As used in this chapter, the following terms shall have
the respective meanings as indicated:
(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) Motor vehicle.
Every vehicle intended primarily for use and
operation on the public highways which is
self-propelled; provided, however, that the term "motor
vehicle" shall not apply to motor homes or to any motor
vehicle having a manufacturer's gross vehicle weight
rating (GVWR) of 10,000 pounds or more.
(3) Manufacturer.
The person, firm, or corporation engaged in the
business of manufacturing, importing and/or distributing
motor vehicles to be made available to a motor vehicle
dealer for retail sale.
(4) Motor vehicle dealer or Authorized dealer.
The person, firm, or corporation operating under a
dealer agreement from a manufacturer, importer, or
distributor and who is engaged regularly in the business
of buying, selling or exchanging motor vehicles in this
state and who has in this state an established place of
business.
(5) 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 that warranty.
(6) Nonconforming condition.
Any condition of a motor vehicle which shall not be
in conformity with the terms of any express warranty
issued by the manufacturer to a consumer and which: (i)
significantly impairs the use, value or safety of the
motor vehicle and (ii) 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 such motor vehicle was delivered
by an authorized dealer to the consumer.
(7) Notice of a nonconforming condition.
A written statement which shall be delivered to the
manufacturer and which shall describe the subject motor
vehicle, the nonconforming condition, and shall describe
all previous attempts to correct such nonconforming
condition by identifying the person, firm or corporation
who or which made such attempt, and the time when such
attempt was made.
(8) 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 12,000 miles of operation, whichever first
occurs.
Section 8-20A-2
Obligations of manufacturer.
(a) If a new motor vehicle does not conform to any
applicable express warranty, and the consumer delivers the
motor vehicle to the manufacturer, its agent, or its
authorized dealer, and gives notice of the nonconforming
condition during the lemon law rights period, the
manufacturer of the motor vehicle shall be obligated to make
such repairs to the motor vehicle as shall be necessary to
remedy any nonconforming condition thereof. Such repairs
shall be required even after the expiration of the lemon law
rights period provided that notice of the nonconforming
condition was first given during the lemon law rights period
and provided further that the manufacturer's obligation to
repair the nonconforming condition shall not extend beyond
the period of 24 months following delivery of the vehicle or
24,000 miles, whichever occurs first.
(b) If, after reasonable attempts, the manufacturer, its
agent, 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 the following:
(1) The full contract price including, but not
limited to, charges for undercoating, dealer preparation
and transportation charges, and installed options, plus
the nonrefundable portions of extended warranties and
service contracts;
(2) All collateral charges, including but not
limited to, sales 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, its agent, or its authorized dealer; and
(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 condition. There
shall be offset against any monetary recovery of the
consumer a reasonable allowance for the consumer's use
of the vehicle. Refunds shall be made to the consumer,
and any lien holders, as their interests may appear. 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, agent,
or authorized dealer, and must be calculated by
multiplying the full purchase price of the motor vehicle
by a fraction having as its denominator 100,000 and
having as its numerator the number of miles that the
vehicle travelled before the first report of
nonconformity.
(c) It shall be presumed that reasonable attempts to
correct a nonconforming condition have been allowed by the
consumer if, during the period of 24 months following
delivery of the vehicle or 24,000 miles, whichever first
occurs, either of the following events shall have occurred:
(1) The same nonconforming condition has been
subject to repair attempts three or more times by the
manufacturer, its agents 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 is out of service and in the
custody of the manufacturer, its agent, 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 30 calendar
days, unless such repair could not be performed because
of conditions beyond the control of the manufacturer,
its agents or authorized dealers, such as war, invasion,
strike, fire, flood, or other natural disaster.
Section 8-20A-3
Cause of action against manufacturer.
(a) 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 must give notice of a nonconforming
condition by certified United States mail to the
manufacturer and demand correction or repair of the
nonconforming condition. If at the time such 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 14 calendar days. If a manufacturer has
established an informal dispute settlement procedure which
is in compliance with federal rules and regulations, a
consumer must 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.
(b) It shall be an affirmative defense to any claim
against the manufacturer under this chapter that: (i) an
alleged nonconforming condition does not significantly
impair the use, market value, or safety of the motor
vehicle; or (ii) 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.
(c) If it is determined that the manufacturer has
breached its obligations imposed under this chapter, then
the consumer shall be entitled to recover, in addition to
the remedy provided under Section 8-20A-2 above, an
additional award for reasonable attorneys fees.
Section 8-20A-4
Resale of returned motor 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 unless:
(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 warranty.
(2) The manufacturer returns the title of the motor
vehicle to the Alabama 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 of Revenue 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.
Section 8-20A-5
No dealership liability.
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. A motor vehicle dealer or authorized
dealer may not be made a party defendant in any action
involving or relating to this chapter. The manufacturer
shall not charge back or require reimbursement by a motor
vehicle dealer or authorized dealer for any costs,
including, but not limited to, any refunds or vehicle
replacements, incurred by the manufacturer arising out of
this chapter.
Section 8-20A-6
Statute of limitations.
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.
