AS 45.45.305. Replacement or Refund.
If during the term of the express warranty or within one year from the date
of delivery of the motor vehicle to the original owner, whichever period
terminates first, the manufacturer, distributor, dealer, or repairing agent
is unable to conform the motor vehicle to an applicable express warranty
after a reasonable number of attempts, the manufacturer or distributor shall
accept the return of the nonconforming motor vehicle, and, at the owner's
option, shall replace the nonconforming vehicle with a new, comparable
vehicle or shall refund the full purchase price to the owner less a
reasonable allowance for the use of the motor vehicle from the time it was
delivered to the original owner. A refund under this section shall be made
to a lien holder of record, if any, and the owner, as their interests may
AS 45.45.310. Notice By Owner.
In order to claim a refund or replacement under AS 45.45.305, the owner
shall give written notice by certified mail to the manufacturer and its
dealer or repairing agent at any time before 60 days have elapsed after the
expiration of the express warranty or the one-year period after the date of
delivery of the motor vehicle to the original owner, whichever period
terminates first, (1) stating that the vehicle has a nonconformity; (2)
providing a reasonable description of the nonconformity; (3) stating that
the manufacturer, distributor, dealer, or repairing agent has made a
reasonable number of attempts to conform the vehicle; and (4) stating that
the owner demands a refund or replacement vehicle to be delivered on the
60th day after the mailing of the written notice. Within 30 days after
receiving the notice required by this section the manufacturer may make a
final attempt to conform the vehicle before a refund or replacement is made
under AS 45.45.305.
AS 45.45.315. Exceptions.
An owner may not receive a refund or replacement under AS 45.45.300 -
45.45.360 if the manufacturer or distributor shows that the nonconformity
- (1) does not substantially impair either the use or the market value of
the motor vehicle; or
- (2) is the result of alteration of the motor vehicle by the owner or a
person other than a dealer or repairing agent that is not authorized by the
manufacturer or distributor; or abuse or neglect by the owner or a person
other than the dealer or repairing agent.
AS 45.45.320. Presumption.
A presumption that a reasonable number of attempts have been made to
conform a motor vehicle under an applicable express warranty is established
- (1) the same nonconformity has been subject to repair three or more
times by the manufacturer, distributor, dealer, or repairing agent during
the term of the express warranty or the one-year period after delivery of
the motor vehicle to the original owner, whichever period terminates first,
but the nonconformity continues to exist; or
- (2) the vehicle is out of service for repair for a total of 30 or more
business days during the express warranty term or the one-year period
referred to in (1) of this section, whichever period terminates first; any
period of time that repairs are not performed for reasons that are beyond
the control of the manufacturer, distributor, dealer, or repairing agent is
excluded from the 30-day time period referred to in this paragraph.
AS 45.45.325. Parts Availability.
A manufacturer whose vehicles are sold in the state through an authorized
dealer shall provide its dealer or repairing agent with any part necessary
to make a repair of a nonconformity covered under an express warranty, as
soon as possible, without additional charge for freight or handling, if the
part is not in the dealer's or agent's inventory when the nonconforming
vehicle is brought to the dealer or repairing agent for repair.
AS 45.45.335. Resale Without Disclosure Prohibited.
A motor vehicle returned under AS 45.45.305 may not be resold by the
manufacturer or distributor in the state unless full disclosure of the
reason for the return is made to the prospective buyer before the resale is
AS 45.45.340. Other rights and remedies.
The provisions of AS 45.45.300 - 45.45.360 do not limit other rights and
remedies that may be available to the owner of a motor vehicle under other
provisions of law. This section does not create a new cause of action
against a dealer or repairing agent who sells or attempts to repair a motor
vehicle found to be nonconforming under AS 45.45.300 - 45.45.360.
AS 45.45.345. Repair Facilities.
A manufacturer or distributor or motor vehicles who authorizes the sale of
the manufacturer's or distributor's motor vehicles in the state shall
maintain authorized dealership facilities within the state that are able to
perform the service and make the repairs required by the manufacturer's
express warranty and by AS 45.45.300 - 45.45.360.
AS 45.45.350. Reimbursement of Shipping Costs.
A manufacturer or distributor who accepts the return of a nonconforming
motor vehicle under AS 45.45.305 shall reimburse the owner for any
reasonable cost incurred in shipping the vehicle to and from the nearest
authorized facility for warranty service and repair of a nonconformity that
causes the return of the vehicle.
AS 45.45.355. Arbitration or Mediation.
If a manufacturer or distributor has established an informal dispute
settlement procedure that substantially complies with the requirements of 16
C.F.R. 703, as that section may be amended, or if the manufacturer or
distributor, after receipt of notice required by AS 45.45.310, offers in
writing to participate in an arbitration or mediation process with the owner
and the arbitration or mediation decision is binding on the manufacturer or
distributor but not on the owner, and if the informal dispute settlement or
arbitration or mediation process is approved by the attorney general, the
provisions of AS 45.45.305 concerning refund or replacement or AS 45.45.350
concerning shipping costs do not apply to an owner who has not first
resorted to the informal dispute settlement procedure or arbitration or
AS 45.45.360. Definitions.
Definitions in AS 45.45.300 - 45.45.360:
- (1) "dealer" means a person who has obtained a franchise from, or is
authorized by, a motor vehicle manufacturer to engage in the retail sale and
warranty repair of the manufacturer's new motor vehicles in the state;
- (2) "distributor" means a person who is authorized by a manufacturer to
engage in the wholesale distribution of the manufacturer's new motor
vehicles in the state;
- (3) "express warranty" or "warranty" means an express written warranty
provided by the manufacturer of a new motor vehicle;
- (4) "full purchase price" means the total price paid for a motor vehicle
by the original owner, including costs added to the retail price, such as
original registration fees, transportation fees, dealer preparation, and
dealer installed options;
- (5) "manufacturer" means a person who by labor transforms raw materials
and component parts into motor vehicles for wholesale or retail sale;
- (6) "motor vehicle" or "vehicle" means a land vehicle having four or
more wheels, that is self-propelled by a motor, is normally used for
personal, family, or household purposes, and is required to be registered
under AS 28.10; but does not include a tractor, farm vehicle, or a vehicle
designed primarily for off-road use;
- (7) "nonconformity" means a defect or condition in a motor vehicle
caused by a manufacturer, distributor, dealer, or repairing agent that
substantially impairs the use or market value of a vehicle;
- (8) "owner" means a purchaser, other than for resale, of a new motor
vehicle, and a person to whom ownership of the motor vehicle is transferred
in conformity with AS 28;
- (9) "reasonable allowance" means an amount attributable to an owner's
use of a motor vehicle; a "reasonable allowance" may not exceed an amount
equal to the depreciation in value of the vehicle for the period during
which the vehicle is available for use by the owner, calculated by a
straight line depreciation method over seven years, plus an amount equal to
the depreciation in value of the vehicle that is caused by any neglect or
abuse by the owner; or body damage not caused by a nonconformity;
- (10) "repairing agent" means a person who has been specifically
authorized by a motor vehicle manufacturer or distributor to perform
warranty repairs in the state on one or more of the manufacturer's or
distributor's motor vehicles;
- (11) "substantially impairs the market value" means a nonconformity that
substantially decreases the dollar value of a vehicle to the owner when
compared to the dollar value of a similar vehicle that does not have the
- (12) "substantially impairs the use" means a nonconformity that prevents
a motor vehicle from being operated or makes the vehicle unsafe to operate.