| Lemon Law Information
 What is a "Lemon"? The law in New York specifically defines what a "lemon" is, and that isn't always what you might think. The fact that you often have trouble with a particular vehicle, or you don't like the way it runs, or after purchasing, you decide you don't like the features of the car, will not make it a "lemon" under the law. However, the Lemon Law does provide specific warranties for both new and used cars, with a procedure for making a complaint and allowing the dealer to try to repair the problem. Remember that if you purchase a used vehicle privately (from a private individual rather than a dealer), you will not have these protections. Instead, you purchase "as is," except for any remaining manufacturer warranty.
The New Car Lemon Law applies to cars sold or leased after September 1, 1983, and covers vehicles for 18,000 miles or 2 years, for new and leased cars. A vehicle will only be classified as a "lemon" if a problem has been repaired four or more times without success or the car has been out of service for 30 days (for one or more problems).
The Used Car Lemon Law applies to cars bought or leased after November1, 1984, with under 36,000 miles for 90 days or 4,000 miles, with 36,000 to 80,000 miles for 60 days or 3,000 miles, and with 80,000 - 100,000 miles for 30 days or 1,000 miles. The vehicle will be a "lemon" if a problem has been repaired 3 or more times without success, or the car has been out of service for 15 days.
If you think you have a Lemon Law complaint, you can contact the Lemon Law AUTOCAP program at 518-463-1148 ext.206, which is a free service. There is a fee if you use the Attorney General's Office. Make sure you have documented all attempts at repair.
NYS General Business Law Article 11A Full Text Appears Below (except for Motor Homes)
§ 198-a. Warranties. (a) As used in this section:
(1) "Consumer" means the purchaser, lessee or transferee, other than for purposes of resale, of a motor vehicle which is used primarily for
personal, family or household purposes and any other person entitled by the terms of the manufacturer's warranty to enforce the obligations of
such warranty;
(2) "Motor vehicle" means a motor vehicle excluding off-road vehicles, which was subject to a manufacturer's express warranty at the time of
original delivery and either (i) was purchased, leased or transferred in this state within either the first eighteen thousand miles of operation
or two years from the date of original delivery, whichever is earlier, or (ii) is registered in this state;
(3) "Manufacturer's express warranty" or "warranty" means the written warranty, so labeled, of the manufacturer of a new motor vehicle,
including any terms or conditions precedent to the enforcement of obligations under that warranty.
(4) "Mileage deduction formula" means the mileage which is in excess of twelve thousand miles times the purchase price, or the lease price if
applicable, of the vehicle divided by one hundred thousand miles.
(5) "Lessee" means any consumer who leases a motor vehicle pursuant to a written lease agreement which provides that the lessee is responsible
for repairs to such motor vehicle.
(6) "Lease price" means the aggregate of:
(i) the lessor's actual purchase cost;
(ii) the freight cost, if applicable;
(iii) the cost for accessories, if applicable;
(iv) any fee paid to another to obtain the lease; and
(v) an amount equal to five percent of the lessor's actual purchase cost as prescribed in subparagraph (i) of this paragraph.
(7) "Service fees" means the portion of a lease payment attributable to: (i) an amount for earned interest calculated on the rental payments previously paid to the lessor for the leased vehicle at an annual rate equal to two points above the prime rate in effect on the date of the execution of the lease; and (ii) any insurance or other costs expended by the lessor for the benefit of the lessee.
(8) "Capitalized cost" means the aggregate deposit and rental payments previously paid to the lessor for the leased vehicle less service fees.
(b) (1) If a new motor vehicle which is sold and registered in this state does not conform to all express warranties during the first eighteen thousand miles of operation or during the period of two years following the date of original delivery of the motor vehicle to such consumer, whichever is the earlier date, the consumer shall during such period report the nonconformity, defect or condition to the manufacturer, its agent or its authorized dealer. If the notification is received by the manufacturer's agent or authorized dealer, the agent or dealer shall within seven days forward written notice thereof to the manufacturer by certified mail, return receipt requested, and shall include in such notice a statement indicating whether or not such repairs have been undertaken. The manufacturer, its agent or its authorized dealer shall correct said nonconformity, defect or condition at no charge to the consumer, notwithstanding the fact that such repairs are made after the expiration of such period of operation or such two year period.
(2) If a manufacturer's agent or authorized dealer refuses to undertake repairs within seven days of receipt of the notice by a consumer of a nonconformity, defect or condition pursuant to paragraph one of this subdivision, the consumer may immediately forward written notice of such refusal to the manufacturer by certified mail, return receipt requested. The manufacturer or its authorized agent shall have twenty days from receipt of such notice of refusal to commence such repairs. If within such twenty day period, the manufacturer or its authorized agent fails to commence such repairs, the manufacturer, at the option of the consumer, shall replace the motor vehicle with a comparable motor vehicle, or accept return of the vehicle from the consumer and refund to the consumer the full purchase price or, if applicable, the lease price and any trade-in allowance plus fees and charges. Such fees and charges shall include but not be limited to all
license fees, registration fees and any similar governmental charges, less an allowance for the consumer's use of the vehicle in excess of the first twelve thousand miles of operation pursuant to the mileage deduction formula defined in paragraph four of subdivision (a) of this section, and a reasonable allowance for any damage not attributable to normal wear or improvements.
(c) (1) If, within the period specified in subdivision (b) of this section, the manufacturer or its agents or authorized dealers are unable to repair or correct any defect or condition which substantially impairs the value of the motor vehicle to the consumer after a reasonable number of attempts, the manufacturer, at the option of the consumer, shall replace the motor vehicle with a comparable motor vehicle, or accept return of the vehicle from the consumer and refund to the consumer the full purchase price or, if applicable, the lease price and any trade-in allowance plus fees and charges. Any return of a motor vehicle may, at the option of the consumer, be made to the dealer or other authorized agent of the manufacturer who sold such vehicle to the consumer or to the dealer or other authorized agent who attempted to repair or correct the defect or condition which necessitated the return and shall not be subject to any further shipping charges. Such fees and charges shall include but not be limited to all license fees, registration fees and any similar governmental charges, less an allowance for the consumer's use of the vehicle in excess of the first twelve thousand miles of operation pursuant to the mileage deduction formula defined in paragraph four of subdivision (a) of this section, and a reasonable allowance for any damage not attributable to normal wear or improvements. (2) A manufacturer which accepts return of the motor vehicle because the motor vehicle does not conform to its warranty shall notify the commissioner of the department of motor vehicles that the motor vehicle was returned to the manufacturer for nonconformity to its warranty and shall disclose, in accordance with the provisions of section four hundred seventeen-a of the vehicle and traffic law prior to resale either at wholesale or retail, that it was previously returned to the manufacturer for nonconformity to its warranty. Refunds shall be made to the consumer and lienholder, if any, as their interests may appear on the records of ownership kept by the department of motor vehicles. Refunds shall be accompanied by the proper application for credit or refund of state and local sales taxes as published by the department of taxation and finance and by a notice that the sales tax paid on the purchase price, lease price or portion thereof being refunded is refundable by the commissioner of taxation and finance in accordance
with the provisions of subdivision (f) of section eleven hundred thirty-nine of the tax law. If applicable, refunds shall be made to the lessor and lessee as their interests may appear on the records of ownership kept by the department of motor vehicles, as follows: the lessee shall receive the capitalized cost and the lessor shall receive the lease price less the aggregate deposit and rental payments previously paid to the lessor for the leased vehicle. The terms of the lease shall be deemed terminated contemporaneously with the date of the arbitrator's decision and award and no penalty for early termination shall be assessed as a result thereof. Refunds shall be accompanied by the proper application form for credit or refund of state and local sales tax as published by the department of taxation and finance and a notice that the sales tax paid on the lease price or portion thereof being refunded is refundable by the commissioner of taxation and finance in accordance with the provisions of subdivision (f) of section eleven hundred thirty-nine of the tax law. (3) It shall be an affirmative defense to any claim under this section
that:
(i) the nonconformity, defect or condition does not substantially impair such value; or
(ii) the nonconformity, defect or condition is the result of abuse, neglect or unauthorized modifications or alterations of the motor vehicle.
(d) It shall be presumed 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 four or more times by the manufacturer or its agents or authorized dealers within the first eighteen thousand miles of operation
or during the period of two years following the date of original
delivery of the motor vehicle to a consumer, whichever is the earlier
date, but such nonconformity, defect or condition continues to exist; or
(2) the vehicle is out of service by reason of repair of one or more
nonconformities, defects or conditions for a cumulative total of thirty
or more calendar days during either period, whichever is the earlier
date.
(e) The term of an express warranty, the two year warranty period and
the thirty day out of service period shall be extended by any time
during which repair services are not available to the consumer because
of a war, invasion or strike, fire, flood or other natural disaster.
(f) Nothing in this section shall in any way limit the rights or
remedies which are otherwise available to a consumer under any other
law.
(g) If a manufacturer has established an informal dispute settlement
mechanism, such mechanism shall comply in all respects with the
provisions of this section and the provisions of subdivision (c) of this
section concerning refunds or replacement shall not apply to any
consumer who has not first resorted to such mechanism. In the event that
an arbitrator in such an informal dispute mechanism awards a refund or
replacement vehicle, he or she shall not reduce the award to an amount
less than the full purchase price or the lease price, if applicable, or
a vehicle of equal value, plus all fees and charges except to the extent
such reductions are specifically permitted under subdivision (c) of this
section.
(h) A manufacturer shall have up to thirty days from the date the
consumer notifies the manufacturer of his or her acceptance of the
arbitrator's decision to comply with the terms of that decision. Failure
to comply with the thirty day limitation shall also entitle the consumer
to recover a fee of twenty-five dollars for each business day of
noncompliance up to five hundred dollars. Provided, however, that
nothing contained in this subdivision shall impose any liability on a
manufacturer where a delay beyond the thirty day period is attributable
to a consumer who has requested a replacement vehicle built to order or
with options that are not comparable to the vehicle being replaced or
otherwise made compliance impossible within said period. In no event
shall a consumer who has resorted to an informal dispute settlement
mechanism be precluded from seeking the rights or remedies available by
law.
(i) Any agreement entered into by a consumer for the purchase of a new
motor vehicle which waives, limits or disclaims the rights set forth in
this section shall be void as contrary to public policy. Said rights
shall inure to a subsequent transferee of such motor vehicle.
Any provision of any agreement entered into by a consumer for the
purchase of a new motor vehicle which includes as an additional cost for
such motor vehicle an expense identified as being for the purpose of
affording such consumer his or her rights under this section, shall be
void as contrary to public policy.
(j) Any action brought pursuant to this section shall be commenced
within four years of the date of original delivery of the motor vehicle
to the consumer.
(k) Each consumer shall have the option of submitting any dispute
arising under this section upon the payment of a prescribed filing fee
to an alternate arbitration mechanism established pursuant to
regulations promulgated hereunder by the New York state attorney
general. Upon application of the consumer and payment of the filing fee,
all manufacturers shall submit to such alternate arbitration.
Such alternate arbitration shall be conducted by a professional
arbitrator or arbitration firm appointed by and under regulations
established by the New York state attorney general. Such mechanism shall
insure the personal objectivity of its arbitrators and the right of each
party to present its case, to be in attendance during any presentation
made by the other party and to rebut or refute such presentation. In all
other respects, such alternate arbitration mechanism shall be governed
by article seventy-five of the civil practice law and rules; provided,
however, that notwithstanding paragraph (i) of subdivision (a) of
section seventy-five hundred two of the civil practice law and rules,
special proceedings brought before a court pursuant to such article
seventy-five in relation to an arbitration hereunder shall be brought
only in the county where the consumer resides or where the arbitration
was held or is pending.
(l) A court may award reasonable attorney's fees to a prevailing
plaintiff or to a consumer who prevails in any judicial action or
proceeding arising out of an arbitration proceeding held pursuant to
subdivision (k) of this section. In the event a prevailing plaintiff is
required to retain the services of an attorney to enforce collection of
an award granted pursuant to this section, the court may assess against
the manufacturer reasonable attorney's fees for services rendered to
enforce collection of said award.
(m) (1) Each manufacturer shall require that each informal dispute
settlement mechanism used by it provide, at a minimum, the following:
(i) that the arbitrators participating in such mechanism are trained
in arbitration and familiar with the provisions of this section, that
the arbitrators and consumers who request arbitration are provided with
a written copy of the provisions of this section, together with the
notice set forth below entitled "NEW CAR LEMON LAW BILL OF RIGHTS", and
that consumers, upon request, are given an opportunity to make an oral
presentation to the arbitrator;
(ii) that the rights and procedures used in the mechanism comply with
federal regulations promulgated by the federal trade commission relating
to informal dispute settlement mechanisms; and
(iii) that the remedies set forth under subdivision (c) of this
section are awarded if, after a reasonable number of attempts have been
undertaken under subdivision (d) of this section to conform the vehicle
to the express warranties, the defect or nonconformity still exists.
(2) The following notice shall be provided to consumers and
arbitrators and shall be printed in conspicuous ten point bold face
type:
NEW CAR LEMON LAW BILL OF RIGHTS
(1) IN ADDITION TO ANY WARRANTIES OFFERED BY THE MANUFACTURER, YOUR
NEW CAR, IF PURCHASED AND REGISTERED IN NEW YORK STATE, IS WARRANTED
AGAINST ALL MATERIAL DEFECTS FOR EIGHTEEN THOUSAND MILES OR TWO YEARS,
WHICHEVER COMES FIRST.
(2) YOU MUST REPORT ANY PROBLEMS TO THE MANUFACTURER, ITS AGENT, OR
AUTHORIZED DEALER.
(3) UPON NOTIFICATION, THE PROBLEM MUST BE CORRECTED FREE OF CHARGE.
(4) IF THE SAME PROBLEM CANNOT BE REPAIRED AFTER FOUR OR MORE
ATTEMPTS; OR IF YOUR CAR IS OUT OF SERVICE TO REPAIR A PROBLEM FOR A
TOTAL OF THIRTY DAYS DURING THE WARRANTY PERIOD; OR IF THE MANUFACTURER
OR ITS AGENT REFUSES TO REPAIR A SUBSTANTIAL DEFECT OR CONDITION WITHIN
TWENTY DAYS OF RECEIPT OF NOTICE SENT BY YOU TO THE MANUFACTURER BY
CERTIFIED MAIL, RETURN RECEIPT REQUESTED; THEN YOU MAY BE ENTITLED TO
EITHER A COMPARABLE CAR OR A REFUND OF YOUR PURCHASE PRICE, PLUS LICENSE
AND REGISTRATION FEES, MINUS A MILEAGE ALLOWANCE ONLY IF THE VEHICLE HAS
BEEN DRIVEN MORE THAN 12,000 MILES. SPECIAL NOTIFICATION REQUIREMENTS
MAY APPLY TO MOTOR HOMES.
(5) A MANUFACTURER MAY DENY LIABILITY IF THE PROBLEM IS CAUSED BY
ABUSE, NEGLECT, OR UNAUTHORIZED MODIFICATIONS OF THE CAR.
(6) A MANUFACTURER MAY REFUSE TO EXCHANGE A COMPARABLE CAR OR REFUND
YOUR PURCHASE PRICE IF THE PROBLEM DOES NOT SUBSTANTIALLY IMPAIR THE
VALUE OF YOUR CAR.
(7) IF A MANUFACTURER HAS ESTABLISHED AN ARBITRATION PROCEDURE, THE
MANUFACTURER MAY REFUSE TO EXCHANGE A COMPARABLE CAR OR REFUND YOUR
PURCHASE PRICE UNTIL YOU FIRST RESORT TO THE PROCEDURE.
(8) IF THE MANUFACTURER DOES NOT HAVE AN ARBITRATION PROCEDURE, YOU
MAY RESORT TO ANY REMEDY BY LAW AND MAY BE ENTITLED TO YOUR ATTORNEY'S
FEES IF YOU PREVAIL.
(9) NO CONTRACT OR AGREEMENT CAN VOID ANY OF THESE RIGHTS.
(10) AS AN ALTERNATIVE TO THE ARBITRATION PROCEDURE MADE AVAILABLE
THROUGH THE MANUFACTURER, YOU MAY INSTEAD CHOOSE TO SUBMIT YOUR CLAIM TO
AN INDEPENDENT ARBITRATOR, APPROVED BY THE ATTORNEY GENERAL. YOU MAY
HAVE TO PAY A FEE FOR SUCH AN ARBITRATION. CONTACT YOUR LOCAL CONSUMER
OFFICE OR ATTORNEY GENERAL'S OFFICE TO FIND OUT HOW TO ARRANGE FOR
INDEPENDENT ARBITRATION.
(3) All informal dispute settlement mechanisms shall maintain the
following records:
(i) the number of purchase price and lease price refunds and vehicle
replacements requested, the number of each awarded in arbitration, the
amount of each award and the number of awards that were complied with in
a timely manner;
(ii) the number of awards where additional repairs or a warranty
extension was the most prominent remedy, the amount or value of each
award, and the number of such awards that were complied with in a timely
manner;
(iii) the number and total dollar amount of awards where some form of
reimbursement for expenses or compensation for losses was the most
prominent remedy, the amount or value of each award and the number of
such awards that were complied with in a timely manner; and
(iv) the average number of days from the date of a consumer's initial
request to arbitrate until the date of the final arbitrator's decision
and the average number of days from the date of the final arbitrator's
decision to the date on which performance was satisfactorily carried
out.
§ 198-b. Sale or lease of used motor vehicles.
a. Definitions. As used
in this section, the following words shall have the following meanings:
1. "Consumer" means the purchaser, or lessee, other than for purposes
of resale, of a used motor vehicle primarily used for personal, family,
or household purposes and subject to a warranty, and the spouse or child
of the purchaser or the lessee if either such motor vehicle or the lease
of such motor vehicle is transferred to the spouse or child during the
duration of any warranty applicable to such motor vehicle, and any other
person entitled by the terms of such warranty to enforce the obligations
of the warranty;
2. "Used motor vehicle" means a motor vehicle, excluding motor homes
and off-road vehicles, which has been purchased, leased, or transferred
either after eighteen thousand miles of operation or two years from the
date of original delivery, whichever is earlier;
3. "Dealer" means any person or business which sells, offers for sale,
leases or offers for lease a used vehicle after selling, offering for
sale, leasing or offering for lease three or more used vehicles in the
previous twelve month period, but does not include:
(a) a bank or financial institution except in the case of a lease of a
used motor vehicle,
(b) a business selling a used vehicle to an employee of that business,
(c) a regulated public utility which sells at public auction vehicles
used in the ordinary course of its operations, provided that any
advertisements of such sales conspicuously disclose the "as is" nature
of the sale,
(d) the sale of a leased vehicle to that vehicle's lessee, a family
member of the lessee, or an employee of the lessee, or
(e) the state, its agencies, bureaus, boards, commissions and
authorities, and all of the political subdivisions of the state,
including the agencies and authorities of such subdivisions;
4. "Warranty" means any undertaking in connection with the sale or
lease by a dealer of a used motor vehicle to refund, repair, replace,
maintain or take other action with respect to such used motor vehicle
and provided at no extra charge beyond the price of the used motor
vehicle;
5. "Service contract" means a contract in writing for any period of
time or any specific mileage to refund, repair, replace, maintain or
take other action with respect to a used motor vehicle and provided at
an extra charge beyond the price of the used motor vehicle or of the
lease contract for the used motor vehicle;
6. "Repair insurance" means a contract in writing for any period of
time or any specific mileage to refund, repair, replace, maintain or
take other action with respect to a used motor vehicle and which is
regulated by the insurance department.
b. Written warranty required; terms.
1. No dealer shall sell or lease a used motor vehicle to a consumer
without giving the consumer a written warranty which shall at minimum
apply for the following terms:
(a) If the used motor vehicle has thirty-six thousand miles or less,
the warranty shall be at minimum ninety days or four thousand miles,
whichever comes first.
(b) If the used motor vehicle has more than thirty-six thousand miles,
but less than eighty thousand miles, the warranty shall be at minimum
sixty days or three thousand miles, whichever comes first.
(c) If the used motor vehicle has eighty thousand miles or more but no
more than one hundred thousand miles, the warranty shall be at a minimum
thirty days or one thousand miles, whichever comes first.
2. The written warranty shall require the dealer or his agent to
repair or, at the election of the dealer, reimburse the consumer for the
reasonable cost of repairing the failure of a covered part. Covered
parts shall at least include the following items:
(a) Engine. All lubricated parts, water pump, fuel pump, manifolds,
engine block, cylinder head, rotary engine housings and flywheel.
(b) Transmission. The transmission case, internal parts, and the
torque converter.
(c) Drive axle. Front and rear drive axle housings and internal parts,
axle shafts, propeller shafts and universal joints.
(d) Brakes. Master cylinder, vacuum assist booster, wheel cylinders,
hydraulic lines and fittings and disc brake calipers.
(e) Radiator.
(f) Steering. The steering gear housing and all internal parts, power
steering pump, valve body, piston and rack.
(g) Alternator, generator, starter, ignition system excluding the
battery.
3. Such repair or reimbursement shall be made by the dealer
notwithstanding the fact that the warranty period has expired, provided
the consumer notifies the dealer of the failure of a covered part within
the specified warranty period.
4. The written warranty may contain additional language excluding
coverage:
(a) for a failure of a covered part caused by a lack of customary
maintenance;
(b) for a failure of a covered part caused by collision, abuse,
negligence, theft, vandalism, fire or other casualty and damage from the
environment (windstorm, lightning, road hazards, etc.);
(c) if the odometer has been stopped or altered such that the
vehicle's actual mileage cannot be readily determined or if any covered
part has been altered such that a covered part was thereby caused to
fail;
(d) for maintenance services and the parts used in connection with
such services such as seals, gaskets, oil or grease unless required in
connection with the repair of a covered part;
(e) for a motor tuneup;
(f) for a failure resulting from racing or other competition;
(g) for a failure caused by towing a trailer or another vehicle unless
the used motor vehicle is equipped for this as recommended by the
manufacturer;
(h) if the used motor vehicle is used to carry passengers for hire;
(i) if the used motor vehicle is rented to someone other than the
consumer as defined in paragraph one of subdivision a of this section;
(j) for repair of valves and/or rings to correct low compression
and/or oil consumption which are considered normal wear;
(k) to the extent otherwise permitted by law, for property damage
arising or allegedly arising out of the failure of a covered part; and
(l) to the extent otherwise permitted by law, for loss of the use of
the used motor vehicle, loss of time, inconvenience, commercial loss or
consequential damages.
c. Failure to honor warranty. 1. If the dealer or his agent fails to
correct a malfunction or defect as required by the warranty specified in
this section which substantially impairs the value of the used motor
vehicle to the consumer after a reasonable period of time, the dealer
shall accept return of the used motor vehicle from the consumer and
refund to the consumer the full purchase price, or in the case of a
lease contract all payments made under the contract, including sales or
compensating use tax, less a reasonable allowance for any damage not
attributable to normal wear or usage, and adjustment for any
modifications which either increase or decrease the market value of the
vehicle or of the lease contract, and in the case of a lease contract,
shall cancel all further payments due from the consumer under the lease
contract. In determining the purchase price to be refunded or in
determining all payments made under a lease contract to be refunded, the
purchase price, or all payments made under a lease contract, shall be
deemed equal to the sum of the actual cash difference paid for the used
motor vehicle, or for the lease contract, plus, if the dealer elects to
not return any vehicles traded-in by the consumer, the wholesale value
of any such traded-in vehicles as listed in the National Auto Dealers
Association Used Car Guide, or such other guide as may be specified in
regulations promulgated by the commissioner of motor vehicles, as
adjusted for mileage, improvements, and any major physical or mechanical
defects in the traded-in vehicle at the time of trade-in. The dealer
selling or leasing the used motor vehicle shall deliver to the consumer
a written notice including conspicuous language indicating that if the
consumer should be entitled to a refund pursuant to this section, the
value of any vehicle traded-in by the consumer, if the dealer elects to
not return it to the consumer, for purposes of determining the amount of
such refund will be determined by reference to the National Auto Dealers
Association Used Car Guide wholesale value, or such other guide as may
be approved by the commissioner of motor vehicles, as adjusted for
mileage, improvements, and any major physical or mechanical defects,
rather than the value listed in the sales contract. Refunds shall be
made to the consumer and lienholder, if any, as their interests may
appear on the records of ownership kept by the department of motor
vehicles. If the amount to be refunded to the lienholder will be
insufficient to discharge the lien, the dealer shall notify the consumer
in writing by registered or certified mail that the consumer has thirty
days to pay the lienholder the amount which, together with the amount to
be refunded by the dealer, will be sufficient to discharge the lien. The
notice to the consumer shall contain conspicuous language warning the
consumer that failure to pay such funds to the lienholder within thirty
days will terminate the dealer's obligation to provide a refund. If the
consumer fails to make such payment within thirty days, the dealer shall
have no further responsibility to provide a refund under this section.
Alternatively, the dealer may elect to offer to replace the used motor
vehicle with a comparably priced vehicle, with such adjustment in price
as the parties may agree to. The consumer shall not be obligated to
accept a replacement vehicle, but may instead elect to receive the
refund provided under this section. It shall be an affirmative defense
to any claim under this section that:
(a) The malfunction or defect does not substantially impair such
value; or
(b) The malfunction or defect is the result of abuse, neglect or
unreasonable modifications or alterations of the used motor vehicle.
2. It shall be presumed that a dealer has had a reasonable opportunity
to correct a malfunction or defect in a used motor vehicle, if: (a) The
same malfunction or defect has been subject to repair three or more
times by the selling or leasing dealer or his agent within the warranty
period, but such malfunction or defect continues to exist; or
(b) The vehicle is out of service by reason of repair or malfunction
or defect for a cumulative total of fifteen or more days during the
warranty period. Said period shall not include days when the dealer is
unable to complete the repair because of the unavailability of necessary
repair parts. The dealer shall be required to exercise due diligence in
attempting to obtain necessary repair parts. Provided, however, that if
a vehicle has been out of service for a cumulative total of forty-five
days, even if a portion of that time is attributable to the
unavailability of replacement parts, the consumer shall be entitled to
the replacement or refund remedies provided in this section.
3. The term of any warranty, service contract or repair insurance
shall be extended by any time period during which the used motor vehicle
is in the possession of the dealer or his duly authorized agent for the
purpose of repairing the used motor vehicle under the terms and
obligations of said warranty, service contract or repair insurance.
4. The term of any warranty, service contract or repair insurance, and
the fifteen day out-of-service period, shall be extended by any time
during which repair services are not available to the consumer because
of a war, invasion or strike, fire, flood or other natural disaster.
d. Waiver void. 1. Any agreement entered into by a consumer for the
purchase or lease of a used motor vehicle which waives, limits or
disclaims the rights set forth in this article shall be void as contrary
to public policy. Further, if a dealer fails to give the written
warranty required by this article, the dealer nevertheless shall be
deemed to have given said warranty as a matter of law.
2. Nothing in this section shall in any way limit the rights or
remedies which are otherwise available to a consumer under any other
law.
3. Notwithstanding paragraph one of this subdivision, this article
shall not apply to used motor vehicles sold for, or in the case of a
lease where the value of the used motor vehicle as agreed to by the
consumer and the dealer which vehicle is the subject of the contract is,
less than one thousand five hundred dollars, or to used motor vehicles
with over one hundred thousand miles at the time of sale or lease if
said mileage is indicated in writing at the time of sale or lease.
Further, this article shall not apply to the sale or lease of historical
motor vehicles as defined in section four hundred one of the vehicle and
traffic law.
e. Time of delivery, location of warranty and notice. The written
warranty provided for in subdivision b of this section and the written
notice provided for in subdivision c of this section shall be delivered
to the consumer at or before the time the consumer signs the sales or
lease contract for the used motor vehicle. The warranty and the notice
may be set forth on one sheet or on separate sheets. They may be
separate from, attached to, or a part of the sales or lease contract. If
they are part of the sales or lease contract, they shall be separated
from the other contract provisions and each headed by a conspicuous
title.
f. Arbitration and enforcement. 1. If a dealer has established or
participates in an informal dispute settlement procedure which complies
in all respects with the provisions of part seven hundred three of title
sixteen of the code of federal regulations the provisions of this
article concerning refunds or replacement shall not apply to any
consumer who has not first resorted to such procedure. Dealers utilizing
informal dispute settlement procedures pursuant to this subdivision
shall insure that arbitrators participating in such informal dispute
settlement procedures are familiar with the provisions of this section
and shall provide to arbitrators and consumers who seek arbitration a
copy of the provisions of this section together with the following
notice in conspicuous ten point bold face type:
USED CAR LEMON LAW BILL OF RIGHTS
1. If you purchase a used car for more than one thousand five hundred
dollars, or lease a used car where you and the dealer have agreed that
the car's value is more than one thousand five hundred dollars, from
anyone selling or leasing three or more used cars a year, you must be
given a written warranty.
2. If your used car has 18,000 miles or less, you may be protected by
the new car lemon law.
3. (a) If your used car has more than 18,000 miles and up to and
including 36,000 miles, a warranty must be provided for at least 90 days
or 4,000 miles, whichever comes first.
(b) If your used car has more than 36,000 miles but less than 80,000
miles, a warranty must be provided for at least 60 days or 3,000 miles,
whichever comes first.
(c) If your used car has 80,000 miles or more but no more than 100,000
miles, a warranty must be provided for at least 30 days or 1,000 miles,
whichever comes first. Cars with over 100,000 miles are not covered.
4. If your engine, transmission, drive axle, brakes, radiator,
steering, alternator, generator, starter, or ignition system (excluding
the battery) are defective, the dealer or his agent must repair or, if
he so chooses, reimburse you for the reasonable cost of repair.
5. If the same problem cannot be repaired after three or more
attempts, you are entitled to return the car and receive a refund of
your purchase price or of all payments made under your lease contract,
and of sales tax and fees, minus a reasonable allowance for any damage
not attributable to normal usage or wear, and, in the case of a lease
contract, a cancellation of all further payments you are otherwise
required to make under the lease contract.
6. If your car is out of service to repair a problem for a total of
fifteen days or more during the warranty period you are entitled to
return the car and receive a refund of your purchase price or of all
payments made under your lease contract, and of sales tax and fees,
minus a reasonable allowance for any damage not attributable to normal
usage or wear, and, in the case of a lease contract, a cancellation of
all further payments you are otherwise required to make under the lease
contract.
7. A dealer may put into the written warranty certain provisions which
will prohibit your recovery under certain conditions; however, the
dealer may not cause you to waive any rights under this law.
8. A dealer may refuse to refund your purchase price, or the payments
made under your lease contract, if the problem does not substantially
impair the value of your car, or if the problem is caused by abuse,
neglect, or unreasonable modification.
9. If a dealer has established an arbitration procedure, the dealer
may refuse to refund your purchase price until you first resort to the
procedure. If the dealer does not have an arbitration procedure, you may
resort to any remedy provided by law and may be entitled to your
attorney's fees if you prevail.
10. As an alternative to the arbitration procedure made available
through the dealer you may instead choose to submit your claim to an
independent arbitrator, approved by the attorney general. You may have
to pay a fee for such an arbitration. Contact your local consumer office
or attorney general's office to find out how to arrange for independent
arbitration.
11. If any dealer refuses to honor your rights or you are not
satisfied by the informal dispute settlement procedure, complain to the
New York State Attorney General, Executive Office, Capitol, Albany, N.Y.
12224.
2. A dealer shall have up to thirty days from the date of notice by
the consumer that the arbitrator's decision has been accepted to comply
with the terms of such decision. Provided, however, that nothing
contained in this subdivision shall impose any liability on a dealer
where a delay beyond the thirty day period is attributable to a consumer
who has requested a particular replacement vehicle or otherwise made
compliance impossible within said period.
3. Upon the payment of a prescribed filing fee, a consumer shall have
the option of submitting any dispute arising under this section to an
alternate arbitration mechanism established pursuant to regulations
promulgated hereunder by the attorney general. Upon application of the
consumer and payment of the filing fee, the dealer shall submit to such
alternate arbitration.
Such alternate arbitration shall be conducted by a professional
arbitrator or arbitration firm appointed by and under regulations
established by the attorney general. Such mechanism shall ensure the
personal objectivity of its arbitrators and the right of each party to
present its case, to be in attendance during any presentation made by
the other party and to rebut or refute such presentation. In all other
respects, such alternate arbitration mechanism shall be governed by
article seventy-five of the civil practice law and rules.
The notice required by paragraph one of this subdivision, entitled
Used Car Lemon Law Bill of Rights, shall be provided to arbitrators and
consumers who seek arbitration under this subdivision.
A dealer shall have thirty days from the date of mailing of a copy of
the arbitrator's decision to such dealer to comply with the terms of
such decision. Failure to comply within the thirty day period shall
entitle the consumer to recover, in addition to any other recovery to
which he may be entitled, a fee of twenty-five dollars for each business
day beyond thirty days up to five hundred dollars; provided however,
that nothing in this subdivision shall impose any liability on a dealer
where a delay beyond the thirty day period is attributable to a consumer
who has requested a particular replacement vehicle or otherwise made
compliance impossible within said period.
The commissioner of motor vehicles or any person deputized by him may
deny the application of any person for registration under section four
hundred fifteen of the vehicle and traffic law and suspend or revoke a
registration under such section or refuse to issue a renewal thereof if
he or such deputy determines that such applicant or registrant or any
officer, director, stockholder, or partner, or any other person directly
or indirectly interested in the business has deliberately failed to pay
an arbitration award, which has not been stayed or appealed, rendered in
an arbitration proceeding pursuant to this paragraph for sixty days
after the date of mailing of a copy of the award to the registrant. Any
action taken by the commissioner of motor vehicles pursuant to this
paragraph shall be governed by the procedures set forth in subdivision
nine of section four hundred fifteen of the vehicle and traffic law.
4. In no event shall a consumer who has resorted to an informal
dispute settlement procedure be precluded from seeking the rights or
remedies available by law.
5. In an action brought to enforce the provisions of this article, the
court may award reasonable attorney's fees to a prevailing plaintiff or
to a consumer who prevails in any judicial action or proceeding arising
out of an arbitration proceeding held pursuant to paragraph three of
this subdivision. In the event a prevailing plaintiff is required to
retain the services of an attorney to enforce collection of an award
granted pursuant to this section, the court may assess against the
dealer reasonable attorney's fees for services rendered to enforce
collection of said award.
6. Any action brought pursuant to this article shall be commenced
within four years of the date of original delivery of the used motor
vehicle to the consumer.
g. Notice of consumer rights. At the time of purchase or lease of a
used motor vehicle from a dealer in this state, the dealer shall provide
to the consumer a notice, printed in not less than eight point bold face
type, entitled "Used Car Lemon Law Bill of Rights". The text of such
notice shall be identical with the notice required by paragraph one of
subdivision f of this section.
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