§ 20-351.3. Replacement or refund; disclosure requirement.
§ 20‑351.3. Replacementor refund; disclosure requirement.
(a) When the consumeris the purchaser or a person entitled by the terms of the express warranty toenforce the obligations of the warranty, if the manufacturer is unable, after areasonable number of attempts, to conform the motor vehicle to any expresswarranty by repairing or correcting, or arranging for the repair or correctionof, any defect or condition or series of defects or conditions whichsubstantially impair the value of the motor vehicle to the consumer, and whichoccurred no later than 24 months or 24,000 miles following original delivery ofthe vehicle, the manufacturer shall, at the option of the consumer, replace thevehicle with a comparable new motor vehicle or accept return of the vehiclefrom the consumer and refund to the consumer the following:
(1) The full contractprice including, but not limited to, charges for undercoating, dealerpreparation and transportation, and installed options, plus the non‑refundableportions of extended warranties and service contracts;
(2) All collateralcharges, including but not limited to, sales tax, license and registrationfees, and similar government charges;
(3) All finance chargesincurred by the consumer after he first reports the nonconformity to themanufacturer, its agent, or its authorized dealer; and
(4) Any incidentaldamages and monetary consequential damages.
(b) When consumer is alessee, if the manufacturer is unable, after a reasonable number of attempts,to conform the motor vehicle to any express warranty by repairing orcorrecting, or arranging for the repair or correction of, any defect orcondition or series of defects or conditions which substantially impair thevalue of the motor vehicle to the consumer, and which occurred no later than 24months or 24,000 miles following original delivery of the vehicle, themanufacturer shall, at the option of the consumer, replace the vehicle with acomparable new motor vehicle or accept return of the vehicle from the consumerand refund the following:
(1) To the consumer:
a. All sums previouslypaid by the consumer under the terms of the lease;
b. All sums previouslypaid by the consumer in connection with entering into the lease agreement,including, but not limited to, any capitalized cost reduction, sales tax,license and registration fees, and similar government charges; and
c. Any incidental andmonetary consequential damages.
(2) To the lessor, afull refund of the lease price, plus an additional amount equal to five percent(5%) of the lease price, less eighty‑five percent (85%) of the amountactually paid by the consumer to the lessor pursuant to the lease. The leaseprice means the actual purchase cost of the vehicle to the lessor.
In the case of a refund, theleased vehicle shall be returned to the manufacturer and the consumer's writtenlease shall be terminated by the lessor without any penalty to the consumer.The lessor shall transfer title of the motor vehicle to the manufacturer asnecessary to effectuate the consumer's rights pursuant to this Article, whetherthe consumer chooses vehicle replacement or refund.
(c) Refunds shall bemade to the consumer, lessor, and any lienholders as their interests mayappear. The refund to the consumer shall be reduced by a reasonable allowancefor the consumer's use of the vehicle. A reasonable allowance for use iscalculated from the number of miles used by the consumer up to the date of thethird attempt to repair the same nonconformity which is the subject of theclaim, or the twentieth cumulative business day when the vehicle is out ofservice by reason of repair of one or more nonconformities, whichever occursfirst. The number of miles used by the consumer is multiplied by the purchaseprice of the vehicle or the lessor's actual lease price, and divided by120,000.
(d) If a manufacturer,its agent, or its authorized dealer resells a motor vehicle that was returnedpursuant to this Article or any other State's applicable law, regardless ofwhether there was any judicial determination that the motor vehicle had anydefect or that it failed to conform to all express warranties, themanufacturer, its agent, or its authorized dealer shall disclose to thesubsequent purchaser prior to the sale:
(1) That the motorvehicle was returned pursuant to this Article or pursuant to the applicable lawof any other State; and
(2) The defect orcondition or series of defects or conditions which substantially impaired thevalue of the motor vehicle to the consumer.
Any subsequent purchaser whopurchases the motor vehicle for resale with notice of the return, shall makethe required disclosures to any person to whom he resells the motor vehicle. (1987, c. 385, s. 1; 1989, c.43, s. 1; c. 519, s. 1; 2005‑436, s. 2.)