Massachusetts Lemon Laws

Chapter 90, Section 7N

Chapter 90: Section 7N - Voiding Contracts of Sale

Apart from any condition of warranty, the buyer has given the right to void the contract of sale, if the motor vehicle fails to pass during 7 days from the date sale, the periodically distributed check up of a vehicle at an inspection station licensed pursuant to section seven W; provided, that the nonconformities which are the actual ground for the refusal to issue a certificate of inspection were not occurred by the abuse or neglect of the motor vehicle or by any accident after the date of the sale; and provided, further, that the charges incurred at repairs necessary to allow the issuance of a certificate of inspection go over ten per cent of the actual price of the motor vehicle.

To get the sale of motor vehicle voided, the buyer should notify the seller of his intent within fourteen days from the date of sale and return the motor vehicle to the seller alongwith a written statement signed by an approved agent of such inspection station clearly stating the reason of failure to pass the inspection and an estimation of the cost of necessary repairs. The buyer shall be awarded a refund of his purchase price, unless both the parties concur in writing that the seller will bear all the expenses and costs likely to occur during repair within a reasonable period of time.

Chapter 90: Section 7N¼ - Express Warranty by Dealer of Used Motor Vehicle; Issuance; Consumer's Rights and Remedies

Section 7N¼ (1) - Definitions

  1. "Business day", every week day, generally from Monday to Friday, in which a business transaction takes place, except for state or federal holidays.

    "Consumer" is,

    • A purchaser who purchases a motor vehicle to fulfill his transportation needs
    • A buyer who acquires a vehicle not for the purpose of resale
    • Any person to whom such motor vehicle is transferred within warranty period
    • A person who can enforce the obligations of warranty

    "Dealer", is

    • A person authorized by the manufacturer for selling, repairing of used motor vehicles or selling motor vehicles but not including a bank or other financial institution, or the commonwealth.
    • A person who has sold more than 3 used motor vehicles within 12 months.

    "Motor vehicle" or "vehicle" is a self-propelled vehicle acquired by a person to be driven on public highways, but not include auto homes, vehicles built primarily for off-road use or any vehicle used primarily for business purposes.

    "Private seller", any person individually involved in selling of used motor vehicles.

    "Purchase price" is,

    • The full price paid for acquiring a vehicle
    • The total price plus any finance charges, registration fees, payments made for credit life, accident, health, and damage insurance, and collision and related comprehensive insurance coverage and service contracts and the value of a trade-in.

    "Repurchase price" is,
    The purchase price less any cash award that was made by the dealer in an attempt to resolve the dispute less any refunds the consumer is entitled to plus Any incidental damages.

    "Used motor vehicle" or "used vehicle", a motor vehicle whose title has already been assigned to a person other than a manufacturer or dealer.

      1. The law restricts the dealers from selling used motor vehicles within the state without any express warranty. The warranty should cover both parts and labor and the consumer will not be forced to pay more than one hundred dollars for the repair. Defects that only impair the appearance of the vehicle shall not be covered under the warranty.
      2. Nonconformities that involve parts, which are covered under the warranty, shall be disqualified from this section, if the following situations have been met:

      The manufacturer's warranty duly assigned or transferred to the buyer is,

      • Enforceable according to its terms
      • Not inconsistent with this section
      • The seller has guaranteed that the repair allowed by such manufacturer's express warranty was made.

      The provisions of the manufacturer’s warranty shall be raised for any period of time the used motor vehicle is out of service by reason of repair under the manufacturer's warranty.

    2. The express warranties required by this section shall be of the following durations for the used motor vehicles which at the time of sale:
      1. Has been driven less than 40,000 miles, 90 days or 3750 miles, whichever is covered first. Above mentioned 90 days or 3750 miles warranty is in addition to any right the consumer may have under section seven N.
      2. Has been driven 40,000 miles or more, but less than 80,000 miles, 60 days or 2,500 miles, whichever first occur.
      3. Has been driven 80,000 miles or more, but less than 125,000 miles, 30 days or 1250 miles, whichever first occur.
      4. Incase, if the used motor vehicle's true mileage is unknown, then such warranty period shall be planned by the age of the used motor vehicle in the following manner:
        • Three years old or less used motor vehicle shall have a warranty as provided in subsection (i)
        • A used motor vehicle more than three, but less than six years old, shall have a warranty as provided in clause (ii)
        • A used motor vehicle six years old or more shall have a warranty as provided in clause (iii).

        A used motor vehicle's age shall be determined by:

        “Model year – The year in which the warranty holder purchased the used vehicle”

    3. The warranty periods discussed above in this section shall be raised during any period in which the used motor vehicle is out of order as a result of any repair attempt by the manufacturer. The applicable warranty period shall be extended 30 days from the date of completion of any repair required by this section as to the defect mended if the warranty would otherwise have expired during such period.
    1. It is the duty of a dealer either to make the repair himself or make some arrangements by another repairing agent.
      1. A consumer should return the lemon to the manufacturer or dealer within 5 business days after the ending of the warranty period and informing him of the defect. The period can be raised any time in which the consumer has informed the dealer but cannot present the vehicle to the dealer; including, the ground that a used motor vehicle cannot be operated and the dealer refuses to pay the charges of towing the vehicle. The dealer shall immediately accept return of a vehicle when it is so presented.

        When the motor vehicle is conformed, the dealer should provide a statement highlighting the following to the consumer, at the time of its delivery:

        • The defect complained of
        • The work performed
        • The identity of the repairer if it is not the dealer
        • The parts replaced in performing such work.

        The dealer should attach with warranty repair receipt, copies of such order forms, invoices, and other receipts of parts used in repair.

      2. If the dealer fails in removing the defects even after 3 attempts or if the used vehicle is out of order for continous10 days, then the dealer should accept the return and reimburse the full repurchase price less a reasonable allowance for use to the consumer.

        It’s at the option of the consumer to retain the use of any vehicle until the manufacturer refunds the full amount. Allowance for the use of a vehicle by the consumer after its return to a manufacturer shall be reflected in the above-mentioned reasonable allowance for use.

        A used motor vehicle shall not be deemed as out of order for 10 business days, if any part is unavailable and the manufacturer has ordered such part, the same day as he comes to know about the shortage of that part, except that in no event shall a part's unavailability operate to toll the 10 days period for more than 21 days. In such case the applicable warranty will be extended according to number of days.

      3. All the dealers are required to submit to state-certified used car arbitration, within six months from the date of delivery of a used motor vehicle. The secretary of consumer affairs and business regulation selects the arbitrator who works according to the terms promulgated pursuant to this section. The finding shall be issued within forty-five days of a request by a consumer for arbitration.

        If the judgment is in favor of a consumer and the dealer has failed to refund the amount to the consumer, the arbitrator will provide 21 business days to the dealer to refund the full repurchase price along with the incidental and other costs.

        As stated in Massachusetts lemon laws, “no such appeal by a dealer shall be heard unless the petition for such appeal is filed with the clerk of the district or superior court within twenty-one days of issuance of the finding of the state-certified arbitration and is accompanied by a bond in a principal sum equal to the money award made by the state-certified arbitrator plus five hundred dollars for anticipated attorneys' fees, secured by cash or its equivalent, payable to the consumer”.

        The court shall cancel the judgment upon an appeal if,

        • The award was secured by corruption, fraud or other undue means
        • The arbitrator has found to be corrupted, or misconduct prejudicing the rights of any party
        • The arbitrators exceeded their powers.

        Any consumer, if not satisfied with decision, can file a claim under chapter ninety-three A. the other rights and remedies allow a consumer to get back the attorney’s fees and other cost incurred on arbitration.

        If the manufacturer fails to appeal the judgment which is in favor of the consumer within twenty-one days and does not deliver a refund, then the court will award a penalty of fifty dollars per day until the delivery of such refund.

      4. If the consumer has reported any defect within the applicable warranty, then the dealer shall have the choice of either repurchasing a used vehicle or refunding the full repurchase price, less a reasonable allowance for use. A reasonable allowance for use shall be 15cents for a mile the used motor vehicle had been driven from the period of its sale to the dealer's repurchase.
      5. If the dealer is supposed to repurchase a vehicle, the consumer and dealer shall collaborate with each other to perform all necessary documentation in order to clear the title of any hindrance on the repurchased vehicle.
    2. Its an affirmative defense to any claim that an alleged defect,
      • Does not impair the vehicle's use or safety
      • Is the result of owner negligence, abuse, damage caused by accident, vandalism
      • Is the result of any attempt by the consumer to modify the vehicle
  4. The dealer shall provide clear and conspicuous notice of the rights and warranties awarded to the consumer at the time of sale of a used motor vehicle. Failure or delay to provide such written notice shall increase the warranty periods under this section until such notice is given.
  5. The secretary of consumer affairs and business regulation publicizes the rules and regulations to put the provisions of notice into practice, which includes, the establishment of wording, format, placement, and distribution of all notices specified in this section. To ease the consumers, the secretary will pile up all the notices concerning to the motor vehicle.

    All the notices will contain the measures available to remedy violations of this section and shall contain the telephone number of the attorney general's consumer protection division complaint section and the executive office of consumer affairs and business regulation.

  6. Failure to fulfill the provisions of this section will result in an unfair or deceptive act under the provisions of chapter ninety-three A.
  7. In spite of any requirements of law to the opposing, this section will not be applicable to any used motor vehicle sold for less than $700.
  8. All the defects of a used motor vehicle should be disclosed to the buyer before signing the sale agreement. If the manufacturer secretes the defects, the buyer will be entitled to cancel the sale deed within thirty days and will get all the money back from the seller less a reasonable amount for use. If the judgment is in favor of a buyer, the court shall award the buyer reasonable attorneys' fees and costs; if it finds that the buyer's action was perky or not in good faith, it shall award the seller reasonable attorneys' fees and costs.
  9. Nothing in this section shall restrict the implementation of any warranties defined by law, any rights formed by section seven N or seven N?, or chapter ninety-three A or any formalities circulated pursuant thereto, or express warranties given by a dealer in connection with the sale of a used motor vehicle, or any other rights or remedies available to consumers under applicable law.
  10. According to Massachusetts lemon laws, “if a consumer is eligible for relief under the provisions of section seven N?, to have repairs effected or other relief provided under the provisions of an express warranty covering such used motor vehicle issued by the manufacturer of such used motor vehicle, said consumer shall make reasonable effort in accordance with the terms and conditions thereof to obtain such relief or repairs before seeking enforcement of rights under this section. If the consumer, notwithstanding his eligibility to do so, is unable to enforce rights under said section seven N, or under such express warranty and the dealer provides such relief or, in accordance with the provisions of this section, repurchases such used motor vehicle, the dealer shall be subrogated to the rights of such consumer against such manufacturer under the provisions of said section seven N?, such express warranty and otherwise in accordance with applicable law, and may enforce the same in his name in the superior court or district court department. Such manufacturer shall hold the dealer harmless from and against all damages, liabilities, losses and reasonable expenses of suit, including reasonable attorneys' fees arising out of or incurred by the dealer by its compliance with the provisions of this section if such manufacturer, having been notified in writing by the dealer that such rights have been asserted by a consumer, fails to resolve the same at its own expense in or within seven business days”.
  11. It is the duty of the licensing authority to give copies of this section to the dealer who has applied for the license.
  12. The requirements of this section shall not be applicable to the sale of a leased vehicle:
    • By a lessor to the lessee of said vehicle
    • By a family member or employee of said lessee
    • By an employer to his employee
  13. According to Massachusetts lemon laws, “any action brought pursuant to this section shall be commenced within two years of the date of original delivery of the used motor vehicle to the consumer”.

(Added by 1987, 289, Sec. 1.)

Chapter 90: Section 7N½ - Defective or Malfunctioning New Motor Vehicles; Sale And Repair Or Replacement

Section 7N½ (1) - For Purposes of This Section the Following Terms Shall Have the Following Meanings

 

  1. "Business day", any day in which business transactions are conducted.

    "Consumer" means:

    • A person who pays a handsome amount to acquire 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 warranty

    "Dealer" is any class one seller of motor vehicles as defined in section fifty-eight of chapter one hundred and forty.

    "Lessee" means any consumer who leases a motor vehicle for 1 year or more pursuant to a written lease agreement which provides that the lessee is responsible for repairs to such motor vehicle or any consumer who leases a motor vehicle pursuant to a lease-purchase agreement.

    "Manufacturer" is a person or a firm engaged in the business of manufacturing, importing or assembling motor vehicles.

    "Motor vehicle" is,

    • A self-propelled vehicle other than a tractor, farm vehicle, or a vehicle designed primarily for off-road use which has four or more wheels and is used to fulfill personal, family, or household needs
    • A vehicle used for the transportation on public highways
    • A vehicle which is required to be registered or licensed before use or operation.

    "Nonconformity" any condition that impairs the use, value and safety of a motor vehicle.

    "Term of protection" is,

    • A time period of one year or fifteen thousand miles of operation from the date of delivery of a new motor vehicle, whichever occurs first
    • One year or fifteen thousand miles from the date of delivery to the consumer of said replacement vehicle, whichever comes first.
  2. It is the duty of a manufacturer to correct the nonconformity of a motor vehicle, if the consumer has reported such defect within the term of protection.

    If, after a reasonable number of attempts, the manufacturer fails in, removing the defect or conforming the motor vehicle to the warranty, then the manufacturer should accept the return of the vehicle from the consumer and either refund the full purchase price plus all charges less reasonable allowance for use, or replace the motor vehicle.

  3. The consumer shall have an incompetent right to refuse a manufacturer's offer of replacement and demand a refund.

    Incase, if the whole vehicle financed by the manufacturer is replaced under the provisions of this section, then the manufacturer shall not oblige the consumer to enter into any refinancing agreement which would result in any financial responsibilities upon the consumer away from those implied by the original financing agreement.

    Incase, if the whole vehicle leased by the manufacturer is replaced under the provisions of this section, then the manufacturer shall not oblige the consumer to enter into any lease agreement which would result in any financial responsibilities upon the consumer away from those implied by the original lease agreement.

    The refund amount according to the provisions of this section also includes incidental costs including sales tax, registration fee, finance charges and any cost of options added by an authorized dealer. Incase of a replacement vehicle, a refund amount will include the towing and reasonable rental costs that were a direct result of vehicle nonconformity.

    According to Massachusetts lemon laws, “a reasonable allowance for use for all motor vehicles other than motorcycles shall be obtained by multiplying the total contract price of the vehicle, or in the case of a leased vehicle the total amount of payments made by the consumer to the manufacturer under the terms of the lease agreement, by a fraction having as its denominator one hundred thousand and having as its numerator the number of miles that vehicle traveled prior to the manufacturer's acceptance of its return. A reasonable allowance for use for motorcycles shall be obtained by multiplying the total contract price of the motorcycle by a fraction having as its denominator twenty-five thousand and having as its numerator the number of miles that the vehicle traveled prior to the manufacturer's acceptance of its return”.

    The manufacturer shall have an affirmative defense to any claim under this section, if,

    • The defect does not affect the use, market value or safety of the vehicle
    • A nonconformity is the result of owner’s negligence, damage, vandalism, or attempt to repair the vehicle by a person other than the manufacturer, its agent or authorized dealer
    • The defect is the result of unauthorized modifications by the consumer.

    A consumer shall have the option of retaining the use of any vehicle returned under the provisions of this section until such time as said consumer has been tendered a full refund or a replacement that is acceptable to the consumer. The use of any vehicle retained by a consumer after its return to a manufacturer under the provisions of this section, shall, in instances in which a refund is tendered, be reflected in the above mentioned reasonable allowance for use.

  4. It is presumed that a reasonable number of attempts, to correct the nonconformity, has been made, if
    1. The manufacturer or repairing agent has attempted the repairs three or more times during the term of protection, but such nonconformity continues to exist
    2. The manufacturer has taken the vehicle for the purpose of repairs for a cumulative total of 15 or more days within the term of protection and has been awarded a final attempt to resolve the nonconformity within 7 business days. Such additional opportunity to cure the nonconformity shall commence on the day the manufacturer first knows or should have known that the limits specified in clause (a) or (b) have been met or exceeded. Incase of a war, invasion, fire, flood or other natural disaster, the period of repair shall be extended.
  5. This section neither imposes any liability on an authorized dealer nor creates any source of action by a consumer against a dealer.

    The section doesn’t limit the rights or cures offered to a consumer or manufacturer under any provision of law.

    This section neither imposes any legal responsibility on a dealer nor creates a ground of action by a manufacturer against its dealer except with respect to:

    1. Failure by an authorized dealer to properly cure nonconformity
    2. Warranties offered by a dealer which pass by the provisions of the manufacturer's express warranties

    No consumer shall be forced by any manufacturer or its dealer to provide notification directly to a manufacturer of the occurrence of any defect before recurring to state-certified, new car arbitration.

    No returned motor vehicle shall be resold within the state without clear written notice of the fact that it was so returned prior to resale of the vehicle. The exact form and content of any such disclosure shall be given by the attorney general.

  6. All the manufacturers are required to submit to the state-certified, new car arbitration, if the consumer requests such arbitration within 18 months from the date of a new motor vehicle. The secretary of consumer affairs and business regulation appoints the arbitrator who works according to the regulations publicized pursuant to this section. The written finding by the arbitrator shall be issued within forty-five days of receipt of the request of arbitration. The secretary of consumer affairs and business regulation shall publicize the rules and regulations for fairness and efficiency.

    All judgments of fact arising from state-certified, new car arbitration, shall be considered as clear proof of whether the standards set forth in this section for refund or replacement have been met in any subsequent action brought by either party resulting from the matter well thought-out in said arbitration.

    A manufacturer should provide the replacement or refund, as awarded by the arbitrator, within 21 days to comply with the judgment of arbitration. If a manufacturer wants to appeal the decision in the court, then he should file the petition with the clerk within 21 days of the judgment along with a bond in a principal sum equal to the money awarded by the arbitrator plus $2500 for attorneys' fees, payable to the consumer.

    The legal responsibility of the guarantee of any bond filed in accordance to this section shall be limited to the restitution of the consumer in the action. The bond shall not affect any right of recovery available to the consumer. Incase of refund or replacement awarded by the arbitrator, is encouraged by the court, recovery by the consumer shall include the amount of $25 per day, following the day the motor vehicle was returned to the manufacturer and the vehicle was out of order as a result of any defect not issuing from owner negligence, accident, vandalism, or any attempt to repair, however, that the dealer did not make a comparable vehicle available to the consumer free of charge. A consumer shall also be awarded reasonable attorneys' fees and costs. The court shall double the amount, if it finds that the manufacturer did not have any reasonable ground for its petition or that the appeal was playful. A consumer disappointed with the decision shall be entitled to file a claim pursuant to chapter ninety-three A.

    (6A) the rights of consumer shall be pasted on a window of a new motor vehicle presented for sale or lease. A tally of these rights shall also be given along with owner’s manual.

  7. Not complying with the provisions of this section shall result in an unfair or misleading act under the requirements of chapter ninety-three A.  The manufacturer’s dissatisfaction by the decision or delaying the filing of the petition shall double the amount to be refunded to the consumer.
  8. The court provides 21 days to file a petition against a consumer, or to provide a refund or replacement. If the manufacturer fails in complying with these conditions, then the court shall impose a penalty of $5,000 per day. The estimated delivery date shall not exceed 60 days from the date the manufacturer informs the consumer that a delivery will be made. Said fine shall not exceed $50,000 for each such violation. If 81 days have been passed after the issuance of a judgment supportive of the consumer and no appeal has been petitioned and no fine paid, the attorney general shall begin proceedings against said manufacturer for failure to pay said fine.

    In addition to the remedies hereinbefore provided under this section of Massachusetts lemon law, the attorney general may bring an action on behalf of the commonwealth to restrain further violation of this section, to enforce any provision, and for such other relief as may be appropriate”.