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Arizona Lemon Law
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actual Arizona Lemon Law statute. We can begin representing
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Krukas & Ward
Anne ward, Esq.
1(877) 50-LEMON
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Arizona Lemon Law
Title 44, Article 5
Trade And Commerce
Motor Vehicle
Warranties
-----------------------------------------------------------------------Arizona Lemon Law 44-1261 Definitions; exemptions.
A. In this
article, unless the context otherwise requires:
1. "Consumer" means the purchaser, other than for purposes of
resale, of a motor vehicle, any person to whom the motor vehicle
is transferred during the duration of an express warranty
applicable to the motor vehicle or any other person entitled by
the terms of the warranty to enforce the obligations of the
warranty.
2. "Motor vehicle" means a self-propelled vehicle designated
primarily for the transportation of persons or property over the
public highways.
3. "Used motor vehicle" means a motor vehicle that has been
sold, bargained, exchanged or given away or the title to which
has been transferred from the person who first acquired the
vehicle from the manufacturer, importer or dealer or agent of
the manufacturer or importer and that has been placed in bona
fide consumer use.
4. "Used motor vehicle dealer" means a person or business
that sells or offers for sale a used motor vehicle after selling
or offering for sale four or more used motor vehicles in the
previous twelve months but does not include a bank or financial
institution, an insurance company, a business selling a used
motor vehicle to an employee of that business, a lessor selling
a leased vehicle by or to the lessee of that vehicle or to an
employee of the lessee of that vehicle or a person who buys,
sells, exchanges or offers or attempts to negotiate a sale of or
exchange an interest in a classic car as defined in section
28-2483 or a historic vehicle as defined in section 28-2484.
B. If the motor vehicle is a motor home, the provisions of
this article shall apply to the self-propelled vehicle and
chassis but not to those portions of the vehicle designed, used
or maintained primarily as a mobile dwelling, office or
commercial space.
C. The provisions of this article do not apply to a sale of a
motor vehicle to a purchaser for the purpose of resale for
profit or to a motor vehicle with a declared gross weight over
ten thousand pounds or that is sold at a public auction.
Arizona Lemon Law 44-1262 New motor vehicle.
Repair during express warranty or two years or twenty-four
thousand miles.
A. If a new motor vehicle does not conform to all applicable
express warranties:
1. A consumer shall report the nonconformity to the
manufacturer, its agent or its authorized dealer or issuer of a
warranty during the shorter of the following:
(a) The term of the express warranty.
(b) The period of two years or twenty-four thousand miles
following the date of original delivery of the motor vehicle to
the consumer, whichever is earlier.
2. The manufacturer, its agent or its authorized dealer or
the issuer of a warranty shall make those repairs that are
necessary to conform the motor vehicle to such express
warranties, even if the repairs are made after the expiration of
the term or two year period or twenty-four thousand mile limit.
B. This section does not limit in any way the remedies
available to a consumer under a new motor vehicle warranty that
extends beyond the limits prescribed in this section.
Arizona Lemon Law 44-1263 Inability to conform motor vehicle
to express warranty.
Replacement of vehicle or refund of monies; affirmative
defenses.
A. If the manufacturer, its agents or its authorized dealers
are unable to conform the motor vehicle to any applicable
express warranty by repairing or correcting any defect or
condition which substantially impairs the use and value of the
motor vehicle to the consumer after a reasonable number of
attempts, the manufacturer shall replace the motor vehicle with
a new motor vehicle or accept return of the motor vehicle from
the consumer and refund to the consumer the full purchase price,
including all collateral charges, less a reasonable allowance
for the consumer's use of the vehicle. The manufacturer shall
make refunds to the consumer and lien holder, if any, as their
interests appear. A reasonable allowance for use is that amount
directly attributable to use by the consumer before his first
written report of the nonconformity to the manufacturer, agent
or dealer and during any subsequent period when the vehicle is
not out of service by reason of repair.
B. It is an affirmative defense to any claim under this
article that either:
1. An alleged nonconformity does not substantially impair the
use and market value of the motor vehicle.
2. A nonconformity is the result of abuse, neglect or
unauthorized modifications or alterations of the motor vehicle.
C. In the case of taxes paid pursuant to title 42, chapter 5,
if the manufacturer:
1. Accepts return of a motor vehicle from a consumer without
replacing the motor vehicle, the manufacturer shall refund the
amount of tax attributed to the sale of the vehicle to that
consumer.
2. Replaces a motor vehicle with a new motor vehicle of
lesser value, the manufacturer shall refund the difference
between the original amount of tax attributed to the sale of
that vehicle and the amount of tax attributed to the sale of the
replacement vehicle, excluding the value of the motor vehicle
being replaced.
3. Replaces a motor vehicle with a new motor vehicle of
greater value, the manufacturer shall calculate the gross
proceeds of sales pursuant to section 42-5001, paragraph 6.
D. Pursuant to section 42-1118, subsection F, the
manufacturer may apply to the department of revenue for a refund
for the amount of tax that the manufacturer properly refunds to
the consumer.
Arizona Lemon Law 44-1264 Reasonable number of attempts.
To conform motor vehicle to express warranty; presumption.
A. It is presumed that a reasonable number of attempts have
been undertaken to conform a motor vehicle to the applicable
express warranties if either:
1. The same nonconformity has been subject to repair four or
more times by the manufacturer or its agents or authorized
dealers during the shorter of the express warranty term or the
period of two years or twenty-four thousand miles following the
date of original delivery of the motor vehicle to the consumer,
whichever is earlier, but the nonconformity continues to exist.
2. The motor vehicle is out of service by reason of repair
for a cumulative total of thirty or more calendar days during
the shorter of the express warranty term or the two year period
or twenty-four thousand miles, whichever is earlier.
B. The term of an express warranty, the two year period and
the thirty day period are extended by any period of time during
which repair services are not available to the consumer because
of any war, invasion, strike, fire, flood or other natural
disaster.
C. The presumption prescribed in this section does not apply
against a manufacturer unless the manufacturer has received
prior direct written notification from or on behalf of the
consumer of the alleged defect and has had an opportunity to
cure the alleged defect.
Arizona Lemon Law 44-1265 Non-limitation of rights.
Refund or replacement not required if certain procedures not
followed; attorney fees.
A. If a manufacturer has established or participates in an
informal dispute settlement procedure which complies in all
respects with 16 code of federal regulations part 703, section
44-1263 relating to refunds or replacement does not apply to any
consumer who has not first resorted to such a procedure.
B. A consumer shall begin an action under this article within
six months following the earlier of expiration of the express
warranty term or two years or twenty-four thousand miles
following the date of original delivery of the motor vehicle to
the consumer, whichever is earlier. If a consumer prevails in an
action under this article, the court shall award the consumer
reasonable costs and attorney fees.
Arizona Lemon Law 44-1266 Notice to dealers and prospective
purchasers.
A. A manufacturer who has been ordered by judgment or decree
to replace or repurchase or who has replaced or repurchased a
motor vehicle pursuant to this article or the repair or replace
laws of another state shall, before offering the motor vehicle
for resale, attach to the motor vehicle written notification
indicating the motor vehicle has been replaced or repurchased. A
consumer has a cause of action against any person who removes
the written notification from the motor vehicle, except as
provided in subsection B of this section.
B. A motor vehicle dealer, broker, wholesale motor vehicle
dealer or wholesale motor vehicle auction dealer as defined in
section 28-4301 who offers for sale a motor vehicle that has
been replaced or repurchased pursuant to this article or the
repair or replace laws of another state shall provide the
purchaser with the manufacturer's written notification
indicating that the motor vehicle has been replaced or
repurchased before completion of the sale.
C. It shall constitute an affirmative defense in an action
brought pursuant to subsection A of this section against a motor
vehicle dealer or an agent of a motor vehicle dealer that the
notification described in subsection A of this section was
removed by someone other than the dealer or agent without the
knowledge of the dealer or agent.
Arizona Lemon Law 44-1267 Used motor vehicles.
Title; implied warranty of merchantability disclaimer;
waiver; burden of proof; remedies.
A. Unless the seller is a used motor vehicle dealer, before
the seller attempts to sell a used motor vehicle the seller
shall possess the title to the used motor vehicle and the title
shall be in the seller's name.
B. Except as provided in subsection I of this section and in
addition to the requirements of section 28-4412, a used motor
vehicle dealer shall not exclude, modify or disclaim the implied
warranty of merchantability prescribed in section 47-2314 or
limit the remedies for a breach of that warranty, except as
otherwise provided in this section, before midnight of the
fifteenth calendar day after delivery of a used motor vehicle or
until a used motor vehicle is driven five hundred miles after
delivery, whichever is earlier. In calculating time under this
subsection, a day on which the warranty is breached is excluded
and all subsequent days in which the motor vehicle fails to
conform with the implied warranty of merchantability is also
excluded. In calculating distance under this subsection, the
miles driven to obtain or in connection with the repair,
servicing or testing of the motor vehicle that fails to conform
with the implied warranty of merchantability are excluded. An
attempt to exclude, modify or disclaim the implied warranty of
merchantability or to limit the remedies for a breach of that
warranty, except as otherwise provided in this section, in
violation of this subsection renders a purchase agreement
voidable at the option of the purchaser.
C. For the purposes of this section, the implied warranty of
merchantability is met if the motor vehicle functions in a safe
condition as provided in title 28, chapter 3, article 16 and is
substantially free of any defect that significantly limits the
use of the motor vehicle for the ordinary purpose of
transportation on any public highway. The implied warranty of
merchantability expires at midnight of the fifteenth calendar
day after delivery of a used motor vehicle or until a used motor
vehicle is driven five hundred miles after delivery, whichever
is earlier. In calculating time under this subsection, a day on
which the warranty is breached is excluded and all subsequent
days in which the motor vehicle fails to conform with the
implied warranty of merchantability is also excluded. In
calculating distance under this subsection, the miles driven to
obtain or in connection with the repair, servicing or testing of
the motor vehicle that fails to conform with the implied
warranty of merchantability are excluded.
D. The implied warranty of merchantability described in this
section does not extend to damage that occurs after the sale of
the motor vehicle and that is the result of any abuse, misuse,
neglect, failure to perform regular maintenance or to maintain
adequate oil, coolant or other required fluid or lubricant or
off road use, racing or towing.
E. If the implied warranty of merchantability described in
this section is breached, the purchaser shall give reasonable
notice to the seller. Before the purchaser exercises any other
remedies under title 47, chapter 2, the seller shall have a
reasonable opportunity to repair the vehicle. The purchaser
shall pay one-half of the cost of the first two repairs
necessary to bring the vehicle in compliance with the warranty.
The purchaser's payments are limited to a maximum payment of
twenty-five dollars for each repair.
F. The maximum liability of the seller under this section is
limited to the purchase price paid for the used motor vehicle.
G. An agreement for the sale of a used motor vehicle by a
used motor vehicle dealer is voidable at the option of the
purchaser unless it contains on its face the following
conspicuous statement printed in bold-faced ten point or larger
type set off from the body of the agreement:
The seller hereby warrants that this vehicle will be fit for
the ordinary purposes for which the vehicle is used for 15 days
or 500 miles after delivery, whichever is earlier, except with
regard to particular defects disclosed on the first page of this
agreement. You (the purchaser) will have to pay up to $25.00 for
each of the first two repairs if the warranty is violated.
H. The inclusion of the statement prescribed in subsection G
of this section in the agreement does not create an express
warranty.
I. A purchaser of a used motor vehicle may waive the implied
warranty of merchantability described in this section only for a
particular defect in the vehicle and only if all of the
following conditions are satisfied:
1. The used motor vehicle dealer fully and accurately
discloses to the purchaser that because of circumstances unusual
to the used motor vehicle dealer's business, the used motor
vehicle has a particular defect.
2. The purchaser agrees to buy the used motor vehicle after
disclosure of the defect.
3. Before the sale, the purchaser indicates agreement to the
waiver by signing and dating the following conspicuous statement
that is printed on the first page of the sales agreement in
bold-faced ten point or larger type and that is written in the
language in which the presentation was made:
Attention purchaser: sign here only if the dealer told you
that this vehicle has the following problem(s) and that you
agree to buy the vehicle on those terms:
1._______________________________
2._______________________________
3._______________________________
J. The dealer has the burden to prove by a preponderance of
the evidence that the dealer complied with subsection I of this
section.
K. Any purchaser or seller who is aggrieved by a transaction
pursuant to this section and who seeks a legal remedy shall
pursue any appropriate remedy prescribed in title 47, chapter 2
and shall comply with the requirements prescribed in title 47,
chapter 2.
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