The Lemon Laws

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1. For purposes of determining whether a nonconformity has been subject to repair the required number of times, an "attempt" to repair, as used in Section 13-20-4 or 13-20-5, means that the vehicle is or has been presented to the manufacturer or its agent for the same non-conformity.


2. "Collateral charges" as used in Section 13-20-4 includes, but is not limited to:

1. Sales taxes


2. Document preparation fees


3. The cost of additional warranties or extended warranties, if included in the purchase price

3. "Comparable new motor vehicle" means:

1. A motor vehicle that is determined by the division to be identical to, or reasonably equivalent to, the nonconforming vehicle had it conformed to all applicable express warranties. A comparable new motor vehicle includes any service contracts, contract options, and factory or dealer installed options that were originally included in the sale of the nonconforming vehicle; or


2. A vehicle with an equivalent retail value including any service contracts, and factory or dealer installed options that were originally included with the nonconforming vehicle, if the consumer consents to a different make or model.

4. "New motor vehicle" means a motor vehicle which has never been titled or registered and has been driven fewer than 7,500 miles.


5. "Nonconforming vehicle" means a motor vehicle that does not meet all express warranties provided in the sales agreement or contract.


6. "Purchase price" means the actual amount paid for the vehicle. "Purchase price" includes taxes, licensing fees, and additional warranty fees, but does not include collateral charges.


7. "Reasonable allowance" for mileage means the dollar value based on the prescribed deduction per mile. The cap on a reasonable allowance shall be calculated as the purchase price divided by 100,000, but shall not in any case be less than ten (10) cents per mile nor more than twenty-one (21) cents per mile. The consumer shall not be liable for mileage on the vehicle at the time of delivery, nor for mileage during the time the vehicle was being repaired.


R152-20-3. Replacement or Refund of Nonconforming Motor Vehicles.

1. When the manufacturer is repurchasing a nonconforming motor vehicle that has been leased to a consumer, the following provisions also apply:

1. The manufacturer shall refund to the lessor all payments made under the lease.


2. The refund or repurchase price shall include trade-in value, inception payment, and security deposit.


3. The manufacturer shall make all payments on behalf of the lessee, to the lessor and/or lienholder of record as necessary to obtain clear title to the motor vehicle. The excess from said payments shall be paid to lessee. Upon the lessor's and/or lienholder's receipt of the payment, the consumer shall be relieved of any future obligation to the lessor and/or lienholder.

2. If a manufacturer is unable to provide a comparable new motor vehicle, it may provide, upon the consent of the consumer, a replacement vehicle of comparable quality. The customer shall not incur additional expense with respect to the replacement vehicle, except as a reasonable allowance for use of the buy-back vehicle.

KEY: automobiles, automobile repair, consumer protection, motor vehicles

Date of last substantive amendment: 1991

Notice of Continuation September 11, 1997

This rule is authorized by, and implements or interprets, the following: 63-46a-3, 13-2-5, 13-20-1