Title 32, Chapter 32-6D-1 - 11
§ 32-6D-1. Definitions.
Terms used in this chapter mean:
(1) "Consumer," the purchaser, other than for purposes of resale,
of a new or previously untitled motor vehicle used in substantial
part for personal, family or household purposes, and any other person
entitled by the terms of such warranty to enforce the obligations
of the warranty;
(2) "Express warranty," a written warranty, so labeled, issued
by the manufacturer of a new motor vehicle, including any terms
or conditions precedent to the enforcement of obligations under
(3) "Lemon law rights period," the period ending one year after
the date of the original delivery of a motor vehicle to a consumer
or the first twelve thousand miles of operation, whichever first
(4) "Manufacturer," the person, firm or corporation engaged in
the business of manufacturing, importing or distributing motor vehicles
to be made available to a motor vehicle dealer for retail sale;
(5) "Motor vehicle," every vehicle intended primarily for use
and operation on the public highways which is self-propelled. The
term does not apply to any motor home or to any motor vehicle having
a manufacturer's gross vehicle weight rating of ten thousand pounds
(6) "Motor vehicle dealer" or "authorized dealer," any person
operating under a dealer agreement from a manufacturer and licensed
pursuant to chapter 32-6B;
(7) "Nonconforming condition," any condition of a motor vehicle
which is not in conformity with the terms of any express warranty
issued by the manufacturer to a consumer and which significantly
impairs the use, value or safety of the motor vehicle and occurs
or arises solely in the course of the ordinary use of the motor
vehicle, and which does not arise or occur as a result of abuse,
neglect, modification or alteration of the motor vehicle not authorized
by the manufacturer, nor from any accident or other damage to the
motor vehicle which occurs or arises after the motor vehicle was
delivered by an authorized dealer to the consumer;
(8) "Notice of a nonconforming condition," a written statement
delivered to the manufacturer and which describes the motor vehicle,
the nonconforming condition, and all previous attempts to correct
such nonconforming condition by identifying the person who made
the attempt and the time the attempt was made.
§ 32-6D-2. Notice of nonconforming condition - Timeliness
- Obligation to repair.
If a new motor vehicle does not conform to any applicable express
warranty and the consumer delivers the motor vehicle to the manufacturer
or its authorized dealer and gives notice of the nonconforming condition
during the lemon law rights period, the manufacturer of the motor
vehicle shall make the necessary repairs to the motor vehicle to
remedy any such nonconforming condition. The repairs are required
even after the expiration of the lemon law rights period if notice
of the nonconforming condition was first given during the lemon
law rights period. However, the manufacturer's obligation to repair
the nonconforming condition does not extend beyond the period of
twenty-four months following delivery of the vehicle or twenty-four
thousand miles, whichever occurs first.
§ 32-6D-3. Replacement of unreparable vehicle - Refund.
If, after reasonable attempts, the manufacturer or its authorized
dealer is unable to conform the motor vehicle to any express warranty
by repairing or correcting a nonconforming condition of the motor
vehicle which first occurred during the lemon law rights period,
the manufacturer shall, at the option of the consumer, replace the
motor vehicle with a comparable new motor vehicle or shall accept
return of the vehicle from the consumer and refund to the consumer
(1) The full contract price including charges for undercoating,
dealer preparation and transportation charges, and installed options,
plus the nonrefundable portions of extended warranties and service
(2) All collateral charges, including excise tax, license and
registration fees and similar government charges;
(3) All finance charges incurred by the consumer after he first
reported the nonconformity to the manufacturer or its authorized
(4) Any incidental damages which shall include the reasonable
cost of alternative transportation during the period that the consumer
is without the use of the motor vehicle because of the nonconforming
§ 32-6D-4. Allowance for use of vehicle offset against monetary
Refunds shall be made to the consumer and any lien holders, as
their interests may appear. There shall be offset against any monetary
recovery of the consumer a reasonable allowance for the consumer's
use of the vehicle. A reasonable allowance for use is that amount
directly attributable to use by the consumer before his first report
of the nonconformity to the manufacturer or authorized dealer and
shall be calculated by multiplying the full purchase price of the
motor vehicle by a fraction having as its denominator one hundred
thousand and having as its numerator the number of miles that the
vehicle traveled before the first report of nonconformity.
§ 32-6D-5. Reasonable attempts to correct nonconforming condition.
It is presumed that reasonable attempts to correct a nonconforming
condition have been allowed by the consumer if, during the period
of twenty-four months following delivery of the vehicle or twenty-four
thousand miles, whichever first occurs, either of the following
(1) The same nonconforming condition was subject to repair attempts
four or more times by the manufacturer, or its authorized dealers,
at least one of which occurred during the lemon law rights period,
plus a final attempt by the manufacturer, and the same nonconforming
condition continues to exist; or
(2) The motor vehicle was out of service and in the custody of
the manufacturer or an authorized dealer due to repair attempts
including the final repair attempt, one of which occurred during
the lemon law rights period, for a cumulative total of thirty calendar
days, unless the repair could not be performed because of conditions
beyond the control of the manufacturer or authorized dealers, such
as war, invasion, strike, fire, flood or other natural disaster.
§ 32-6D-6. Civil action against manufacturer.
A consumer sustaining damages as a proximate consequence of the
failure by a manufacturer to perform its obligations imposed under
this chapter may bring a civil action against the manufacturer to
enforce the provisions of this chapter. Prior to the commencement
of any such proceeding a consumer shall give notice of a nonconforming
condition by certified mail to the manufacturer and demand correction
or repair of the nonconforming condition. If at the time the notice
of a nonconforming condition is given to the manufacturer, a presumption
has arisen that reasonable attempts to correct a nonconforming condition
have been allowed, the manufacturer shall be given a final opportunity
to cure the nonconforming condition. The manufacturer shall within
seven calendar days of receiving the written notice of nonconforming
condition notify the consumer of a reasonably accessible repair
facility. After delivery of the new vehicle to the authorized repair
facility by the consumer, the manufacturer shall attempt to correct
the nonconforming condition and conform the vehicle to the express
warranty within a period not to exceed fourteen calendar days. If
a manufacturer has established an informal dispute settlement procedure
conducted within the state which is in compliance with federal rules
and regulations, a consumer shall first exhaust any remedy afforded
to the consumer under the informal dispute procedure of the manufacturer
before a cause of action may be instituted under the provisions
of this chapter.
§ 32-6D-7. Affirmative defenses to claim against manufacturer.
It is an affirmative defense to any claim against the manufacturer
under this chapter that:
(1) An alleged nonconforming condition does not significantly
impair the use, market value or safety of the motor vehicle; or
(2) A nonconforming condition is a result of abuse, neglect, or
any modification or alteration of a motor vehicle by a consumer
that is not authorized by the manufacturer.
§ 32-6D-8. Attorney fees.
If the manufacturer has breached its obligations imposed under
this chapter, the consumer may recover, in addition to the remedy
provided under §§ 32-6D-2 to 32-6D-5, inclusive, an additional award
for reasonable attorney fees.
§ 32-6D-9. Resale of returned vehicle.
If a motor vehicle has been returned to the manufacturer under
the provisions of this chapter or a similar statute of another state,
whether as the result of a legal action or as the result of an informal
dispute settlement proceeding, it may not be resold in this state
(1) The manufacturer discloses in writing to the subsequent purchaser
the fact that the motor vehicle was returned under the provisions
of this chapter and the nature of the nonconformity to the vehicle
(2) The manufacturer returns the title of the motor vehicle to
the department of revenue advising of the return of the motor vehicle
under provisions of this chapter with an application for title in
the name of the manufacturer. The department shall brand the title
issued to the manufacturer and all subsequent titles to the motor
vehicle with the following statement: "This vehicle was returned
to the manufacturer because it did not conform to its warranty."
§ 32-6D-10. Liability of dealer.
Nothing in this chapter imposes any liability upon a motor vehicle
dealer or authorized dealer or creates a cause of action by a consumer
against a motor vehicle dealer or authorized dealer. No manufacturer
may charge back or require reimbursement by a motor vehicle dealer
or authorized dealer for any costs, including any refunds or vehicle
replacements, incurred by the manufacturer arising out of this chapter.
§ 32-6D-11. Time limit for action.
Any action brought under this chapter against the manufacturer
shall be commenced within three years following the date of original
delivery of the motor vehicle to the consumer.
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