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Maryland Lemon Law
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actual Maryland Lemon Law statute. We can begin representing
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and tell us what is wrong with your car.
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Krukas & Ward
Anne ward, Esq.
5 Chiara Court
Towson, MD 21204
1(877) 50-LEMON
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Maryland Lemon Law
Annotated Code
of Maryland
14-1501 - 14-1504
Commercial Law
Automotive Warranty Enforcement Act
14-1501.
(a) In this subtitle the following words have the meanings
indicated.
(b) "Consumer" means:
(1) The purchaser, other than for purposes of resale, of a
new motor vehicle;
(2) Any person to whom a new motor vehicle is transferred
during the duration of the warranty applicable to such motor
vehicle; or
(3) Any other person who is entitled to enforce the
obligations of the warranty.
(c)
(1) "Motor vehicle" means a vehicle that is registered in
this State as a:
(i) Class A (passenger) vehicle;
(ii) Class D (motorcycle) vehicle;
(iii) Class E (truck) vehicle with a 3/4 ton or less
manufacturer's rated capacity; or
(iv) Class M (multipurpose) vehicle.
(2) "Motor vehicle" does not include a motor home. For the
purpose of administering this subtitle, the Motor Vehicle
Administration shall promulgate a regulation defining a motor
home.
(d) "Dealer" has the meaning provided in 15-101(b) of the
Transportation Article.
(e) "Manufacturer, factory branch, or distributor" means a
person, partnership, association, corporation, or entity engaged
in the business of manufacturing or assembling motor vehicles or
of distributing motor vehicles to motor vehicle dealers as
defined in 15-201(b), (c), (d) and (e) of the Transportation
Article.
(f) "Warranty" means warranties as defined in 2-312, 2-313,
2-314, and 2-315 of this article.
(g)
(1) "Manufacturer's warranty period" means the earlier of:
(i) The period of the motor vehicle's first 15,000 miles of
operation; or
(ii) 15 months following the date of original delivery of the
motor vehicle to the consumer.
(2) This subsection does not extend any manufacturer's
express warranty.
14-1502.
(a) If the manufacturer's warranty period is to include those
miles of operation when the new motor vehicle is in the
possession of any person other than the consumer, the
manufacturer shall state that fact in 12 point bold face type in
the manufacturer's written warranty.
(b)
(1) If a new motor vehicle does not conform to all applicable
warranties during the warranty period, the consumer shall,
during such period, report the nonconformity, defect, or
condition by giving written notice to the manufacturer or
factory branch by certified mail, return receipt requested.
Notice of this procedure shall be conspicuously disclosed to the
consumer in writing at the time of sale or delivery of the motor
vehicle.
(2) The consumer shall provide an opportunity for the
manufacturer or factory branch, or its agent to cure the
nonconformity, defect, or condition.
(3) The manufacturer or factory branch, its agent, or its
authorized dealer shall correct the nonconformity, defect, or
condition at no charge to the consumer, even if repairs are made
after the expiration of the warranty period. The corrections
shall be completed within 30 days of the manufacturer's receipt
of the consumer's notification of the nonconformity, defect, or
condition.
(c)
(1) If, during the warranty period, the manufacturer or
factory branch, its agent, or its authorized dealer is unable to
repair or correct any defect or condition that substantially
impairs the use and market value of the motor vehicle to the
consumer after a reasonable number of attempts, the manufacturer
or factory branch, at the option of the consumer, shall:
(i) Replace the motor vehicle with a comparable motor vehicle
acceptable to the consumer; or
(ii) Accept return of the motor vehicle from the consumer and
refund to the consumer the full purchase price including all
license fees, registration fees, and any similar governmental
charges, less:
A reasonable allowance for the consumer's use of the vehicle
not to exceed 15 percent of the purchase price; and A reasonable
allowance for damage not attributable to normal wear but not to
include damage resulting from a nonconformity, defect, or
condition. (2) The manufacturer or factory branch shall make
refunds under this section to the consumer and lien holder, if
any, as their interests appear on the records of ownership
maintained by the Motor Vehicle Administration.
(3) It is an affirmative defense to any claim under this
section that the nonconformity, defect, or condition:
(i) Does not substantially impair the use and market value of
the motor vehicle; or
(ii) Is the result of abuse, neglect, or unauthorized
modifications or alterations of the motor vehicle.
(d) 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, defect, or condition has been
subject to repair 4 or more times by the manufacturer or factory
branch, or its agents or authorized dealers, within the warranty
period but such nonconformity, defect, or condition continues to
exist;
(2) The vehicle is out of service by reason of repair of 1 or
more nonconformities, defects, or conditions for a cumulative
total of 30 or more days during the warranty period; or
(3) A nonconformity, defect, or condition resulting in
failure of the braking or steering system has been subject to
the same repair at least once within the warranty period, and
the manufacturer has been notified and given the opportunity to
cure the defect, and the repair does not bring the vehicle into
compliance with the motor vehicle safety inspection laws of the
State.
(e) The term of any warranty, the warranty period, and the 30
day out of service period shall be extended by any time during
which repair services are not available to the consumer by
reason of war, invasion, strike, or fire, flood, or other
natural disaster.
(f)
(1)
(i) It shall be the duty of a dealer to notify the
manufacturer of the existence of a nonconformity, defect, or
condition within 7 days when the motor vehicle is delivered to
the same dealer for a fourth time for repair of the same
nonconformity or when the vehicle is out of service by reason of
repair of one or more nonconformities, defects, or conditions
for a cumulative total of 20 days.
(ii) The notification shall be sent by certified mail and a
copy of the notification shall be sent to the Motor Vehicle
Administration; however, failure of the dealer to give the
required notice required under this subsection shall not affect
the consumer's right under this subtitle.
(2) If a motor vehicle is returned to a manufacturer or
factory branch either under this subtitle, or by judgment,
decree, arbitration award, or by voluntary agreement, the
manufacturer or factory branch shall notify the Motor Vehicle
Administration in writing within 15 days of the fact that the
vehicle was returned.
(g)
(1)
(i) If a motor vehicle that is returned to the manufacturer
under either this subtitle or by judgment, decree, arbitration
award, settlement agreement, or by voluntary agreement in this
or any other state and is then transferred to a dealer in
Maryland, the manufacturer shall disclose this information to
the dealer.
(ii) The manufacturer's disclosure under this paragraph shall
be in writing on a separate piece of paper in 10 point all
capital type and shall state in a clear and conspicuous manner:
That the motor vehicle was returned to the manufacturer or
factory branch; The nature of the defect, if any, that resulted
in the return; and The condition of the motor vehicle at the
time that it is transferred to the dealer. (2)
(i) If the returned vehicle is then made available for
resale, the seller shall provide a copy of the manufacturer's
disclosure form to the consumer prior to sale.
(ii) If the returned vehicle is sold, the seller shall send a
copy of the manufacturer's disclosure form, signed by the
consumer, to the Administration.
(h) This section does not limit the rights or remedies that
are otherwise available to a consumer under any other law,
including any implied warranties.
(i)
(1) If a manufacturer or factory branch has established an
informal dispute settlement procedure which complies in all
respects with the provisions of Title 16, Code of Federal
Regulations, Part 703, as amended, a consumer may resort to that
procedure before subsection (c) of this section applies.
(2) A consumer who has resorted to an informal dispute
settlement procedure may not be precluded from seeking the
rights or remedies available by law.
(j)
(1) Any agreement entered into by a consumer for the purchase
of a new motor vehicle that waives, limits, or disclaims the
rights set forth in this section shall be void.
(2) The rights available to a consumer under this section
shall inure to a subsequent transferee of a new motor vehicle
for the duration of the applicable warranties.
(k) Any action brought under this section shall be commenced
within 3 years of the date of original delivery of the motor
vehicle to the consumer.
(l)
(1) A court may award reasonable attorney's fees to a
prevailing plaintiff under this section.
(2) If it appears to the satisfaction of the court that an
action is brought in bad faith or is of a frivolous nature, the
court may order the offending party to pay to the other party
reasonable attorney's fees.
(m) This subtitle does not apply to a fleet purchase of five
or more motor vehicles.
14-1502.1.
(a) The Motor Vehicle Administration shall:
(1) Develop a notice that describes the rights provided to
consumers under this subtitle;
(2) Make the notice available to all dealers that sell new
motor vehicles in the State; and
(3) Adopt regulations as necessary to implement the
provisions of this section.
(b) The notice shall:
(1) Be written in simple and readable plain language; and
(2) Contain sufficient detail to fully inform consumers about
the rights and remedies available under this subtitle and the
procedures to follow to enforce those rights and remedies.
(c) Each dealer that sells a new motor vehicle in the State
shall provide to the purchaser, at the time of the sale or
delivery of the motor vehicle, a copy of the notice developed by
the Motor Vehicle Administration under this section.
14-1503.
(a)
(1) If a dealer, manufacturer, factory branch, or distributor
is required under a judgment, decree, arbitration award, or
settlement agreement to accept, or by voluntary agreement
accepts, return of a motor vehicle from a consumer, the consumer
shall be entitled to recover from the Motor Vehicle
Administration the excise taxes originally paid by the consumer,
subject to subsection (b) of this section.
(2)
(i) If a dealer, manufacturer, factory branch, or distributor
replaces a motor vehicle with a comparable motor vehicle under
14-1502(c)(1)(i) of this subtitle, the Motor Vehicle
Administration shall allow a credit against the excise tax
imposed for the replacement vehicle in the amount of the excise
taxes originally paid by the consumer for the returned vehicle,
subject to subsection (b) of this section.
(ii)
If the excise tax on the replacement vehicle exceeds the
credit allowed under subparagraph (i) of this paragraph, the
dealer shall collect only that portion of excise tax due; or If
the excise tax on the vehicle being replaced exceeds the excise
tax on the replacement vehicle, the consumer shall be entitled
to recover from the Motor Vehicle Administration the excess of
the excise tax paid. (b) The excise taxes that a consumer is
entitled to recover under this section shall be calculated based
on the amount of the purchase price or any portion of the
purchase price of the motor vehicle that the dealer,
manufacturer, factory branch, or distributor refunds to the
consumer.
(c) A dealer, manufacturer, factory branch, or distributor
who is required under a judgment, decree, arbitration award, or
settlement agreement to accept, or who accepts, by voluntary
agreement, return of a motor vehicle shall notify the consumer
in writing that the consumer is entitled to recover the excise
taxes from the Motor Vehicle Administration.
14-1504.
(a) A violation of this subtitle shall be an unfair and
deceptive trade practice under Title 13 of the Commercial Law
Article.
(b) In addition to any other remedies that may be available
under this subtitle, if a manufacturer, factory branch, or
distributor is found to have acted in bad faith, the court may
award the consumer damages of up to $10,000.
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