§ 59.1-207.9
This chapter may be cited as the
Virginia Motor Vehicle Warranty Enforcement Act.
(1984, c. 773.)
§ 59.1-207.10
The General Assembly recognizes
that a motor vehicle is a major consumer purchase, and there is no doubt that a
defective motor vehicle creates a hardship for the consumer. It is the intent
of the General Assembly that a good faith motor vehicle warranty complaint by a
consumer should be resolved by the manufacturer, or its agent, within a
specified period of time. It is further the intent of the General Assembly to
provide the statutory procedures whereby a consumer may receive a replacement
motor vehicle, or a full refund, for a motor vehicle which cannot be brought
into conformity with the express warranty issued by the manufacturer. However,
nothing in this chapter shall in any way limit the rights or remedies which are
otherwise available to a consumer under any other law.
(1984, c. 773.)
§ 59.1-207.11
As used in this chapter, the
following terms shall have the following meanings:
"Collateral charges" means any sales-related charges including
but not limited to sales tax, license fees, registration fees, title fees,
finance charges and interest, transportation charges, dealer preparation
charges or any other charges for service contracts, undercoating, rust proofing
or installed options, not recoverable from a third party.
"Comparable motor vehicle" means a 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 with an offset
from this value for a reasonable allowance for its use.
"Consumer" means the purchaser, other than for purposes of
resale, of a motor vehicle used in substantial part for personal, family, or
household purposes, and any person to whom such motor vehicle is transferred
for the same purposes during the duration of any warranty applicable to such
motor vehicle, and any other person entitled by the terms of such warranty to
enforce the obligations of the warranty.
"Incidental damages" shall have the same meaning as provided in
§ 8.2-715.
"Lemon law rights period" means the period ending eighteen
months after the date of the original delivery to the consumer of a new motor
vehicle. This shall be the period during which the consumer can report any
nonconformity to the manufacturer and pursue any rights provided for under this
chapter.
"Lien" means a security interest in a motor vehicle.
"Lienholder" means a person, partnership, association,
corporation or entity with a security interest in a motor vehicle pursuant to a
lien.
"Manufacturer" means a person, partnership, association,
corporation or entity engaged in the business of manufacturing or assembling
motor vehicles, or of distributing motor vehicles to motor vehicle dealers.
"Manufacturer's express warranty" means the written warranty,
so labeled, of the manufacturer of a new automobile, including any terms or
conditions precedent to the enforcement of obligations under that warranty.
"Motor vehicle" means only passenger cars, pickup or panel
trucks, motorcycles, self-propelled motorized chassis of motor homes and mopeds
as those terms are defined in § 46.2-100 and demonstrators or lease
purchase vehicles with which a warranty was issued.
"Motor vehicle dealer" shall have the same meaning as provided
in § 46.2-1500.
"Nonconformity" means a failure to conform with a warranty, a
defect or a condition, including those that do not affect the driveability of
the vehicle, which significantly impairs the use, market value, or safety of a
motor vehicle.
"Notify" or "notification" means that the manufacturer shall be
deemed to have been notified under this chapter if a written complaint of the
defect or defects has been mailed to it or it has responded to the consumer in
writing regarding a complaint, or a factory representative has either inspected
the vehicle or met with the consumer or an authorized dealer regarding the
nonconformity.
"Reasonable allowance for use" shall not exceed one-half of the
amount allowed per mile by the Internal Revenue Service, as provided by
regulation, revenue procedure, or revenue ruling promulgated pursuant to §
162 of the Internal Revenue Code, for use of a personal vehicle for business
purposes, plus an amount to account for any loss to the fair market value of
the vehicle resulting from damage beyond normal wear and tear, unless the
damage resulted from nonconformity to any warranty.
"Serious safety defect" means a life-threatening malfunction or
nonconformity that impedes the consumer's ability to control or operate the new
motor vehicle for ordinary use or reasonable intended purposes or creates a
risk of fire or explosion.
"Significant impairment" means to render the new motor vehicle
unfit, unreliable or unsafe for ordinary use or reasonable intended purposes.
"Warranty" means any implied warranty or any written warranty
of the manufacturer, or any affirmations of fact or promise made by the
manufacturer in connection with the sale of a motor vehicle that become part of
the basis of the bargain. The term "warranty" pertains to the obligations of
the manufacturer in relation to materials, workmanship, and fitness of a motor
vehicle for ordinary use or reasonable intended purposes throughout the
duration of the lemon law rights period as defined under this section.
(1984, c. 773; 1988, c. 603; 1990, c. 772; 1998, c. 671.)
§ 59.1-207.12
Conformity to all warranties
If a new motor vehicle does not conform to all warranties, and
the consumer reports the nonconformity to the manufacturer, its agents, or its
authorized dealer during the manufacturer's warranty period, the manufacturer,
its agent or its authorized dealer shall make such repairs as are necessary to
conform the vehicle to such warranties, notwithstanding the fact that such
repairs are made after the expiration of such manufacturer's warranty period.
(1984, c. 773; 1988, c. 603.)
§ 59.1-207.13
Nonconformity of motor vehicles
A. If the manufacturer, its agents or authorized dealers do not
conform the motor vehicle to any applicable warranty by repairing or correcting
any defect or condition, including those that do not affect the driveability of
the vehicle, which significantly impairs the use, market value, or safety of
the motor vehicle to the consumer after a reasonable number of attempts during
the lemon law rights period, the manufacturer shall:
1. Replace the motor vehicle with a comparable motor vehicle
acceptable to the consumer, or
2. Accept return of the motor vehicle and refund to the
consumer and any lienholder as their interest may appear the full purchase
price, including all collateral charges, incidental damages, less a reasonable
allowance for the consumer's use of the vehicle up to the date of the first
notice of nonconformity that is given to the manufacturer, its agents or
authorized dealer. The consumer shall have the unconditional right to choose a
refund rather than a replacement vehicle and to drive the motor vehicle until
he receives either the replacement vehicle or the refund. The subtraction of a
reasonable allowance for use shall apply to either a replacement or refund of
the motor vehicle. Mileage, expenses, and reasonable loss of use necessitated
by attempts to conform such motor vehicle to the express warranty may be
recovered by the consumer.
B. It shall be presumed that a reasonable number of attempts
have been undertaken to conform a motor vehicle to any warranty and that the
motor vehicle is significantly impaired if during the period of eighteen months
following the date of original delivery of the motor vehicle to the consumer
either:
1. The same nonconformity has been subject to repair three or
more times by the manufacturer, its agents or its authorized dealers and the
same nonconformity continues to exist;
2. The nonconformity is a serious safety defect and has been
subject to repair one or more times by the manufacturer, its agent or its
authorized dealer and the same nonconformity continues to exist; or
3. The motor vehicle is out of service due to repair for a
cumulative total of thirty calendar days, unless such repairs could not be
performed because of conditions beyond the control of the manufacturer, its
agents or authorized dealers, including war, invasion, strike, fire, flood or
other natural disasters.
C. The lemon law rights period shall be extended if the
manufacturer has been notified but the nonconformity has not been effectively
repaired by the manufacturer, or its agent, by the expiration of the lemon law
rights period.
D. The manufacturer shall clearly and conspicuously disclose to
the consumer, in the warranty or owner's manual, that written notification of
the nonconformity to the manufacturer is required before the consumer may be
eligible for refund or replacement of the vehicle under this chapter. The
manufacturer shall include with the warranty or owner's manual the name and
address to which the consumer shall send such written notification.
E. It shall be the responsibility of the consumer, or his
representative, prior to availing himself of the provisions of this section, to
notify the manufacturer of the need for the correction or repair of the
nonconformity, unless the manufacturer has been notified as defined in §
59.1-207.11. If the manufacturer or factory representative has not been
notified of the conditions set forth in subsection B of this section and any of
the conditions set forth in subsection B of this section already exists, the
manufacturer shall be given an additional opportunity, not to exceed fifteen
days, to correct or repair the nonconformity. If notification shall be mailed
to an authorized dealer, the authorized dealer shall upon receipt forward such
notification to the manufacturer.
F. Nothing in this chapter shall be construed to limit or
impair the rights and remedies of a consumer under any other law.
G. It is an affirmative defense to any claim under this chapter
that:
1. An alleged nonconformity does not significantly impair the
use, market value, or safety of the motor vehicle; or
2. A nonconformity is the result of abuse, neglect or
unauthorized modification or alteration of a motor vehicle by a consumer.
(1984, c. 773; 1987, c. 607; 1988, c. 603; 1990, c. 772; 1998,
c. 671.)
§ 59.1-207.14
Action to enforce provisions of
chapter
Any consumer who suffers loss by reason of a violation of any
provision of this chapter may bring a civil action to enforce such provision.
Any consumer who is successful in such an action or any defendant in any
frivolous action brought by a consumer shall recover reasonable attorney's
fees, expert witness fees and court costs incurred by bringing such actions.
(1984, c. 773; 1988, c. 603.)
§ 59.1-207.15
Informal dispute settlement
procedure
A. If a manufacturer provides an informal dispute settlement
procedure, it shall be the consumer's choice whether or not to use it prior to
availing himself of his rights under this chapter.
B. If a dispute settlement procedure is resorted to by the
consumer and the decision is for a refund or a comparable motor vehicle, the
manufacturer shall have forty days from its receipt of the consumer's
acceptance of the decision or from the date of a court order to comply with the
terms of the decision.
C. In any action brought because of the manufacturer's failure
to comply with the decision, within the scope of the procedure's authority,
rendered as a result of a dispute resolution proceeding or a court order, the
court may triple the value of the award stipulated in the decision as provided
for in this chapter, plus award other equitable relief the court deems
appropriate, including additional attorney's fees.
(1988, c. 603; 1990, c. 772.)
§ 59.1-207.16
Action to be brought within
certain time
Any action brought under this chapter shall be commenced within
the lemon law rights period following the date of original delivery of the
motor vehicle to the consumer; however, any consumer whose good faith attempts
to settle the dispute have not resulted in the satisfactory correction or
repair of the nonconformity, replacement of the motor vehicle or refund to the
consumer of the amount described in subdivision 2 of subsection A of §
59.1-207.13, shall have twelve months from the date of the final action taken
by the manufacturer in its dispute settlement procedure or within the lemon law
rights period, whichever is longer, to file an action in the proper court,
provided the consumer has rejected the manufacturer's final action.
(1988, c. 603; 1990, c. 772; 1999, c. 387.)
§ 59.1-207.16:1
Disclosure of returned
vehicles; penalty.
A. If a motor vehicle that is returned to the manufacturer or
distributor either under this chapter or by judgment, decree, or arbitration
award in this or any other state and is then transferred by a manufacturer or
distributor to a dealer, licensed under Chapter 15 (§ 46.2-1500 et seq.)
of Title 46.2, in Virginia, the manufacturer or distributor shall disclose this
information to the Virginia dealer.
B. If the returned vehicle is then made available for resale or
for another lease, the manufacturer shall, prior to sale or lease, disclose in
writing in a clear and conspicuous manner, on a separate piece of paper in
ten-point capital type, to the Virginia dealer that this motor vehicle was
returned to the manufacturer, distributor or factory branch, the nature of the
defect which resulted in the return, and the condition of the motor vehicle at
the time of transfer to the Virginia dealer. It shall be the responsibility of
the dealer that receives this disclosure to give notice of its contents to any
prospective purchaser or lessee prior to sale or lease, and to transfer the
disclosure, or a copy thereof, to the next purchaser or lessee. A dealer's
responsibility under this section shall cease upon the sale or lease of the
affected motor vehicle to the first purchaser or lessee not for resale or
lease.
C. Any manufacturer or distributor who violates this section of
the Motor Vehicle Warranty Enforcement Act shall be guilty of a Class 3
misdemeanor.
(1994, c. 578; 1998, c. 671.)