A. In this article, unless the context otherwise requires:
1. "Consumer" means the purchaser, other than for purposes
of resale, of a motor vehicle, any person to whom the motor
vehicle is transferred during the duration of an express warranty
applicable to the motor vehicle or any other person entitled
by the terms of the warranty to enforce the obligations of the
warranty.
2. "Motor vehicle" means a self-propelled vehicle designated
primarily for the transportation of persons or property over
the public highways.
3. "Used motor vehicle" means a motor vehicle that has been
sold, bargained, exchanged or given away or the title to which
has been transferred from the person who first acquired the
vehicle from the manufacturer, importer or dealer or agent of
the manufacturer or importer and that has been placed in bona
fide consumer use.
4. "Used motor vehicle dealer" means a person or business
that sells or offers for sale a used motor vehicle after selling
or offering for sale four or more used motor vehicles in the
previous twelve months but does not include a bank or financial
institution, an insurance company, a business selling a used
motor vehicle to an employee of that business, a lessor selling
a leased vehicle by or to the lessee of that vehicle or to an
employee of the lessee of that vehicle or a person who buys,
sells, exchanges or offers or attempts to negotiate a sale of
or exchange an interest in a classic car as defined in section
28-2483 or a historic vehicle as defined in section 28-2484.
B. If the motor vehicle is a motor home, the provisions of this
article shall apply to the self-propelled vehicle and chassis
but not to those portions of the vehicle designed, used or maintained
primarily as a mobile dwelling, office or commercial space.
C. The provisions of this article do not apply to a sale of
a motor vehicle to a purchaser for the purpose of resale for profit
or to a motor vehicle with a declared gross weight over ten thousand
pounds or that is sold at a public auction.
44-1262 . New motor vehicle; repair during express warranty
or two years or twenty-four thousand miles
A. If a new motor vehicle does not conform to all applicable
express warranties:
1. A consumer shall report the nonconformity to the manufacturer,
its agent or its authorized dealer or issuer of a warranty during
the shorter of the following:
(a) The term of the express warranty.
(b) The period of two years or twenty-four thousand miles
following the date of original delivery of the motor vehicle
to the consumer, whichever is earlier.
2. The manufacturer, its agent or its authorized dealer or
the issuer of a warranty shall make those repairs that are necessary
to conform the motor vehicle to such express warranties, even
if the repairs are made after the expiration of the term or
two year period or twenty-four thousand mile limit.
B. This section does not limit in any way the remedies available
to a consumer under a new motor vehicle warranty that extends
beyond the limits prescribed in this section.
44-1263 . Inability to conform motor vehicle to express
warranty; replacement of vehicle or refund of monies; affirmative
defenses
A. If the manufacturer, its agents or its authorized dealers
are unable to conform the motor vehicle to any applicable express
warranty by repairing or correcting any defect or condition which
substantially impairs the use and value of the motor vehicle to
the consumer after a reasonable number of attempts, the manufacturer
shall replace the motor vehicle with a new motor vehicle or accept
return of the motor vehicle from the consumer and refund to the
consumer the full purchase price, including all collateral charges,
less a reasonable allowance for the consumer's use of the vehicle.
The manufacturer shall make refunds to the consumer and lienholder,
if any, as their interests appear. A reasonable allowance for
use is that amount directly attributable to use by the consumer
before his first written report of the nonconformity to the manufacturer,
agent or dealer and during any subsequent period when the vehicle
is not out of service by reason of repair.
B. It is an affirmative defense to any claim under this article
that either:
1. An alleged nonconformity does not substantially impair
the use and market value of the motor vehicle.
2. A nonconformity is the result of abuse, neglect or unauthorized
modifications or alterations of the motor vehicle.
44-1264 . Reasonable number of attempts to conform motor
vehicle to express warranty; presumption
A. It is presumed that a reasonable number of attempts have
been undertaken to conform a motor vehicle to the applicable express
warranties if either:
1. The same nonconformity has been subject to repair four
or more times by the manufacturer or its agents or authorized
dealers during the shorter of the express warranty term or the
period of two years or twenty-four thousand miles following
the date of original delivery of the motor vehicle to the consumer,
whichever is earlier, but the nonconformity continues to exist.
2. The motor vehicle is out of service by reason of repair
for a cumulative total of thirty or more calendar days during
the shorter of the express warranty term or the two year period
or twenty-four thousand miles, whichever is earlier.
B. The term of an express warranty, the two year period and
the thirty day period are extended by any period of time during
which repair services are not available to the consumer because
of any war, invasion, strike, fire, flood or other natural disaster.
C. The presumption prescribed in this section does not apply
against a manufacturer unless the manufacturer has received prior
direct written notification from or on behalf of the consumer
of the alleged defect and has had an opportunity to cure the alleged
defect.
44-1265 . Nonlimitation of rights; refund or replacement
not required if certain procedures not followed; attorney fees
A. If a manufacturer has established or participates in an informal
dispute settlement procedure which complies in all respects with
16 code of federal regulations part 703, section 44-1263 relating
to refunds or replacement does not apply to any consumer who has
not first resorted to such a procedure.
B. A consumer shall begin an action under this article within
six months following the earlier of expiration of the express
warranty term or two years or twenty-four thousand miles following
the date of original delivery of the motor vehicle to the consumer,
whichever is earlier. If a consumer prevails in an action under
this article, the court shall award the consumer reasonable costs
and attorney fees.
44-1266 . Notice to dealers and prospective purchasers
A. A manufacturer who has been ordered by judgment or decree
to replace or repurchase a motor vehicle pursuant to this article
or the repair or replace laws of another state shall, before offering
the motor vehicle for resale, attach to the motor vehicle written
notification indicating the motor vehicle has been replaced or
repurchased. A consumer has a cause of action against any person
who removes the written notification from the motor vehicle, except
as provided in subsection B of this section.
B. A motor vehicle dealer, broker, wholesale motor vehicle dealer
or wholesale motor vehicle auction dealer as defined in section
28-4301 who offers for sale a motor vehicle that has been replaced
or repurchased pursuant to this article or the repair or replace
laws of another state shall provide the purchaser with the manufacturer's
written notification indicating that the motor vehicle has been
replaced or repurchased before completion of the sale.
C. It shall constitute an affirmative defense in an action brought
pursuant to subsection A of this section against a motor vehicle
dealer or an agent of a motor vehicle dealer that the notification
described in subsection A of this section was removed by someone
other than the dealer or agent without the knowledge of the dealer
or agent.
44-1267 . Used motor vehicles; title; implied warranty
of merchantability disclaimer; waiver; burden of proof; remedies
A. Before the seller attempts to sell a used motor vehicle the
seller shall possess the title to the used motor vehicle and the
title shall be in the seller's name.
B. Except as provided in subsection I of this section and in
addition to the requirements of section 28-4412, a used motor
vehicle dealer shall not exclude, modify or disclaim the implied
warranty of merchantability prescribed in section 47-2314 or limit
the remedies for a breach of that warranty, except as otherwise
provided in this section, before midnight of the fifteenth calendar
day after delivery of a used motor vehicle or until a used motor
vehicle is driven five hundred miles after delivery, whichever
is earlier. In calculating time under this subsection, a day on
which the warranty is breached is excluded and all subsequent
days in which the motor vehicle fails to conform with the implied
warranty of merchantability are also excluded. In calculating
distance under this subsection, the miles driven to obtain or
in connection with the repair, servicing or testing of the motor
vehicle that fails to conform with the implied warranty of merchantability
are excluded. An attempt to exclude, modify or disclaim the implied
warranty of merchantability or to limit the remedies for a breach
of that warranty, except as otherwise provided in this section,
in violation of this subsection renders a purchase agreement voidable
at the option of the purchaser.
C. For the purposes of this section, the implied warranty of
merchantability is met if the motor vehicle functions in a safe
condition as provided in title 28, chapter 3, article 16 and is
substantially free of any defect that significantly limits the
use of the motor vehicle for the ordinary purpose of transportation
on any public highway. The implied warranty of merchantability
expires at midnight of the fifteenth calendar day after delivery
of a used motor vehicle or when a used motor vehicle has been
driven five hundred miles after delivery, whichever is earlier.
In calculating time under this subsection, a day on which the
warranty is breached is excluded and all subsequent days in which
the motor vehicle fails to conform with the implied arranty of
merchantability are also excluded. In calculating distance under
this subsection, the miles driven to obtain or in connection with
the repair, servicing or testing of the motor vehicle that fails
to conform with the implied warranty of merchantability are excluded.
D. The implied warranty of merchantability described in this
section does not extend to damage that occurs after the sale of
the motor vehicle and that is the result of any abuse, misuse,
neglect, failure to perform regular maintenance or to maintain
adequate oil, coolant or other required fluid or lubricant or
off road use, racing or towing.
E. If the implied warranty of merchantability described in this
section is breached, the purchaser shall give reasonable notice
to the seller. Before the purchaser exercises any other remedies
under title 47, chapter 2, the seller shall have a reasonable
opportunity to repair the vehicle. The purchaser shall pay one-half
of the cost of the first two repairs necessary to bring the vehicle
in compliance with the warranty. The purchaser's payments are
limited to a maximum payment of twenty-five dollars for each repair.
F. The maximum liability of the seller under this section is
limited to the purchase price paid for the used motor vehicle.
G. An agreement for the sale of a used motor vehicle by a used
motor vehicle dealer is voidable at the option of the purchaser
unless it contains on its face the following conspicuous statement
printed in bold-faced ten point or larger type set off from the
body of the agreement:
The seller hereby warrants that this vehicle will be fit for
the ordinary purposes for which the vehicle is used for 15 days
or 500 miles after delivery, whichever is earlier, except with
regard to particular defects disclosed on the first page of this
agreement. You (the purchaser) will have to pay up to $25.00 for
each of the first two repairs if the warranty is violated.
H. The inclusion of the statement prescribed in subsection G
of this section in the agreement does not create an express warranty.
I. A purchaser of a used motor vehicle may waive the implied
warranty of merchantability described in this section only for
a particular defect in the vehicle and only if all of the following
conditions are satisfied:
1. The used motor vehicle dealer fully and accurately discloses
to the purchaser that because of circumstances unusual to the
used motor vehicle dealer's business, the used motor vehicle
has a particular defect.
2. The purchaser agrees to buy the used motor vehicle after
disclosure of the defect.
3. Before the sale, the purchaser indicates agreement to the
waiver by signing and dating the following conspicuous statement
that is printed on the first page of the sales agreement in
bold-faced ten point or larger type and that is written in the
language in which the presentation was made:
Attention purchaser: sign here only if the dealer told you
that this vehicle has the following problem(s) and that you
agree to buy the vehicle on those terms:
1._______________________________
2._______________________________
3._______________________________
J. The dealer has the burden to prove by a preponderance of
the evidence that the dealer complied with subsection I of this
section.
K. Any purchaser or seller who is aggrieved by a transaction
pursuant to this section and who seeks a legal remedy shall pursue
any appropriate remedy prescribed in title 47, chapter 2 and shall
comply with the requirements prescribed in title 47, chapter 2.
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