Maryland Lemon Law Firms and the Maryland lemon law code.

Maryland Commercial Law Code Annotated, § 14-501 to § 14-504

§ 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), 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:

1. A reasonable allowance for the consumer's use of the vehicle not to exceed 15 percent of the purchase price; and 2. 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 lienholder, 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:

1. That the motor vehicle was returned to the manufacturer or factory branch; 2. The nature of the defect, if any, that resulted in the return; and 3. 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)

1. 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 2. 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.

Primarily, the Lemon Laws provide that if you purchase (and in several states, lease) a brand new or pre-owned vehicle or other car with a warranty that repeatedly breaks down, and the original producer cannot recondition it in spite of consecutive tries (within a specified time that varies from state to state), or if the automobile is not usable for a designated period (usually 30 days) due to its shortcomings, you are entitled to a broad number of damages, inclusive of:

1. Monetary damage settlements
2. A repayment of the cost
3. A new automobile
In addition, nearly all of the Lemon Laws (as well as the Federal Warranty Law) feature a fee transferring component that states that if you win your case, the original equipment manufacturer or car dealership that sold you the lemon is expected to pay for attorneys' expenses.


Lemon Law Regulations
State Lemon Law Statutes
Each of the 50 states has a different Lemon Law statute. Even though the protections of each state's statute are distinct, the typical state Lemon Law statute provides relief to a consumer with a dilapidated vehicle covered by a warranty if:

1. The dealership or original equipment manufacturer cannot completely repair a particular gremlin in the car after a reasonable number of repair tries (normally at least 3);
2. The automobile can't be used for at least 30 days due to defects in the motor vehicle; or
3. The dealership or original equipment manufacturer cannot repair a gremlin that is a major safety hazard.

By and large, a defective car is a car with a condition or trouble that often impairs its function, marketability, or safety to the consumer and doesn't maintain the standard of the warranty. Frequently, the period in which the Lemon Laws are applicable are relatively short; the defects and ensuing repair attempts (or out-of-service period) generally will take place during the first two-years or 24,000 miles that you own the automobile. However, a number of states have even shorter periods. Furthermore, almost all states have notice and activation requirements, such as requiring the consumer to send out registered post notice to the original maker of the troubles and giving the car dealership a period to fix the motor vehicle. Also, several states demand that Lemon Law lawsuits be adjudicated through an arbitration proceeding.

Generally, state Lemon Law regulations also are applicable to leased cars and used automobiles bought whilst under the manufacturer's factory warranty. A number of state Lemon Laws also are applicable to vehicles other than passenger automobiles. depending on the consumer's home state, or the state in which the consumer purchased the vehicle, Lemon Laws may apply to:

-RV's
-Motorcycles
-Pleasure Craft
-Other consumer products (such as computers)
There are a number of significant remedies possible under the Lemon Laws. American Statesten times, if the original equipment manufacturer cannot repair the vehicle, the consumer can either expect the original equipment manufacturer to replace the car, or demand the original equipment manufacturer to take the car and refund the original price paid along with incidental damages, like all invoices, towing charges, repair costs, related travel charges and other damages incurred by the consumer as a consequence of the faults in the car. Another important resolution possible under most Lemon Laws is litigation expenses. In almost all states, if you win in a Lemon Law lawsuit, you won't have to pay any attorneys' bills-the auto original equipment manufacturer that sold you your lemon is required to pay attorneys' charges.

The defendant motor vehicle original producer can apply various defenses to a Lemon Law claim. The conventional statute provides that the manufacturer is not liable if it can establish that the defects at issue persisted due to misuse, disregard, or the tampering or modification of a vehicle by persons other than the manufacturer, its agent, or an authorized dealer. In other words, if the consumer damages his or her own car, or the defects were caused by changing or changes performed by an unauthorized party, the manufacturer may not be liable.


Federal Lemon Law Statutes
The Magnuson Moss Act
The Magnuson-Moss Warranty Act is the federal law that controls consumer product warranties. Passed by Congress in 1975, the Magnuson Moss Act requires manufacturers and vendors of consumer commodities to give customers detailed information about warranty coverage claims. Additionally, it determines both the rights of customers and the obligations of warrantors under written warranties.

Although the Magnuson Moss Act does not require an car original producer to supply buyers with a warranty, if a warranty is offered, the Magnuson Moss Act affords a number of protections for the consumer. The Magnuson Moss Act makes it easier for purchasers to sue for breaking the warranty by making breach of warranty noncompliance of federal law, and by permitting consumers to recuperate court costs and reasonable attorneys' charges.

The Magnuson Moss Act is often applicable in a lemon lawsuit where, for some reason, a state Lemon Law claim is not possible or moreover unsuited. For example, unlike the rather short time period offered to public consumers with many Lemon Laws, you could bring a claim for breach of warranty after the warranty period has expired if the defects happened during the warranty time period. Also, although many Lemon Laws limit their coverage to a narrow offering of automobiles, the Magnuson Moss Act is relevant to virtually all consumer goods. The Magnuson Moss Act may also be applicable if you bought or leased a expended vehicle without a manufacturing business warranty, or if the vehicle is covered by a service agreement or other form of extended warranty.


The Uniform Commercial Code
The Uniform Commercial Code (referred to as "UCC") has been ratified in all states. It is the foundational agent of law regulating contracts dealing with the sale of products, including cars and other items. The UCC offers another legal course for customers with lemon problems.

UCC code states that the buyer of a product is entitled to return product that fail in any regard to the warranty. In essence, if your recently purchased vehicle does not work as endorsed by the original producer (your written warranty is part of your warranty), you can have a claim citing the UCC in addition to whatever additional claims you may have.

The period for taking back a automobile with the UCC is not limitless. If you notice a gremlin in your automobile inside a fair ownership time period, you may reject the motor vehicle. Unfortunately, new cars are often mechanically complex and you might not acknowledge whether your product conforms to the consumer warranty till long after you buy the product and problems begin to arise. Basically, if After this ownership period you do not return the product, you will be deemed to have o.K.ed it and may have no claim through the UCC.

The length of the review period is not outlined in the statute. The Courts decide how long the reasonable inspection period is based on the consumer's familiarity and personal experience, the consumer's trouble in revealing the failing, and the consumer's opportunity to notice the problem.

In spite of this limitation, the UCC provides that in certain instances where a purchaser is pronounced to have approved of products (i.e. the reasonable inspection time period has passed), a purchaser can still revoke his approval of those products where the non-conformity substantially impairs the value of the products to him. Those cases include situations in which it proves arduous to reveal the nonconformity or the purchaser was assured that the non-conformity would be remedied. Put differently, the local court will exempt the purchaser from not having rejected the products where the purchaser could not have sensibly done so, or where the manufacturer promised the buyer that the problems would be repaired.
When a automobile excessively fails and you have to keep taking it back to the car dealership for repair under the written warranty, the motor vehicle lemon law might be your next course of action. The flaw must be significant where it prohibits your driving the car or your safety. A car stalling for no reason would be a significant flaw. This is precisely the type of defect that could stymie your driving and your safety. Under the motor vehicle lemon law you are not obliged to demonstrate why the automobile is stalling, you only have to verify that it is stalling. Put simply you need to check the lemon law in these three situations: the automobile keeps failing within the warranty period, the automobile is a safety hazard, the car dealership is unable to correct the automobile when it is warranted.

If you own a motor vehicle which is a lemon you can directly write to the maker and ask for another equivalent motor vehicle. If this demand is not acceptable to the maker, you can enter into an arbitration arrangement. A few manufacturing business* have their own arbitration program. Other manufacturing business* have outside arbitration program including Autoline by the BBB. The recommendation of the arbitrators is binding on the maker but not on the owner. If unsatisfied with the assessment, the owner can take the maker to court.

Virtually all ordinances state that the purchaser should be returned back to the fiscal position they were in before they purchased the automobile, less the sum that the purchaser gained from by using the automobile. To get the payback amount a number of components are considered such as was it a sale or a lease, the purchase price, taxes and license, and mileage etc.
Some virtually new used motor vehicles will qualify under normal lemon laws. For example, a pre-owned automobile may fall under normal lemon laws if it is less than one year old and has got fewer than 12,000 miles on the odometer. States that do have a pre-owned automobile lemon law may be extra cooperative with the age and amount of mileage. Still, the car must be sold by a car dealership that extends a written warranty. Private sales aren't involved, nor are vehicles sold under a stated original cost. There may be other restrictions to a used car lemon law such as the proposes in which the automobile is pre-owned or the classification of automobile. Older motor vehicles, are ordinarily excluded from used car lemon laws. Used car lemon laws usually cover a much shorter time period than brand new car ordinances. They usually range from 30 to 90 days, depending on your used vehicle's mileage.
When picking out a lawyer for your lemon case, make sure that your lawyer is knowledgeable about the laws that apply to your state. Also enquire about the pricing system. Many lemon law attorneys demand a rather minor retainer to address a lemon law claim, and afterward, the attorney's fees are sent to the manufacturing business. Fundamentally, lemon law claims are ordinarily very inexpensive to purchasers. The reimbursement of lawyer expenses differs from state to state. About one-half of the states permit you to recover your Lawyer charges if you win. The attorney's fee is based on actual time spent instead of being connected to any other percentage of the recovery. In some States, you have to pay the manufacturing business* lawyer's charges if you lose.

Consumers should register their complaints in writing and hold a copy. In all written correspondence, always describe how difficult it is to take the motor vehicle to the car dealership for work and that the reliableness that the owner thought He was getting has been non-existent. Any written correspondence with a car dealership or manufacturing business must be sent using certified post. In many claims the manufacturing business* claim that they haven't had the needed number of efforts to repair the condition. They count on the reality that the owner doesn't file repair receipts for each occurance they have brought the motor vehicle into the shop. They also rely on the possibility that the repair receipts have seperate parts repaired each instance demonstrating that they have not fixed the same condition. Consumers should reply by requiring that authorized dealerships always present them a warranty repair ticket. Consumers must also debate that these undocumented visits are attempts.

Make sure to be cognisant of your rights under the lemon laws. Upon purchase, immediately read your owner's book and warranty principles entirely, and the reference on lemon law rights which you should get when you acquire your motor vehicle. Don't bet on your car dealership to describe what troubles are covered by warranty. If your car dealership states that a condition isn't covered and you believe that he or she is decieving you, be composed but self-assertive. Don't be scared to point out the section of the warranty that applies, or to call the original equipment manufacturer for substantiation using the contact references included inside your owner's book. You shouldn't be obliged pay for work related to lemon law complaints. It's also crucial to give notice the original equipment manufacturer of a complaint right away. If you are suspicious that your vehicle has a condition what just can not be remedied, check into your lemon law rights to see when you are able to submit a lemon law complaint.

Lemon Law Tips:

1. Take your car in early - as soon as something appears wrong.
2. Hold onto repair orders - Always obtain a work order when you take the vehicle for repairs, and always obtain a completed repair order when work is completed. Be sure the work order reflects your own thoughts and comments regarding your complaints. If the technician summarizes or changes your complaint too much, have that technician add your corrected comments. Sign and receive a copy of the repair Order before leaving.
3. Be consistent in your complaints. Lemon Laws generally require that a manufacturer's authorized repair facility be provided with a reasonable number of opportunities to repair the same problem(s). Therefore, be as consistent as possible on each repeated repair attempt in describing the problem(s) you are having. This will establish that the problem is the same recurring problem, and will make any potential lemon law claim easier to establish and prove.

4. Look for TSBs: Technical Service Bulletins are issued by manufacturers regarding common defects or repairs in certain automobile models. Your dealer will not seek to tell you about TSBs unless you ask. Ask the dealer to make note of your TSB request on the repair order, even if your dealer tells you that none exist for your problem.
5. Watch for bad advice - Dealers and manufacturers personnel, without intending to, frequently practice law by giving you their version of lemon laws. Typically it is wrong and may be detrimental to your case. It doesn't matter whether the reason for this misinformation is unintentional or not. The effect is similar. So check any advice given by the dealer or manufacturer before making any decision that may harm your case.

6. Beware of arbitration - Manufacturers frequently recommend arbitration or even imply that it is a mandatory prerequisite to resolving your problem. Arbitration is neither desirable nor mandatory! And it is absolutely not a prerequisite for making a lemon law demand!
Leading Misconceptions regarding the Lemon Laws

If my case does not qualify for the lemon law there is nothing I can do.
Attorneys regularly take cases that do not meet the lemon law criteria. All purchasers of defective products have a legal right to compensation. They frequently take cases which do meet the mileage or repair criteria of the lemon law, bring them in court, and secure compensation or other relief for the buyer.

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