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Maryland Lemon Laws

• § 14-1501
• § 14-1502
• § 14-1502.1
• § 14-1503
• § 14-1504

Sections 14-1501 - 12-1504 of the Commercial Law Articles

§ 14-1501

1. "Consumer” is,
   • A person who buys a vehicle to fulfill personal, family or household needs not with the intention to resale
   • Any person to whom such motor vehicle is transferred during the duration of an express warranty
   • Any person entitled by the terms of such warranty to enforce the obligations of the warranty.
2. "Motor vehicle" means a vehicle that is registered in this State as a:
   • Class A (passenger) vehicle;
   • Class D (motorcycle) vehicle;
   • Class E (truck) vehicle with a 3/4 ton or less manufacturer's rated capacity; or
   • Class M (multipurpose) vehicle.

   Or

   "Motor vehicle" is a self-propelled vehicle which can be used to fulfill transportation needs but does not include a motor home.

3. "Dealer" has the meaning provided in § 15-101(b) of the Transportation Article.
4. "Manufacturer, factory branch, or distributor" means a person or a firm involved in the business of manufacturing, importing or assembling motor vehicles or of distributing motor vehicles to the dealers as defined in § 15-201(b), (c), and (e) of the Transportation Article.
5. "Warranty" means warranties as defined in §§ 2-312, 2-313, 2-314, and 2-315 of this article.
6. "Manufacturer's warranty period" means the time period earlier of:
   • The period of first 15,000 miles of operation
   • 15 months following the date of delivery of the motor vehicle.

§ 14-1502

1. As stated in Maryland lemon laws, “if the manufacturer's warranty period is to include those miles of operation when the new motor vehicle is in the possession of any person other than the consumer, the manufacturer shall state that fact in 12 point bold face type in the manufacturer's written warranty”.
2. • If a new motor vehicle is defective and does not conform to the warranty, the consumer should inform the manufacturer in writing about such nonconformity within the warranty period. At the time of sale of a motor vehicle, the manufacturer must clearly disclose such procedure to the consumer in writing.
   • After reporting the nonconformity to the manufacturer, the consumer shall provide an opportunity to the manufacturer to cure the nonconformity of a motor vehicle.
   • The manufacturer shall have 30 days to correct the nonconformity without any additional charges to the consumer.
3. 1. If, after a reasonable number of attempts, the manufacturer is unable to fix the defects within the warranty period, the manufacturer, at the option of the consumer, shall:
      1. Replace the motor vehicle
      2. Refund the full purchase price including all license fees, registration fees, and any similar governmental charges, less:
         • Reasonable allowance for the consumer's use
         • Reasonable allowance for damage.
   2. The manufacturer shall refund the amount to the consumer, if any, as their interests appear on the records of possession maintained by the Motor Vehicle Administration.
   3. It shall be an affirmative defense to any claim under this section that:
      • The defect does not affect the safety, use and market value of the motor vehicle
      • The defect is due to abuse, neglect, or unauthorized modifications or alterations of the motor vehicle.
4. It shall be alleged that, to conform a motor vehicle to the applicable warranties, a reasonable number of attempts have been made if:
   • The manufacturer has attempted the repairs 4 or more times during the warranty period but the defect continues to exist
   • The vehicle is in custody of a manufacturer or its agent for a cumulative total of 30 or more days during the warranty period
   • A defect is the result of failure of the braking or steering system and the manufacturer has attempted repair at least once within the warranty period.
5. The warranty period shall be extended any time by reason of war, invasion, strike, or fire, flood, or other natural disaster.
6. • It’s the dealer’s job to inform the manufacturer of the nonconformity within 7 days when the vehicle is brought for the 4th time for the purpose of repairs or when the vehicle is out of service for 20 days.
   • A copy of the notification should be sent to the Motor Vehicle Administration.
7. 1. 1. If a motor vehicle is returned to the manufacturer in Maryland, the manufacturer shall declare this information to the dealer.
      2. The manufacturer's disclosure should be written in 10 point all capital type and shall state that:
         • The motor vehicle was returned to the manufacturer
         • The nature of the defect
         • The condition of the motor vehicle at the time of return.
   2. • The manufacturer shall attach a written notification, indicating the cause of return of a vehicle, at the time of resale of a returned motor vehicle.
      • The copy of such notification shall be send to the Administration.
8. Nothing in this section shall limit the rights or cures available to a consumer.
9. 1. According to Maryland lemon laws, “if a manufacturer or factory branch has established an informal dispute settlement procedure which complies in all respects with the provisions of Title 16, Code of Federal Regulations, Part 703, as amended, a consumer may resort to that procedure before subsection (c) of this section applies”.
   2. A consumer who has participated in an informal dispute settlement procedure may not be prohibited from having the rights or remedies accessible by law.
10. • Any contract entered into by a consumer may be void if it waives, limits, or disclaims the rights set forth in this section.
    • In favor of a consumer, all the rights under this section are to support and hold by the consumer who is a transferee of the new motor vehicle until the duration the warranties are not turned void.
11. The judgment of the settlement shall be initiated within 3 years of the date of original delivery of the motor vehicle to the consumer.
12. • The attorney’s fees will be awarded to the plaintiff by the court.
    • Any action petitioned in the court in bad faith or playfully, the court may order the offending party to pay to the other party reasonable attorney's fees.
13. This subtitle does not apply to a fleet purchase of 5 or more motor vehicles.

§ 14-1502.1

1. The Motor Vehicle Administration shall:
   • Aim a notice that explains the rights of consumers under this subtitle
   • Provide the notice to all dealers which are involved in sale of new motor vehicles in the State
   • Adopt regulations as necessary to execute the provisions of this section.
2. The notice shall:
   • Be written in easy to understand language
   • Have adequate details of the rights and remedies available under this subtitle.
3. A copy of the notice issued by the Motor Vehicle Administration shall be provided to the consumers at the time of sale.

§ 14-1503

1. 1. Upon the return of a motor vehicle to the manufacturer, the consumer shall get the excise taxes from Motor Vehicle Administration
   2. 1. As stated in Maryland lemon laws, “if a dealer, manufacturer, factory branch, or distributor replaces a motor vehicle with a comparable motor vehicle under § 14-1502(c)(1)(i) of this subtitle, the Motor Vehicle Administration shall allow a credit against the excise tax imposed for the replacement vehicle in the amount of the excise taxes originally paid by the consumer for the returned vehicle, subject to subsection (b) of this section”.
      • If the excise tax on the replacement vehicle goes beyond the credit permitted under subsection (i), the dealer shall ask for only that portion of excise tax due
      • If the tax amount goes beyond the limit specified in the above paragraph, the consumer shall be permitted to recover the excess amount from the Motor Vehicle Administration.
2. The recoverable amount of tax shall be calculated on the amount of the purchase price or any portion of the purchase price of the motor vehicle that the dealer pays back to the consumer.
3. A manufacturer who is liable to accept the return of a motor vehicle shall inform the consumer in writing that the consumer has the right to get back the excise taxes from the Motor Vehicle Administration.

§ 14-1504

1. Not complying with this subtitle shall be an unfair and deceiving trade practice under Title 13 of the Commercial Law Article.
2. If the court finds a manufacturer petitioned in bad faith, the court may award the consumer damages of up to $10,000.

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