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The Vermont Statutes Online
Title
09
:
Commerce and Trade
Chapter
115
:
NEW MOTOR VEHICLE ARBITRATION
§
4172. Enforcement of warranties
(a) Every new
motor vehicle as defined in section 4171 of this title sold in this State must
conform to all applicable warranties.
(b) It shall be
the manufacturer's obligation under this chapter to ensure that all new motor
vehicles sold, leased, or registered in this State conform with manufacturer's
express warranties. The manufacturer may delegate responsibility to its agents
or authorized dealers provided, however, in the event the manufacturer
delegates its responsibility under this chapter to its agents or authorized
dealers, it shall compensate the dealer for all work performed by the dealer in
satisfaction of the manufacturer's responsibility under this chapter in the
manner set forth in chapter 108 of this title known as the "Motor Vehicle
Manufacturers, Distributors and Dealers' Franchising Practices Act" as
that act may be from time to time amended.
(c) If a new
motor vehicle does not conform to all applicable express warranties and the
consumer reports the nonconformity to the manufacturer, its agent, or
authorized dealer during the term of the warranty, the manufacturer shall cause
whatever repairs are necessary to conform the vehicle to the warranties,
notwithstanding the fact that the repairs are made after the expiration of a
warranty term.
(d) A
manufacturer, its agent, or authorized dealer shall not refuse to provide a
consumer with a written repair order and shall provide to the consumer each
time the consumer's vehicle is brought in for examination or repair of a
defect, a written summary of the complaint and a fully itemized statement
indicating all work performed on the vehicle including examination of the
vehicle, parts, and labor.
(e) If, after a
reasonable number of attempts, the manufacturer, its agent, or authorized
dealer or its delegate is unable to conform the motor vehicle to any express
warranty by repairing or correcting any defect or condition covered by the
warranty which substantially impairs the use, market value, or safety of the motor
vehicle to the consumer, the manufacturer shall, at the option of the consumer
within 30 days of the effective date of the Board's order, replace the motor
vehicle with a new motor vehicle from the same manufacturer, if available, of
comparable worth to the same make and model with all options and accessories
with appropriate adjustments being allowed for any model year differences or
shall accept return of the vehicle from the consumer and refund to the consumer
the full purchase price or to the lessee in the case of leased vehicles, as
provided in subsection (i) of this section. In those instances in which a
refund is tendered, the manufacturer shall refund to the consumer the full
purchase price as indicated in the purchase contract and all credits and
allowances for any trade-in or downpayment, finance charges, credit charges,
registration fees and any similar charges and incidental and consequential
damages or in the case of leased vehicles, as provided in subsection (i) of
this section. Refunds shall be made to the consumer and lienholder, if any, as
their interests may appear or to the motor vehicle lessor and lessee as
provided in subsection (i) of this section. A reasonable allowance for use
shall be that amount directly attributable to use by the consumer prior to his
or her first repair attempt and shall be calculated by multiplying the full
purchase price of the vehicle by a fraction having as its denominator 100,000
and having as its numerator the number of miles that the vehicle traveled prior
to the first attempt at repairing the vehicle. If the manufacturer refunds the
purchase price or a portion of the price to the consumer, any Vermont motor
vehicle purchase and use tax paid shall be refunded by the State to the
consumer in the proportionate amount. To receive a refund, the consumer must
file a claim with the Commissioner of Motor Vehicles within 90 days of the
effective date of the order.
(f) It shall be
an affirmative defense to any claim under this chapter that an alleged
nonconformity does not substantially impair the use, market value, or safety,
or that the nonconformity is the result of abuse, neglect, or unauthorized
modifications or alterations of a motor vehicle by a consumer.
(g) It shall be
presumed that a reasonable number of attempts have been undertaken to conform a
motor vehicle to the applicable warranties if:
(1) the same
nonconformity as identified in any written examination or repair order has been
subject to repair at least three times by the manufacturer, its agent, or authorized
dealer and at least the first repair attempt occurs within the express warranty
term and the same nonconformity continues to exist; or
(2) the vehicle
is out of service by reason of repair of one or more nonconformities, defects
or conditions for a cumulative total of 30 or more calendar days during the
term of the express warranty. The term of any warranty and the 30-day period
shall be extended by any period of time during which repair services were not
available to the consumer because of war, invasion, strike, fire, flood, or
other natural disaster. If an extension of time is necessitated due to these
conditions, the manufacturer shall cause provision for the free use of a
vehicle to the consumer whose vehicle is out of service. A vehicle shall not be
deemed out of service if it is available to the consumer for a major part of
the day.
(h) In order for
an attempt at repair to qualify for the presumptions of this section, the
attempt at repair must be evidenced by a written examination or repair order
issued by the manufacturer, its agent, or its authorized dealer. The
presumptions of this section shall only apply to three attempts at repair
evidenced by written examination or repair orders undertaken by the same agent
or authorized dealer, unless the consumer shows good cause for taking the
vehicle to a different agent or authorized dealer.
(i) In cases in
which the lessee elects a replacement vehicle, a collateral change with
appropriate adjustments for any model year difference or excess mileage, or
both, shall be incorporated into an amended lease agreement. In cases in which
a refund is tendered by a manufacturer for a leased motor vehicle under
subsection (e) of this section, the refund and rights of the motor vehicle
lessor, lessee, and manufacturer shall be in accordance with the following:
(1) The
manufacturer shall provide to the lessee, the aggregate deposit and rental
payments previously paid to the motor vehicle lessor by the lessee, and
incidental and consequential damages, if applicable, minus a reasonable
allowance for use and allocated payments for purchase and use tax. The
aggregate deposit shall include, but not be limited to, all cash payments and
trade-in allowances tendered by the lessee to the motor vehicle lessor under
the lease agreement. The reasonable allowance for use shall be calculated by
multiplying the aggregate deposit and rental payments made by the lessee on the
motor vehicle by a fraction having as its denominator the number of miles
allowed in the lease contract and having as its numerator the number of miles
that the vehicle traveled prior to the first attempt at repairing the vehicle.
Any miles in excess of those allowed in the lease contract shall be added to
the mileage at the first repair attempt or first day out of service prior to
calculating the reasonable allowance for use.
(2) The
manufacturer shall provide to the motor vehicle lessor the aggregate of the
following:
(A) the lessor's
actual purchase cost, less payments made by the lessee;
(B) the freight
cost, if applicable;
(C) the cost for
dealer or manufacturer-installed accessories, if applicable;
(D) any fee paid
to another to obtain the lease; and
(E) an amount
equal to five percent of the lessor's actual purchase cost. The amount in this
subdivision shall be instead of any early termination costs as defined in
subdivision 4171(3) of this chapter or as described in the lease agreement.
(3) Vermont
motor vehicle purchase and use tax shall be refunded by the State to whomever
paid the tax. The party must file a claim with the Commissioner of Motor
Vehicles within 90 days of the effective date of the order.
(4) The lessee's
lease agreement with the motor vehicle lessor and all contractual obligations
shall be terminated upon a decision of the Board in favor of the lessee as of
the effective date of the order. The lessee shall not be liable for any further
costs or charges to the manufacturer or motor vehicle lessor under the lease
agreement.
(5) The motor
vehicle lessor shall release the motor vehicle title to the manufacturer upon
payment by the manufacturer under the provisions of this subsection.
(6) The Board
shall give notice to the motor vehicle lessor of the lessee's filing of a
request for arbitration under this chapter and shall notify the motor vehicle
lessor of the date, time, and place scheduled for a hearing before the Board.
The motor vehicle lessor shall provide testimony and evidence necessary to the
arbitration proceedings. Any decision of the Board shall be binding upon the
motor vehicle lessor. (Added 1983, No. 211 (Adj. Sess.), § 1; amended 1985, No.
260 (Adj. Sess.), § 2; 1987, No. 242 (Adj. Sess.),§§ 3, 4; 1989, No. 157 (Adj.
Sess.), § 1, eff. April 30, 1990; 1999, No. 18, § 28, eff. May 13, 1999.)
