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New Jersey Lemon Law
Lemon Freedom is pleased
to help New Jersey residents get rid of their lemons. On this page we
have our local attorney information listed, along with the
actual New Jersey Lemon Law statute. We can begin representing
you right away, just click the "Free Case Evaluation" button,
and tell us what is wrong with your car.
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Sohmer & Stark,
LLC.
Amir Stark, Esq.
2766 Fischer Rd.
Hatfield, PA 19440
1(877) 50-LEMON
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New Jersey Lemon Law
Title 56:12-29 - 56:12-49
56:12-29. Findings, intentions
The Legislature finds that the purchase of a new motor
vehicle is a major, high cost consumer transaction and the
inability to correct defects in these vehicles creates a major
hardship and an unacceptable economic burden on the consumer. It
is the intent of this act to require the manufacturer of a new
motor vehicle to correct defects originally covered under the
manufacturer's warranty which are identified and reported within
a specified period. It is the further intent of this act to
provide procedures to expeditiously resolve disputes between a
consumer and a manufacturer when defects in a new motor vehicle
are not corrected within a reasonable time, and to provide to
award specific remedies where the uncorrected defect
substantially impairs the use, value, or safety of the new motor
vehicle.
L. 1988, c. 123, s. 1.
56:12-30. Definitions
2. As used in this act:
"Consumer" means a buyer or lessee, other than for purposes
of resale or sublease, of a motor vehicle; a person to whom a
motor vehicle is transferred during the duration of a warranty
applicable to the motor vehicle; or any other person entitled by
the terms of the warranty to enforce the obligations of the
warranty.
"Dealer" means a person who is actively engaged in the
business of buying, selling or exchanging motor vehicles at
retail and who has an established place of business.
"Director" means the Director of the Division of Consumer
Affairs in the Department of Law and Public Safety, or his
designee.
"Division" means the Division of Consumer Affairs in the
Department of Law and Public Safety.
"Lease agreement" means a contract or other written agreement
in the form of a lease for the use of a motor vehicle by a
person for a period of time exceeding 60 days, whether or not
the lessee has the option to purchase or otherwise become the
owner of the motor vehicle at the expiration of the lease.
"Lessee" means a person who leases a motor vehicle pursuant
to a lease agreement.
"Lessor" means a person who holds title to a motor vehicle
leased to a lessee under a lease agreement or who holds the
lessor's rights under such an agreement.
"Lien" means a security interest in a motor vehicle.
"Lienholder" means a person with a security interest in a
motor vehicle pursuant to a lien.
"Manufacturer" means a person engaged in the business of
manufacturing, assembling or distributing motor vehicles, who
will, under normal business conditions during the year,
manufacture, assemble or distribute to dealers at least 10 new
motor vehicles.
"Manufacturer's informal dispute settlement procedure" means
an arbitration process or procedure by which the manufacturer
attempts to resolve disputes with consumers regarding motor
vehicle nonconformities and repairs that arise during the
vehicle's warranty period.
"Manufacturer's warranty" or "warranty" means any warranty,
whether express or implied of the manufacturer, of a new motor
vehicle of its condition and fitness for use, including any
terms or conditions precedent to the enforcement of obligations
under the warranty.
"Motor vehicle" means a passenger automobile or motorcycle as
defined in R.S.39:1-1 which is purchased or leased in the State
of New Jersey or which is registered by the Division of Motor
Vehicles in the Department of Law and Public Safety, except the
living facilities of motor homes.
"Nonconformity" means a defect or condition which
substantially impairs the use, value or safety of a motor
vehicle.
"Reasonable allowance for vehicle use" means the mileage at
the time the consumer first presents the motor vehicle to the
dealer or manufacturer for correction of a nonconformity times
the purchase price, or the lease price if applicable, of the
vehicle, divided by one hundred thousand miles.
L.1988,c.123,s.2; amended 1991,c.130; 1993,c.21,s.3.
56:12-31. Report of nonconformity; repairs
If a consumer reports a nonconformity in a motor vehicle to
the manufacturer or its dealer during the first 18,000 miles of
operation or during the period of two years following the date
of original delivery to a consumer, whichever is earlier, the
manufacturer shall make, or arrange with its dealer to make,
within a reasonable time, all repairs necessary to correct the
nonconformity. Such repairs if made after the first 12,000 miles
of operation or after the period of one year following the date
of original delivery to the consumer, whichever is earlier,
shall be paid for by the consumer, unless otherwise covered by a
manufacturer's warranty, and shall be recoverable as a cost
under section 14 of this act.
L. 1988, c. 123, s. 3.
56:12-32. Refunds
If, during the period specified in section 3 of this act, the
manufacturer or its dealer is unable to repair or correct a
nonconformity within a reasonable time, the manufacturer shall
accept return of the motor vehicle from the consumer. The
manufacturer shall provide the consumer with a full refund of
the purchase price of the original motor vehicle including any
stated credit or allowance for the consumer's used motor
vehicle, the cost of any options or other modifications
arranged, installed, or made by the manufacturer or its dealer
within 30 days after the date of original delivery, and any
other charges or fees including, but not limited to, sales tax,
license and registration fees, finance charges, reimbursement
for towing and reimbursement for actual expenses incurred by the
consumer for the rental of a motor vehicle equivalent to the
consumer's motor vehicle and limited to the period during which
the consumer's motor vehicle was out of service due to a
nonconformity, less a reasonable allowance for vehicle use.
Nothing herein shall be construed to preclude a manufacturer
from making an offer to replace the vehicle in lieu of a refund;
except that the consumer may, in any case, reject a
manufacturer's offer of replacement and demand a refund. Refunds
shall be made to the consumer and lienholder, if any, as their
interests appear on the records of ownership maintained by the
Director of the Division of Motor Vehicles. In the event that
the consumer accepts an offer to replace the motor vehicle in
lieu of a refund, it shall be the manufacturer's responsibility
to insure that any lien on the returned motor vehicle is
transferred to the replacement vehicle. A consumer who leases a
new motor vehicle shall have the same remedies against a
manufacturer under this section as a consumer who purchases a
new motor vehicle. If it is determined that the lessee is
entitled to a refund pursuant to subsection a. of this section,
the consumer shall return the leased vehicle to the lessor or
manufacturer and the consumer's lease agreement with the motor
vehicle lessor shall be terminated and no penalty for early
termination shall be assessed. The manufacturer shall provide
the consumer with a full refund of the amount actually paid by
the consumer under the lease agreement, including any additional
charges as set forth in subsection a. of this section if
actually paid by the consumer, less a reasonable allowance for
vehicle use. The manufacturer shall provide the motor vehicle
lessor with a full refund of the vehicle's original purchase
price plus any unrecovered interest expense, less the amount
actually paid by the consumer under the agreement. Refunds shall
be made to the lessor and lienholder, if any, as their interests
appear on the records of ownership maintained by the Director of
the Division of Motor Vehicles. L. 1988, c. 123, s. 4.
56:12-33. Presumption of inability to correct noncomformity;
written notification
It is presumed that a manufacturer or its dealer is unable to
repair or correct a nonconformity within a reasonable time if,
within the first 18,000 miles of operation or during the period
of two years following the date of original delivery of the
motor vehicle to a consumer, whichever is the earlier date:
Substantially the same nonconformity has been subject to repair
three or more times by the manufacturer or its dealer and the
nonconformity continues to exist; or The motor vehicle is out of
service by reason of repair for one or more nonconformities for
a cumulative total of 20 or more calendar days sin ce the
original delivery of the motor vehicle and a nonconformity
continues to exist. The presumption contained in subsection a.
of this section shall a pply against a manufacturer only if the
manufacturer has received written notification, by or on behalf
of the consumer, by certified mail return receipt requested, of
a potential claim pursuant to the provisions of this act and has
had one opportunity to repair or correct the defect or condition
within 10 calendar days following receipt of the notification.
Notification by the consumer shall take place any time after the
motor vehicle has had substantially the same nonconformity
subject to repair two or more times or has been out of service
by reason of repair for a cumulative total of 20 or more
calendar days. The two-year term and the 20-day period specified
in this section shall be extended by any period of time during
which repair services are not available to the consumer because
of a war, invasion or strike, or a fire, flood, or other natural
disaster.
L. 1988, c. 123, s. 5.
56:12-34. Statements to consumers
At the time of purchase in the State of New Jersey, the
manufacturer through its dealer, or at the time of lease in the
State of New Jersey, the lessor, shall provide directly to the
consumer the following written statement on a separate piece of
paper, in 10-point bold-face type: "IMPORTANT: IF THIS VEHICLE
IS DEFECTIVE, YOU MAY BE ENTITLED UNDER NEW JERSEY LAW TO A
REFUND OF THE PURCHASE PRICE OR YOUR LEASE PAYMENTS. FOR
COMPLETE INFORMATION REGARDING YOUR RIGHTS AND REMEDIES UNDER
THE RELEVANT LAW, CONTACT THE NEW JERSEY DEPARTMENT OF LAW AND
PUBLIC SAFETY, DIVISION OF CONSUMER AFFAIRS." Each time a
consumer's motor vehicle is returned from being examined or
repaired during the period specified in section 3 of this act,
the manufacturer through its dealer shall provide to the
consumer an itemized, legible statement of repair which
indicates any diagnosis made and all work performed on the
vehicle and provides information including, but not limited to,
the following: a general description of the problem reported by
the consumer or an identification of the problem reported by the
consumer or an identification of the defect or condition; the
amount charged for parts and the amount charged for labor, if
paid for by the consumer; the date and the odometer reading when
the vehicle was submitted for repair; and the date and odometer
reading when the vehicle was made available to the consumer.
Failure to comply with the provisions of this section
constitutes an unlawful practice pursuant to section 2 of P.L.
1960, c. 39 (C. 56:8-2). L. 1988, c. 123, s. 6.
56:12-35. Sale, leasing of returned motor vehicle
7.
If a motor vehicle is returned to the manufacturer under the
provisions of this act or a similar statute of another state or
as the result of a legal action or an informal dispute
settlement procedure, it shall not be resold or re-leased in New
Jersey unless: The manufacturer provides to the dealer or lessor
and the dealer or lessor provides to the consumer the following
written statement on a separate piece of paper, in 10-point
bold-face type: "IMPORTANT: THIS VEHICLE WAS RETURNED TO THE
MANUFACTURER BECAUSE IT DID NOT CONFORM TO THE MANUFACTURER'S
WARRANTY AND THE NONCONFORMITY WAS NOT CORRECTED WITHIN A
REASONABLE TIME AS PROVIDED BY LAW;" The dealer or lessor
obtains from the consumer a signed receipt certifying, in a
conspicuous and understandable manner, that the written
statement required under this subsection has been provided. The
director shall prescribe the form of the receipt. The dealer or
lessor may fulfill his obligation to obtain a signed receipt
under this paragraph by making such a notation, in a conspicuous
and understandable manner, on the vehicle buyer order form
accompanying the sale or lease of that vehicle; and The dealer
or lessor, in accordance with the provisions of section 1 of
P.L.1993, c.21 (C.39:10-9.3), notifies the Director of the
Division of Motor Vehicles in the Department of Law and Public
Safety of the sale or transfer of ownership of the motor
vehicle. Nothing in this section shall be construed as imposing
an obligation on a dealer or lessor to determine whether a
manufacturer is in compliance with the terms of this section nor
shall it be construed as imposing liability on a dealer or
lessor for the failure of a manufacturer to comply with the
terms of this section. Failure to comply with the provisions of
this section constitutes an unlawful practice pursuant to
section 2 of P.L.1960, c.39 (C.56:8-2). L.1988,c.123,s.7;
amended 1993,c.21,s.2.
56:12-36. Informal dispute settlement procedure
If a manufacturer has established, or participates in, an
informal dispute settlement procedure pursuant to section 110 of
Pub. L. 93-637 (15 U.S.C. s.2310) and the rules promulgated
thereunder, or the requirements of this section, a consumer may
submit a dispute regarding motor vehicle nonconformities to the
dispute settlement body provided by that procedure but a
consumer shall not be required to first participate in the
informal dispute settlement procedure before participating in
the division's summary hearing procedure under this act. If a
consumer chooses to use a manufacturer's informal dispute
settlement procedure established pursuant to this section, the
findings and decisions of the dispute settlement body shall
state in writing whether the consumer is entitled to a refund
under the presumptions and criteria set out in this act and the
findings and decisions shall be admissible against the consumer
and the manufacturer in any legal action. If the dispute
settlement body determines that a consumer is entitled to relief
under this act, the consumer shall be entitled to a refund as
authorized by section 4 of this act. In any informal dispute
settlement procedure established pursuant to this section:
Participating arbitrators shall be trained in arbitration and
familiar with the provisions of this act. Documents shall not be
submitted to any dispute settlement body unless the documents
have been provided to each of the parties in the dispute at
least seven days prior to commencement of the dispute settlement
hearing. The parties shall be given the opportunity to comment
on the documents in writing or with oral presentation. No party
shall participate in the informal dispute settlement procedure
unless all other parties are also present and given an
opportunity to be heard, or unless the other parties consent to
proceeding without their presence and participation. A consumer
shall be given an adequate opportunity to contest a
manufacturer's assertion that a nonconformity falls within
intended specifications for the vehicle by having the basis of
the manufacturer's claim appraised by a technical expert
selected and paid for by the consumer prior to the
manufacturer's informal dispute settlement procedure. If the
dispute settlement body rules in favor of the consumer, his
costs and reasonable attorney's fees shall also be awarded. A
dispute shall not be heard if there has been a recent attempt by
the manufacturer to repair a consumer's vehicle, but no response
has yet been received by the dispute settlement body from the
consumer as to whether the repairs were successfully completed.
This provision shall not prejudice a consumer's right under this
section. The manufacturer shall provide, and the dispute
settlement body shall consider, any relevant technical service
bulletins which have been issued by the manufacturer regarding
motor vehicles of the same make and model as the vehicle that is
the subject of the dispute. Any manufacturer who establishes, or
participates in, an informal dispute settlement procedure,
whether it meets the requirements of this section or not, shall
maintain, and forward to the director at six month intervals,
the following records: The number of purchase price and lease
price refunds requested, the number awarded by the dispute
settlement body, the amount of each award and the number of
awards satisfied in a timely manner; The number of awards in
which additional repairs or a warranty extension was the most
prominent remedy, the amount or value of each award, and the
number of awards satisfied in a timely manner; The number and
total dollar amount of awards in which some form of
reimbursement for expenses or compensation for losses was the
most prominent remedy, the amount or value of each award and the
number of awards satisfied in a timely manner; and The average
number of days from the date of a consumer's initial request to
use the manufacturer's informal dispute settlement procedure
until the date of the decision and the average number of days
from the date of the decision to the date on which performance
of the award was satisfied. L. 1988, c. 123, s. 8.
56:12-37. Dispute resolution
9.
A consumer shall have the option of submitting any dispute
arising under section 4 of this act to the division for
resolution. The director may establish a filing fee, to be paid
by the consumer, fixed at a level not to exceed the cost for the
proper administration and enforcement of this act. This fee
shall be recoverable as a cost under section 14 of this act.
Upon application by the consumer and payment of any filing fee,
the manufacturer shall submit to the State hearing procedure.
The filing of the notice in subsection b. of section 5 of
P.L.1988, c.123 (C.56:12-33) shall be a prerequisite to the
filing of an application under this section. The director shall
review a consumer's application for dispute resolution and
accept eligible disputes for referral to the Office of
Administrative Law for a summary hearing to be conducted in
accordance with special rules adopted pursuant to the
"Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et
seq.), by the Office of Administrative Law in consultation with
the director. Immediately upon acceptance of a consumer's
application for dispute resolution, the director shall contact
the parties and arrange for a hearing date with the Clerk of the
Office of Administrative Law. The hearing date shall, to the
greatest extent possible, be convenient to all parties, but
shall be no later than 20 days from the date the consumer's
application is accepted, unless a later date is agreed upon by
the consumer. The Office of Administrative Law shall render a
decision, in writing, to the director within 20 days of the
conclusion of the summary hearing. The decision shall provide a
brief summary of the findings of fact, appropriate remedies
pursuant to this act, and a specific date for completion of all
awarded remedies. The director, upon a review of the proposed
decision submitted by the administrative law judge, shall adopt,
reject, or modify the decision no later than 15 days after
receipt of the decision. Unless the director modifies or rejects
the decision within the 15-day period, the decision of the
administrative law judge shall be deemed adopted as the final
decision of the director. If the manufacturer unreasonably fails
to comply with the decision within the specified time period,
the manufacturer shall be liable for penalties in the amount of
$5,000.00 for each day the manufacturer unreasonably fails to
comply, commencing on the day after the specified date for
completion of all awarded remedies. The Office of Administrative
Law is authorized to issue subpoenas to compel the attendance of
witnesses and the production of documents, papers and records
relevant to the dispute. A manufacturer or consumer may appeal a
final decision to the Appellate Division of the Superior Court.
An appeal by a manufacturer shall not be heard unless the
petition for the appeal is accompanied by a bond in a principal
sum equal to the money award made by the administrative law
judge plus $2,500.00 for anticipated attorney's fees and other
costs, secured by cash or its equivalent, payable to the
consumer. The liability of the surety of any bond filed pursuant
to this section shall be limited to the indemnification of the
consumer in the action. The bond shall not limit or impair any
right of recovery otherwise available pursuant to law, nor shall
the amount of the bond be relevant in determining the amount of
recovery to which the consumer shall be entitled. If a final
decision resulting in a refund to the consumer is upheld by the
court, recovery by the consumer shall include reimbursement for
actual expenses incurred by the consumer for the rental of a
motor vehicle equivalent to the consumer's motor vehicle and
limited to the period of time after which the consumer's motor
vehicle was offered to the manufacturer for return under this
act, except in those cases in which the manufacturer made a
comparable vehicle available to the consumer free of charge
during that period. If the court finds that the manufacturer had
no reasonable basis for its appeal or that the appeal was
frivolous, the court shall award treble damages to the consumer.
Failure of the Office of Administrative Law to render a written
decision within 20 days of the conclusion of the summary hearing
as required by subsection b. of this section shall not be a
basis for appeal. The Attorney General shall monitor the
implementation and effectiveness of this act and report to the
Legislature after three years of operation, at which time a
recommendation shall be made either to continue under the
procedures set forth in this act or to make such modifications
as may be necessary to effectuate the purposes of this act.
L.1988,c.123,s.9; amended 1993,c.21,s.4.
56:12-38. Statistics
10.
The Division of Consumer Affairs shall maintain an index of
all motor vehicle disputes by make and model. The division
shall, at six-month intervals, compile and maintain statistics
indicating the record of manufacturer compliance with any
settlement procedure decisions. The statistics shall be public
record. A manufacturer shall provide to the division all
information on private arbitration or private buy-back programs
maintained or instituted by the manufacturer. The information
shall include the type and number of vehicles to which these
programs apply and the reasons for establishing and maintaining
the programs. The manufacturer shall provide the division with
updated information at six month intervals. L.1988,c.123,s.10;
amended 1993,c.21,s.5.
56:12-39. Decision binding
A consumer shall not be required to participate in a
manufacturer's informal dispute settlement procedure or the
division's summary hearing procedure before filing an action in
the Superior Court. However, a decision rendered in a proceeding
brought pursuant to the division's summary hearing procedure
shall be binding on the consumer and the manufacturer, subject
to the right of appeal as set forth in subsection d. of section
9 of this act, and shall preclude the institution of any other
action in the Superior Court under this act.
L. 1988, c. 123, s. 11.
56:12-40. Affirmative defense
It shall be an affirmative defense to a claim under this act
that the alleged nonconformity does not substantially impair the
use, value, or safety of the new motor vehicle or that the
nonconformity is the result of abuse, neglect, or unauthorized
modifications or alterations of the motor vehicle by anyone
other than the manufacturer or its dealer.
L. 1988, c. 123, s. 12.
56:12-41. Pleading
Any party to an action in the Superior Court of this State
asserting a claim, counterclaim or defense based upon violations
of this act shall mail a copy of the initial or responsive
pleading containing the claim, counterclaim or defense to the
Attorney General within 10 days after filing the pleading with
the court. Upon application to the court in which the matter is
pending, the Attorney General may intervene or appear in any
status appropriate to this matter.
L. 1988, c. 123, s. 13.
56:12-42. Attorney, expert fees; costs
14.
In any action by a consumer against a manufacturer brought in
Superior Court or in the division pursuant to the provisions of
this act, a prevailing consumer shall be awarded reasonable
attorney's fees, fees for expert witnesses and costs.
L.1988,c.123,s.14; amended 1993,c.21,s.6.
56:12-43. Use of funds
All fees, penalties and costs collected by the division
pursuant to this act shall be appropriated for purposes of
offsetting costs associated with the handling and resolution of
consumer automotive complaints.
L. 1988, c. 123, s. 15.
56:12-44. Inherent design defect
A manufacturer shall certify to the division, within one year
of discovery, the existence of any inherent design defect common
to all motor vehicles of a particular model or make. Failure to
comply with this constitutes an unlawful practice pursuant to
section 2 of P.L. 1960, c. 39 (C. 56:8-2).
L. 1988, c. 123, s. 16.
56:12-45. Proceedings
The director may institute proceedings against any
manufacturer who fails to comply with any of the provisions of
this act.
L. 1988, c. 123, s. 17.
56:12-46. No liability, cause of action
Nothing in this act shall be construed as imposing any
liability on a dealer, or creating a cause of action by a
manufacturer against a dealer, and nothing shall be construed as
imposing any liability on a dealer, or creating a cause of
action by a consumer against a dealer under section 4 of this
act.
L. 1988, c. 123, s. 18.
56:12-47. No limitation on rights
Nothing in this act shall in any way limit the rights or
remedies which are otherwise available to a consumer under any
other law.
L. 1988, c. 123, s. 19..
56:12-48. Agreements void
Any agreement entered into by a consumer for the purchase or
lease of a new motor vehicle which waives, limits or disclaims
the rights set forth in this act shall be void as contrary to
public policy.
L. 1988, c. 123, s. 20.
56:12-49. Rules, regulations
Within 120 days following enactment, the director shall,
subject to approval by the Attorney General and pursuant to the
provisions of the "Administrative Procedure Act," P.L. 1968, c.
410 (C. 52:14B-1 et seq.), adopt rules and regulations necessary
to effectuate the purposes of this act.
L. 1988, c. 123, s. 21.
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