Arizona’s Lemon Law offers essential protections for consumers who purchase or lease new and used vehicles. This law ensures that if a vehicle exhibits significant defects or issues within a specified timeframe, the manufacturer or dealer must either repair, replace, or refund the vehicle. This comprehensive guide will walk you through all aspects of Arizona’s Lemon Law, including eligibility, timeframes, procedures, and remedies available to consumers.
Eligibility and Timeframes for AZ Lemon Law
Eligible Vehicles: AZ Lemon Law applies to all motor vehicles used on highways, with a few notable exceptions:
- The portions of a motor home designed, used, or maintained primarily as a mobile dwelling, office, or commercial space.
- Vehicles with a declared gross weight over 10,000 pounds.
- Vehicles sold at public auction.
Used vehicles are covered under the law if they still fall within the two-year or 24,000-mile requirement applicable to new motor vehicles. Vehicles purchased for resale purposes are not eligible.
Eligible Consumers: The law covers the following consumers:
- Purchasers of a motor vehicle for purposes other than resale.
- Any person to whom the motor vehicle is transferred during the duration of an express warranty.
- Any other person entitled by the terms of the warranty to enforce its obligations.
Lessee consumers are only covered if the lease contains a provision stating that the Lemon Law applies instead of the UCC.
Time Period for Filing Claims: Consumers must file claims within six months following the earlier of the expiration of the warranty or two years or 24,000 miles following the original delivery to the consumer, whichever comes first.
Defining Nonconformity and Establishing a Reasonable Number of Repair Attempts
A nonconformity refers to any defect or condition that substantially impairs the use and value of the motor vehicle to the consumer. Manufacturers are obligated to repair the nonconforming condition during the warranty term or within two years or 24,000 miles following the vehicle’s original delivery to the consumer, whichever comes first.
The law presumes that a reasonable number of repair attempts have occurred if, during the warranty term or two years or 24,000 miles following the vehicle’s original delivery, either:
- The same nonconformity has been subject to repair four or more times, but the issue persists.
- The vehicle is out of service for repair for a cumulative total of 30 or more calendar days.
Seeking a Remedy – Repair, Replacement, or Refund
If the manufacturer, its agent, or authorized dealer cannot repair the nonconformity after a reasonable number of attempts, the manufacturer must either replace the vehicle with a new one or repurchase the vehicle.
Replacement: The manufacturer will provide a new motor vehicle of equal or greater value. In cases where the replacement vehicle’s value is higher, the manufacturer must calculate the gross proceeds of the sale by subtracting the value of the original vehicle from the value of the replacement vehicle.
Refund: The refund consists of the full purchase price, all collateral charges associated with the purchase (including sales taxes), minus a reasonable allowance for the consumer’s use of the vehicle.
Dispute Resolution and Legal Recourse
Consumers must first resort to the manufacturer’s dispute resolution program if it complies with 16 C.F.R. Part 703 before seeking a refund or replacement. If a consumer prevails in a legal action under the Lemon Law, the court will award reasonable costs and attorney’s fees.
Warranty: The Foundation of Lemon Law Protection
A warranty is an assurance provided by the vehicle manufacturer or dealer that the vehicle will be free from defects and will function as intended for a specified period of time. Warranties come in two main types: express warranties, which are explicitly stated by the manufacturer or dealer, and implied warranties, which are legal obligations implied by state laws. The Arizona Lemon Law primarily revolves around express warranties, which provide the basis for a vehicle owner’s rights and remedies under the law.
AZ Lemon Law Rights Period: The Window of Protection
The Lemon Law rights period is a crucial aspect of the legislation, as it determines the timeframe during which a consumer can seek protection under the law. In Arizona, the Lemon Law rights period is the shorter of: (1) the term of the express warranty or (2) a period of two years or 24,000 miles following the date of the vehicle’s original delivery to the consumer, whichever comes first. This period is crucial in determining whether a vehicle owner is eligible for protection under the law and when they can pursue remedies for their vehicle’s issues.
Manufacturer’s Obligation to Repair: Ensuring a Functioning Vehicle
Under the Arizona Lemon Law, manufacturers, their agents, or authorized dealers are required to make the necessary repairs to conform the vehicle to the express warranty if a consumer reports a nonconformity within the Lemon Law rights period. The repairs must be carried out even if the warranty term or the rights period has expired, as long as the nonconformity was initially reported within the applicable timeframe.
Manufacturer’s Obligation to Repurchase or Replace: When Repairs Are Not Enough
If a manufacturer, its agent, or an authorized dealer is unable to fix a vehicle’s nonconformity after a reasonable number of repair attempts, the manufacturer must either replace the vehicle with a new one or repurchase the vehicle from the consumer. This obligation helps ensure that consumers are not left with a defective vehicle that cannot be fixed, providing them with a fair and just resolution.
Criteria for a Reasonable Number of Repair Attempts: When Enough Is Enough
A reasonable number of repair attempts is defined by Arizona law as either of the following circumstances occurring within the Lemon Law rights period: (1) the same nonconformity has been subject to repair four or more times but still persists, or (2) the vehicle is out of service for repair for a cumulative total of 30 or more calendar days. If either of these criteria is met, the manufacturer must comply with their obligation to replace or repurchase the vehicle.
Notice of Nonconformity and Final Opportunity to Repair: Giving Manufacturers One Last Chance
Before the presumption that a reasonable number of repair attempts has occurred can apply, the manufacturer must receive direct written notification of the alleged defect from the consumer or on their behalf. This notification provides the manufacturer with a final opportunity to cure the alleged defect before the consumer can seek a replacement or repurchase under the Lemon Law.
Affirmative Defenses: Manufacturer’s Legal Shield
A manufacturer may present an affirmative defense against a Lemon Law claim by demonstrating that the vehicle’s nonconformity is a result of abuse, neglect, or unauthorized modifications or alterations. If proven, the manufacturer may not be held responsible for replacing or repurchasing the vehicle.
full purchase price, including any finance charges, taxes, and fees, as well as collateral charges such as registration fees and sales tax. Additionally, the refund must cover any expenses incurred by the consumer as a direct result of the vehicle’s nonconformity, such as towing fees or costs for alternative transportation. The manufacturer may, however, deduct a reasonable allowance for the consumer’s use of the vehicle before the nonconformity was first reported.
Replacement Vehicle: A New Beginning
If the manufacturer opts to provide a replacement vehicle, the new vehicle must be substantially identical to the original vehicle and must be accompanied by an express warranty. The consumer may also be responsible for paying a reasonable offset for their use of the original vehicle before the nonconformity was first reported, which will be calculated based on a formula determined by the Arizona Department of Transportation.
Dispute Resolution: Seeking a Fair Outcome
In the event that a consumer and manufacturer cannot reach an agreement concerning the repurchase or replacement of a defective vehicle, the consumer may choose to pursue a dispute resolution process. Many manufacturers offer an informal dispute resolution program that adheres to federal guidelines. If a manufacturer does not offer such a program, or if the consumer is unsatisfied with the outcome of the informal process, they may opt to pursue legal action in court.
Legal Representation: Securing Expert Assistance
Consumers who find themselves involved in a Lemon Law dispute may choose to retain the services of an attorney who specializes in Lemon Law cases. An experienced attorney can help navigate the complexities of the law, ensure that the consumer’s rights are protected, and work towards securing a favorable outcome.