As recently reported in the May 19, 2015 edition of the New York Law Journal, the LaBonte Law Group was successful in convincing an appeals court to reduce the amount of an award to a consumer on a Lemon Law case as several of the repairs were not covered under the law. The court ruled that the consumer "failed to establish that a number of the repairs in issue were covered under the Used Car Lemon Law" and reduced the award by $2,008.25.
When handling vehicles that are still covered under the Lemon Law, whether it's a new car or a used car, it is highly advisable to be in contact with legal counsel if the vehicle is in the shop on multiple occasions or if the vehicle is out of service for several days. This will help you to determine if there is a risk that the vehicle could be a candidate for a Lemon Law refund.
Training your service personnel (especially your service managers and advisors) on the basics of the New and Used Car Lemon Laws can help you to improve customer satisfaction and to avoid legal proceedings to determine if the vehicle must be repurchased by the manufacturer or the dealer. The following is a summary of New York's New and Used Car Lemon Laws.
New Vehicles
Vehicles covered: The New Car Lemon Law applies to vehicles purchased, leased or registered in New York within the first 18,000 miles or two (2) years (from the initial in-service date) whichever occurs first. Only vehicles primarily used for personal use are eligible. Vehicles primarily used for commercial use are exempt.
Covered parts: All components of the manufacturer's express warranty.
Remedy available: Full refund or a comparable replacement vehicle (customer's option).
Criteria for a Refund:
The dealer makes four (4) or more repair attempts for the same defect within the warranty period; and the problem continues to exist; or
The vehicle is out of service due to one (1) or more defects for 30 or more days within the warranty period (Clock begins to tick the day the customer contacts the dealer regarding the problem, which includes holidays and weekends) and the problem(s) must also "seriously impair the value of the vehicle," and not be the result of abuse, neglect, or unauthorized modifications to the vehicle.
Time limit: The customer must commence an arbitration hearing within four (4) years of date of original delivery (but must meet the criteria within the warranty period).
Used Vehicles
Vehicles covered: The Used Car Lemon Law applies to used vehicles purchased, leased or registered in New York which sell for more than $1,500 and have an odometer reading less than 100,000 miles at time of sale. Vehicles that sell for less than $1,500 and/or have more than 100,000 miles are exempt from the Used Car Lemon Law (but are not exempt from the DMV Certificate of Adequacy and therefore cannot be sold "as-is"). Only vehicles primarily used for personal use are eligible. Vehicles primarily used for commercial use are exempt from the Lemon Law requirements.
Warranty limits:
- From 18,001 to 36,000 miles - 90 days/4,000 miles (whichever comes first)
- From 36,001 to 79,999 miles - 60 days/3,000 miles (whichever comes first)
- From 80,000 to 100,000 miles - 30 days/1,000 miles (whichever comes first)
Covered parts: The dealer is required to repair a covered part at no cost or reimburse the customer for repairs performed at pre-arranged facility. Covered parts include, but are not limited to:
- Engine - All lubricated parts, water pump, fuel pump, manifolds, block, cylinder head, rotary engine housings and flywheel.
- Transmission - Transmission case, internal parts and torque converter.
- Drive Axle - Front and rear drive axle housings and internal parts, axle shafts, propeller shafts and universal joints.
- Brakes - Master cylinder, vacuum assist booster, wheel cylinders, hydraulic lines and fittings, calipers.
- Steering - gear housing and all internal parts, power steering pump, valve body, piston and rack.
- Other - Alternator, generator, ignition system (excluding battery), radiator.
Excluded services - Dealers can exclude items such as:
- Failure of a covered part due to lack of maintenance.
- Maintenance services in connection with such services as seals, gaskets, oil or grease unless required in connection with the repair of a covered part.
- Tune-up.
- Repair of valves and/or rings to correct low compression and/or oil consumption that are considered normal wear.
Remedy available - Full refund or a comparable replacement vehicle (customer's option).
Criteria for a Refund:
The selling dealer makes three (3) or more repair attempts for the same defect within the warranty period and problem continues to exist. The defect must also seriously impair the value of the vehicle and not the result of abuse, neglect, or unauthorized modifications to the vehicle; or
The vehicle is out of service due to one (1) or more defects for 15 or more days within the warranty period. The dealer is required to exercise due diligence in attempting to obtain necessary repair parts. However, if parts are unavailable the time out of service (including the time for the parts delay) may be extended to no more than 45 days. (Clock begins to tick the day the customer contacts the dealer regarding the problem and includes holidays and weekends.)
Time limit: The customer must commence an arbitration hearing within four (4) years of date of original delivery.
After the Arbitration
Buybacks - When a vehicle is returned under either the New or Used Vehicle Lemon Law, the dealer or manufacturer must immediately notify the Department of Motor Vehicles. NYS law requires DMV to brand the title of a vehicle repurchased under the Lemon Law (this includes vehicles repurchased prior to the actual arbitration). Once the customer files for arbitration, even if the dealer or manufacturer settles with the customer, the title must be branded.
The Title Bureau will issue a title to the dealer or manufacturer reflecting the Lemon Law brand. To obtain Title, the dealer or manufacturer must submit the following to the Title Bureau:
- Certificate of Title from prior owner properly transferred with the odometer information entered;
- New MV-50;
- An MV-82 completed in the Dealer or Manufacturer name;
- Statement on Dealer or Manufacturer letterhead indicating the vehicle was repurchased because it does not conform to its warranty,
- Applicable fees to the Commissioner of Motor Vehicles.
New and Used Vehicle Lemon Law Disclosure
When selling a vehicle that was previously repurchased under the new or used vehicle lemon law, you must provide the buyer with the following disclosure, in writing:
This vehicle has been repurchased pursuant to section 198-a (new car lemon law) _________ or section 198-b (used vehicle lemon law) __________ of the General Business Law, a similar statute of another state ___________, or an arbitration or alternative dispute procedure _________. IMPORTANT: THIS VEHICLE WAS RETURNED TO THE MANUFACTURER OR DEALER BECAUSE IT DID NOT CONFORM TO ITS WARRANTY AND THE DEFECT OR CONDITION WAS NOT FIXED WITHIN A REASONABLE TIME AS PROVIDED BY NEW YORK LAW."
For more information on the Lemon Law or to discuss a potential problems with a vehicle currently in for service please call Stevan LaBonte at 516-280-8580.
