve on a panel or panels,
or (3) hiring temporary or permanent
employees to serve on the panel or
panels. Each new motor vehicle arbitration
panel shall consist of three members,
none of whom may be directly or indirectly
involved in the manufacture, distribution,
sale, or service of any motor vehicle
or employed by or related to the consumer.All
panel members shall have a degree
from an American Bar Association Accredited
School of Law or shall have at least
two years' experience in professional
arbitration.Any private citizens appointed
by the administrator to serve as panel
members shall be reimbursed for expenses
as are members of the General Assembly
and shall be compensated at an hourly
rate as determined by the administrator.
Temporary or permanent employees hired
to serve on the panels shall be in
the unclassified service and may serve
on a full or part-time basis at a
salary determined by the administrator.All
administrative staff hired by the
administrator to aid in the administration
of this article shall be in the unclassified
service and compensated at a salary
determined by the administrator.
(Code 1981, §
10-1-794, enacted by Ga. L. 1990,
p. 1013, § 1.)