Last Revised 05/11/04
6
CONSUMER RIGHTS AND THE
DEFECTIVE NEW VEHICLE
§ 6. 1.
Introduction
This consumer rights chapter describes your significant protections under Maine law when your
new vehicle proves to be defective. It contains the following sections:
§ 6. 2.
Maine’s Lemon Law Arbitration Services
§ 6. 3.
Manufacturers’ Arbitration Programs
§ 6. 4.
Attorney General Mediation
§ 6. 5.
Immediate Rejection Of Defective New
Vehicle
§ 6. 6.
Your Express Warranty Rights
§ 6. 7.
Your Implied Warranty Rights
§ 6. 8.
Your Rights To Damages
§ 6. 9.
Deceptive Failure To Disclose Repairs
§ 6. 10.
Where To Write With Your Complaint
§ 6. 11.
Loaner Vehicles
§ 6. 12.
Magnuson-Moss Warranty Act
§ 6. 13.
Warranty Rights Of Lessees
§ 6. 14.
Unfair Trade Practices
§ 6. 15.
Call For Help
§ 6. 16.
Summary Of Defective Vehicle Rights
§ 6. 17.
Maine Lemon Law Arbitration Program
§ 6. 18.
An Estimate Of The Average Life Of Vehicle
Parts
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§ 6. 2.
Maine’s Lemon Law Arbitration
Service
Maine’s Lemon Law can be found at 10 M.R.S.A. §§ 1161-1169. If the consumer (whether
purchaser or lessee) reports serious defects to the dealer or manufacturer during the express warranty
period, within three
1
years of the date of delivery or during the first 18,000 miles of operation
(whichever is earlier), the law requires the manufacturer to make the necessary repairs. By reporting
these defects within the required time period, the consumer (purchaser or lessee) “freezes” his right to
have these defects repaired, even if they continue after the expiration of that time period. If the dealer
is unable to repair the defect, then under the Lemon Law the consumer may be eligible for either a
replacement car or the return of the purchase price. Maine’s Lemon Law protects not only purchasers
of new motor vehicles but also persons who lease motor vehicles. Even used vehicles can be eligible
for Lemon Law relief if they are still within the manufacturer’s express warranties.
In addition to this basic Lemon Law protection the state offers the Maine Lemon Law Arbitration
Program in which a consumer, without charge, can seek an arbitrator’s decision as to whether the
consumer’s new car meets the statutory definition of a “lemon.” If it does, then the consumer is
entitled to a refund or a replacement vehicle. The arbitrator’s decision will be made within 45 days of
application. For more information, contact the Attorney General’s Lemon Law Arbitration Program at
800-436-2131 or 207-626-8848.
For a more complete description of the Maine Lemon Law Arbitration Program, see § 6.18 to this
chapter and Chapter 7 of this Guide, The Maine Lemon Law and State Arbitration.
§ 6. 3.
Manufacturers’ Arbitration
Programs
Most manufacturers provide arbitration programs for their customers. These programs are available
even if your car does not meet the statutory definition of lemon. Unlike the Maine Lemon Law
Arbitration Program, which can only award a replacement or your money back, the manufacturer’s
arbitration program can order additional repairs. This arbitration service is provided free of charge.
Your warranty booklet will tell you more about your manufacturer’s program.
§ 6. 4.
Attorney General Mediation
The Attorney General’s Consumer Mediation Services is also available to you, free of charge. We
can contact the dealer and the manufacturer and attempt to informally resolve your complaints.
Business participation in such mediation is voluntary. Write or call our Consumer Mediation Service
for more information (6 State House Station, Augusta, Maine 04333-0006. (1-800-436-2131 in Maine
only or 207-626-8849, between 9 a.m. and noon)) or e-mail us at consum[email protected].
1
Prior to September 13, 2003 the period was two years of the date of delivery.
MAINE CONSUMER LAW GUIDE
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§ 6. 5.
Immediate Rejection Of Defective
New Vehicles
A. Immediate Rejection
If you are sold a new car and it quickly becomes apparent it is seriously defective, the
Maine Uniform Commercial Code (11 M.R.S.A. § 2-602) allows you to “reject” it within
a“reasonable time after delivery.”
2
Immediate rejection pursuant to 11 M.R.S.A. § 2-602 is
available for a serious defect (nonconformity with a warranty), or even a number of minor
defects. See §§ 5.2 - 5.4 in Chapter 5 of this Guide.
If your rejection is challenged by the dealer, then the dealer has the burden of proving it
sold you a car without any significant defects. If rejecting your defective car has cost you
money (e.g., towing fees, or the cost of renting needed alternative transportation), then you
may be eligible for consequential and incidental damages as described at 11 M.R.S.A. § 2-
715. See below §§ 6.9 and 6.12. The dealer does have the right to “cure” (repair) any minor
defects before delivering the car or during your first few miles of use, but not afterwards.
3
However, your time to “reject” the car can be extended by the dealer’s attempt to “cure” the
problems.
4
But this early right to repair is only for minor defects. If the defect is serious (i.e.,
it threatens the safety or usability of the car), then the dealer can “cure” it only by
replacement or your money back.
5
The same rejection law applies if the dealer fails to make the car available as promised.
For example, you ordered a blue sports car and specified that delivery could be no later than
June 1. You then find out the car will not be available on that date or the car that is delivered
is red. You may reject the car and the dealer should refund your deposit.
B. How To Reject Your Vehicle
To properly reject your car you must do it in accordance with the steps set forth in the
Maine Uniform Commercial Code, 11 M.R.S.A. § 2-602. We strongly recommend that you
consult an attorney concerning the proper method for rejecting a new car. To reject, you must:
(1) Notify the seller of your rejection. The notice should be in writing
stating the reasons for rejecting the goods (including your list of
defects). You should mail the notice to the seller’s place of business and
keep a copy for yourself.
(2) Notify the seller within a reasonable time after the goods are delivered.
The law does not provide a specific time for rejection. If you do not
notice the defect until after you have taken the car home, you must
notify the dealer immediately, and you may not use the car as if you
owned it.
6
2
Zabriskie Chevrolet, Inc. v. Smith, 240 A.2d 195, 201-202 (N.J. 1968)(the Smiths properly “rejected” their car after
transmission failed to work in the first couple of miles). Other states in addition to Maine have enacted similar versions
of the Uniform Commercial Code.
3
National Consumer Law Center, Sales of Goods and Services, § 2.10 (1982); see 11 M.R.S.A. § 2-508, Right to Repair
Non-conformities.
4
Capitol Dodge Sales, Inc. v. Northern Concrete Pipe, Inc., 38 U.C.C. Rep. 114 (Mich.Ct.App. 1983)(rejection was proper
three days after purchase during which seller made attempts to cure).
5
See 11 M.R.S.A. § 2-508(2), which allows the dealer to “cure” a defect after the contract performance date only if the
seller has “reasonable grounds to believe that the consumer still would have accepted the vehicle because the defects
were minor and easily corrected;” see also American Honda Motor Co. v. Boyd, 475 So.2d 835, 840 (Ala. 1985)(no right
to cure since the buyer accepted the car without knowledge of any non-conformity).
6
11 M.R.S.A. § 2-602(2)(a). See Schiavi Mobile Home v. Gagne, 510 A.2d 236, 238 (Me. 1986).
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(3) Allow the dealer to repair minor defects or, if the defect is substantial,
replace the vehicle or return your money.
7
(4) Any use of the car may prevent you from rejecting it. You must also hold
the car “with reasonable care” and permit the seller to remove it.
8
(5) Before you surrender the car to the dealer, make sure you have an expert
inspect it and document its defects. This evidence may be necessary if
the dealer sues you for breach of contract.
C. Practical Problems If The Dealer Refuses To Take Back Your
Defective Car
If the dealer refuses to accept your immediate rejection pursuant to 11 M.R.S.A. § 2-602
(or a later “revocation” of ownership pursuant to 11 M.R.S.A. § 2-608, see § 6.7), then you
should consult an attorney before taking further action. Mediation through the Attorney
General’s office (see § 6.4) or arbitration of your dispute pursuant to the Maine Lemon Law
(see §§ 6.2, 6.18) may provide an inexpensive alternative to litigation.
Further, there may be significant practical problems with immediately rejecting your car
(or later revoking ownership). First, if the dealer refuses to take back the car you may have to
sell it in order to recover your lost payments and expenses.
9
Simply dropping the car off in the
dealer’s lot is not necessarily a solution. You could lose whatever leverage possession of the
vehicle gives you, (e.g., the ability to have the car repaired by another garage and then sue the
dealer or manufacturer for damages). In addition the dealer may start charging you a
“storage” fee. Further, your situation is much more difficult if you have financed your car
with a third party lender (e.g., your credit union or bank).
10
This lender has a security interest
in your car and if you sell the car, you will be in default and the lender can sue you or
repossess
11
the car.
Your best course of action is to inform the third party creditor of your problems with the car.
The lender can then exert pressure on the dealer to resolve your dispute or can give you permission
to sell the car, with the proceeds going first to pay off your loan. If there is any money left over you
could use it to satisfy your 11 M.R.S.A. § 2-711(3) security interest.
§ 6. 6.
Your Express Warranty Rights
Even if you do not qualify for protection under the new Lemon Law, you may still have recourse
under the terms of your express warranty or under your Maine Implied Warranty rights. Under your
written express warranty, you may have the right to ask the manufacturer for a replacement car or a
refund if the problem results from a serious defect and not from owner abuse or failure to properly
7
11 M.R.S.A. § 2-508.
8
11 M.R.S.A. § 2-602(2).
9
If you have made any credit payments on the car, then you have a security interest in the goods. See 11 M.R.S.A. § 2-
711(3). If you have lawfully rejected the car (or revoked ownership), you may sell the car to recover your losses, with the
balance being returned to the dealer. Your resale of the car must follow the procedures of 11 M.R.S.A. § 2-706. See
Johnson v. GMC, Chevrolet Motors Div., 668 P.2d 139 (Kan. 1983)(buyer has the right to recover that portion of the
purchase price already paid when rejection or revocation is proper).
10
If you have financed your car through the car manufacturer’s credit agency (e.g., GMAC) or if the dealer has assigned
your loan to another credit agency, then the credit agency possibly is a “holder in due course” and your rejection or
revocation would be equally valid against both the dealer and the credit agency. See 16 C.F.R. § 433 (1976). You should
address your rejection or revocation to both the dealer and the credit agency.
11
Repossession may violate a higher priority security interest in the car held by the consumer.
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maintain the car. If the manufacturer refuses to acknowledge your rights, it may be necessary to sue the
manufacturer. Always give the manufacturer a chance to correct defects. If it refuses or is unable to do
so after a reasonable number of tries, you must stop using your car and notify the dealer you are
“revoking acceptance.” Remember, if you complain about the defect during the express warranty
period and the dealer fails to repair the problem, you have “frozen” your warranty rights as to that
defect. The dealer cannot later claim that because your express warranty has expired, it is no longer
responsible for trying to repair it.
Revocation is a drastic measure. Before revoking, we recommend that you contact an attorney and
answer these questions:
A. Can the problem be shown to be a defect? If the problem resulted from failure to
maintain the car as directed in the owner’s manual or if it is caused by abuse or poor
driving habits, you do not have a cause of action under the warranty.
B. Does the defect substantially reduce the value of the car?
12
C. Have I given the dealer a reasonable number of chances to fix the defect?
D. Am I returning the car without damage (other than normal wear and tear and, of course,
the defect)?
E. Have I waited too long to return the car?
F. Can I find another means of transportation while I wait for the situation to be resolved?
G. Am I prepared to continue making payments to the bank if I have to?
You are entitled to a replacement or refund under the Federal Magnusson-Moss Warranty Act (15
United States Code 2301) (and your attorney fees!) if your car cannot be fixed, but the defect you are
complaining about must be one that substantially reduces the value of your new car, and you must have
given the manufacturer a reasonable number of chances to fix it.
A transmission that jumps from fourth to third gear as you are traveling down the highway at 55
m.p.h. is a problem that substantially impairs the value of your car. However, a window handle that
periodically falls off the right rear door would not seem serious enough to warrant a refund.
Use your common sense in deciding whether to sue and in determining whether you gave the
manufacturer reasonable opportunity to fix the car.
You may not revoke acceptance if the car has been substantially damaged—as a result of an
accident, for instance. Also, you must revoke acceptance within a reasonable time after discovering the
defect.
If you decide to revoke, do it right. Because the procedure is complicated and you may end up in
court, we strongly recommend that you hire a lawyer before revoking. But remember: your best first
remedy is to see if you qualify for State Lemon Law Arbitration Program (see above § 6.2 and
Ch. 7 in
this Guide).
§ 6. 7.
Your Implied Warranty Rights
Maine law also provides an implied warranty (11 M.R.S.A. §§ 314, 2-316(5)) that guarantees your
new or leased car will, if properly maintained in accordance with directions in the owner’s manual,
continue to run with no major problems even after the written warranty runs out. So, if your new car
12
The Maine Supreme Judicial Court described a car that was “substantially impaired” as a car with “[a]ny defect that
shakes the buyer’s faith or undermines his confidence in the reliability of the purchased item....” Innis v. Methot Buick-
Opel, Inc., 506 A.2d 2l2 (Me. l986) (quoting McCullough v. Bill Swad Chrysler-Plymouth, Inc., 449 N.E.2d 1289, 1294
(Ohio 1983); see also Champion Ford Sales, Inc. v. Levine, 433 A.2d 1218 (Md. 1981).
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breaks down two months after your written warranty expires, you are not necessarily out of luck.
Under the Maine Implied Warranty Law, not only the manufacturer but also the dealer (or the lessor if
a different party)
13
is responsible to you for a serious defect.
Under your implied warranty, you still have the right to expect the manufacturer or the dealer to
replace defective parts if the vehicle was not abused and was properly maintained. The implied
warranty requires that your car and its component parts perform satisfactorily during their ordinary
useful life as measured by the average life of similar new cars.
14
Of course, if you, the manufacturer and the dealer cannot agree on what is reasonable, you may
have to settle your differences in court. If your car is so defective as to be a violation of your implied
warranty rights, then you have a good argument why you should not have to pay an extended warranty
deductible. For an estimate of the useful life of different car parts, see § 6.19 of this chapter.
Generally, due to the U.C.C. Statute of Limitations, an implied warranty court action must be
started within 4 years of when you purchased the item.
§ 6. 8.
Your Rights To Damages
If you were sold a defective car and you had to pay to have it repaired, you may be eligible for
damages equal to the cost of the repair from either the dealer or the manufacturer. You may also be
eligible for incidental damages (e.g., cost of towing a broken down car back to the dealer) and
consequential damages (e.g., cost of necessary substitute transportation) (11 M.R.S.A. §§ 2-714, 2-
715). Additionally, you might also recover the amount your vehicle has diminished in value because it
had been defective and repaired.
15
§ 6. 9.
Deceptive Failure To Disclose
Repairs
If the dealer has made significant repairs to the “new” car you are purchasing, he should reveal
those repairs before you sign the purchase agreement. What repairs should be revealed? New paint?
Repaired dents? In the past there has been no hard-and-fast rule. But in general, if the repair was so
13
On the theory that a lease is the sale of a “service,” Maine consumers who lease cars primarily for their personal or
family use should also have implied warranty rights from both the manufacturer and the lessor (11 M.R.S.A. § 2316(5)).
14
See Suminski v. Maine Appliance Warehouse, Inc., 602 A. 2d 1173 (Me. 1992). In this case the Maine Supreme Judicial
Court found that a television seller’s refusal to even acknowledge the buyer’s implied warranty rights can be an unfair
trade practice. The court also offered this guidance on what defects are so serious as to be breaches of the implied
warranty:
In some circumstances a breach of the implied warranty of merchantability under the
U.C.C. may be established by circumstantial evidence. See e.g. A.A.A. Exteriors, Inc. v.
Don Mahurin Chevrolet & Oldsmobile, Inc., 429 N.E.2d 975, 978 (Inc. App. 1982). In
the case at bar, however, the television set was in all respects satisfactory during
approximately thirteen months after it was purchased. For all that appears in the record,
the malfunction at that time may have resulted from a defective switch, repairable at a
small cost. We conclude that the sale of a major appliance with a switch that fails more
than a year later, cannot support a finding that the entire appliance was unmerchantable
when sold. To use an automotive example, an unmerchantable battery may not render an
entire vehicle unmerchantable. Cf. Tallmadge v. Aurora Chrysler Plymouth, Inc., 605
P.2d 1275, 1278 (Wash. Ct. App. 1979); Tracy v. Vinton Motors, Inc., 296 A.2d 269, 272
(Vt. 1972).
15
See Marchesseault v. Jackson, 611 A.2d 95, 98 (Me. 1992) (homeowner entitled to damages measured both to the costs
repairing the defective foundation and the decrease in value of home because the foundation was so defective that it
needed to be repaired).
MAINE CONSUMER LAW GUIDE
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significant that it would have altered your decision to buy the car or the price you agreed to pay, then
the dealer should have disclosed it. If the dealer did not, it could be a “failure to state a material fact”
and an unfair trade practice.
16
In 1997 the Legislature enacted a provision that deals specifically with this issue. Pursuant to 10
M.R.S.A. § 1174 (4) (E), the dealer is required to make a disclosure in writing “if the dealer has
knowledge of the damage or repair and if the damage calculated at the retail cost of repair to the new
motor vehicle exceeds 5% of the manufacturer’s suggested retail price.” Finally, the dealer is not
required to disclose repairs to “any glass, bumpers, audio system, instrument panel, communication
system or tires that were damaged at any time if the glass, bumpers, audio system, instrument panel,
communication system or tires have been replaced with original or comparable equipment.”
If you were sold a defective car and you had to pay to have it repaired, you may be eligible for
damages equal to the cost of the repair from either the dealer or the manufacturer. You may also be
eligible for incidental damages (e.g., cost of towing a broken down car back to the dealer) and
consequential damages (e.g., cost of necessary substitute transportation) (11 M.R.S.A. §§ 2-714, 2-
715). Additionally, you might also recover the amount your vehicle has diminished in value because it
had been damaged and repaired.
17
§ 6. 10.
Where To Write With Your
Complaint
When you have a problem with your new car, go to the dealer first. If the dealer fails to correct the
problem after you’ve given him a reasonable chance to do so, contact the manufacturer’s area
representative and arrange an appointment. Your warranty booklet or your dealer will provide you with
the proper address.
§ 6. 11.
Loaner Vehicles
Under the Maine Uniform Commercial Code, if you have been sold a seriously defective car in
violation of your implied warranty rights, you might very well be eligible for consequential and
incidental damages (11 M.R.S.A. §§ 2-714, 2-715). When a new car proves to be seriously defective
and must be repaired, the consumer is often forced to use alternative means of transportation during the
period of repair. A simple solution to the consumer’s plight is for the dealer to provide a loaner car to
the consumer while his vehicle is being repaired. Some dealers refuse loaner cars, yet the cost of the
vehicle should be considered consequential damages resulting from the sale of a defective vehicle in
breach of express or implied warranties of merchantability. Who should pay for the cost of the
substitute vehicle in this situation? Both the manufacturer and the dealer can be held liable.
Of course,
the dealer can probably obtain reimbursement for the loaner from the manufacturer of the defective car
.
§ 6. 12.
Magnusson-Moss Warranty Act
Consumers have additional rights under the Federal Magnusson-Moss Warranty Act (15 U.S.C. §§
2301-2312) (Supp. 1985) when a consumer good comes with a written warranty. If after a reasonable
16
Pirozzie v. Penske Olds-Cadillac-GMC, Inc., 605 A.2d 373, 376 (Pa.Super.1992) (unfair trade practice to sell a car as
new when dealer has significantly damaged or repaired it).
17
See Marchesseault v. Jackson, 611 A.2d 95, 98 (Me. 1992) (homeowner entitled to damages measured both to the costs
repairing the defective foundation and the decrease in value of home because the foundation was so defective that it
needed to be repaired).
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opportunity the dealer cannot fix the car, the consumer can sue for damages
18
(including punitive
damages)
19
and other legal and equitable relief. The court can also award reasonable attorney fees.
Given that a new car buyer in Maine will receive the protections of the manufacturer’s express
warranty, the Maine Implied Warranty (see Chapter 4) and the Magnusson Moss Warranty Act, why
should buyers also purchase Service Contracts? Perhaps they should not. Service Contracts are
expensive and duplicative. They also typically state that their remedies do not apply if another
warranty already covers the problem! A service contract is expensive peace of mind.
§ 6. 13.
Warranty Rights Of Lessees
If you have leased your new vehicle from a dealer or his leasing agent,
20
you are covered by the
Maine Lemon Law. You should also have implied warranty rights against the manufacturer, dealer and
lessor. See 11 M.R.S.A. § 2-1212. Further, the Maine U.C.C. (11 M.R.S.A. § 2316(5)(a)) prohibits
disclaiming implied warranty protection for both consumer goods or “services” (including a car lease).
Further, you may also be eligible for Magnusson-Moss Warranty Act protection (damages and attorney
fees) because lessees should be included in the act’s definition of a consumer as “any person to whom
such product is transferred during the duration of an implied or written warranty....”
21
§ 6. 14.
Unfair Trade Practices
Unfair or deceptive practices by a car dealer violate the Unfair Trade Practices Act (5 M.R.S.A. §§
205A-214). Pursuant to 5 M.R.S.A. § 213, if a car was purchased for personal, family or household
purposes, consumers can bring a private unfair trade practice suit and, if successful, receive damages
or their money back and reasonable attorney fees. (See Chapter 3 of this Guide.)
§ 6. 15.
Call For Help
If neither the dealer nor the manufacturer respond satisfactorily to your complaint about a defective
car, here are some suggestions for further help:
A. Arbitration. If you wish to seek arbitration of your dispute, first call the Attorney
General’s Lemon Law Arbitration Program at 207-626-8848. If you are not eligible for
this program you may want to contact the manufacturer’s arbitration program. The
address of your manufacturer’s arbitration program can be found in your warranty
booklet.
B. Credit Problems. If you have a problem with the way your car is financed, call the Maine
Office of Consumer Credit Regulation. This Office is located at 35 State House Station,
Augusta, ME 04333-0035 (207-624-8527 and 1-800-332-8529).
C. Attorney General Consumer Mediation Service. If you wish further information on your
18
See Maserati Automobiles v. Caplan, Nos. 87-1163 and 87-1635 (Florida Dist. Ct. of Appeals, Third District, March 29,
1988) (Purchaser of a defective automobile was entitled to recover, under a state lemon law and federal warranty law,
both the purchase price of an automobile and collateral charges — insurance payments, rental car costs, and repair and
hotel bills—plus damages for loss of the use of the car).
19
Punitive damages are available in Maine when the defendant acted with either express or implied malice. See Tuttle v.
Raymond, 494 A.2d 1353 (Me. 1985).
20
This is the most common leasing arrangement. A manufacturer’s subsidy such as GMAC or FMCC may provide
financing for the lease, or take assignment of the lease.
21
15 U.S.C. § 2301(3). See also Freeman v. Hubco Leasing, Inc., 324 S.E.2d 462, 467 (Ga. 1985) (leasing agency is a
“supplier” of a consumer product under Magnusson-Moss Warranty Act).
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rights as a new car buyer or you wish to utilize the Attorney General’s Consumer
Mediation Service, contact the Consumer Protection Unit, Office of the Attorney General,
6 State House Station, Augusta, ME 04333-0006 (800-436-2131 or 207-626-8849; call
between 9:00 a.m. and 12:00 noon).
D. Dealer Complaints. If you have a complaint against a dealer in connection with an unfair
sales practice or shoddy service, you may want to notify the state agency, which licenses
Maine dealers. Contact the Secretary of State, 29 State House Station, Augusta, ME
04333-0029 (207-624-9000, extension 52143)
E. Safety Related Complaints. If you have a complaint that deals with a safety problem with
your car, you should contact the National Highway Traffic Safety Administration
(NHTSA), U. S. Department of Transportation, 400 Seventh Street, S.W., Washington,
DC 20590 (toll free 1-800-424-9393; TTY for Hearing Impaired, 1-800-424-9153). Also,
recall notices, crash tests results, tire quality ratings and safety publications from NHTSA
are now available on-line at www.nhtsa.gov.
F. Warranty Suits. If you decide to sue your manufacturer for a violation of your express or
implied warranty rights, you should consider notifying the Warranties Project, Bureau of
Consumer Protection, Federal Trade Commission, Washington, DC 20580. (FTC hotline
is 202-326-3323)
G. Secret Warranties. Some manufacturers identify certain defects as eligible for “goodwill
adjustments”. These secret warranties are not publicized and consumers might have to
make themselves pains-in-the-neck before the dealer or manufacturer will provide relief.
One way to find out if your car is covered by a secret warranty is to contact the Center For
Auto Safety, 2001 S. Street, N.W., Suite 410, Washington, DC 20009 (202-328-7700,
www.autosafety.org). Include $1.00 to cover the cost of handling and a self-addressed,
stamped envelope (business size).
§ 6. 16.
Summary Of Defective Vehicle
Rights
Usually, when faced with a defective car, your first course of action is to return to your dealer. But
if the dealer cannot make the repair, or the defect is so serious you feel you must have a new car or
your money back, aggressively defend your legal rights. Car owners have several different remedies
and which one applies depends on when your defect becomes apparent:
A. First Few Days Or Week: Immediate Rejection. If your car is immediately defective and
the problem is so serious you do not want to repair it, tell your dealer to give you your
money back. See § 6.5, Immediate Rejection.
B. Defects Slow To Appear: Warranty Repairs. If a significant defect in your car’s
workmanship or materials appears months or even possibly years after purchase, and you
have not been an abusive driver, you may have a good argument for free repairs and
damages. See § 6.6-6.8, Warranty Repairs and § 6.13, Magnusson-Moss Warranty Act.
C. Dealer Unable To Repair A Lemon: Your Money Back Or A Replacement Car. If your car
is a “lemon” (car must still have the manufacturer’s warranty), then you may be eligible
for a new car or your money back under Maine’s Lemon Law or the U.C.C. remedy of
revocation of ownership. See §§ 6.2, 6.6-6.8, 6.18.
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D. If The Dealer Cannot Or Will Not Repair: Sue For Damages. One strategy if your dealer
can’t or won’t repair your defective car, is to have another garage repair it and sue in
Small Claims Court for damages (up to $4,500). See § 6.9.
E. Unfair Trade Practices Are Illegal. If your dealer treats you unfairly or deceptively, he
may be in violation of the Maine Unfair Trade Practices Act. You can sue for damages or
your money back and attorney fees. See § 6.15 and Chapter 3 in this Guide, Maine Unfair
Trade Practices Act.
§ 6. 17.
Maine Lemon Law Arbitration
Program
A. What Is The Maine Lemon Law?
The Maine Lemon Law, 10 M.R.S.A. §§ 1161-1169, protects consumers who have serious defects
in their vehicles. The law defines a “lemon” as a new vehicle either purchased or leased in Maine,
which is seriously defective, and which has not been repaired after a reasonable number of attempts. If
your vehicle is found to be a lemon then the manufacturer must give you a replacement vehicle or
refund your money.
B. What Is The State Lemon Law Arbitration Program?
If a substantial defect still exists or recurs after a reasonable number of repair attempts, the
consumer has the right to a refund or a replacement vehicle. If the manufacturer refuses to take back
your vehicle, you can seek a State Lemon Arbitration Hearing and receive a decision within 45 days.
This state arbitration service is provided at no cost to you, except for the $1.00 Lemon Law fee you
pay when you buy a new car. Please keep in mind that not all car problems are serious enough to
qualify for relief under the Lemon Law. You must apply for State Lemon Arbitration within three years
from the date your car was originally sold and within the manufacturer’s warranty period.
C.
What Vehicles Are Covered By The State Lemon Law Arbitration Program?
Any new or used car, motorcycle, van, truck, or recreational vehicle (RV) bought or leased in
Maine from a new car dealer is covered during the Lemon Law’s “term of protection.” This Lemon
protection period is the manufacturer’s express warranty, or three
22
years from the date of delivery to
the original consumer buyer, or 18,000 miles of use, whichever comes first. You must notify the
manufacturer or the dealer about your vehicle’s defect before this protection period ends.
The Lemon Law also covers vehicles that are resold during this “term of protection”. The only
cars not covered are those purchased for a governmental agency, a business which registers three or
more vehicles, or commercial vehicles weighing 8,500 pounds or more, or vehicles purchased for
resale purposes.
D. What Problems Are NOT Covered By The State Lemon Law?
The Lemon Law does not cover vehicles with the following types of problems:
(1) defects which do not substantially impair the vehicle’s use, value, or safety;
22
Prior to September 13, 2003 the period was two years from the date of delivery.
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(2) defects caused by owner negligence;
(3) defects resulting from accident, or vandalism;
(4) defects resulting from unauthorized repair or modification of the vehicle by a
person other than the manufacturer, its agents or authorized dealers.
E. What Is Substantial Impairment?
The Lemon Law only covers serious defects — those which substantially impair the use, safety or
value of the vehicle. However, the law does not list specific defects, which are considered substantial.
You must be able to demonstrate how your vehicle has been substantially impaired. For example, to
prove substantial value impairment, you could show that the retail value of your vehicle is
significantly less than it would be without the defect. Although a defect may be annoying, it is not
necessarily substantial.
F. How Many Repair Attempts Before Your Car Is A Lemon?
The Lemon Law gives the manufacturer, its agent or authorized dealer a “reasonable number of
attempts” to repair the substantial defect. The Lemon Law creates a presumption that a reasonable
number of attempts has been made if either of the following happens within the law’s “term of
protection” (the manufacturer’s express warranties, three
23
years after delivery to the original buyer,
or 18,000 miles of use, whichever comes first):
(1) a repair was attempted three or more times for the same substantial defect
24
; or
(2) a single repair was attempted for a serious failure of either the braking or steering
system
25
; or
(3) repairs were attempted for any substantial defect or combination of defects resulting in
the vehicle being out of service for a cumulative total of 15 or more business days.
NOTE: A business day is any day that the service department of an authorized dealer is open for
business.
If the defect continues or recurs despite the repair attempts and still substantially impairs your
vehicle, then you can take the next step in the Lemon Law process — offering the manufacturer a final
repair opportunity.
If your defect is so serious that you cannot wait (e.g., a safety problem) you do not necessarily
have to meet the 3-repair attempts/out of service 15 days standard. However, you must give the
manufacturer at least one opportunity to repair and then a “final opportunity to repair.”
23
Prior to September 13, 2003 the period was two years after delivery.
24
Prior to legislation effective September 13, 2003 at least two of the repair attempts had to be the same dealer or the
manufacturer.
25
This provision was effective September 13, 2003.
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G. What is the “Final Repair Attempt” Requirement?
Once the manufacturer or authorized dealer has not been able to repair the substantial defect, and
the problem continues or recurs, you must contact the manufacturer in writing and state that you want
a refund or replacement and that you will give the manufacturer one final repair opportunity, of at
least 7 business days, to fix the defect.
It is essential to keep copies of your request for a refund or replacement, as this is a necessary step
before you can receive Lemon Law relief. Once the manufacturer receives your letter, the
manufacturer will have 7 business days to make a final repair attempt. You must cooperate with this
final repair attempt in order to be eligible for Lemon Law relief. You can contact the State Lemon
Law Arbitration Program for a form letter, which can be used as notification of the final repair
opportunity.
H. For Help?
Here are two ways the Attorney General can help:
(1) To File a new car complaint against a dealer or manufacturer, call or write:
Consumer Information and Mediation Service
Office of the Attorney General
Consumer Protection Division
6 State House Station
Augusta, Maine 04333-0006
800-436-2131 or 207-626-8849 between 9 A.M. and 12 Noon
(2) Information on your rights under the Lemon Law and State Lemon Law Application Form:
Office of the Attorney General
Lemon Law Arbitration Program
6 State House Station
Augusta, Maine 04333-0006
800-436-2131 or 207-626-8848
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§ 6.18.
An Estimate Of The Average Life
Of Vehicle Parts
These estimates are based on the judgment of a Maine mechanic skilled in car repairs and on
estimates in Kiplinger’s Personal Finance Magazine 66-67 (August 1992) and Consumer’s Digest 35
(September-October 1993).
Air-Conditioner Compressor .................................................80,000-100,000 miles
Alternator...............................................................................60,000-100,000 miles
Battery....................................................................................40,000-80,000 miles;3-5 years
Brakes, (Drum) ......................................................................40,000-front;75,000 rear
(Disc)........................................................................30,000-40,000 miles
Catalytic Converter................................................................75,000-100,000 miles
Engine....................................................................................90,000-130,000 miles
Engine Assembly ...................................................................150,000-300,000 miles
Engine Belts...........................................................................40,000-60,000 miles
Engine Cooling System .........................................................100,000 miles; 5 years
Exhaust System (single) ........................................................50,000 miles; 5 years
(large car)....................................................25,000 miles
Front End* (small car) ..........................................................50,000–60,000 miles
(large car) ..........................................................30,000 miles
Fuel Injector...........................................................................100,000-150,000 miles
Fuel Pump..............................................................................70,000-90,000 miles
Manual Clutch Disc ...............................................................60,000-75,000 miles
Master Cylinder .....................................................................80,000-100,000 miles
Muffler and Pipes ..................................................................50,000-80,000 miles
Pistons....................................................................................150,000 miles
Power Window Motor ...........................................................100,000 miles
PVC........................................................................................12,000-50,000 miles
Radiator..................................................................................100,000-150,000 miles
Radiator Hoses.......................................................................40,000-60,000 miles
Rear End ................................................................................Life of the Vehicle
Rear Shock Absorbers ...........................................................50,000 miles
Rear Spring Absorbers...........................................................50,000 miles
Shocks*..................................................................................25,000-40,000 miles
Springs* (small car)...............................................................Life of the Vehicle
(large car)................................................................30,000-40,000 miles
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MAINE CONSUMER LAW GUIDE
Starter Motor..........................................................................75,000-100,000 miles
Thermostat .............................................................................40,000-60,000 miles
Tires* .....................................................................................30,000-50,000 miles
Transmission (automatic) ......................................................50,000-100,000 miles
(manual) ..........................................................50,000-120,000 miles
Tune-up..................................................................................15,000-25,000 miles
Valves ....................................................................................75,000-100,000 miles
Windshield Washer Pump .....................................................70,000-90,000 miles
Water Pump ...........................................................................60,000-80,000 miles
Wheel Bearing .......................................................................50,000 (repacked every 25,000 miles)
Windshield Wiper Motor.......................................................70,000-90,000 miles
* depends on road conditions
