Arizona Lemon Laws
44-1261
Definitions; Exemptions
In this article, unless the context otherwise requires,
Consumer
Consumer is basically one who buys a vehicle to avail its utilities not for the purpose of resale. In other words, consumer is the one who has paid a handsome amount to the dealer or manufacturer to get the car and to whom the title of the vehicle has been transferred during the express warranty period, or any person who has the right to enforce the warranty.
Motor Vehicle
A self-moving vehicle having four or more wheels which is used to fulfill transportation, personal, family, or household needs is a motor vehicle.
Used motor vehicle
A motor vehicle that has been sold out or exchanged for the second time or more, or the title of which has been transferred from the first owner to the second one is termed as used motor vehicle. In simple words, a used motor vehicle is any wheeler which is not new and has been purchased from any person other than a dealer or a manufacturer.
Used Motor Vehicle Dealer
Used motor vehicle dealer is a person or a firm who only deals in used motor vehicles or has been sold four or more used cars in the last 12 months but doesn’t include a bank or financial institution, an insurance company.
- In case when the vehicle is a motor home like recreational vehicle, then, the conditions of this article shall apply to the vehicle and chassis only not to those portions of the vehicle designed, used or maintained primarily as a mobile lodging, office or commercial space.
- 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
In case if a new motor vehicle does not perform its functions in a proper manner or does not conform to all applicable express warranties, then,
- The buyer must report the nonconformity condition to the manufacturer, its authorized dealer during,
- The tenure of the express warranty, or
- The period of two years or twenty-four thousand miles from the date of delivery of the motor vehicle, whichever comes earlier.
- According to Arizona lemon laws, it’s the responsibility of the manufacturer or its agent to correct the defects of the vehicle to conform it to such express warranties. The manufacturer or the issuer of a warranty is also liable to fix those issues even if the repairs are made after the expiration of the term or two year period or twenty-four thousand mile limit.
- This section does not limit the choices available to a consumer that goes beyond the limits described in this section.
44-1263
Inability to Conform Motor Vehicle to Express Warranty; Replacement of Vehicle or Refund of Money; Affirmative Defenses
- As stated in 44-1263 of Arizona lemon laws, “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”.
- The laws also defend manufacturers, dealers or repairing agents if,
- A suspected defect of the vehicle doesn’t largely impact the utilization and market value, or
- Nonconformity is due to the abuse, neglect or unauthorized modifications or alterations of the motor vehicle which are strictly prohibited by the manufacturer.
44-1264
Reasonable Number of Attempts to Conform Motor Vehicle to Express Warranty; Presumption
- To conform a motor vehicle to the applicable express warranties, it is presumed that a number of attempts have been undertaken if,
- After four or more attempts, a manufacturer does not succeed in correcting the nonconformity of a motor vehicle during the period of the express warranty or the period of two years or twenty-four thousand miles, whichever arises first and the nonconformity continues to exist.
- The manufacturer or repairing agent has kept the motor vehicle is his custody for the purpose of repair for a total of thirty or more days during the express warranty period or the two years period or twenty-four thousand miles.
- According to Arizona lemon laws, “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”.
- To claim a lemon, buyer must notify the manufacturer or dealer in writing about the nonconforming condition. Without any notification no claim could be filed.
44-1265
Non-Limitation of Rights; Refund or Replacement Not Required If Certain Procedures Not Followed; Attorney Fees
- If a manufacturer has established 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.
- A consumer must claim a lemon within six months following the earlier of expiration of the warranty period or two years or twenty-four thousand miles. If a consumer overcomes in an action, the court shall reimburse the costs of vehicle, attorney and other expenses to the consumer.
44-1266
Notice to Dealers and Prospective Purchasers
- If a consumer returns a vehicle, the manufacturer should attach a written notification indicating the motor vehicle has been replaced or repurchased. A consumer can sue if the seller removes the written notification from the motor vehicle, except as provided in subsection B of this section.
- 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.
- 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
- To sell a used motor vehicle, a seller must be the owner of that vehicle or the ownership must be on the name of the seller.
- Apart from that which is prescribed in part I of this section and section 28-4412, a used vehicle dealer doesn’t have any right to modify or disclaim any expressed warranty. The manufacturer doesn’t even limit the choices for a breach of that warranty unless 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.
- As stated in Arizona lemon laws, “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 doesn’t have any defects which impairs the use and market value of that vehicle. The implied warranty of merchantability expires in the middle of the night of the 15th calendar day or when it has been done with five hundred miles after delivery, whichever comes first. 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 to the implied warranty of merchantability are also excluded”.
- The implied warranty doesn’t support any damages that occur after the sale, 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.
- In case of breach of implied warranty of merchantability, the buyer 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.
- The maximum responsibility of the seller under this section is limited to the purchase price paid for the used motor vehicle.
- The inclusion of the statement prescribed in subsection G of this section in the agreement does not create an express warranty.
- 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
- The dealer has the burden to prove by a preponderance of the evidence that the dealer complied with subsection I of this section.
- Any buyer or seller who is distressed by a transaction and who seeks a legal cure shall follow any appropriate remedy prescribed in title 47, chapter 2 and shall comply with the requirements prescribed in title 47, chapter 2.