Application of the Lemon Law
The Lemon Law applies to the sale of all new vehicles, small trucks and multipurpose vehicles in Maryland. Not applicable to motor homes.
The benefits of the Lemon Law are available not only if the vehicle that was purchased from a dealer was new, but whether he was transferred to another person during the vehicle warranty period. The warranty period is 15 months after the car was delivered by the distributor or 15,000 miles, whichever comes first.
By law, a car is considered a lemon if during 15-month/15, 000 mile warranty period, a defect or condition that significantly affects the use and market value of the car can not be repaired after a number reasonable attempts. A "reasonable number of attempts" means once in the case of the braking or steering system, and four times in the case of other defects.
Alternatively, the "reasonable number of attempts" requirement is satisfied if the vehicle is out of service for repair of defects in a total of 30 or more days during the warranty period.
A car is not considered a lemon, however, if the defect is the result of abuse, neglect, or unauthorized modification of the car.
How does the process
The Lemon Law imposes certain requirements on the consumer, the car dealer and the manufacturer. If the dealer and manufacturer does not meet these requirements, they may be subject to a number of different penalties according to law. If the consumer does not meet the consumer's obligations, the right to benefit from the Lemon Law may be lost.
If there is a problem with a new car during the warranty period, the distributor or manufacturer must be given the opportunity to repair the defect. Moreover, the consumer must send written notice of default from the manufacturer by certified mail, return receipt requested, during the warranty period. The manufacturer or dealer must correct the defect, without charge to the consumer, within 30 days after receiving notice of the defect. If the vehicle is returned to the dealer four times to repair the same defect or is out of service for more than a total of 20 days because of defects, the dealer must notify the manufacturer of the defect and send a copy of the notification to the Administration of Motor Vehicles. However, the failure of the bench to give the required notice does not affect the consumer's rights under the Lemon Law. If the consumer is not satisfied with the way in which the distributor or manufacturer defects is responsible for new car or if the consumer is unable to reach an agreement regarding an appropriate remedy, the consumer may submit the dispute to the procedure manufacturer's informal arbitration, if it exists. The consumer is not obliged to submit to arbitration, however, and even if arbitration is chosen, it is not binding on the consumer. The legal action in court before, during or after an arbitration proceeding is always an option. The only limitation is that the legal action under the Lemon Law must be filed in court within three years after the date of original delivery of the vehicle to the consumer.
Remedies
If the dealer or manufacturer can not repair the car the consumer after a reasonable number of attempts (as described above), the manufacturer must do one of two things. A consumer choice, the manufacturer must: (1) Replace the car with another that is acceptable to the consumer, or (2) accept the return of the car and return the full purchase price, less a reasonable allowance for the use of vehicle.
There are other remedies available to the consumer under the Lemon Law. If the consumer can not resolve a dispute with the manufacturer out of court, the court may require the manufacturer to pay part or all of the consumer attorneys fees if the consumer prevails in court. If the court determines that the manufacturer has acted in bad faith by not complying with their obligations under the Lemon Law, the manufacturer may be liable to pay the consumer up to $ 10,000 in addition to other remedies ordered by the court. Moreover, a violation of the Lemon Law by a car dealer or manufacturer is considered an "unfair and deceptive trade practices" and may subject the dealer or manufacturer of punishment to the Consumer Protection Act of Maryland.
In addition to the Lemon Law, other areas of the law can help consumers in a dispute over a new car. For example, under the Uniform Commercial Code of Maryland, the consumer may be entitled to the benefits of certain implied warranties that are not contained in a written guarantee.
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