Maine Lemon Laws

10 § 1161
10 § 1161
10 § 1162
10 § 1163
10 § 1164
10 § 1165
10 § 1166
10 § 1167
10 § 1168
10 § 1169

Chapter 203-A, Title 10, § 1161 – 1169

10 § 1161 - Definitions

Consumer means,

The buyer who acquires a vehicle not for the purpose of resale but to carry out transportation needs.
Who is entitled for the enforcement of obligations of warranty

[1987, c. 359, § 1 (amd)]

Manufacturer is a person or an organization engaged in the business of manufacturing, importing or distributing.

[1983, c. 145 (new)]

Motor vehicle means,

Any automotive manufactured for the transportation of passengers on the public highways and which is sold or leased in Maine
A vehicle having a gross vehicle weight of less than 8,500 pounds.

[2003, c. 337, §2 (amd)]

Reasonable allowance for use means the cost that shall not go beyond the lesser of 1/3 of that amount acceptable per mile by the United States Internal Revenue Service as provided by regulation, revenue procedure or revenue ruling circulated under the United States Internal Revenue Code, Title 26, Section 162 for the use of an individual vehicle for business reasons based upon the mileage reported for that motor vehicle on the application for state-certified arbitration approved by the State plus all mileage directly attributable to use by a consumer beyond 20,000 miles or 10% of the cost price of the vehicle.

[2003, c. 337, §3 (amd)]

State-certified arbitration is an informal dispute settlement procedure governed by the Department of the Attorney General which settles down the consequences between the manufacturer and consumer regarding the nonconformities of the motor vehicles

[1989, c. 570, §1 (new)]

10 § 1161 - A Short Title

This chapter may be known and cited as "The Maine Lemon Law."

[2003, c. 337, §4 (new)]

10 § 1162 - Scope; Construction

Consumer Rights

This chapter doesn’t limit the rights of a consumer under any other law.

[1983, c. 145 (new)]

Manufacturers, Distributors, Agents and Dealers

This chapter doesn’t limit the rights of franchisees under chapter 204 or other applicable law.

[1983, c. 145 (new)]

Waivers Void

Any contract signed by a consumer which waives, restricts or disclaims the rights described in this chapter shall be considered as void.

[1985, c. 220, § 2 (new)]

10 § 1163 - Rights and duties

Repair of Nonconformities
If a new motor vehicle is defective and does not fulfill the obligations of warranty, then it’s the duty of a manufacturer to correct those nonconformities, if the consumer has reported such defects within a period of 3 years or within first 18,000 miles. This compulsion exists apart from the fact that the repairs are made after the expiration of the appropriate time period.

A. [1989, c. 570, §2 (rp).]
B. [1989, c. 570, §2 (rp).]
[2003, c. 337, §5 (amd).]
Failure to Make Effective Repair
If, after a reasonable number of attempts, the manufacturer fails to remove the defects which significantly affect the use or value of a motor vehicle, the manufacturer shall be liable to either replace the motor vehicle refund the amount to the consumer. The refund shall comprise of the following items, less a reasonable allowance for use of the vehicle:
1. The full purchase price, or the lease payments, incase of a leased vehicle, made by the lessee
  [1991, c. 64 (amd)]
2. All collateral charges, including, sales tax, registration fees and similar government charges
  [2003, c. 337, §5 (amd)]
3. Towing and storage of the vehicle and for acquiring an alternative transportation.
  [1999, c. 212, §2 (amd)]
Nothing in this section shall affect the compulsions of a consumer under a loan or sales agreement or the secured interest of any secured party. The secured party shall assent to the replacement of the security concern with a matching security interest on a replacement motor vehicle that is accepted by the consumer, if the replacement motor vehicle is of comparable value. If, the security interest is defective and shall not be replaced, the consumer will be entitled for a refund.

[2003, c. 337, §5 (amd)]
Reasonable Number of Attempts; Presumption
It shall be assumed that a appropriate number of attempts to correct the nonconformity have been made if,
1. The manufacturer has attempted to remove the nonconformity 3 or more times within the warranty period which is 3 years or 18,000 miles of operation, but the nonconformity still exists.
  [2003, c. 337, §5 (amd)]
  - The nonconformity has affected the braking or steering system of a vehicle and the manufacturer or its agent has attempt repair one or more times during the warranty term or the appropriate time period, whichever occurs earlier.
    [2003, c. 337, §5 (new)]
2. The manufacturer has taken the vehicle for repair for accumulative total of 15 or more days within the warranty term or the appropriate time period, whichever comes earlier.
  [2003, c. 337, §5 (amd)]
3-a - Final Opportunity to Repair

If, after appropriate number of attempts, the manufacturer is unable to conform the vehicle to the express warranties, the consumer shall inform the manufacturer or the dealer of the consumer's aspiration for a refund or replacement. For the seven business days following receipt of this notice by the manufacturer or its agent, the manufacturer has been granted a final opportunity to conform the motor vehicle to the express warranty.

[2003, c. 337, §5 (amd)]
Time Limit; Extension
The time period, 18,000 miles or 3-years, shall be extended any time if the repairs are not available by reason of a war, invasion or strike or fire, flood or other natural disaster.

[2003, c. 337, §5 (amd)]
Dealer Liability
This chapter does not impose any legal responsibility on a dealer, except concerning any written warranty provided by the dealer apart from the manufacturer's own warranties.

[1983, c. 145 (new)]
Disclosure of Notice Requirement
A consumer cannot be enforced to inform the manufacturer about the nonconformity, unless the manufacturer has clearly disclosed to the consumer that the written notification is an obligatory for claiming any refund or replacement.

[1987, c. 395, § 6 (amd)]

6-a. Notification of Dealer

It’s the duty of a consumer to notify the dealer as well because a dealer acts as an agent for the manufacturer and is responsible to communicate the claim to the manufacturer.

[1987, c. 359, § 7 (new)]
Disclosure at Time of Resale for Failure to Make Effective Repair
No returned motor vehicle can be resold in the same state unless it contains a conspicuous written notice to any subsequent buyer, whether the buyer is a consumer or a dealer, of the following information:
1. That the motor vehicle was returned to the manufacturer under this chapter
  [1985, c. 220, § 3 (new)]
2. That the motor vehicle did not conform to the manufacturer's express warranties
  [1985, c. 220, § 3 (new)]
3. The ways in which the motor vehicle did not conform to the manufacturer's express warranties
  [1985, c. 220, § 3 (new)]
  [2003, c. 337, §5 (amd)]
Disclosure at Time of Retail Sale under Settlement Agreement
The returned motor vehicle, after a settlement of a state-certified arbitration must contain a clear notification that the vehicle was the subject of a Maine Lemon Law settlement agreement, before it is presented for sale to the public.

[2003, c. 337, §5 (new)]

10 § 1164 - Affirmative defense

It is an affirmative defense to any claim under this chapter that: [1983, c. 145 (new)]

Lack of Impairment

The nonconformity claimed, does not affects the use, safety or value of the motor vehicle.

[1985, c. 220, § 4 (amd)]

Abuse

Nonconformity is the result of abuse, neglect or unauthorized modifications or alterations of a motor vehicle by the consumer.

[1983, c. 145 (new)]

10 § 1165 - Informal dispute settlement

It is clearly written in Maine lemon laws, “if a manufacturer has established an informal dispute settlement procedure which complies in all respects with the provisions of 16 Code of Federal Regulations, Part 703, as from time to time amended, the provisions of section 1163, subsection 2, concerning refunds or replacement shall not apply to any consumer who has not first resorted to that procedure or to state-certified arbitration. This requirement shall be satisfied 40 days after notification to the informal dispute settlement procedure of the dispute or when the procedure's duties under 16 Code of Federal Regulations, Part 703.5 (d), are completed, whichever occurs sooner”.

[1989, c. 570, §4 (amd)]

10 § 1166 - Unfair or deceptive trade practice

Breach of any of the rules of this chapter shall be considered as an act of an unfair or deceptive trade practice under Title 5, chapter 10.

[1985, c. 220, § 6 (new)]

10 § 1167 - Attorney's fees

Incase of consumer’s success, a court may grant reasonable attorney's fees and costs incurred in connection with the petition, to the consumer.

[1985, c. 220, § 7 (new)]

10 § 1168 - New car leases

For the purposes of this chapter only, the following apply to leases of new motor vehicles.

[1987, c. 359, § 8 (new)]

Warranties
If warranties are frequently provided to the purchasers of significantly the same kind of motor vehicles:
1. Those warranties are considered to be applicable to the leased motor vehicles.
  [2003, c. 337, §6 (amd)]
2. The consumer lessee is deemed to be the first purchaser of the motor vehicle for the purpose of any warranty provisions limiting warranty benefits to the original purchaser.
  [2003, c. 337, §6 (amd)]
  [2003, c. 337, §6 (amd)]
Lessee's Rights
The lessee and the manufacturer have the same rights against each other, for claiming or paying for express warranties that the lessee or the manufacturer would have under this chapter, if the vehicle had been purchased by the lessee or sold by the manufacturer

[1987, c. 359, § 8 (new)]
Termination of Lease and Obligations
Not conforming with the express warranties results in termination of lease agreement and return of the vehicle to the lessor. If this happens, the lessee will not be liable to get any costs or charges decided under lease agreement. After the payment by the manufacturer, the motor vehicle lessor transfers the title to the manufacturer.

[1999, c. 212, §3 (new)]

10 § 1169 - State motor vehicle dispute arbitration and mediation

Neutral New Car Arbitration
All the manufacturers are required to respond to state-certified arbitration, if the consumer requests arbitration during 3 years from the delivery of a motor vehicle or within the period of the express warranties, whichever occurs first, and the State has approved the request as making proper Maine Lemon Law claims. The Department of the Attorney General is responsible for the selection of arbitrator or arbitration firm which operates consistent with the rules defined in this chapter. Both the parties to arbitration have the right to one rejection of a proposed arbitrator.

[2003, c. 337, §7 (amd)]
Written Findings
Each arbitration program is followed by a written judgment of either a replacement or a refund. This decision must be issued within 45 days by the Department of the Attorney General. The verdict reporting date may be extended by 5 days, if the arbitrator wants a self-governing evaluation of the motor vehicle. In addition to the other cures provided by this chapter, the arbitrator will grant attorney’s fees to the consumer.

[1999, c. 212, §4 (amd)]
Administered By Attorney General
To boost the equality and effectiveness of the arbitration program, the Department of the Attorney General shall be accountable for publicizing its rules and obligations. These rules shall comprise of, a prerequisite of the personal neutrality of each arbitrator in the judgments of the dispute that the arbitrator will listen to, and the fortification of the right of each party to present its case and to be in presence during any presentation made by the other party.

[1989, c. 570, §5 (new)]
Consumer Arbitration Relief
If the state-certified arbitration finds a motor vehicle complying to the standards set forth in section 1163, subsection 2, to be replaced or refunded, and if the manufacturer fails in providing the refund or replacement, then the manufacturer shall be enforced to deliver the refund or replacement within 21 days from the receipt of a judgment. The manufacturer can ask the Department of the Attorney General for an extension.

[1989, c. 570, §5 (new)]
Appeal of Arbitration Decision
It is mandatory to file a petition with the Superior Court within 21 days of the judgment of the state-certified arbitration. The petition must be reinitialized. Both the arbitrator and the Department of the Attorney General may not be parties in any such appeal and may not be called as eyewitnesses.

If any refund or replacement granted by the state-certified arbitration is upheld by the court, recovery by the consumer may include continuing damages of up to $25 per day, pursuant to section 1163, that the motor vehicle was out of order due to a nonconformity not arising from the user’s neglect or accident.

The court will award the plaintiff, a reasonable attorney’s fees and other costs incurred on such petition. The court shall double the amount if it finds the manufacturer’s appeal frivolous.

[1999, c. 212, §4 (amd)]
Consumer's Rights If Arbitrator Denies Relief
If the judgment is in opposition to a consumer, then the consumer is entitled to apply for the manufacturer's informal dispute settlement procedure or can file a petition in the Superior Court within 21 days of the finding.

[1989, c. 570, §5 (new)]
Disclosure of Consumer Lemon Law Rights
The ownership manual must contain a disclosure of the rights available to the consumer under Maine lemon laws. Such disclosure shall not include window stickers.

[1989, c. 570, §5 (new)]
Manufacturer's Failure to Abide By Arbitrator's Decision
The disappointment of a manufacturer either to stand with the finding of state-certified arbitration shall permit any consumer who has appealed to enforce this chapter to a grant of not less than 2 times the actual award, unless the manufacturer provides evidence that the failure was afar from the manufacturer's control.

[1989, c. 570, §5 (new)]
Consumer Request for Information
It’s the right of the consumer to ask for copies of all repair records reports concerning to the motor vehicle, including reports of inspection, diagnosis or test-drives, bulletins or notices issued by the manufacturer.

[1989, c. 570, §5 (new)]
Penalties
Not complying with the judgment of an arbitrator or failure to appeal the decision in the court or not delivering a refund or replacement is a clear evidence of unfair practice and shall result in some penalties.

[1989, c. 570, §5 (new)]
Arbitration and Mediation Account
Bearing the expenses incurred by the Department of the Attorney General in settling new and used motor vehicle consequences through the Main lemon law arbitration program and, for vehicles that do not meet the criteria of arbitration, the consumer mediation service, the following fees is imposed:
1. A new car dealer will collect $1 as fee for Maine lemon law arbitration program from the purchaser of a new motor vehicle as part of sale agreement.
  [1993, c. 415, Pt. K, §2 (new)]
2. A used car dealer will collect $1 as fee for Maine lemon law consumer mediation service from the purchaser of a used motor vehicle as part of sale agreement
  [1993, c. 415, Pt. K, §2 (new)]
The Secretary of State shall take on rules to execute this subsection. The rules must present that the charges imposed by this subsection must be forwarded on annual basis by the dealer or its descendant to the Secretary of State and deposited in the General Fund. At the end of each financial year, a report, indicating the collection of fees and expenses incurred, will be prepared by the Department of the Attorney General.

[1993, c. 415, Pt. K, §2 (rpr)]