Texas lemon law
Discover exactly what is in the Texas lemon law...
The Texas lemon law
extends to motor vehicles with 'two or more wheels', including the 'non-living'
area of a motor home.
The Texas lemon law allows for 4 repair attempts on a recurring defect or 30
days out of service. For a serious safety hazard, only two repair attempts need
be made during the express warranty period or 1 year, whichever occurs first.
(By the way, you can click here if you want more info
on the lemon law).
The Texas lemon law is included below:
Texas Lemon Law
TEXAS MOTOR VEHICLE COMMISSION CODE
(ARTICLE 4413(36) VERNON'S TEXAS CIVIL STATUTES)
(LEMON LAW STATUTES)
General Warranty Complaints
Section 3.08(i).
Warranty Performance Obligations
Section 6.07.
Judicial Review - Appeal
Section 7.01.
General Warranty Complaints
Section 3.08(i). The owner of a motor vehicle or the owner's designated agent
may make a complaint concerning defects in a motor vehicle which are covered
by a manufacturer's, converter's, or distributor's warranty agreement applicable
to the vehicle. Any such complaint must be made in writing to the applicable
dealer, manufacturer, converter, or distributor and must specify the defects
in the vehicle which are covered by the warranty. The owner may also invoke
the Board's jurisdiction by sending the Board a copy of the complaint. A hearing
may be scheduled on all complaints arising under this subsection which are not
privately resolved between the owner and the dealer, manufacturer, converter,
or distributor.
Warranty Performance Obligations
Section 6.07. (a) In addition to the other powers and duties provided for in
this Act, the Board shall cause manufacturers, converters, and distributors
to perform the obligations imposed by this section. In this section "owner"
means a person who: (1) purchased a vehicle at retail from a licensee and is
entitled to enforce the terms of a manufacturer's warranty with respect to the
vehicle; (2) is a lessor or lesee, other than a sublessee, who purchased or
leased the vehicle from a licensee; or (3) is the transferee or assignee of
any of the persons described in Subdivisions (1) or (2) of this subsection if
the transferee or assignee is a Texas resident and is entitled to enforce the
terms of a manufacturer's warranty.
(b) If a new motor vehicle does not conform to all applicable manufacturer's,
converter's, or distributor's express warranties, the manufacturer, converter,
or distributor shall make the repairs necessary to conform the vehicle to the
applicable express warranties, notwithstanding that the repairs are made after
the expiration of the warranties, if: (1) the owner or the owner's designated
agent reported the nonconformity to the manufacturer, converter, or distributor,
its agent, or its franchised dealer during the term of such express warranties;
or (2) a rebuttable presumption relating to the vehicle was created under Subsection
(d) of this section. This section does not in any way limit the remedies available
to an owner under a new motor vehicle warranty that extends beyond the provisions
of this section.
(c) If the manufacturer, converter, or distributor is unable to conform the
motor vehicle to an applicable express warranty by repairing or correcting any
defect or condition which creates a serious safety hazard or substantially impairs
the use or market value of the motor vehicle after a reasonable number of attempts,
the manufacturer, converter, or distributor shall (1) replace the motor vehicle
with a comparable motor vehicle; or (2) accept return of the vehicle from the
owner and refund to the owner the full purchase price less a reasonable allowance
for the owner's use of the vehicle and any other allowances or refunds payable
to the owner. In this section, "impairment of market value" means
a substantial loss in market value caused by a defect specific to the vehicle.
In addition to replacing the vehicle or refunding the purchase price, the manufacturer,
converter, or distributor shall reimburse the owner for reasonable incidental
costs resulting from loss of use of the motor vehicle because of the nonconformity
or defect. As necessary to promote the public interest, the Commission by rule
shall define the incidental costs that are eligible for reimbursement, shall
specify other requirements necessary to determine an eligible cost, and may
set a maximum amount that is eligible for reimbursement, either by type of eligible
cost or a total for all costs. Refunds shall be made to the owner and lienholder,
if any, as their interests may appear. A reasonable allowance for use shall
be that amount directly attributable to use of the motor vehicle when the vehicle
is not out of service for repair. An order to refund or to replace may not be
issued by the Executive Director against a manufacturer, converter, or distributor
unless the manufacturer, converter, or distributor has been mailed prior written
notification of the alleged nonconformity or defect from or on behalf of the
owner and has been given an opportunity to cure the alleged defect or nonconformity.
In any hearing before the Executive Director under this section, a manufacturer,
converter, or distributor may plead and prove as an affirmative defense to the
remedies provided hereunder that (1) the nonconformity is the result of abuse,
neglect, or unauthorized modifications or alterations of the motor vehicle;
or (2) the nonconformity does not substantially impair the use or market value
of the motor vehicle. In this section, "serious safety hazard" means
a life-threatening malfunction or nonconformity that substantially impedes a
person's ability to control or operate a motor vehicle for ordinary use or intended
purposes or that creates a substantial risk of fire or explosion.
(d) There is a rebuttable presumption that a reasonable number of attempts have
been undertaken to conform a motor vehicle to the applicable express warranties
if (1) the same nonconformity has been subject to repair four or more times
by the manufacturer, converter,or distributor, its agent, or its franchised
dealer and two of the repair attempts have been made within a period of 12 months
following the date of original delivery to an owner, or 12,000 miles, whichever
occurs first, and the other two repair attempts occur within the 12 months or
12,000 miles immediately following the date of the second repair attempt, whichever
occurs first, but such nonconformity continues to exist; (2) the same nonconformity
creates a serious safety hazard and has caused the vehicle to have been subject
to repair two or more times by the manufacturer, converter, or distributor,
or an authorized agent or franchised dealer, and at least one attempt to repair
the nonconformity was made in the period of 12 months or 12,000 miles, whichever
occurs first, and at least one other attempt made in the period of 12 months
or 12,000 miles after the first repair attempt, whichever occurs first, but
the nonconformity continues to exist; or (3) the vehicle is out of service for
repair for a cumulative total of 30 or more days in the 24 months or 24,000
miles, whichever occurs first, and at least two repair attempts were made in
the first 12 months or 12,000 miles immediately following the date of original
delivery to an owner and a nonconformity still exists that substantially impairs
the vehicle's use or market value. The initial 12-month period or 12,000 mile
limit, the subsequent 12-month period or 12,000 mile limit, and the 30-day period
shall be extended by any period of time during which repair services are not
available to the owner because of a war, invasion, strike or fire, flood, or
other natural disaster. During any period of time that the manufacturer or distributor
lends a comparable motor vehicle to the owner during the time the vehicle is
being repaired by a franchised dealer, the 30-day period provided for in this
subsection is tolled.
(e)
(1) The Board shall adopt rules for the enforcement and implementation of this
section.
(2) The Director shall, in accordance with rules adopted by the Board, conduct
hearings and issue final orders for the enforcement and implementation of this
section. Orders issued by the Director under this section are considered final
orders of the Board.
(3) Except as provided by Subdivision (6) of this subsection, the provisions
of this section are not available to an owner in an action seeking a refund
or replacement based upon the alleged nonconformity of a motor vehicle to an
express warranty applicable to the motor vehicle unless the owner has first
exhausted the administrative remedies provided herein.
(4) The provisions of this section are not available to a party in an action
against a seller under Chapter 2 or Chapter 17, Business & Commerce Code,
as amended.
(5) Except as provided by Subdivision (6) of this subsection, the provisions
of this section are available in an action against a manufacturer, converter,
or distributor brought under Chapter 17, Business & Commerce Code, after
the owner has exhausted the administrative remedies provided by this section.
(6) If, after a complaint has been filed under this section, the Hearing Examiner
has not issued a proposal for decision and recommended to the Executive Director
a final order before the expiration of the 150th day after the date the complaint
was filed, the Executive Director shall, in writing sent by certified mail,
so inform the complainant and the manufacturer, converter, or distributor of
the expiration of the 150-day period and of the complainant's right to file
a civil action. The Commission shall extend the 150-day period if a delay is
requested or is caused by the complainant.
(7) After receipt of the notice of the right to file a civil action, the complainant
may file a civil action against one or more of the persons complained of in
the complaint.
(8) A failure by the Board to issue a notice of the right to file a civil action
does not affect a complainant's right to bring an action under this Act.
(9) Any party to a proceeding under this section before the Director that is
affected by a final order of the Director is entitled to judicial review of
the order under the substantial evidence rule in a District Court of Travis
County, Texas. The judicial review is subject to Chapter 2001, Government Code,
except to the extent that that Act is inconsistent with this Act.
(f) This section does not limit the rights or remedies otherwise available to
an owner under any other law.
(g) In a hearing under this section, the Executive Director shall make its order
with respect to responsibility for payment of the cost of any refund or replacement
and no manufacturer, converter, or distributor may cause any franchised dealer
to pay directly or indirectly any sum not specifically so ordered by the Executive
Director. If the Executive Director orders a manufacturer, converter, or distributor
to refund or replace a motor vehicle because it meets the criteria set forth
in this section, the Executive Director may order the franchised dealer to reimburse
the owner, lienholder, manufacturer, converter, or distributor only for items
or options added to the vehicle by the franchised dealer and only to the extent
that one or more of such items or options contributed to the defect that served
as the basis for the Executive Director's order of refund or replacement. In
a case involving a leased vehicle,the Executive Director may terminate the lease
and apportion the allowance for use and other allowances or refunds between
the lessee and lessor of the vehicle.
(h) A proceeding brought under this section shall be commenced within six months
following the earlier of (1) expiration of the express warranty term or (2)
24 months or 24,000 miles following the date of original delivery of the motor
vehicle to an owner.
(i) A contractual provision that excludes or modifies the remedies provided
for in this section is prohibited and shall be deemed null and void as against
public policy unless the exclusion or modification is done with respect to a
settlement agreement between the owner and the manufacturer, converter, or distributor.
(j)
(1) A manufacturer, distributor, or converter that has been ordered to repurchase
or replace a vehicle shall, through its franchised dealer, issue a disclosure
statement stating that the vehicle was repurchased or replaced by the manufacturer,
distributor, or converter under this section. The disclosure statement must
accompany the vehicle through the first retail purchase. The manufacturer, distributor,
or converter must restore the cause of the repurchase or replacement to factory
specifications and issue a new 12-month, 12,000-mile warranty on the vehicle.
The disclosure statement must include a toll-free telephone number of the Commission
that will enable a purchaser of a repurchased or replaced vehicle to obtain
information about the condition or defect that was the basis of the order for
repurchase or replacement. The Commission shall adopt rules for the enforcement
of this subdivision.
(2) The Commission shall provide a toll-free telephone number for providing
information to persons who request information about a condition or defect that
was the basis for repurchase or replacement by an order of the Executive Director.
The Commission shall maintain an effective method of providing information to
persons who make the requests.
(k) The Commission shall publish an annual report on the motor vehicles ordered
repurchased or replaced under this section. The report must list the number
of vehicles by brand name and model and include a brief description of the conditions
or defects that caused the repurchase or replacement. The Commission shall make
the report available to the public. The Commission may charge a reasonable fee
to recover the cost of the report.
(l) Information filed with the Board under this section is not a public record
and is not subject to release under the open records law, Chapter 552, Government
Code, until the complaint is finally resolved by order of the Board.
Judicial Review
Appeal
Section 7.01. (a) Any party to a proceeding before the Commission that is affected
by a final order, rule, decision, or other final action of the Commission is
entitled to judicial review of any such final Commission action, under the substantial
evidence rule, in a District Court of Travis County, Texas, or in the Court
of Appeals for the Third Court of Appeals District, and to the extent not in
consistent herewith, pursuant to the Administrative Procedure and Texas Register
Act (Article 6252-13a, Vernon's Texas Civil Statutes). Appeals initiated in
the District Courts of Travis County shall be removable to the Court of Appeals
upon notice of removal to any such district court by any party at any time prior
to trial in the district court. Appeals initiated in or removed to the Court
of Appeals shall be initiated under the Administrative Procedure and Texas Register
Act as if initiated in a Travis County District Court and shall, upon the filing
thereof, be thereafter governed by the Texas Rules of Appellate Procedure.
(b) A final action, ruling, order, or decision of the Motor Vehicle Board of
the Texas Department of Transportation, or the Director of the Motor Vehicle
Division of the Texas Department of Transportation, as appropriate under the
terms of this Act or other law, is the final action with respect to a matter
arising under this Act, and is subject to review only by judicial review as
provided by this Act. The petition for judicial review must be filed within
30 days of the date on which an action, ruling, order, or decision of the Board
or the director first becomes final and appealable.
(c) Citation must be served on the Director. Citation must also be served on
all other parties of record before the Board. For appeals initiated in the Court
of Appeals, the court shall cause citation to be issued.
(d) Appeals in which evidence outside the Board's record is to be taken under
Section 19(d)(3), Administrative Procedure and Texas Register Act (Article 6252-13a,Version's
Texas Civil Statutes), or otherwise, shall be initiated in a Travis County District
Court, or having been initiated in the Court of Appeals, shall be subject to
remand to a Travis County District Court for proceedings in accordance with
instructions from the Court of Appeals.
(e) Appellants shall pursue appeals with reasonable diligence. If an appellant
fails to prosecute an appeal within six months after the appeal is filed, the
court shall presume that the appeal has been abandoned. The court shall dismiss
any such appeal on a motion for dismissal made by the Attorney General or other
party unless the appellant, after receiving due notice, demonstrates good cause
for the delay.
(f) Appeal shall not affect the enforcement of a final Commission order unless
its enforcement is enjoyable under Section 65.001 et seq., Civil Practice and
Remedies Code,and under principles of primary jurisdiction.
Amended by Chapter 266, Acts of the 63rd Legislature, Regular Session, 1973,
effective June 11, 1973; amended by Chapter 128, Acts of the 64th Legislature,
Regular Session, 1975, effective May 6, 1975; amended by Chapter 357, Acts of
the 65th Legislature, Regular Session, 1977, effective June 10, 1977; amended
by Chapter 709, Acts of the 66th Legislature, Regular Session, 1979, effective
September 1, 1979; amended by Chapter 235, Acts of the 67th Legislature, Regular
Session, 1981, effective May 28, 1981; amended by Chapters 81 and 844, Acts
of the 68th Legislature, Regular Session, 1983, effective June 19,1983; amended
by Chapter 241, Acts of the 69th Legislature, Regular Session, 1985, effective
June 4, 1985; amended by Chapter 357, Acts of the 70th Legislature, Regular
Session, 1987, effective June 11, 1987; amended by Chapter 1130, Acts of the
71st Legislature, Regular Session, 1989, effective June 16, 1989; amended by
House Bill 524, 72nd Legislature, Regular Session, 1991, effective June 13,
1991; amended by Chapter 61, Acts of the 73rd Legislature, Regular Session,
1993, effective April 19, 1993; amended by Chapters 345 and 357, Acts of the
74th Legislature, Regular Session, 1995, effective June 8, 1995; amended by
House Bill 3092, Acts of the 76th Legislature, Regular Session, 1999, effective
June 19, 1999; amended by House Bill 2537, Acts of the 76th Legislature, Regular
Session, 1999, effective September 1, 1999.
The Texas lemon law, like most state lemon laws, is not meant to attack
dealers or dealerships; it is aimed at the manufacturer.
