Alabama Lemon Law Statutes
Section 8-20A-1
Definitions.
As used in this chapter, the following terms shall have the respective meanings as
indicated:
(1) CONSUMER. The purchaser, other than for purposes of resale, of a new or previously
untitled motor vehicle used in substantial part for personal, family, or household
purposes, and any other person entitled by the terms of such warranty to enforce the
obligations of the warranty.
(2) MOTOR VEHICLE. Every vehicle intended primarily for use and operation on the public
highways which is self-propelled; provided, however, that the term "motor
vehicle" shall not apply to motor homes or to any motor vehicle having a
manufacturer's gross vehicle weight rating (GVWR) of 10,000 pounds or more.
(3) MANUFACTURER. The person, firm, or corporation engaged in the business of
manufacturing, importing and/or distributing motor vehicles to be made available to a
motor vehicle dealer for retail sale.
(4) MOTOR VEHICLE DEALER or AUTHORIZED DEALER. The person, firm, or corporation
operating under a dealer agreement from a manufacturer, importer, or distributor and who
is engaged regularly in the business of buying, selling or exchanging motor vehicles in
this state and who has in this state an established place of business.
(5) EXPRESS WARRANTY. A written warranty, so labeled, issued by the manufacturer of a
new motor vehicle, including any terms or conditions precedent to the enforcement of
obligations under that warranty.
(6) NONCONFORMING CONDITION. Any condition of a motor vehicle which shall not be in
conformity with the terms of any express warranty issued by the manufacturer to a consumer
and which: (i) significantly impairs the use, value or safety of the motor vehicle and
(ii) occurs or arises solely in the course of the ordinary use of the motor vehicle, and
which does not arise or occur as a result of abuse, neglect, modification, or alteration
of the motor vehicle not authorized by the manufacturer, nor from any accident or other
damage to the motor vehicle which occurs or arises after such motor vehicle was delivered
by an authorized dealer to the consumer.
(7) NOTICE OF A NONCONFORMING CONDITION. A written statement which shall be delivered
to the manufacturer and which shall describe the subject motor vehicle, the nonconforming
condition, and shall describe all previous attempts to correct such nonconforming
condition by identifying the person, firm or corporation who or which made such attempt,
and the time when such attempt was made.
(8) LEMON LAW RIGHTS PERIOD. The period ending one year after the date of the original
delivery of a motor vehicle to a consumer or the first 12,000 miles of operation,
whichever first occurs.
(Acts 1990, No. 90-479, p. 701, §1.)
Section 8-20A-2
Obligations of manufacturer.
(a) If a new motor vehicle does not conform to any applicable express warranty, and the
consumer delivers the motor vehicle to the manufacturer, its agent, or its authorized
dealer, and gives notice of the nonconforming condition during the lemon law rights
period, the manufacturer of the motor vehicle shall be obligated to make such repairs to
the motor vehicle as shall be necessary to remedy any nonconforming condition thereof.
Such repairs shall be required even after the expiration of the lemon law rights period
provided that notice of the nonconforming condition was first given during the lemon law
rights period and provided further that the manufacturer's obligation to repair the
nonconforming condition shall not extend beyond the period of 24 months following delivery
of the vehicle or 24,000 miles, whichever occurs first.
(b) If, after reasonable attempts, the manufacturer, its agent, or its authorized
dealer is unable to conform the motor vehicle to any express warranty by repairing or
correcting a nonconforming condition of the motor vehicle which first occurred during the
lemon law rights period, the manufacturer shall, at the option of the consumer, replace
the motor vehicle with a comparable new motor vehicle or shall accept return of the
vehicle from the consumer and refund to the consumer the following:
(1) The full contract price including, but not limited to, charges for undercoating,
dealer preparation and transportation charges, and installed options, plus the
nonrefundable portions of extended warranties and service contracts;
(2) All collateral charges, including but not limited to, sales tax, license and
registration fees, and similar government charges;
(3) All finance charges incurred by the consumer after he first reported the
nonconformity to the manufacturer, its agent, or its authorized dealer; and
(4) Any incidental damages which shall include the reasonable cost of alternative
transportation during the period that the consumer is without the use of the motor vehicle
because of the nonconforming condition. There shall be offset against any monetary
recovery of the consumer a reasonable allowance for the consumer's use of the vehicle.
Refunds shall be made to the consumer, and any lien holders, as their interests may
appear. A reasonable allowance for use is that amount directly attributable to use by the
consumer before his first report of the nonconformity to the manufacturer, agent, or
authorized dealer, and must be calculated by multiplying the full purchase price of the
motor vehicle by a fraction having as its denominator 100,000 and having as its numerator
the number of miles that the vehicle travelled before the first report of nonconformity.
(c) It shall be presumed that reasonable attempts to correct a nonconforming condition
have been allowed by the consumer if, during the period of 24 months following delivery of
the vehicle or 24,000 miles, whichever first occurs, either of the following events shall
have occurred:
(1) The same nonconforming condition has been subject to repair attempts three or more
times by the manufacturer, its agents or its authorized dealers, at least one of which
occurred during the lemon law rights period, plus a final attempt by the manufacturer, and
the same nonconforming condition continues to exist; or
(2) The motor vehicle is out of service and in the custody of the manufacturer, its
agent, or an authorized dealer due to repair attempts (including the final repair
attempt), one of which occurred during the lemon law rights period, for a cumulative total
of 30 calendar days, unless such repair could not be performed because of conditions
beyond the control of the manufacturer, its agents or authorized dealers, such as war,
invasion, strike, fire, flood, or other natural disaster.
(Acts 1990, No. 90-479, p. 701, §2.)
Section 8-20A-3
Cause of action against manufacturer.
(a) A consumer sustaining damages as a proximate consequence of the failure by a
manufacturer to perform its obligations imposed under this chapter may bring a civil
action against the manufacturer to enforce the provisions of this chapter. Prior to the
commencement of any such proceeding a consumer must give notice of a nonconforming
condition by certified United States mail to the manufacturer and demand correction or
repair of the nonconforming condition. If at the time such notice of a nonconforming
condition is given to the manufacturer, a presumption has arisen that reasonable attempts
to correct a nonconforming condition have been allowed, the manufacturer shall be given a
final opportunity to cure the nonconforming condition. The manufacturer shall within seven
calendar days of receiving the written notice of nonconforming condition notify the
consumer of a reasonably accessible repair facility. After delivery of the new vehicle to
the authorized repair facility by the consumer, the manufacturer shall attempt to correct
the nonconforming condition and conform the vehicle to the express warranty within a
period not to exceed 14 calendar days. If a manufacturer has established an informal
dispute settlement procedure which is in compliance with federal rules and regulations, a
consumer must first exhaust any remedy afforded to the consumer under the informal dispute
procedure of the manufacturer before a cause of action may be instituted under the
provisions of this chapter.
(b) It shall be an affirmative defense to any claim against the manufacturer under this
chapter that: (i) an alleged nonconforming condition does not significantly impair the
use, market value, or safety of the motor vehicle; or (ii) a nonconforming condition is a
result of abuse, neglect, or any modification or alteration of a motor vehicle by a
consumer that is not authorized by the manufacturer.
(c) If it is determined that the manufacturer has breached its obligations imposed
under this chapter, then the consumer shall be entitled to recover, in addition to the
remedy provided under Section 8-20A-2 above, an additional award for reasonable attorneys
fees.
(Acts 1990, No. 90-479, p. 701, §3.)
Section 8-20A-4
Resale of returned motor vehicle.
If a motor vehicle has been returned to the manufacturer under the provisions of this
chapter or a similar statute of another state, whether as the result of a legal action or
as the result of an informal dispute settlement proceeding, it may not be resold in this
state unless:
(1) The manufacturer discloses in writing to the subsequent purchaser the fact that the
motor vehicle was returned under the provisions of this chapter and the nature of the
nonconformity to the vehicle warranty.
(2) The manufacturer returns the title of the motor vehicle to the Alabama Department
of Revenue advising of the return of the motor vehicle under provisions of this chapter
with an application for title in the name of the manufacturer. The Department of Revenue
shall brand the title issued to the manufacturer and all subsequent titles to the motor
vehicle with the following statement:
THIS VEHICLE WAS RETURNED TO THE MANUFACTURER BECAUSE IT DID NOT CONFORM TO ITS
WARRANTY.
(Acts 1990, No. 90-479, p. 701, §4.)
Section 8-20A-5
No dealership liability.
Nothing in this chapter imposes any liability upon a motor vehicle dealer or authorized
dealer or creates a cause of action by a consumer against a motor vehicle dealer or
authorized dealer. A motor vehicle dealer or authorized dealer may not be made a party
defendant in any action involving or relating to this chapter. The manufacturer shall not
charge back or require reimbursement by a motor vehicle dealer or authorized dealer for
any costs, including, but not limited to, any refunds or vehicle replacements, incurred by
the manufacturer arising out of this chapter.
(Acts 1990, No. 90-479, p. 701, §5.)
Section 8-20A-6
Statute of limitations.
Any action brought under this chapter against the manufacturer shall be commenced
within three years following the date of original delivery of the motor vehicle to the
consumer.
(Acts 1990, No. 90-479, p. 701, §6.)
