Idaho State Statutes
Title 48, Chapter 9, Sections 901-913
Monopolies And Trade Practices
New Motor Vehicle Warranties
Manufacturer's Duty to Repair, Refund or Replace
48-901 Definitions.
For purposes of this chapter, the following terms have the following meanings:
(1) "Consumer" means the purchaser or lessee, other than for
purposes of resale or sublease, of a new motor vehicle used for personal business use,
personal, family or household purposes, or a person to whom the new motor vehicle is
transferred for the same purposes during the duration of an express warranty applicable
to the motor vehicle.
(2) "Early termination costs" means expenses and obligations
incurred by a motor vehicle lessor as a result of an early termination of a written
lease agreement and surrender of a motor vehicle to a manufacturer under section 48-904,
Idaho Code, including penalties for prepayment of finance arrangements.
(3) "Informal dispute settlement mechanism" means an arbitration
process or procedure by which the manufacturer attempts to resolve disputes with
consumers regarding motor vehicle nonconformities and repairs that arise during the
vehicle's warranty period.
(4) "Lease" means a contract in the form of a lease or bailment for
the use of personal property by a natural person for a period of time exceeding four (4)
months, used for personal business use, personal, family, or household purposes, whether
or not the lessee has the option to purchase or otherwise become the owner of the
property at the expiration of the lease.
(5) "Manufacturer" means a person engaged in the business of
manufacturing, assembling or distributing motor vehicles, who will, under normal
business conditions during the year, manufacture, assemble or distribute to dealers at
least ten (10) new motor vehicles.
(6) "Manufacturer's express warranty" and "warranty" mean
the written warranty of the manufacturer of a new motor vehicle of its condition and
fitness for use, including any terms or conditions precedent to the enforcement of
obligations under that warranty.
(7) "Motor vehicle" means a motor vehicle as defined in chapter 1,
title 49, Idaho Code, which is sold or licensed in this state but does not include
(a) Motorcycle or farm tractor as defined in sections 49-107 and 49-114,
Idaho Code; or
(b) Trailer as defined in section 49-121, Idaho Code; or
(c) Any motor vehicle with a gross laden weight over twelve thousand
(12,000) pounds.
(8) "Motor vehicle lessor" means a person who holds title to a motor
vehicle leased to a lessee under a written lease agreement or who holds the lessor's
rights under such agreement.
48-902 Manufacturer's duty to repair - Service and Repair Facilities.
(1) If a new motor vehicle does not conform to all applicable express
warranties, and the consumer reports the nonconformity to the manufacturer, its agent,
or its authorized dealer during the term of the applicable express warranties or during
the period of two (2) years following the date of original delivery of the new motor
vehicle to a consumer, or during the period ending with the date on which the mileage on
the motor vehicle reaches twenty-four thousand (24,000) miles, whichever is the earliest
date, the manufacturer, its agent, or its authorized dealer shall make the repairs
necessary to conform the vehicle to the applicable express warranties, notwithstanding
the fact that the repairs are made after the expiration of the warranty term or the two
(2) year period.
(2) Every manufacturer of motor vehicles sold and for which the manufacturer
has made an express warranty shall maintain sufficient service and repair facilities
reasonably close to all areas in which its motor vehicles are sold to carry out the
terms of the warranties or designate and authorize as service and repair facilities
independent repair or service facilities reasonably close to all areas in which its
motor vehicles are sold to carry out the terms of the warranties. As a means of
complying with the provisions of this subsection, a manufacturer may, in a town or city
where there is not a franchise market representative, enter into warranty service
contracts with independent service and repair facilities.
48-903 Manufacturer's duty to refund or replace.
(1) If the manufacturer, its agents, or its authorized dealers are unable to
conform the new motor vehicle to any applicable express warranty by repairing or
correcting any defect or condition which impairs the use or market value of the motor
vehicle to the consumer after a reasonable number of attempts, the manufacturer shall
either replace the new motor vehicle with a comparable motor vehicle or accept return of
the vehicle from the consumer and refund to the consumer the amount the consumer paid
for the vehicle, inclusive of the value of any trade-in, not to exceed one hundred five
percent (105%) of the manufacturer's suggested retail price of the motor vehicle. The
manufacturer's suggested retail price shall include all manufacturer installed options.
The one hundred five percent (105%) cap shall include the cost of any options or other
modifications arranged, installed, or made by the manufacturer's agent, or its
authorized dealer within thirty (30) days after the date of original delivery. The
manufacturer shall refund to the consumer all other charges including, but not limited
to, sales or excise tax, license fees and registration fees, reimbursement for towing
and rental vehicle expenses incurred by the consumer as a result of the vehicle being
out of service for warranty repair. A reasonable allowance for the consumer's use of the
vehicle shall be deducted from the refund to the consumer not to exceed the number of
miles attributable to the consumer up to the date of the arbitration hearing multiplied
by the purchase price of the vehicle and divided by one hundred twenty thousand
(120,000). If the manufacturer offers a replacement vehicle under this section, the
consumer has the option of rejecting the replacement vehicle and requiring the
manufacturer to provide a refund. Refunds must be made to the consumer, and lien holder,
if any, as their interests appear on the records of the division of motor vehicles of
the Idaho transportation department. A manufacturer must give to the consumer an
itemized statement listing each of the amounts refunded under this section. If the
amount of sales or excise tax refunded is not separately stated, or if the manufacturer
does not apply for a refund of the tax within one (1) year of the return of the motor
vehicle, the state tax commission may refund the tax, as determined under subsection (8)
of this section, directly to the consumer and lien holder, if any, as their interests
appear on the records of the division of motor vehicles. It is an affirmative defense to
any claim under this chapter
(a) that an alleged nonconformity does not impair the use or market value,
or
(b) that a nonconformity is the result of abuse, neglect, or unauthorized
modifications or alterations of a motor vehicle by anyone other than the manufacturer,
its agent or its authorized dealer.
(2) It is presumed that a reasonable number of attempts have been undertaken
to conform a new motor vehicle to the applicable express warranties, if
(a) the same nonconformity has been subject to repair four (4) or more times
by the manufacturer, its agents, or its authorized dealers within the applicable
express warranty term or during the period of two (2) years following the date of
original delivery of the new motor vehicle to a consumer or during the period ending
with the date on which the mileage on the motor vehicle reaches twenty-four thousand
(24,000) miles, whichever is the earliest date, but the nonconformity continues to
exist. However, the manufacturer shall have at least one (1) opportunity to attempt to
repair the vehicle before it is presumed a reasonable number of attempts have been
undertaken to conform the vehicle to the applicable express warranty; or
(b) the vehicle is out of service by reason of repair for a cumulative total
of thirty (30) or more business days during the term or during the period, whichever
is the earlier date.
(3) If the nonconformity results in a complete failure of the braking or
steering system of the new motor vehicle and is likely to cause death or serious bodily
injury if the vehicle is driven, it is presumed that a reasonable number of attempts
have been undertaken to conform the vehicle to the applicable express warranties if the
nonconformity has been subject to repair at least once by the manufacturer, its agents,
or its authorized dealers within the applicable express warranty term or during the
period of two (2) years following the date of original delivery of the new motor vehicle
to a consumer or during the period ending with the date on which the mileage on the
motor vehicle reaches twenty-four thousand (24,000) miles, whichever is the earliest
date, and the nonconformity continues to exist. However, the manufacturer shall have at
least one (1) opportunity to attempt to repair the vehicle before it is presumed a
reasonable number of attempts have been undertaken to conform the vehicle to the
applicable express warranty.
(4) The term of an applicable express warranty, the two (2) year period and
the thirty (30) day period shall be extended by any period of time during which repair
services are not available to the consumer because of a war, invasion, strike, or fire,
flood, or other natural disaster.
(5) The presumption contained in subsection (2) of this section applies
against a manufacturer only if the manufacturer, its agent, or its authorized dealer has
received prior written notification from or on behalf of the consumer at least once and
an opportunity to cure the defect alleged. If the notification is received by the
manufacturer's agent or authorized dealer, the agent or dealer must forward it to the
manufacturer by certified mail, return receipt requested. However, if the manufacturer
is not notified either by the consumer or the manufacturer's agent or authorized dealer,
then the manufacturer shall have at least one (1) opportunity to cure the alleged
defect.
(6) The expiration of the time periods set forth in subsection (2) of this
section does not bar a consumer from receiving a refund or replacement vehicle under
subsection (1) of this section if the reasonable number of attempts to correct the
nonconformity causing the substantial impairment occur within three (3) years following
the date of original delivery of the new motor vehicle to a consumer, provided the
consumer first reported the nonconformity to the manufacturer, its agent, or its
authorized dealer during the term of the applicable express warranty.
(7) The manufacturer shall provide to its agent or authorized dealer and, at
the time of purchase or lease, the manufacturer's agent or authorized dealer shall
provide a written statement to the consumer in the new motor vehicle warranty guide, in
10-point all capital type, in substantially the following form:
"IMPORTANT IF THIS VEHICLE IS DEFECTIVE, YOU MAY BE ENTITLED UNDER THE STATE'S
LEMON LAW TO REPLACEMENT OF IT OR A REFUND OF ITS PURCHASE PRICE OR YOUR LEASE
PAYMENTS. HOWEVER, TO BE ENTITLED TO REFUND OR REPLACEMENT, YOU MUST FIRST NOTIFY THE
MANUFACTURER, ITS AGENT, OR ITS AUTHORIZED DEALER OF THE PROBLEM IN WRITING AND GIVE
THEM AN OPPORTUNITY TO REPAIR THE VEHICLE. YOU ALSO HAVE A RIGHT TO SUBMIT YOUR CASE
TO THE CONSUMER ARBITRATION PROGRAM WHICH THE MANUFACTURER MUST OFFER IN THIS
STATE."
(8) The amount of the sales or excise tax to be paid by the manufacturer to
the consumer under subsection (1) of this section shall be the tax paid by the consumer
when the vehicle was purchased less an amount equal to the tax paid multiplied by a
fraction, the denominator of which is the purchase price of the vehicle and the
numerator of which is the allowance deducted from the refund for the consumer's use of
the vehicle.
48-904 Manufacturer's duty to consumers with leased vehicles.
A consumer who leases a new motor vehicle has the same rights against the manufacturer
under this section as a consumer who purchases a new motor vehicle, except that, if it is
determined that the manufacturer must accept return of the consumer's leased vehicle
pursuant to section 48-903, Idaho Code, then the consumer lessee is not entitled to a
replacement vehicle, but is entitled only to a refund as provided in this section. In such
a case, the consumer's leased vehicle shall be returned to the manufacturer and the
consumer's written lease with the motor vehicle lessor must be terminated after all
charges are settled. The manufacturer shall provide the consumer with a full refund of all
costs and charges described below less a reasonable allowance for use. The manufacturer
shall provide to the consumer a refund of the pro rata amount of any down payment paid by
the consumer on the written lease. The pro rata amount of such a refund shall be the
amount of the down payment divided by the number of months of the lease agreement and that
amount multiplied by the number of months remaining after the date of the arbitration. The
manufacturer shall also refund to the consumer amounts identified as additional charges
set forth in section 48-903, Idaho Code, if actually paid by the consumer. The reasonable
allowance for use shall be the lease payments made by the consumer until the time of the
award of a refund. The manufacturer shall provide the motor vehicle lessor or its assignee
with a full refund of the early termination charges plus the residual value of the
vehicle, as specified in the lease agreement. The amount of any refund by the manufacturer
to the consumer for the pro rata portion of the down payment plus the amount of the refund
to the motor vehicle lessor or its assignee by the manufacturer shall not exceed one
hundred five percent (105%) of the vehicle's original manufacturer's suggested retail
price.
48-905 Resale or re-lease of returned motor vehicle.
(1) If a motor vehicle has been returned under the provisions of section
48-903, Idaho Code, or a similar statute of another state, whether as the result of a
legal action or as the result of an informal dispute settlement proceeding, it may not
be resold or re-leased in this state unless:
(a) The manufacturer provides the same express warranty it provided to the
original purchaser, except that the term of the warranty need only last for twelve
thousand (12,000) miles or twelve (12) months after the date of resale, whichever is
earlier; and
(b) The manufacturer provides the consumer with a written statement on a
separate piece of paper, in 10-point all capital type, in substantially the following
form "IMPORTANT THIS VEHICLE WAS RETURNED TO THE MANUFACTURER BECAUSE IT DID NOT
CONFORM TO THE MANUFACTURER'S EXPRESS WARRANTY AND THE NONCONFORMITY WAS NOT CURED
WITHIN A REASONABLE TIME AS PROVIDED BY IDAHO LAW."
The provisions of this chapter apply to the resold or re-leased motor vehicle for
full term of the warranty required under this section. If a manufacturer has a program
similar to the requirements of this subsection and that program provides, at a
minimum, substantially the same protections for subsequent consumers, then the
manufacturer shall be considered to be in compliance with this subsection.
(2) Notwithstanding the provisions of subsection (1) of this section, if a new
motor vehicle has been returned under the provisions of section 48-903, Idaho Code, or a
similar statute of another state because of a nonconformity resulting in a complete
failure of the braking or steering system of the motor vehicle likely to cause death or
serious bodily injury if the vehicle was driven and the failure has not been repaired by
the manufacturer, its agent or its authorized dealer, the motor vehicle may not be
resold in this state.
48-906 Alternative dispute settlement mechanism.
(1) Any manufacturer doing business in this state, entering into franchise
agreements for the sale of its motor vehicles in this state, or offering express
warranties on its motor vehicles sold or distributed for sale in this state shall
operate, or participate in, an informal dispute settlement mechanism located in the
state of Idaho which complies with the provisions of title 16, code of federal
regulations, part 703, and the requirements of this section. The provisions of section
48-903, Idaho Code, concerning refunds or replacement do not apply to a consumer who has
not first used this mechanism before commencing a civil action, unless the manufacturer
allows a consumer to commence an action without first using this mechanism.
(2) An informal dispute settlement mechanism provided for by this chapter
shall, at the time a request for arbitration is made, provide to the consumer and to
each person who will arbitrate the consumer's dispute, information about this chapter as
approved and directed by the attorney general, in consultation with interested parties.
The informal dispute settlement mechanism shall permit the parties to present or submit
any arguments based on this chapter and shall not prohibit or discourage the
consideration of any such arguments.
(3) If, in an informal dispute settlement mechanism, it is decided that a
consumer is entitled to a replacement vehicle or refund under section 48-903, Idaho
Code, then any refund or replacement offered by the manufacturer or selected by a
consumer shall include and itemize all amounts authorized by section 48-903, Idaho Code.
If the amount of excise tax refunded is not separately stated, or if the manufacturer
does not apply for a refund of the tax within one (1) year of the return of the motor
vehicle, the state tax commission may refund the sales tax, as determined under
subsection (8) of section 48-903, Idaho Code, directly to the consumer and lien holder,
if any, as their interests appear on the records of the division of motor vehicles of
the Idaho transportation department.
(4) No documents shall be received by any informal dispute settlement
mechanism unless those documents have been provided to each of the parties in the
dispute at or prior to the mechanism's meeting, with an opportunity for the parties to
comment on the documents either in writing or orally. If a consumer is present during
the informal dispute settlement mechanism's meeting, the consumer may request
postponement of the mechanism's meeting to allow sufficient time to review any documents
presented at the time of the meeting which had not been presented to the consumer prior
to the meeting.
(5) The informal dispute settlement mechanism shall allow each party to appear
and make an oral presentation in the state of Idaho unless the consumer agrees to submit
the dispute for decision on the basis of documents alone or by telephone, or unless the
party fails to appear for an oral presentation after reasonable prior written notice.
However, the manufacturer or its representative may participate in the informal dispute
settlement mechanism's meeting by telephone if it chooses. If the consumer agrees to
submit the dispute for decision on the basis of documents alone, then manufacturer or
dealer representatives may not participate in the discussion or decision of the dispute.
(6) Consumers shall be given an adequate opportunity to contest a
manufacturer's assertion that a nonconformity falls within intended specifications for
the vehicle by having the basis of the manufacturer's claim appraised by a technical
expert selected and paid for by the consumer prior to the informal dispute settlement
hearing.
(7) Where there has been a recent attempt by the manufacturer to repair a
consumer's vehicle, but no response has yet been received by the informal dispute
mechanism from the consumer as to whether the repairs were successfully completed, the
parties must be given the opportunity to present any additional information regarding
the manufacturer's recent repair attempt before any final decision is rendered by the
informal dispute settlement mechanism. This provision shall not prejudice a consumer's
rights under this chapter.
(8) If the manufacturer knows that a technical service bulletin directly
applies to the specific mechanical problem being disputed by the consumer, then the
manufacturer shall provide the technical service bulletin to the consumer at reasonable
cost upon request. The mechanism shall review any such technical service bulletins
submitted by either party.
(9) A consumer may be charged a fee to participate in an informal dispute
settlement mechanism required by this chapter, but the fee may not exceed the
conciliation court filing fee in the county where the arbitration is conducted.
(10) Any party to the dispute has the right to be represented by an attorney
in an informal dispute settlement mechanism.
(11) The informal dispute settlement mechanism has all the evidence-gathering
powers granted an arbitrator under the uniform arbitration act.
(12) A decision issued in an informal dispute settlement mechanism required by
this section may be in writing and signed.
48-907 Effect and admissibility of decision by informal dispute settlement
mechanism.
The decision issued in an informal dispute settlement mechanism required by this
chapter is non-binding on the parties involved, unless otherwise agreed by the parties.
Any party, upon application, may remove the decision to district court for a trial de
novo. If the manufacturer is aggrieved by the decision of the informal dispute settlement
mechanism, an application to remove the decision must be filed in the district court
within thirty (30) days after the date the decision is received by the parties. If the
application to remove is not made within thirty (30) days, then the district court shall,
upon application of a party, issue an order confirming the decision. A written decision
issued by an informal dispute settlement mechanism, and any written findings upon which
the decision is based, are admissible as non-binding evidence in any subsequent legal
action and are not subject to further foundation requirements.
48-908 Treble damages for bad faith appeal of decision.
If the district court finds that a party has removed a decision of an informal dispute
settlement mechanism in bad faith, by asserting a claim or defense that is frivolous and
costly to the other party, or by asserting an unfounded position solely to delay recovery
by the other party, then the court shall award to the prevailing party three (3) times the
actual damages sustained, together with costs and attorney's fees.
48-909 Civil remedy.
Any consumer injured by a violation of this chapter may bring a civil action to enforce
this chapter and recover costs and disbursements, including reasonable attorney's fees
incurred in the civil action. However, the provisions of this section do not include
recovery of attorney's fees previously incurred in the course of informal dispute
resolution. In addition to the remedies provided herein, the attorney general may, when in
the public interest, bring an action pursuant to the Idaho consumer protection act,
chapter 6, title 48, Idaho Code, against any manufacturer for violation of this chapter.
For purposes of such action, violations of this chapter shall be deemed to be violations
of Idaho's consumer protection act. In any such action, the attorney general and district
court shall have the same authority as is granted the attorney general and district court
under the Idaho consumer protection act.
48-910 Limitations on actions.
A civil action brought under this chapter must be commenced within three (3) years of
the date of original delivery of the new motor vehicle to a consumer, except that if the
consumer applies to an informal dispute settlement mechanism within three (3) years of the
date of original delivery of the new motor vehicle to a consumer, and if the consumer is
aggrieved by the decision of the informal dispute settlement mechanism, then any appeal of
that decision brought under this chapter must be commenced within three (3) months after
the date of the final decision by the mechanism.
48-911 Remedy nonexclusive.
Nothing in this chapter limits the rights or remedies which are otherwise available to
a consumer under any other law.
48-912 Disclosure requirement.
In addition to any investigative powers authorized by law, the attorney general may
inspect the records of the informal dispute settlement mechanism upon reasonable notice,
during regular business hours, and may make available to the public information about the
operation of the mechanism, but data on an individual case may not be disclosed without
the prior consent of the affected parties.
48-913 Dealer liability.
Nothing in this chapter imposes liability on a dealer or creates an additional cause of
action by a consumer against a dealer, except for written express warranties made by the
dealer apart from the manufacturer's warranties. 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,
unless there is evidence that the related repairs had not been carried out by the dealer
in a timely manner or in a manner substantially consistent with the manufacturer's
published instructions.
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