Delaware Lemon Laws

§ 5001-Definitions

  1. "Consumer" is,
    • A person who pays a handsome amount to purchaser a vehicle for personal, family, or household use
    • A person to whom the ownership of the car or any other vehicle is transferred
    • Who is entitled to enforce the obligations of the warrant
  2. "Dealer" is,
    • A person or a firm involved in the business of buying, selling or exchanging automobiles on behalf of a manufacturer at retail
    • A person whom the manufacturer has awarded the authority to sell or repair vehicles
  3. "Manufacturer" is,
    • A person engaged in the business of manufacturing, assembling or distributing automobiles, who under normal business conditions during the year, manufacture at least 10 new automobiles
    • A person engaged in the business of transforming raw material into motor vehicle for sale
  4. "Manufacturer's express warranty" or "warranty" means the written warranty of the manufacturer of a new automobile of its condition and fitness for use, including any terms or conditions precedent to the enforcement of obligations under that warranty.
  5. "Automobile" means any self-propelled vehicle having four or more wheels, except the living motor homes, which is leased or bought in Delaware or registered by the Division of Motor Vehicles in the Department of Public Safety.
  6. "Nonconformity" is a defect or condition which substantially affects the use, value or safety of an automobile.
  7. "Lien" means a security interest in an automobile.
  8. "Lienholder" means a person with a security interest in an automobile pursuant to a lien.

(64 Del. Laws, c. 173, § 1; 66 Del. Laws, c. 36, § 1; 74 Del. Laws, c. 110, § 1.)

§ 5002-Duty to Repair Nonconforming Automobiles

If a new vehicle is defective or does not conform to the express warranty, and the consumer reports the manufacturer within the warranty period or during 1 year after date of delivery, then the manufacturer as per the Delaware lemon laws should make repairs and correct the nonconformity.

(64 Del. Laws, c. 173, § 1.)

§ 5003-Remedies upon Failure to Repair

  1. The consumer will be entitled for a replacement or refund, if the manufacturer fails in repairing the nonconformity condition of the vehicle after a number of attempts.
  2. In case of replacement the manufacturer must accept the vehicle and reimburse the consumer for any incidental costs, including dealer preparation fees, fees for transfer of registration, sales taxes or other charges or fees incurred by the consumer as a result of such replacement.
  3. According to Delaware lemon laws, “in instances in which a refund is tendered under this section, the manufacturer shall accept return of the automobile from the consumer and shall reimburse the consumer for related purchase costs, including sales taxes, registration fees and dealer preparation fees, less:
    • A reasonable allowance for the consumer's use of the automobile, not to exceed the full purchase price of the automobile multiplied by a fraction which consists of the number of miles driven before the consumer first reported the nonconformity to the manufacturer, its agent or dealer divided by 100,000 miles; and
    • A reasonable allowance for damage not attributable to normal wear and tear, but not to include damage resulting from nonconformity”.
  4. Refunds shall be made to the consumer, and lienholder, if any, as their interests may appear.
  5. No authorized dealer shall be held liable by the manufacturer for any refunds or replacements in the absence of evidence indicating that the dealership repairs have been carried out in a manner inconsistent with the manufacturer's instructions.

(64 Del. Laws, c. 173, § 1; 66 Del. Laws, c. 36, § 3.)

§ 5004-Presumptions

  1. As stated in § 5004 of Delaware lemon laws, “it shall be presumed that a reasonable number of attempts have been undertaken to conform a new automobile to the manufacturer's express warranty if, within the warranty term or during the period of 1 year following the date of original delivery of the motor vehicle to a consumer, whichever is the earlier date:
    • Substantially the same nonconformity has been subject to repair or correction 4 or more times by the manufacturer, its agents or its dealers and the nonconformity continues to exist; or
    • The automobile is out of service by reason of repair or correction of nonconformity by the manufacturer, its agents or its dealers for a cumulative total of more than 30 calendar days since the original delivery of the motor vehicle to the consumer. This 30-day limit shall commence with the first day on which the consumer presents the automobile to the manufacturer, its agent or dealer for service of the nonconformity and a written document describing the nonconformity is prepared by the manufacturer, its agent or dealer. The 30-day limit shall be extended only if repairs cannot be performed due to conditions beyond the control of the manufacturer, its agents or its dealers, including war, invasion, strike, fire, flood or other natural disaster.”
  2. The manufacturer shall not be liable to make repairs unless the consumer has informed the manufacturer through direct written notification.

(64 Del. Laws, c. 173, § 1; 66 Del. Laws, c. 36, § 4.)

§ 5005-Costs and Attorney's Fees in Breach of Warranty Actions

In any court action brought under this chapter by a consumer against the manufacturer of an automobile, or the manufacturer's agent or authorized dealer, based upon the alleged breach of an express warranty made in connection with the sale of such automobile, the court, in its discretion, may award to the plaintiff his costs and reasonable attorney's fees or, if the court determines that the action is brought in bad faith or is frivolous in nature, may award reasonable attorney's fees to the defendant.

(64 Del. Laws, c. 173, § 1; 66 Del. Laws, c. 36, § 5; 70 Del. Laws, c. 186, § 1.)

§ 5006-Affirmative Defense to Claim

It would be an affirmative defense to the manufacturer if,

(64 Del. Laws, c. 173, § 1.)

§ 5007-Informal Dispute Settlement Procedure

  1. In case, if a manufacturer has initiated an informal settlement procedure that has been approved by the Division of Consumer Protection, the consumer may not be entitled for any cures offered in this chapter unless s/he has not first resorted to such procedure. In the event a manufacturer's informal dispute settlement procedure does not have a certificate of approval from the Division of Consumer Protection, a consumer may immediately and directly seek the remedies provided by this chapter.
  2. The Division of Consumer Protection shall annually evaluate the operation of informal dispute settlement procedures established by manufacturers and shall issue an annual certificate of approval to those manufacturers whose procedures comply with Title 16, Code of Federal Regulations, Part 703 and with subsections (c), (d) and (e) of this section. The Division of Consumer Protection shall suspend the certification of, or decertify, any informal dispute settlement which no longer complies with said provisions.
  3. A manufacturer who has started an informal settlement procedure should file a copy of each decision of the informal dispute settlement procedure within 30 days after the decision is rendered.
  4. In order to obtain the certification of the Division of Consumer Protection, a manufacturer's informal dispute settlement procedure shall not convene any informal dispute settlement hearing or meeting outside the State and shall refrain from any practices which:
    • Delay a decision in any dispute beyond 65 days after the date on which the consumer initially resorts to the informal dispute settlement procedure by written notification that a dispute exists
    • Delay performance of remedies awarded in a settlement beyond 30 days after receipt of notice of the consumer's acceptance of the decision; provided, however, that such time limits shall not include periods of time when the consumer or the consumer's car is unavailable for the remedies specified in the settlement
    • Require the consumer to make the automobile available more than once for inspection by a manufacturer's representative or more than once for repair of the same nonconformity
    1. Require the consumer to take any action or assume any obligation not specifically authorized under the provisions of Title 16, Code of Federal Regulations, Part 703.
  5. A manufacturer desiring annual certification of an informal dispute settlement procedure shall make application to the Division of Consumer Protection on forms developed by, and shall provide such information as required by, the Division of Consumer Protection.

(64 Del. Laws, c. 173, § 1; 66 Del. Laws, c. 36, § 6; 69 Del. Laws, c. 291, § 98(c).)

§ 5008-Remedies Cumulative

Under Delaware lemon law section 5008, nothing shall in any way limit the rights or remedies available to a consumer under Subtitle I of this title.

(64 Del. Laws, c. 173, § 1.)

§ 5009-Enforcement

As stated in Delaware lemon laws, “in addition to any remedies the consumer may have at law or in equity, a violation of this chapter shall be an unlawful practice as defined in § 2513 of this title. The Division of Consumer Protection shall promulgate rules and regulations in order to implement the purposes of this chapter.”

(64 Del. Laws, c. 173, § 1; 66 Del. Laws, c. 36, § 7; 69 Del. Laws, c. 291, § 98(c).)