Nevada Lemon Law
As used in NRS 597.600 to 597.680, inclusive, unless the context otherwise requires:
1. "Buyer" means:
(a) A person who purchases or contracts to purchase, other than for purposes of resale, a motor vehicle normally used for personal, family or household purposes.
(b) Any person to whom the motor vehicle is transferred during the time a manufacturer's express warranty applicable to the motor vehicle is in effect.
(c) Any other person entitled by the terms of the warranty to enforce its obligations.
2. Except as otherwise provided in this subsection "motor vehicle" has the meaning ascribed to it in NRS 482.075. The term does not include motor homes or off-road vehicles except for the purposes of NRS 597.680.
597.610 Report of defect in motor vehicle; duty of manufacturer.
If a new motor vehicle does not conform to all of the manufacturer's applicable express warranties and the buyer reports the nonconformity in writing to the manufacturer:
1. Before the expiration of the manufacturer's express warranties; or
2. No later than 1 year after the date the motor vehicle is delivered to the original buyer, whichever occurs earlier, the manufacturer, its agent or its authorized dealer shall make such repairs as are necessary to conform the vehicle to the express warranties without regard to whether the repairs will be made after the expiration of the express warranty or the time described in subsection 2.
597.620 Submission of claim.
To manufacturer for replacement or refund according to designated procedure.
If the manufacturer has established or designated a procedure for settling disputes informally which substantially complies with the provisions of Title 16 of the Code of Federal Regulations, Part 703, a buyer must first submit his claim for replacement of the motor vehicle or for refund of the purchase price under that procedure before bringing any action under NRS 597.630.
597.630 Duties of manufacturer
If motor vehicle cannot be conformed to express warranties.
1. If, after a reasonable number of attempts, the manufacturer, or its agent or authorized dealer is unable to conform the motor vehicle to any applicable express warranty by repair or correction and the defect or condition causing the nonconformity substantially impairs the use and value of the motor vehicle to the buyer and is not the result of abuse, neglect or unauthorized modifications or alterations of the motor vehicle, the manufacturer shall:
(a) Replace the motor vehicle with a comparable motor vehicle of the same model and having the same features as the replaced vehicle, or if such a vehicle cannot be delivered to the buyer within a reasonable time, then a comparable motor vehicle substantially similar to the replaced vehicle; or
(b) Accept return of the motor vehicle from the buyer and refund to him the full purchase price including all sales taxes, license fees, registration fees and other similar governmental charges, less a reasonable allowance for his use of the vehicle. A reasonable allowance for use is that amount directly attributable to use by the buyer before his first report of the nonconformity to the manufacturer, agent or dealer and during any subsequent period when the vehicle is not out of service for repairs. Refunds must be made to the buyer, and lien holder if any, as their interests may appear.
2. It is presumed that a reasonable number of attempts have been undertaken to conform a motor vehicle to the applicable express warranties where:
(a) The same nonconformity has been subject to repair four or more times by the manufacturer, or its agent or authorized dealer within the time the express warranty is in effect or within 1 year following the date the motor vehicle is delivered to the original buyer, whichever occurs earlier, but the nonconformity continues to exist; or
(b) The motor vehicle is out of service for repairs for a cumulative total of 30 or more calendar days within the time the express warranty is in effect or within 1 year following the date the motor vehicle is delivered to the original buyer, whichever occurs earlier, except that if the necessary repairs cannot be made for reasons which are beyond the control of the manufacturer or its agent or authorized dealer, the number of days required to give rise to the presumption must be appropriately extended.
597.640 Tolling of period for express warranties.
For the purposes of NRS 597.600 to 597.670, inclusive, the running of the time an express warranty is in effect or of any other period of time described in those sections is tolled for the time during which services to repair the motor vehicle are not reasonably available to the buyer because of a war, invasion or strike, or because of a fire, flood or other natural disaster.
597.650 Commencement of action by buyer.
Any action brought pursuant to NRS 597.600 to 597.630, inclusive, must be commenced within 18 months after the date of the original delivery of the motor vehicle to the buyer.
597.660 Waiver of rights by buyer prohibited.
Any provision in any agreement between the manufacturer or its agent or authorized dealer and the buyer which provides that the buyer agrees to waive or forego any rights or remedies afforded by NRS 597.600 to 597.630, inclusive, is void.
597.670 Effect of other rights and remedies of buyer.
The provisions of NRS 597.600 to 597.630, inclusive, do not limit any other right or remedy which the buyer may have by law or by agreement.
597.675 Notification of manufacturer regarding change in residential address.
Any person entitled by the terms of a manufacturer's express warranty to enforce its obligations is responsible for notifying the manufacturer of any change in his residential address.
597.680 Reimbursement by manufacturer for cost of repairs to conform vehicle to express warranties.
The manufacturer shall reimburse its agent or authorized dealer for the cost of repairs made to a motor vehicle to conform it to the manufacturer's express warranties. The reimbursement must be paid at the rate usually billed by the agent or dealer to the general public for similar repairs.
597.690 Manufacturer required to remedy defects in vehicle related to safety without charge.
1. Every manufacturer of a vehicle who furnishes notification to the registered owner of the vehicle of any defect in the vehicle related to vehicle safety shall, notwithstanding the limitations of any warranty relating to such vehicle, correct such defect at the manufacturer's expense and without charge to the registered owner of the vehicle if the vehicle is returned to any vehicle dealer franchised by the manufacturer to market the vehicle, or, at the election of the manufacturer, reimburse the registered owner for the actual cost of making such correction.
2. This section does not require a vehicle dealer to make the required
correction if the manufacturer has failed to make available to the dealer
the parts needed to make the correction.
Magnuson-Moss Warranty-Federal Trade Commission ACT [Top]
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 Act is a federal law giving consumers considerable rights in dealing with manufacturers and car-dealers of lemon automobiles. This law guarantees a car buyer 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.
We have argued successfully to juries that the lemon manufacturers and car-dealers should be given three (3) attempts to fix the defect. Continued attempts to repair beyond the initial three (3) should not be allowed. We call this 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 Act. Attorney's fees based on actual time spent will be covered if the consumer prevails.
Due to this particular condition, there is quite a bit of financial pressure on the manufacturer to settle consumer disputes before going to court, as this would keep their expenses down.
UNIFORM COMMERCIAL CODE [Top]
TARR BABY-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 Section 2-601 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 non-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 of inspecting 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.
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 non-conformity 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 is always assured that any non-conformities he does discover will be remedied.