Arkansas Lemon Law Statutes
From the State of Arkansas website:
4-90-401.
Title.
This subchapter shall be known
and may be cited as the "Arkansas New Motor Vehicle Quality Assurance
Act".
History. Acts 1993, No. 285, §
1; 1993, No. 297, § 1.
4-90-401. Title.
This subchapter shall be known
and may be cited as the "Arkansas New Motor Vehicle Quality Assurance
Act".
History. Acts 1993, No. 285, §
1; 1993, No. 297, § 1.
4-90-402.
Legislative determinations and intent.
The General Assembly recognizes that a motor vehicle is a major consumer
acquisition and that a defective motor vehicle undoubtedly creates a hardship for the
consumer. The General Assembly further recognizes that a duly franchised motor vehicle
dealer is an authorized service agent of the manufacturer. It is the intent of the General
Assembly that a good-faith motor vehicle warranty complaint by a consumer be resolved by
the manufacturer within a specified period of time. It is further the intent of the
General Assembly to provide the statutory procedures whereby a consumer may receive a
replacement motor vehicle or a full refund for a motor vehicle which cannot be brought
into conformity with the warranty during the motor vehicle quality assurance period
provided for in this subchapter. However, nothing in this subchapter shall in any way
limit the rights or remedies which are otherwise available to a consumer under any other
law.
History. Acts 1993, No. 285, §
2; 1993, No. 297, § 2; 2001, No. 1134, § 1.
As used in this subchapter, unless the context otherwise requires:
(1) "Calendar day" means any day of the week
other than a legal holiday;
(2) "Collateral charges" means those additional
charges to a consumer wholly incurred as a result of the acquisition of the motor vehicle.
For the purposes of this subchapter, collateral charges include, but are not limited to,
manufacturer-installed or agent-installed items, earned finance charges, sales taxes,
title charges, and charges for extended warranties provided by the manufacturer, its
subsidiary, or agent;
(3) "Condition" means a general problem that may
be attributable to a defect in more than one (1) part;
(4) "Consumer" means the purchaser or lessee,
other than for the purposes of lease or resale, of a new or previously untitled motor
vehicle or any other person entitled to enforce the obligations of the warranty during the
duration of the motor vehicle quality assurance period, provided the purchaser has titled
and registered the motor vehicle as prescribed by law;
(5) "Incidental charges" means those reasonable
costs incurred by the consumer, including, but not limited to, towing charges and the
costs of obtaining alternative transportation which are directly caused by the
nonconformity or nonconformities which are the subject of the claim, but shall not include
loss of use, loss of income, or personal injury claims;
(6) "Lease price" means the aggregate of:
(A) The lessor's actual purchase costs;
(B) Collateral charges, if applicable;
(C) Any fee paid to another person to obtain the
lease;
(D) Any insurance or other costs expended by the lessor
for the benefit of the lease;
(E) An amount equal to state and local sales taxes, not
otherwise included as collateral charges, paid by the lessor when the vehicle was
initially purchased; and
(F) An amount equal to five percent (5%) of the lessor's
actual purchase price;
(7) "Lessee" means any consumer who leases a motor
vehicle for one (1) year or more pursuant to a written lease agreement which provides that
the lessee is responsible for repairs to the motor vehicle;
(8) "Lessee cost" means the aggregate deposit and
rental payments previously paid to the lessor for the leased vehicle;
(9) "Lessor" means a person who holds title to a
motor vehicle leased to a lessee under the written lease agreement or who holds the
lessor's rights under such agreement;
(10) "Manufacturer" means:
(A) Any person who is engaged in the business of
constructing or assembling new motor vehicles or installing on previously assembled
vehicle chassis special bodies or equipment which, when installed, form an integral part
of the new motor vehicle; or
(B) In the case of motor vehicles not manufactured in the
United States, any person who is engaged in the business of importing new motor vehicles
into the United States for the purpose of selling or distributing new motor vehicles to
new motor vehicle dealers;
(11) "Motor vehicle" or "vehicle" means
any self-propelled vehicle licensed, purchased, or leased in this state and primarily
designed for the transportation of persons or property over the public streets and
highways, but does not include mopeds, motorcycles, the living facilities of a motor home,
or vehicles over ten thousand pounds (10,000 lbs.) gross vehicle weight rating. For
purposes of this definition, the limit of ten thousand pounds (10,000 lbs.) gross vehicle
weight rating does not apply to motor homes;
(12) "Motor vehicle quality assurance period"
means a period of time that:
(A) Begins:
(i) On the date of original delivery of a motor
vehicle; or
(ii) In the case of a replacement vehicle provided by
a manufacturer to a consumer under this subchapter, on the date of delivery of the
replacement vehicle to the consumer; and
(B) Ends twenty-four (24) months after the date of the
original delivery of the motor vehicle to a consumer, or the first twenty-four thousand
(24,000) miles of operation attributable to the consumer, whichever is later;
(13) "Nonconformity" means any specific or generic
defect or condition or any concurrent combination of defects or conditions that:
(A) Substantially impairs the use, market value, or
safety of a motor vehicle; or
(B) Renders the motor vehicle nonconforming to the terms
of an applicable manufacturer's express warranty or implied warranty of
merchantability;
(14) "Person" means any natural person,
partnership, firm, corporation, association, joint venture, trust, or other legal
entity;
(15) "Purchase price" means the cash price paid
for the motor vehicle appearing in the sales agreement or contract, including any net
allowance for a trade-in vehicle;
(16) "Replacement motor vehicle" means a motor
vehicle which is identical or reasonably equivalent to the motor vehicle to be replaced,
as the motor vehicle replaced existed at the time of the original acquisition; and
(17) "Warranty" means any written warranty issued
by the manufacturer, or any affirmation of fact or promise made by the manufacturer,
excluding statements made by the dealer, in connection with the sale or lease of a motor
vehicle to a consumer which relates to the nature of the material or workmanship and
affirms or promises that such material or workmanship is free of defects or will meet a
specified level of performance.
History. Acts 1993, No. 285, §
3; 1993, No. 297, § 3; 1995, No. 302, § 1; 2001, No. 1134, §
2.
4-90-404.
Notice by consumer - Disclosure by manufacturer, agent, or dealer.
(a)(1) A consumer shall utilize the informal dispute settlement
proceeding provided for in this subchapter prior to bringing any legal action to enforce
the consumer's rights under this subchapter, if the manufacturer has made the disclosure
required by subsection (b) of this section.
(2) However, if the manufacturer has not made the required
disclosure, the consumer is not required to utilize the informal dispute settlement
procedure pursuant to § 4-90-414
prior to any legal action to enforce the consumer's rights under this subchapter.
(b)(1)(A) At the time of the consumer's purchase or lease of
the vehicle, the manufacturer, its agent, or an authorized dealer shall provide to the
consumer a written statement that explains the consumer's rights and obligations under
this subchapter.
(B) The manufacturer's authorized dealer shall obtain the
consumer's signed acknowledgement of the receipt of the written statement explaining the
consumer's rights and obligations under this subchapter.
(C) The manufacturer's authorized dealer shall maintain
copies of the consumer's signed acknowledgement for a period of no fewer than five (5)
years.
(2) The written statement shall be prepared by the Consumer
Protection Division of the Office of the Attorney General and shall include the telephone
number of the division that the consumer can contact to obtain information regarding his
or her rights and obligations under this subchapter.
(3) For each failure of the manufacturer, its agent, or an
authorized dealer to provide to a consumer the written statement required under this
section or failure to retain a signed acknowledgement form, the manufacturer shall be
liable to the State of Arkansas for a civil penalty of not less than twenty-five dollars
($25.00) nor more than one thousand dollars ($1,000).
(c)(1) The manufacturer shall clearly and conspicuously
disclose to the consumer, in the warranty or owner's manual, that written notice of the
nonconformity is required before the buyer may be eligible for a refund or replacement of
the vehicle.
(2) The manufacturer shall provide the consumer with
conspicuous notice of the address and phone number for its zone, district, or regional
office for this state at the time of vehicle acquisition, to which the buyer must send
notification.
History. Acts 1993, No. 285, §
5; 1993, No. 297, § 5; 1995, No. 302, § 2; 2001, No. 1134, §
3.
As used in this subchapter, unless the context otherwise requires:
(1) "Calendar day" means any day of the week
other than a legal holiday;
(2) "Collateral charges" means those additional
charges to a consumer wholly incurred as a result of the acquisition of the motor vehicle.
For the purposes of this subchapter, collateral charges include, but are not limited to,
manufacturer-installed or agent-installed items, earned finance charges, sales taxes,
title charges, and charges for extended warranties provided by the manufacturer, its
subsidiary, or agent;
(3) "Condition" means a general problem that may
be attributable to a defect in more than one (1) part;
(4) "Consumer" means the purchaser or lessee,
other than for the purposes of lease or resale, of a new or previously untitled motor
vehicle or any other person entitled to enforce the obligations of the warranty during the
duration of the motor vehicle quality assurance period, provided the purchaser has titled
and registered the motor vehicle as prescribed by law;
(5) "Incidental charges" means those reasonable
costs incurred by the consumer, including, but not limited to, towing charges and the
costs of obtaining alternative transportation which are directly caused by the
nonconformity or nonconformities which are the subject of the claim, but shall not include
loss of use, loss of income, or personal injury claims;
(6) "Lease price" means the aggregate of:
(A) The lessor's actual purchase costs;
(B) Collateral charges, if applicable;
(C) Any fee paid to another person to obtain the
lease;
(D) Any insurance or other costs expended by the lessor
for the benefit of the lease;
(E) An amount equal to state and local sales taxes, not
otherwise included as collateral charges, paid by the lessor when the vehicle was
initially purchased; and
(F) An amount equal to five percent (5%) of the lessor's
actual purchase price;
(7) "Lessee" means any consumer who leases a motor
vehicle for one (1) year or more pursuant to a written lease agreement which provides that
the lessee is responsible for repairs to the motor vehicle;
(8) "Lessee cost" means the aggregate deposit and
rental payments previously paid to the lessor for the leased vehicle;
(9) "Lessor" means a person who holds title to a
motor vehicle leased to a lessee under the written lease agreement or who holds the
lessor's rights under such agreement;
(10) "Manufacturer" means:
(A) Any person who is engaged in the business of
constructing or assembling new motor vehicles or installing on previously assembled
vehicle chassis special bodies or equipment which, when installed, form an integral part
of the new motor vehicle; or
(B) In the case of motor vehicles not manufactured in the
United States, any person who is engaged in the business of importing new motor vehicles
into the United States for the purpose of selling or distributing new motor vehicles to
new motor vehicle dealers;
(11) "Motor vehicle" or "vehicle" means
any self-propelled vehicle licensed, purchased, or leased in this state and primarily
designed for the transportation of persons or property over the public streets and
highways, but does not include mopeds, motorcycles, the living facilities of a motor home,
or vehicles over ten thousand pounds (10,000 lbs.) gross vehicle weight rating. For
purposes of this definition, the limit of ten thousand pounds (10,000 lbs.) gross vehicle
weight rating does not apply to motor homes;
(12) "Motor vehicle quality assurance period"
means a period of time that:
(A) Begins:
(i) On the date of original delivery of a motor
vehicle; or
(ii) In the case of a replacement vehicle provided by
a manufacturer to a consumer under this subchapter, on the date of delivery of the
replacement vehicle to the consumer; and
(B) Ends twenty-four (24) months after the date of the
original delivery of the motor vehicle to a consumer, or the first twenty-four thousand
(24,000) miles of operation attributable to the consumer, whichever is later;
(13) "Nonconformity" means any specific or generic
defect or condition or any concurrent combination of defects or conditions that:
(A) Substantially impairs the use, market value, or
safety of a motor vehicle; or
(B) Renders the motor vehicle nonconforming to the terms
of an applicable manufacturer's express warranty or implied warranty of
merchantability;
(14) "Person" means any natural person,
partnership, firm, corporation, association, joint venture, trust, or other legal
entity;
(15) "Purchase price" means the cash price paid
for the motor vehicle appearing in the sales agreement or contract, including any net
allowance for a trade-in vehicle;
(16) "Replacement motor vehicle" means a motor
vehicle which is identical or reasonably equivalent to the motor vehicle to be replaced,
as the motor vehicle replaced existed at the time of the original acquisition; and
(17) "Warranty" means any written warranty issued
by the manufacturer, or any affirmation of fact or promise made by the manufacturer,
excluding statements made by the dealer, in connection with the sale or lease of a motor
vehicle to a consumer which relates to the nature of the material or workmanship and
affirms or promises that such material or workmanship is free of defects or will meet a
specified level of performance.
History. Acts 1993, No. 285, §
3; 1993, No. 297, § 3; 1995, No. 302, § 1; 2001, No. 1134, §
2.
4-90-405.
Required warranty repairs.
If a motor vehicle does not conform to the warranty and the consumer
reports the nonconformity to the manufacturer, its agent, or authorized dealer during the
motor vehicle quality assurance period, the manufacturer, its agent, or authorized dealer
shall make repairs as are necessary to correct the nonconformity, even if the repairs are
made after the expiration of the term of protection.
History. Acts 1993, No. 285, §
4; 1993, No. 297, § 4; 2001, No. 1134, § 4.
(a)(1) Refunds shall be made to the consumer and lienholder of
record, if any, as their interests may appear.
(2) If applicable, refunds shall be made to the lessor and
lessee as follows:
(A) The lessee shall receive the lessee cost less a
reasonable offset for use; and
(B) The lessor shall receive the lease price less the
aggregate deposit and rental payments previously paid to the lessor for the leased
vehicle.
(b) If the manufacturer makes a refund to the lessor or
lessee pursuant to this subchapter, the consumer's lease agreement with the lessor shall
be terminated upon payment of the refund and no penalty for early termination shall be
assessed.
(c) If a replaced vehicle was financed by the manufacturer,
its subsidiary, or agent, the manufacturer, subsidiary, or agent may not require the buyer
to enter into any refinancing agreement concerning a replacement vehicle that would create
any financial obligations upon the buyer beyond those of the original financing
agreement.
History. Acts 1993, No. 285, §
7; 1993, No. 297, § 7.
4-90-408.
Reimbursement of towing and rental costs.
Whenever a vehicle is replaced or refunded under this subchapter, the
manufacturer shall reimburse the consumer for necessary towing and rental costs actually
incurred as a direct result of the nonconformity.
History. Acts 1993, No. 285, §
10; 1993, No. 297, § 10.
4-90-409.
Option to retain use of vehicle.
A consumer has the option of retaining the use of any vehicle returned
under this subchapter until the time that the consumer has been tendered a full refund or
a replacement vehicle of comparable value.
History. Acts 1993, No. 285, §
11; 1993, No. 297, § 11.
4-90-410.
Presumption of reasonable attempts to repair - Extension of time to repair in case of war,
invasion, strike, fire, flood, or natural disaster.
(a) A rebuttable presumption of a reasonable number of attempts to
repair is considered to have been undertaken to correct a nonconformity if:
(1) The nonconformity has been subject to repair as
provided in § 4-90-406(a),
but the nonconformity continues to exist;
(2) The vehicle is out of service by reason of repair, or
attempt to repair, any nonconformity for a cumulative total of thirty (30) calendar days;
or
(3) There have been five (5) or more attempts on separate
occasions to repair any nonconformities that together substantially impair the use and
value of the motor vehicle to the consumer.
(b)(1) The thirty (30) calendar days in subdivision (a)(2) of
this section shall be extended by any period of time during which repair services are not
available as a direct result of war, invasion, strike, fire, flood, or natural
disaster.
(2) The manufacturer, its agent, or authorized dealer shall
provide or make provisions for the free use of a vehicle to any consumer whose vehicle is
out of service beyond thirty (30) days by reason of delayed repair as a direct result of
war, invasion, strike, fire, flood, or natural disaster.
(c) The burden is on the manufacturer to show that the reason
for an extension under subsection (b) of this section was the direct cause for the failure
of the manufacturer, its agent, or authorized dealer to cure any nonconformity during the
time of the event.
History. Acts 1993, No. 285, §
12; 1993, No. 297, § 12.
4-90-411.
Diagnosis or repair - Documentation.
(a) A manufacturer, its agent, or authorized dealer may not refuse
to diagnose or repair any vehicle for the purpose of avoiding liability under this
subchapter.
(b)(1)(A) A manufacturer, its agent, or authorized dealer
shall provide a consumer with a written repair order each time the consumer's vehicle is
brought in for examination or repair.
(B) The written repair order shall include a reference to
each defect, nonconformity, or other complaint brought to the attention of the
manufacturer, its agent, or authorized dealer by the consumer, and each presentation of
the vehicle by the consumer for a reasonable opportunity to repair shall be a repair
attempt for those defects, nonconformities, or other complaints noted in the written
repair order.
(C)(i) However, in the case of a motor vehicle that is a
motor home where two (2) or more manufacturers contributed to the construction of the
motor home, it shall not count as a repair attempt if the repair facility at which the
consumer presented the vehicle is not authorized by the manufacturer to provide warranty
service on that vehicle.
(ii) In addition, it shall count as only one (1)
repair attempt for a motor vehicle that is a motor home if the same nonconformity is being
addressed a second time due to the consumer's decision to continue traveling and to seek
the repair of that same nonconformity at another repair facility, rather than wait for the
repair to be completed at the initial repair facility.
(2) The repair order must indicate all work performed on the
vehicle, including examination of the vehicle, parts, and labor.
History. Acts 1993, No. 285, §
13; 1993, No. 297, § 13; 2001, No. 1134, § 5.
4-90-412.
Resale of returned nonconforming vehicle.
(a) If a motor vehicle has been replaced or repurchased by a
manufacturer as the result of a court judgment, an arbitration award, or any voluntary
agreement entered into between a manufacturer or a manufacturer through its authorized
dealer and a consumer that occurs after a consumer has notified the manufacturer of the
consumer's desire to utilize the informal dispute settlement proceeding pursuant to this
subchapter or a similar law of another state, the motor vehicle may not be resold in
Arkansas unless:
(1) The manufacturer provides the same express warranty
the manufacturer provided to the original purchaser, except that the term of the warranty
need only last for twelve thousand (12,000) miles or twelve (12) months after the date of
resale, whichever occurs first; and
(2) The manufacturer provides a written disclosure, signed
by the consumer, indicating that the vehicle was returned to the manufacturer because of a
nonconformity not cured within a reasonable time as provided by Arkansas law.
(b) The written disclosure required by this section applies
to the first resale to a retail customer of the vehicle in Arkansas by the manufacturer or
its authorized dealer.
History. Acts 1993, No. 285, §
14; 1993, No. 297, § 14; 2001, No. 1134, § 6.
4-90-413.
Affirmative defenses.
It is an affirmative defense to any claim under this subchapter
that:
(1) The nonconformity, defect, or condition does not
substantially impair the use, value, or safety of the motor vehicle;
(2) The nonconformity, defect, or condition is the result of
an accident, abuse, neglect, or unauthorized modification or alteration of the motor
vehicle by persons other than the manufacturer, its agent, or authorized dealer;
(3) The claim by the consumer was not filed in good faith;
or
(4) Any other defense allowed by law that may be raised
against the claim.
History. Acts 1993, No. 285, §
15; 1993, No. 297, § 15.
4-90-414.
Informal proceeding as precedent.
(a)(1) Any manufacturer doing business in this state, entering into
franchise agreements for the sale of its motor vehicles in this state, or offering express
warranties on its motor vehicles sold or distributed for sale in this state, shall operate
or participate in an informal dispute settlement proceeding located in the State of
Arkansas which complies with the requirements of this section.
(2) The provisions of §
4-90-406(b)(1)
and (2) concerning refunds or replacement do not apply to a consumer who has not first
used this informal proceeding before commencing a civil action, unless the manufacturer
allows a consumer to commence an action without first using this informal proceeding, or
unless the manufacturer has failed to make the disclosure required by § 4-90-404(b).
(3)(A) The consumer shall receive adequate written notice
from the manufacturer of the existence of the proceeding.
(B) Adequate written notice may include the incorporation
of the informal dispute settlement proceeding into the terms of the written warranty to
which the motor vehicle does not conform.
(b) The informal dispute proceeding shall meet the following
criteria:
(1) The informal dispute proceeding must comply with the
minimum requirements of the Federal Trade Commission for informal dispute settlement
proceedings as set forth in 16 C.F.R. § 703.1 et
seq., as in effect on the date of adoption of this subchapter, unless any provision of 16
C.F.R. § 703.1 et seq. is in conflict with this
subchapter, in which case the provisions of this subchapter shall govern;
(2) The informal dispute proceedings must prescribe a
reasonable time, not to exceed thirty (30) days after the decision is accepted by the
buyer, within which the manufacturer or its agent must fulfill the terms of its
decisions;
(3)(A) No documents shall be received by any informal
dispute proceeding unless those documents have been provided to each of the parties in the
dispute at or prior to the proceeding, with an opportunity for the parties to comment on
the documents either in writing or orally.
(B) If a consumer is present during the informal dispute
proceeding, the consumer may request postponement of the proceeding meeting to allow
sufficient time to review any documents presented at the time of the meeting, which had
not been presented to the consumer prior to the time of the meeting;
(4)(A) The informal dispute proceeding shall allow each
party to appear and make an oral presentation within the State of Arkansas, unless the
consumer agrees to submit the dispute for decision on the basis of documents alone or by
telephone, or unless the party fails to appear for an oral presentation after reasonable
prior written notice.
(B) If the consumer agrees to submit the dispute for
decision on the basis of documents alone, then the manufacturer or dealer representatives
may not participate in the discussion of the dispute;
(5) Consumers shall be given an adequate opportunity to
contest a manufacturer's assertion that a nonconformity falls within intended
specifications for the vehicle by having the basis of the manufacturer's claim appraised
by a technical expert selected and paid for by the consumer prior to the informal dispute
settlement hearing;
(6) A consumer may not be charged with a fee to participate
in an informal dispute proceeding; and
(7) Any party to the dispute has the right to be represented
by an attorney in an informal dispute proceeding.
(c)(1) The informal dispute proceeding shall annually submit
a pool of not fewer than six (6) members to the Consumer Protection Division of the Office
of the Attorney General.
(2) Selected strictly by rotation, one (1) member shall hear
disputes scheduled for a particular session unless the consumer requests a panel of three
(3) members, in which case three (3) members, also selected by rotation, shall hear
disputes scheduled for a particular three-member session.
(3) If the informal dispute proceeding deems it appropriate
to require the services of an independent investigator, the investigator shall be selected
from a pool of not fewer than four (4) members who are submitted annually to the division
and from which the particular investigator shall be selected strictly by rotation.
History. Acts 1993, No. 285, §
16; 1993, No. 297, § 16; 2001, No. 1134, § 7.
4-90-415.
Enforcement - Exclusivity - Costs and expenses.
(a) A consumer may bring a civil action to enforce this subchapter
in a court of competent jurisdiction.
(b) This subchapter does not limit the rights and remedies
that are otherwise available to a consumer under any applicable provisions of law.
(c) A consumer who prevails in any legal proceeding under
this subchapter is entitled to recover as part of the judgment a sum equal to the
aggregate amount of costs and expenses, including attorney's fees based upon actual time
expended by the attorney, determined by the court to have been reasonably incurred by the
consumer for or in connection with the commencement and prosecution of the action.
History. Acts 1993, No. 285, §§
17-19; 1993, No. 297, §§ 17-19.
4-90-416. Time
limitation for commencement of action.
(a) An action brought under this subchapter must be commenced
within two (2) years following the date the buyer first reports the nonconformity to the
manufacturer, its agent, or authorized dealer.
(b) When the buyer has commenced an informal dispute
settlement procedure described in § 4-90-414,
the two-year period specified in subsection (a) of this section begins to run at the time
the informal dispute settlement procedure is being commenced.
History. Acts 1993, No. 285, §
20; 1993, No. 297, § 20.
4-90-417.
Deceptive trade practices.
A violation of any of the provisions of this subchapter shall be deemed a
deceptive trade practice under § 4-88-101
et seq.
History. Acts 1993, No. 285, §
21; 1993, No. 297, § 21
|
