South Carolina Lemon Laws

Title 56, Chapter 28

Section 56-28-10.

Definitions

As used in this chapter the following terms shall mean:

Consumer is any person who purchases or leases, other than for purposes of resale, a motor vehicle and uses it normally for personal, family, or household purposes and that vehicle is subject to the manufacturer's express warranty. Consumer may also mean any other person entitled by the warranty to enforce the obligations of the warranty.

Manufacturer is defined as any person, whether resident, or nonresident, who is involved in manufacturing or assembling or importing or distributing of new motor vehicles which are to be sold in the State.

Manufacturer's express warranty or warranty in South Carolina is the written warranty, so labeled, that the manufacturer of a new motor vehicle provides. The warranty card includes any terms or conditions precedent to the enforcement of obligations under that warranty.

Motor vehicle means a private passenger self propelled motor vehicle, as classified by Section 56-3-630, but excluding the living portion of recreational vehicles and off-road vehicles, which is sold and registered in this State.

A new motor vehicle means a private passenger motor vehicle which has been sold to a new motor vehicle dealer by a manufacturer and which has not been used for other than demonstration purposes and on which the original title has not been issued from the new motor vehicle dealer.

Nonconformity means a defect or condition that significantly damages the use, value, or safety of a motor vehicle. Nonconformity shall not include a defect or condition that results from an accident, modification, or alteration of the motor vehicle by persons other than the manufacturer or its authorized service agent.

Section 56-28-20.

Manufacturers to Provide Annual Written Summaries of Certain Motor Vehicles; Forms; Records to Be Made Available; Penalties

Under this chapter of South Carolina lemon law every manufacturer, in a format and a form that must be mailed annually to each manufacturer approved by the Administrator of the Department of Consumer Affairs, shall provide a written summary of all motor vehicles repurchased or replaced no less than once each calendar year. In addition, every manufacturer shall also make available any paperwork, reports, or other information regarding vehicles subject to this chapter upon request by the administrator. In case the manufacturer fails to supply either the written summaries of repurchased vehicles or respond to reasonable requests for information by the administrator shall be subjected to an administrative penalty not exceeding one thousand dollars for each violation which the administrator may impose upon his own discretion.

Section 56-28-30.

Nonconformity with Express Warranties; Notice Required; Repairs Required

In case a new motor vehicle was found defective and does not conform to all applicable express warranties within the first twelve months of purchase or the first twelve thousand miles of operation, whichever occurs first, and the consumer reports the nonconformity to the manufacturer or its agent during the term of the express warranties, the manufacturer, or its agent abiding by South Carolina lemon laws, shall make those repairs as are necessary to conform the vehicle to the express warranties at no cost to the consumer, notwithstanding the fact that the repairs are made after the expiration of the term.

Section 56-28-40.

Replacement of Motor Vehicle; Refund of Purchase Price

South Carolina lemon laws facilitate their consumers to have a replacement of motor vehicle or complete refund of the purchase price. The law shall deem if within the term specified in Section 56-28-30, the manufacturer, through its agents or authorized dealer, is unable to conform the motor vehicle to any applicable express warranty by repairing or correcting any defect or condition which substantially impairs the use, market value, and or safety of the motor vehicle to the consumer after a reasonable number of attempts, the manufacturer shall replace the motor vehicle with a comparable motor vehicle, or at its option, accept return of the vehicle from the consumer and refund to the consumer the full purchase price as delivered including applicable finance charges, sales taxes, license fees, registration fees, and any other similar governmental charges, less a reasonable allowance for the consumer's use of the vehicle. Refunds must be made to the consumer and lienholder, if any, as their interest may appear on the record of ownership kept by the Division of Motor Vehicles. A reasonable allowance for use must be that amount directly attributable to use by the consumer before his first report of the nonconformity to the manufacturer, agent, or dealer, and must be calculated by multiplying the full purchase price of the vehicle by a fraction having as its denominator one hundred twenty thousand and having as its numerator the number of miles that the vehicle traveled before the first report of nonconformity. The consumer may not get a refund or replacement of the motor vehicle if:

  1. The alleged nonconformity does not substantially impair the motor vehicle's use, market value, or safety;
  2. The alleged nonconformity is because of self abuse, neglect, or modification or alteration of the motor vehicle by the consumer.

Section 56-28-50.

Presumption of Attempts to Conform; Information to Be Provided To Consumers; Obligations of Manufacturer; Costs and Attorney's Fees; Notice Requirements

  1. The board shall presume that a reasonable number of attempts have been undertaken to conform a motor vehicle to the applicable express warranties if:
    1. The same nonconformity, defect or condition has been subject to repair three or more times by the manufacturer, or its agent, within the express warranty term, but the nonconformity continues to exist; or
    2. The vehicle is out of service by reason of repair for a cumulative total of thirty or more calendar days during the express warranty. The term of an express warranty, and the twenty-day period must be extended by any period of time during which repair services are not available to the consumer because of a war, invasion, strike, fire, flood, or other natural disaster.
  2. As stated in this Chapter of South Carolina lemon law, it is the responsibility of the manufacturer to provide appropriate information regarding consumer complaint remedies with each new motor vehicle. The consumer before availing himself to the provision of this chapter must provide the manufacturer a written notification of the need for the repair of the nonconformity, in order to allow the manufacturer a final opportunity to cure the alleged defect if the manufacturer has clearly and prominently informed the consumer of the requirement of written notification to the manufacturer at the time of sale. The manufacturer, within ten business days, must notify the consumer of a reasonably accessible repair facility of a franchised new vehicle dealer to conform the new vehicle to the express warranty. After delivery of the new vehicle to an authorized repair facility by the consumer, the manufacturer must attempt immediately to repair the vehicle within a period not to exceed ten business days in order to conform the new motor vehicle to the express warranty. If the manufacturer is unable to repair properly the vehicle within the final ten-business-day period, the manufacturer must replace the vehicle with an identical or reasonably equivalent vehicle or refund the purchase price subject to the provisions of Section 56-28-40.
  3. In case the manufacturer fails to conform the alleged defect of the motor vehicle to the applicable express warranty, the manufacturer is left with option to request the consumer to enter with him with mutual consent in an informal dispute settlement procedure established by the manufacturer as enumerated in Section 56-28-60. However, if prior notice by the manufacturer of an informal dispute settlement procedure has been given, no further notice is required.
  4. Any consumer who finally prevails in any action brought under this chapter, may be allowed by the court to recover as part of the judgment a sum equal to the aggregate amount of cost and expenses (including attorney's fees based on actual time expended) and other such costs which are directly attributable to the nonconformity of the motor vehicle determined by the court to have been reasonably incurred by the plaintiff for or in connection with the commencement and prosecution of such action, unless the court in its discretion determines that such an award of attorney's fees would be inappropriate.
  5. All written notifications required by this section shall be sent by registered, certified, or express mail.

Section 56-28-60.

Informal Dispute Settlement Procedures

As stated in this chapter if a manufacturer has established an informal dispute settlement procedure which significantly complies with Title 16 of the Code of Federal Regulations, Part 703, or if the manufacturer decides to participate in a consumer-industry appeals, arbitration, or mediation panel or board, whose decisions are binding on the manufacturer, the provisions of Section 56-28-40 concerning refunds or replacement do not apply to any consumer who has not first resorted to those procedures or to the alternate procedure provided in Section 56-28-90 of South Carolina lemon laws.

Section 56-28-70.

Limitation of Actions

Section 56-28-70 defines that any action brought under this chapter must be commenced within three years following the date of original delivery of the motor vehicle to the consumer.

Section 56-28-80.

Construction of Chapter; Reimbursement from Dealer Prohibited; Exception

This Chapter specifies that nothing may be construed against motor vehicle dealer or manufacture under Section 56-28-40 as imposing any liability on a motor vehicle dealer or creating a cause of action by a consumer. The manufacturer shall not charge back or require reimbursement by the dealer for any costs, including, but not limited to, any refunds or vehicle replacements incurred by the manufacturer arising out of this chapter in the absence of evidence that the related repairs had been carried out by the dealer in a manner substantially inconsistent with the manufacturer's published instructions.

Section 56-28-90.

State Arbitration Board May Be Established

The Administrator of the Department of Consumer Affairs may establish by regulation a state arbitration board consisting of five members appointed by him to serve at his pleasure. The board shall review matters involving manufacturers that have not created an informal dispute settlement procedure that substantially complies with Title 16 of the Code of Federal Regulations, Part 703. The cost of the arbitration board must be borne by the manufacturer of the vehicle purchased or leased by the consumer.

Section 56-28-100.

Repurchased Vehicles Not To Be Resold; Exceptions

Any vehicle required to be repurchased by a manufacturer under this chapter or any other provision of law relating to motor vehicle warranties may not be resold, reassigned, or retransferred, either at wholesale or retail in this State, unless:

  1. The manufacturer notifies the Administrator of the Department of Consumer Affairs within thirty calendar days, in writing, of the vehicle identification number of that motor vehicle, the reason that the vehicle was repurchased, and provides a statement that all necessary repairs and adjustments have been made and that the vehicle meets acceptable operating standards.
  2. The manufacturer provides a written warranty to the subsequent retail purchaser of the vehicle covering the vehicle for twelve months or twelve thousand miles. The warranty must expressly include any component related to the manufacturer's decision to repurchase the vehicle.
  3. The manufacturer shall disclose to any dealer or other wholesale purchaser of the fact that the vehicle was required to be repurchased under this chapter or another provision of law relating to motor vehicle warranties.

Section 56-28-110.

Notification to Subsequent Purchasers; Penalties for Failure to Notify

Section 56-28-110 of South Carolina lemon laws states that “the seller must notify every subsequent purchaser of the fact that the vehicle was required to be repurchased under the terms of this chapter or another provision of law relating to motor vehicle warranties. In case the seller fails to notify properly any purchaser of the requirements of this section, the seller shall be subjected to an administrative penalty to be imposed by the administrator up to a maximum of five hundred dollars for each vehicle.