Arkansas Lemon Law
Discover exactly what is in the Arkansas lemon law...
The Arkansas lemon law is contained in Arkansas Statutes Title 4, Chapter 90, Sections 401-417, and covers new motor vehicles during the term of the warranty or during the first 24,000 miles.
The Arkansas lemon law allows that
if the vehicle ownership changes during that time, the new owner is still covered.
'Living quarters' of motor homes are not covered in the Arkansas lemon law,
nor are other vehicles over 10,000 GVW.
One interesting clause in the Arkansas lemon law is that there only needs to
be one repair attempt for any defect that may cause death or serious injury.
(By the way, you can click here if you want more info on the lemon law).
The Arkansas lemon law is included below:
Arkansas Lemon Law Statutes
Arkansas Title 4, Chapter 90, Sections 401-417
4-90-401. Title.
This subchapter shall be known and may be cited as the "Arkansas New Motor
Vehicle Quality Assurance Act".
History. Acts 1993, No. 285, § 1; 1993, No. 297, § 1.
4-90-402. Legislative determinations and intent.
The Arkansas General Assembly recognizes that a motor vehicle is a major consumer
acquisition and that a defective motor vehicle undoubtedly creates a hardship
for the consumer. The Arkansas General Assembly further recognizes that a duly
franchised motor vehicle dealer is an authorized service agent of the manufacturer.
It is the intent of the Arkansas General Assembly that a good faith motor vehicle
warranty complaint by a consumer be resolved by the manufacturer within a specified
period of time. It is further the intent of the Arkansas General Assembly to
provide the statutory procedures whereby a consumer may receive a replacement
motor vehicle, or a full refund, for a motor vehicle which cannot be brought
into conformity with the warranty provided for in this subchapter. However,
nothing in this subchapter shall in any way limit the rights or remedies which
are otherwise available to a consumer under any other law.
History. Acts 1993, No. 285, § 2; 1993, No. 297, § 2.
4-90-403. Definitions.
As used in this subchapter, unless the context otherwise requires:
1. "Calendar day" means any day of the week other than a legal holiday;
2. "Collateral charges" means those additional charges to a consumer
wholly incurred as a result of the acquisition of the motor vehicle. For the
purposes of this subchapter, collateral charges include, but are not limited
to, manufacturer-installed or agent-installed items, earned finance charges,
sales taxes, title charges, and charges for extended warranties provided by
the manufacturer, its subsidiary, or agent;
3. "Condition" means a general problem that may be attributable to
a defect in more than one (1) part;
4. "Consumer" means the purchaser or lessee, other than for the purposes
of lease or resale, of a new or previously untitled motor vehicle, or any other
person entitled by the terms of the warranty to enforce the obligations of the
warranty during the duration of the motor vehicle quality assurance period,
provided the purchaser has titled and registered the motor vehicle as prescribed
by law;
5. "Incidental charges" means those reasonable costs incurred by the
consumer, including, but not limited to, towing charges and the costs of obtaining
alternative transportation which are directly caused by the nonconformity or
nonconformities which are the subject of the claim, but shall not include loss
of use, loss of income, or personal injury claims;
6. "Lease price" means the aggregate of:
A. The lessor's actual purchase costs;
B. Collateral charges, if applicable;
C. Any fee paid to another person to obtain the lease;
D. Any insurance or other costs expended by the lessor for the benefit of the
lease;
E. An amount equal to state and local sales taxes, not otherwise included as
collateral charges, paid by the lessor when the vehicle was initially purchased;
and
F. An amount equal to five percent (5%) of the lessor's actual purchase price;
7. "Lessee" means any consumer who leases a motor vehicle for one
(1) year or more
pursuant to a written lease agreement which provides that the lessee is responsible
for repairs to such motor vehicle;
8. "Lessee cost" means the aggregate deposit and rental payments previously
paid to the lessor for the leased vehicle;
9. "Lessor" means a person who holds title to a motor vehicle leased
to a lessee under the written lease agreement or who holds the lessor's rights
under such agreement;
10. "Manufacturer" means:
A. Any person who is engaged in the business of constructing or assembling new
motor vehicles or installing, on previously assembled vehicle chassis, special
bodies or equipment which, when installed, form an integral part of the new
motor vehicle; or
B. In the case of motor vehicles not manufactured in the United States, any
person who is engaged in the business of importing new motor vehicles into the
United States for the purpose of selling or distributing new motor vehicles
to new motor vehicle dealers;
11. "Motor vehicle" or "vehicle" means any self-propelled
vehicle licensed, purchased, or leased in this state and primarily designed
for the transportation of persons or property over the public streets and highways,
but does not include mopeds, motorcycles, the living facilities of a motor home,
or vehicles over ten thousand pounds (10,000 lbs.) gross vehicle weight rating.
For purposes of this definition, the limit of ten thousand pounds (10,000 lbs.)
gross vehicle weight rating does not apply to motor homes;
12. "Motor vehicle quality assurance period" means a period of time
that:
A. Begins:
i. On the date of original delivery of a motor vehicle; or
ii. In the case of a replacement vehicle provided by a manufacturer to a consumer
under this subchapter, on the date of delivery of the replacement vehicle to
the consumer; and
B. Ends twenty-four (24) months after the date of the original delivery of the
motor vehicle to a consumer, or the first twenty-four thousand (24,000) miles
of operation attributable to the consumer, whichever is later;
13. "Nonconformity" means any specific or generic defect or condition
or any concurrent combination of defects or conditions that:
A. Substantially impairs the use, market value, or safety of a motor vehicle;
or
B. Renders the motor vehicle nonconforming to the terms of an applicable manufacturer's
express warranty or implied warranty of merchantability;
14. "Person" means any natural person, partnership, firm, corporation,
association,
joint venture, trust, or other legal entity;
15. "Purchase price" means the cash price paid for the motor vehicle
appearing in the sales agreement or contract, including any net allowance for
a trade-in vehicle;
16. "Replacement motor vehicle" means a motor vehicle which is identical
or reasonably equivalent to the motor vehicle to be replaced, as the motor vehicle
replaced existed at the time of the original acquisition; and
17. "Warranty" means any written warranty issued by the manufacturer,
or any
affirmation of fact or promise made by the manufacturer, excluding statements
made by the dealer, in connection with the sale or lease of a motor vehicle
to a consumer which relates to the nature of the material or workmanship and
affirms or promises that such material or workmanship is free of defects or
will meet a specified level of performance.
History. Acts 1993, No. 285, § 3; 1993, No. 297, § 3; 1995, No. 302,
§ 1.
4-90-404. Notice by consumer - Disclosure by manufacturer, agent, or dealer.
a.
1. A consumer must notify the manufacturer of a claim under this subchapter
if the manufacturer has made the disclosure required by subsection (b) of this
section.
2. However, if the manufacturer has not made the required disclosure, the consumer
is not required to notify the manufacturer of a claim under this subchapter.
b.
1. At the time of the consumer's purchase or lease of the vehicle, the manufacturer,
its agent, or an authorized dealer shall provide to the consumer a written statement
that explains the consumer's rights and obligations under this subchapter.
2. The written statement shall be prepared by the Consumer Protection Division
of the Office of the Attorney General and shall include the telephone number
of the Consumer Protection Division that the consumer can contact to obtain
information regarding his or her rights and obligations under this subchapter.
3. For each failure of the manufacturer, its agent, or an authorized dealer
to provide to a consumer the written statement required under this section,
the manufacturer shall be liable to the State of Arkansas for a civil penalty
of not less than twenty-five dollars ($25.00) nor more than one thousand dollars
($1,000).
c.
1. The manufacturer shall clearly and conspicuously disclose to the consumer,
in the warranty or owner's manual, that written notice of the nonconformity
is required before the buyer may be eligible for a refund or replacement of
the vehicle.
2. The manufacturer shall provide the consumer with conspicuous notice of the
address and phone number for its zone, district, or regional office for this
state at the time of vehicle acquisition, to which the buyer must send notification.
History. Acts 1993, No. 285, § 5; 1993, No. 297, § 5; 1995, No. 302,
§ 2.
4-90-405. Required warranty repairs.
If a motor vehicle does not conform to the warranty and the consumer reports
the nonconformity to the manufacturer, its agent, or authorized dealer during
the motor vehicle quality assurance period, the manufacturer, its agent, or
authorized dealer shall make such repairs as are necessary to correct the nonconformity,
even if the repairs are made after the expiration of the term of protection.
History. Acts 1993, No. 285, § 4; 1993, No. 297, § 4.
4-90-406. Failure to make required repairs.
a.
1. After three (3) attempts have been made to repair the same nonconformity
that substantially impairs the motor vehicle, or after one (1) attempt to repair
a nonconformity that is likely to cause death or serious bodily injury, the
consumer shall give written notification, by certified or registered mail, to
the manufacturer of the need to repair the nonconformity in order to allow the
manufacturer a final attempt to cure the nonconformity.
2. The manufacturer shall, within ten (10) days after receipt of the notification,
notify and provide the consumer with the opportunity to have the vehicle repaired
at a reasonably accessible repair facility, and, after delivery of the vehicle
to the designated repair facility by the consumer, the manufacturer shall, within
ten (10) days, conform the motor vehicle to the warranty.
3. If the manufacturer fails to notify and provide the consumer with the opportunity
to have the vehicle repaired at a reasonably accessible repair facility or fails
to perform the repairs within the time periods prescribed in this subsection,
the requirement that the manufacturer be given a final attempt to cure the nonconformity
does not apply and a nonrebuttable presumption of a reasonable number of attempts
to repair arises.
b.
1.
A. If the manufacturer, its agent, or authorized dealer has not conformed the
motor vehicle to the warranty by repairing or correcting one (1) or more nonconformities
that substantially impair the motor vehicle after a reasonable number of attempts,
the manufacturer, within forty (40) days, shall:
i. At the time of its receipt of payment of a reasonable offset for use by the
consumer, replace the motor vehicle with a replacement motor vehicle acceptable
to the consumer; or
ii. Repurchase the motor vehicle from the consumer or lessor and refund to the
consumer or lessor the full purchase price or lease price, less a reasonable
offset for use and less a reasonable offset for physical damage sustained to
the vehicle while under the ownership of the consumer.
B. The replacement or refund shall include payment of all collateral and reasonably
incurred incidental charges.
2. (A) The consumer shall have an unconditional right to choose a refund rather
than a replacement.
(B) At the time of such refund or replacement, the consumer, lienholder, or
lessor shall furnish to the manufacturer clear title to and possession of the
motor vehicle.
3. The amount of reasonable offset for use by the consumer shall be determined
by multiplying the actual price of the new motor vehicle paid or payable by
the consumer, including any charges for transportation and manufacturer-installed
or agent-installed options, by a fraction having as its denominator one hundred
twenty thousand (120,000) and having as its numerator the number of miles traveled
by the new motor vehicle prior to the time the buyer first delivered the vehicle
to the manufacturer, its agent, or authorized dealer for correction of the problem
that gave rise to the nonconformity.
History. Acts 1993, No. 285, § 6; 1993, No. 297, § 6; 1995, No. 302,
§ 3.
§ 4-90-407. Refunds.
a.
1. Refunds shall be made to the consumer and lienholder of record, if any, as
their interests may appear.
2. If applicable, refunds shall be made to the lessor and lessee as follows:
A. The lessee shall receive the lessee cost less a reasonable offset for use;
and
B. The lessor shall receive the lease price less the aggregate deposit and rental
payments previously paid to the lessor for the leased vehicle.
b. If the manufacturer makes a refund to the lessor or lessee pursuant to this
subchapter, the consumer's lease agreement with the lessor shall be terminated
upon payment of the refund and no penalty for early termination shall be assessed.
c. If a replaced vehicle was financed by the manufacturer, its subsidiary, or
agent, the manufacturer, subsidiary, or agent may not require the buyer to enter
into any refinancing agreement concerning a replacement vehicle that would create
any financial obligations upon the buyer beyond those of the original financing
agreement.
History. Acts 1993, No. 285, § 7; 1993, No. 297, § 7.
§ 4-90-408. Reimbursement of towing and rental costs.
Whenever a vehicle is replaced or refunded under this subchapter, the manufacturer
shall reimburse the consumer for necessary towing and rental costs actually
incurred as a direct result of the nonconformity.
History. Acts 1993, No. 285, § 10; 1993, No. 297, § 10.
§ 4-90-409. Option to retain use of vehicle.
A consumer has the option of retaining the use of any vehicle returned under
this subchapter until the time that the consumer has been tendered a full refund
or a replacement vehicle of comparable value.
History. Acts 1993, No. 285, § 11; 1993, No. 297, § 11.
§ 4-90-410. Presumption of reasonable attempts to repair - Extension of
time to repair in case of war, invasion, strike, fire, flood, or natural disaster.
a. A rebuttable presumption of a reasonable number of attempts to repair is
considered to have been undertaken to correct a nonconformity if:
1. The nonconformity has been subject to repair as provided in § 4-90-406(a),
but the nonconformity continues to exist;
2. The vehicle is out of service by reason of repair, or attempt to repair,
any nonconformity for a cumulative total of thirty (30) calendar days; or
3. There have been five (5) or more attempts, on separate occasions, to repair
any nonconformities that together substantially impair the use and value of
the motor vehicle to the consumer.
b.
1. The thirty (30) calendar days in subdivision (a)(2) of this section shall
be extended by any period of time during which repair services are not available
as a direct result of war, invasion, strike, fire, flood, or natural disaster.
2. The manufacturer, its agent, or authorized dealer shall provide or make provisions
for the free use of a vehicle to any consumer whose vehicle is out of service
beyond thirty (30) days by reason of delayed repair as a direct result of war,
invasion, strike, fire, flood, or natural disaster.
c. The burden is on the manufacturer to show that the reason for an extension
under subsection (b) of this section was the direct cause for the failure of
the manufacturer, its agent, or authorized dealer to cure any nonconformity
during the time of the event.
History. Acts 1993, No. 285, § 12; 1993, No. 297, § 12.
§ 4-90-411. Diagnosis or repair - Documentation.
a. A manufacturer, its agent, or authorized dealer may not refuse to diagnose
or repair any vehicle for the purpose of avoiding liability under this subchapter.
b.
1. A manufacturer, its agent, or authorized dealer shall provide a consumer
with a written repair order each time the consumer's vehicle is brought in for
examination or repair.
2. The repair order must indicate all work performed on the vehicle, including
examination of the vehicle, parts, and labor.
History. Acts 1993, No. 285, § 13; 1993, No. 297, § 13.
§ 4-90-412. Resale of returned nonconforming vehicle.
If a motor vehicle has been replaced or repurchased by a manufacturer as the
result of a court judgment, an arbitration award, or any voluntary agreement
entered into between a manufacturer and a consumer that occurs after a consumer
complaint has been investigated and evaluated pursuant to this subchapter or
a similar law of another state, the motor vehicle may not be resold in Arkansas
unless:
1. The manufacturer provides the same express warranty the manufacturer 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 occurs first; and
2. The manufacturer provides a written disclosure, signed by the consumer, indicating
that the vehicle was returned to the manufacturer because of a nonconformity
not cured within a reasonable time as provided by Arkansas law.
History. Acts 1993, No. 285, § 14; 1993, No. 297, § 14.
§ 4-90-413. Affirmative defenses.
It is an affirmative defense to any claim under this subchapter that:
1. The nonconformity, defect, or condition does not substantially impair the
use, value, or safety of the motor vehicle;
2. The nonconformity, defect, or condition is the result of an accident, abuse,
neglect, or unauthorized modification or alteration of the motor vehicle by
persons other than the manufacturer, its agent, or authorized dealer;
3. The claim by the consumer was not filed in good faith; or
4. Any other defense allowed by law that may be raised against the claim.
History. Acts 1993, No. 285, § 15; 1993, No. 297, § 15.
§ 4-90-414. Informal proceeding as precedent.
a.
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 proceeding located in the
State of Arkansas which complies with the requirements of this section.
2. The provisions of § 4-90-406(b)(1) and (2) concerning refunds or replacement
do not apply to a consumer who has not first used this informal proceeding before
commencing a civil action, unless the manufacturer allows a consumer to commence
an action without first using this informal procedure.
3.
A. The consumer shall receive adequate written notice from the manufacturer
of the existence of the procedure.
B. Adequate written notice may include the incorporation of the informal dispute
settlement procedure into the terms of the written warranty to which the motor
vehicle does not conform.
b. The informal dispute procedure must be certified by the Consumer Protection
Division of the Office of the Attorney General as meeting the following criteria:
1. The informal dispute procedure must comply with the minimum requirements
of the Federal Trade Commission for informal dispute settlement procedures as
set forth in 16 C.F.R. § 703.1 et seq., as in effect on the date of adoption
of this subchapter, unless any provision of 16 C.F.R. § 703.1 et seq. is
in conflict with this subchapter, in which case the provisions of this subchapter
shall govern;
2. The informal dispute procedure must prescribe a reasonable time, not to exceed
thirty (30) days after the decision is accepted by the buyer, within which the
manufacturer or its agent must fulfill the terms of its decisions;
3.
A. No documents shall be received by any informal dispute procedure unless those
documents have been provided to each of the parties in the dispute at or prior
to the proceeding, with an opportunity for the parties to comment on the documents
either in writing or orally.
B. If a consumer is present during the informal dispute proceeding, the consumer
may request postponement of the proceeding 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 time of the meeting;
4.
A. The informal dispute procedure shall allow each party to appear and make
an oral presentation within the State of Arkansas 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.
B. If the consumer agrees to submit the dispute for decision on the basis of
documents alone, then the manufacturer or dealer representatives may not participate
in the discussion or decision of the dispute;
5. 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;
6. A consumer may not be charged with a fee to participate in an informal dispute
procedure; and
7. Any party to the dispute has the right to be represented by an attorney in
an informal dispute proceeding.
c.
1.
A. The informal dispute procedure shall annually submit a pool of not less than
six (6) members who are appointed with the advice and consent of the Consumer
ProtectionDivision of the Office of the Attorney General.
B. Selected strictly by rotation, one (1) member shall hear disputes scheduled
for a particular session unless the consumer requests a panel of three (3) members,
in which case three (3) members shall hear disputes scheduled for a particular
three-member session.
C. If the informal dispute procedure deems it appropriate to require the services
of an independent investigator, such investigator shall be selected from a pool
of not less than four (4) members who are appointed annually with the advice
and consent of the Consumer Protection Division of the Office of the Attorney
General and from which the particular investigator shall be selected strictly
by rotation.
2. Upon notification to the administrator of any informal dispute procedure
that a determination has been made by the Consumer Protection Division of the
Office of the Attorney General that a member of any pool is not conforming to
standards of fairness and impartiality, that member shall be immediately removed
from the pool.
History. Acts 1993, No. 285, § 16; 1993, No. 297, § 16.
§ 4-90-415. Enforcement - Exclusivity - Costs and expenses.
a. A consumer may bring a civil action to enforce this subchapter in a court
of competent jurisdiction.
b. This subchapter does not limit the rights and remedies that are otherwise
available to a consumer under any applicable provisions of law.
c. A consumer who prevails in any legal proceeding under this subchapter is
entitled to recover as part of the judgment a sum equal to the aggregate amount
of costs and expenses, including attorney's fees based upon actual time expended
by the attorney, determined by the court to have been reasonably incurred by
the consumer for or in connection with the commencement and prosecution of the
action.
History. Acts 1993, No. 285, §§ 17-19; 1993, No. 297, §§
17-19.
§ 4-90-416. Time limitation for commencement of action.
a. An action brought under this subchapter must be commenced within two (2)
years following the date the buyer first reports the nonconformity to the manufacturer,
its agent, or authorized dealer.
b. When the buyer has commenced an informal dispute settlement procedure described
in § 4-90-414, the two-year period specified in subsection (a) of this
section begins to run at the time the informal dispute settlement procedure
is being commenced.
History. Acts 1993, No. 285, § 20; 1993, No. 297, § 20.
§ 4-90-417. Deceptive trade practices.
A violation of any of the provisions of this subchapter shall be deemed a deceptive
trade practice under § 4-88-101 et seq.
History. Acts 1993, No. 285, § 21; 1993, No. 297, § 21.
The Magnuson-Moss Warranty Act
The Magnuson-Moss Warranty Act is a Federal Law that protects the buyer of any
product which costs more than $25 and comes with an express written warranty.
This law applies to any product that you buy that does not perform as it should.
The Magnuson-Moss statute gives consumers considerable rights in dealing with
manufacturers of lemon cars. A car buyer is guaranteed that certain minimum
requirements of warranties must be met, and provides for disclosure of warranties
before purchase.
Regarding "lemon cars", this law greatly affects the rights of car
buyers. For any product which has a written warranty if any part of the product,
or the product itself is considered defective, the warrantor must permit the
buyer the choice of either a refund or replacement of the product.
Law firms have argued successfully to juries that the lemon manufacturers should
be given three attempts to fix the defect. Continued attempts to repair beyond
the initial three should not be allowed. This is called the "three strikes
and you're out" principle.
A consumer may pursue legal action in any court of general jurisdiction in the
United States to enforce his rights under the Magnuson-Moss Law. Attorney's
fees based on actual time spent will be covered if the consumer does prevail.
Due to this particular condition, there is quite a bit of financial pressure
on the manufacturer to settle consumers disputes before going to court, as this
would keep their expenses down.
The narrative information on Magnusson-Moss, UCC and lemon laws on these pages
is provided by T. Michael Flinn, attorney.
Uniform Commercial Code Summary
The Uniform Commercial Code or UCC has been enacted in all 50 states and some
of the territories of the United States. It is the primary source of law in
all contracts dealing with the sale of products. The TARR refers to Tender,
Acceptance, Rejection, Revocation and applies to different aspects of the consumer's
"relationship" with the purchased goods.
TENDER -
The tender provisions of the Uniform Commercial Code contained in Section2-601
provide that the buyer is entitled to reject any goods that fail in any respect
to conform to the contract. Unfortunately, new cars are often technically complex
and their innermost workings are beyond the understanding of the average new
car buyer. The buyer, therefore, does not know whether the goods are then conforming.
ACCEPTANCE -
The new car buyer accepts the goods believing and expecting that the manufacturer
will repair any problem he has with the goods under the warranty.
REJECTION -
The new car buyer may discover a problem with the vehicle within the first few
miles of his purchase. This would allow the new car buyer to reject the goods.
If the new car buyer discovers a defect in the car within a reasonable time
to inspect the vehicle, he may reject the vehicle. This period is not defined.
On the one hand, the buyer must be given a reasonable time to inspect and that
reasonable time to inspect will be held as an acceptance of the vehicle. The
Courts will decide this reasonable time to inspect based on the knowledge and
experience of the buyer, the difficulty in discovering the defect, and the opportunity
to discover the defect.
The following is an example of a case of rejection: Mr. Zabriskie purchase a
new 1966 Chevrolet Biscayne. After picking up the car on Friday evening, while
en route to his home 2.5 miles away, and within 7/10ths of a mile from the dealership,
the car stalled and stalled again within 15 feet. Thereafter, the car would
only drive in low gear. The buyer rejected the vehicle and stopped payment on
his check. The dealer contended that the buyer could not reject the car because
he had driven it around the the block and that was his reasonable opportunity
to inspect. The New Jersey Court said;
To the layman, the complicated mechanisms of today's automobile are a complete
mystery.To have the automobile inspected by someone with sufficient expertise
to disassemble the vehicle in order the discover latent defects before the contract
is signed, is assuredly impossible and highly impractical. Consequently, the
first few miles of driving become even more significant to the excited new car
buyer. This is the buyer's first reasonable opportunity to enjoy his new vehicle
to see if it conforms to what it was represented to be and whether he is getting
what he bargained for. How long the buyer may drive the new car under the guise
of inspection of new goods is not an issue in the present case because 7/10th
of a mile is clearly within the ambit of a reasonable opportunity to inspect.
Zabriskie Chevrolet, Inc.v. Smith, 240 A. 2d 195(1968)
It is suggested that Courts will tend to excuse use by consumers if possible.
REVOCATION -
What happens when the consumer has used the new car for a lengthy period of
time? This is the typical lemon car case. The UCC provides that a buyer may
revoke his acceptance of goods whose non-conformity substantially impairs the
value of the goods to him when he has accepted the goods without discovery of
a non-conformity because it was difficult to discover or if he was assured that
non-conformities would be repaired. Of course, the average new car buyer does
not learn of the nonconformity until hundreds of thousands of miles later. And
because quality is job one, and manufacturers are competing on the basis of
their warranties, the consumer always is assured that any noncomformities he
does discover will be remedied.
What is a noncomformity substantially impairing the value of the vehicle?
1. A noncomformity may include a number of relatively minor defects whose cumulative
total adds up to a substantial impairment. This is the "Shake Faith"
Doctrine first stated in the Zabrisikie case. "For a majority of people
the purchase of a new car is a major investment, rationalized by the peace of
mind that flows from its dependability and safety. Once their faith is shaken,
the vehicle loses not only its real value in their eyes, but becomes an instrument
whose integrity is substantially impaired and whose operation is fraught with
apprehension".
2. A substantial noncomformity may include a failure or refusal to repair the
goods under the warranty. In Durfee V. Rod Baxter Imports, the Minnesota Court
held that the Saab owner that was plagued by a series of of annoying minor defects
and stalling, which were never repaired after a number of attempts, could revoke,
"if repairs are not successfully undertaken within a reasonable time",
the consumer may elect to revoke.
3. Substantial Non Conformity and Lemon Laws often define what may be considered
a substantial impairment. These definitions have been successfully used to flesh
out the substantial impairment in the UCC.
A consumer's
guide to the Arkansas lemon law can be found here...
http://www.ag.state.ar.us/consumer/lemonlaw.html
