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.

Although it varies from state to state, the Lemon Laws stipulate that if you acquire (and in many states, lease) a new or used car or other car covered by a manufacturer's warranty that is defective, and the original equipment manufacturer just can not repair it despite persistent tries (within a defined time limit that fluctuates from state to state), or if the product is not drivable for a stipulated time (often 30 days) because of its faults, you are entitled to a wide number of damage settlements, inclusive of:

1. Money restitution
2. A restitution of the purchase cost
3. A brand new vehicle
Moreover, nearly all the Lemon Laws (as well as the Federal Warranty Law) feature a fee changing mechanism that stipulates that if you win your case, the original maker or dealership which sold you the lemon is obligated to compensate you for legal expenses.


Lemon Law Regulations
State Lemon Law Statutes
Each of the 50 states has its own Lemon Law statute. Although the attributes of each state's statute vary, the typical state Lemon Law statute offers cure for owners with a malfunctioning motor vehicle covered by a warranty if:

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

Typically, a defective motor vehicle is a motor vehicle with a defect or trouble that largely impairs its usability, economic value, or safety to the consumer and does not comply with the warranty. In most instances, the period in which the Lemon Laws apply are relatively short; the problems and resultant repair efforts (or out-of-service time) generally must occur during the first 2-years or 24,000 miles of consumer ownership of the vehicle. However, a number of states have even shorter time periods. Furthermore, most states have notice and trigger requirements, such as wanting the consumer to send registered post notice to the manufacturing business of the flaws and giving the car dealership a chance to fix the vehicle. In addition, numerous states demand that Lemon Law claims be solved through an arbitration program.

Generally, state Lemon Law regulation codes also apply to leased cars and used cars purchased whilst under the manufacturer's original warranty. A number of state Lemon Laws also apply to automobiles other than passenger cars. based upon the buyer's state of residence, or the state where the consumer bought the motor vehicle, Lemon Laws may be applicable to:

-RV's
-Motorcycles
-Boats
-Other consumer products (like electronics)
There are a number of significant solutions possible under the Lemon Laws. In most instances, if the manufacturing business just can't repair the motor vehicle, the consumer can either demand the manufacturing business to replace the motor vehicle, or obligate the maker to reposess the motor vehicle and return the original cost along with incidental costs, such as all charges, towing charges, repair charges, alternative transportation costs and other costs incurred by the consumer as a consequence of the shortcomings in the motor vehicle. Another important resolution available under most Lemon Laws is legal fees. In many states, if you win in a Lemon Law case, you won't have to pay any litigation expenses-the auto manufacturing business that sold you your lemon is obligated to pay for your court fees.

The defendant automobile original maker can implement several defenses to a Lemon Law claim. The general regulation extends that the original equipment manufacturer is not liable if it can demonstrate that the flaws in dispute came about because of harm, forget about, or the tampering or modification of a car by a party other than the maker, its agent, or an authorized dealership. In different words, if the consumer breaks his or her own car, or the shortcomings were caused by modifications or changes executed by an unauthorized dealer, the maker might not be responsible.


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 marketers of consumer products to give customers comprehensive data about warranty coverage. Also, it regulates both the rights of consumers and the obligations of warrantors under original warranties.

Although the Magnuson Moss Act does not require an auto manufacturer to furnish customers with a warranty, if a warranty is provided, the Magnuson Moss Act offers a number of protections for the consumer. The Magnuson Moss Act makes it easier for buyers to sue for violating the warranty by making breach of warranty an infraction of federal law, and by allowing public consumers to recover litigation charges and fair attorney's expenses.

The Magnuson Moss Act is often applicable in a lemon suit in which, for some reason, a state Lemon Law claim is unavailable or moreover disadvantageous. For instance, unlike the rather short period offered to purchasers within most Lemon Laws, you can file a claim for breach of warranty after the warranty period has passed as long as the problems came about during the warranty period. In addition, although many Lemon Laws restrict their coverage to a narrow group of vehicles, the Magnuson Moss Act applies to just about all consumer products. The Magnuson Moss Act might also apply if you purchased or leased a expended motor vehicle without a manufacturer's warranty, or if the motor vehicle is covered by a third party contract or other variety of extended warranty.


The Uniform Commercial Code
The Uniform Commercial Code (referred to as "UCC") has been ratified in all 50 US States. It is the primary foundation of law governing warranties on consumer goods, including automobiles and other items. The UCC provides a legal avenue for public consumers with lemon troubles.

UCC code states that the purchaser of a good is entitled to return merchandise that fail in any regard to the consumer warranty. In essence, if your recently purchased product does not function as guaranteed by the manufacturer (your original warranty is part of your warranty), you can have a claim citing the UCC in addition to any other claims you may have.

The time for bringing back a vehicle with the UCC is not limitless. If you expose a problem in your motor vehicle inside a sensible posession time period, you may take back the automobile. Unfortunately, new cars are frequently mechanically enigmatic and you may not acknowledge whether your product conforms to the consumer agreement till after you acquire the product and problems begin to arise. Therefore, if Long after this posession period you don't reject the product, you will be alleged to have accepted it and may have no claim through the UCC.

The length of the inspection period is not defined in the regulation. Courts decide how long the reasonable review period is based on the buyer's knowledge and experience, the buyer's difficulty in happening upon the problem, and the buyer's opportunity to expose the problem.

In spite of this limit, the UCC stipulates that in certain instances where a purchaser is deemed to have approved of products (i.e. the reasonable review time has passed), a purchaser can still rescind his favorable reception of those product where the non-conformity largely cripples the value of the product to him. Those instances include cases where it is burdensome to come upon the nonconformity or the purchaser was ensured that the non-conformity would be fixed. In other words, the local court will exempt the purchaser from not refusing the product where the purchaser could not have fairly done so, or where the manufacturer promised the buyer that the problems would be repaired.
When a motor vehicle excessively breaks and you have to keep taking it back to the car dealership for repair under the warranty, the vehicle lemon law may be your next course of action. The problem must be substantive where it interferes with your driving the automobile or your safety. A automobile stalling frequently would be a substantive problem. This is exactly the type of condition that can hamper your driving and your safety. Under the motor vehicle lemon law you are not expected to indicate why the motor vehicle is stalling, you simply have to establish that it is stalling. Put simply you need to check out the lemon law in these three situations: the motor vehicle keeps failing inside the warranty period, the motor vehicle is a safety risk, the dealership is incapable to fix the motor vehicle when it is warranted.

If you have a motor vehicle which is a lemon you can immediately write to the original equipment manufacturer and ask for another equivalent motor vehicle. If this requirement is not satisfactory to the original equipment manufacturer, you may move into an arbitration arrangement. A few makers incorporate their own arbitration process. Other makers use third party arbitration program such as Autoline by the BBB. The opinion of the arbitrators is binding on the original equipment manufacturer but not on the owner. If unsatisfied with the proposition, the owner can take the original equipment manufacturer to court.

Virtually all ordinances specify that the owner needs to be returned back to the financial position they were in prior to purchasing the automobile, less the amount that the owner gained from by using the automobile. To get the repayment total numerous factors are considered such as was it a sale or a lease, the purchase price, taxes and license, and mileage etc.
Some nearly new pre-owned cars might qualify under normal lemon laws. For example, a pre-owned motor vehicle may fall under regular lemon laws if it is less than 1 year old and has got fewer than 12,000 miles on the odometer. States that do have a used car lemon law might be additionally cooperative with the age and measure of mileage. Still, the car has to be sold by a dealership that provides a written warranty. Private sales aren't included, nor are cars sold under a stated price paid. There could be additional restrictions to a used car lemon law such as the proposes in which the automobile is driven or the categorization of automobile. Older motor vehicles, are ordinarily excluded from pre-owned car lemon laws. Used car lemon laws usually cover a much shorter time period than brand new car ordinances. They frequently range from 30 to 90 days, depending on your pre-owned car's mileage.
When choosing an attorney for your lemon case, make sure that your lawyer is knowledgeable about the ordinances that are applicable to your state. Also enquire about the pricing program. Many lemon law attorneys require a rather modest retainer to manage a lemon law claim, and thereafter, the attorney's invoices are billed to the manufacturing business. In essence, lemon law claims are generally very inexpensive to consumers. The reimbursement of lawyer invoices differs from state to state. About one-half of the states let you to recuperate your Lawyer invoices if you win. The attorney's fee is based on actual time used rather than being tied to any other portion of the recuperation. In some States, you will pay the manufacturer's lawyer's fees if you lose.

Consumers should register their charges in writing and keep a copy. In all written communication, always describe how problematic it is to return the automobile to the dealership for corrections and that the reliableness that the buyer thought He or she was getting has been non-existent. Any written communication with a dealer or manufacturing business needs to be sent using certified post. In many suits the makers claim that they haven't had the required number of attempts to repair the condition. They bet on the knowledge that the buyer doesn't have repair tickets for each instance they have driven the vehicle into the shop. They also count on the fact that the repair tickets have seperate items repaired each period demonstrating that they haven't repaired the same defect. Consumers ought to respond by expecting that dealers always hand them a warranty repair order. Consumers ought to also debate that these undocumented visits are efforts.

Make sure to be cognisant of your rights under the lemon laws. Upon purchase, immediately page through your owner's book and warranty principles entirely, and the data on lemon law rights that you should obtain when you acquire your car. Don't count on your car dealership to identify which defects are covered by warranty. If your car dealership states that a defect isn't covered and you think that she is being deceptive, be civilized but self-asserting. Don't be scared to point out the part of the warranty that is relevant, or to call the manufacturing business for substantiation utilizing the contact information included inside your owner's book. You should not be obligated pay for repairs related to lemon law complaints. It's also important to advise the manufacturing business of a complaint immediately. If you suspect that your automobile has a defect what just can not be remedied, go over 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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