Vermont § 4172 - Enforcement of warranties

§ 4172. Enforcement of warranties

• (a) Every new motor vehicle as defined in section 4171 of this title sold in this State must conform to all applicable warranties. (b) It shall be the manufacturer’s obligation under this chapter to ensure that all new
  motor vehicles sold, leased, or registered in this State conform with manufacturer’s
  express warranties. The manufacturer may delegate responsibility to its agents or
  authorized dealers; provided, however, in the event the manufacturer delegates its
  responsibility under this chapter to its agents or authorized dealers, it shall compensate
  the dealer for all work performed by the dealer in satisfaction of the manufacturer’s
  responsibility under this chapter in the manner set forth in chapter 108 of this title
  known as the “Motor Vehicle Manufacturers, Distributors, and Dealers’ Franchising
  Practices Act” as that act may be from time to time amended. (c) 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 authorized dealer
  during the term of the warranty, the manufacturer shall cause whatever repairs are
  necessary to conform the vehicle to the warranties, notwithstanding the fact that
  the repairs are made after the expiration of a warranty term. (d) A manufacturer, its agent, or authorized dealer shall not refuse to provide a consumer
  with a written repair order and shall provide to the consumer each time the consumer’s
  vehicle is brought in for examination or repair of a defect a written summary of the
  complaint and a fully itemized statement indicating all work performed on the vehicle
  including examination of the vehicle, parts, and labor. (e)(1) If, after a reasonable number of attempts, the manufacturer, its agent, or authorized
  dealer or its delegate is unable to conform the motor vehicle to any express warranty
  by repairing or correcting any defect or condition covered by the warranty that substantially
  impairs the use, market value, or safety of the motor vehicle to the consumer, the
  manufacturer shall, at the option of the consumer within 30 days of the effective
  date of the Board’s order, either: (A) Replace the motor vehicle with a new motor vehicle from the same manufacturer, if
  available, of comparable worth to the same make and model with all options and accessories
  with appropriate adjustments being allowed for any model year differences. (B) Accept return of the vehicle from the consumer and refund to the consumer the full
  purchase price or to the lessee in the case of leased vehicles, as provided in subsection
  (i) of this section. In those instances in which a refund is tendered, the manufacturer
  shall refund to the consumer the full purchase price as indicated in the purchase
  contract and all credits and allowances for any trade-in or downpayment, finance charges,
  credit charges, registration fees, and any similar charges and incidental and consequential
  damages or, in the case of leased vehicles, as provided in subsection (i) of this
  section. Refunds shall be made to the consumer and lien holder, if any, as their interests
  may appear or to the motor vehicle lessor and lessee as provided in subsection (i)
  of this section. A reasonable allowance for use shall be that amount directly attributable
  to use by the consumer prior to his or her first repair attempt and shall be calculated
  by multiplying the full purchase price of the vehicle by a fraction having as its
  denominator 100,000 and having as its numerator the number of miles that the vehicle
  traveled prior to the first attempt at repairing the vehicle. If the manufacturer
  refunds the purchase price or a portion of the price to the consumer, any Vermont
  motor vehicle purchase and use tax paid shall be refunded by the State to the consumer
  in the proportionate amount. To receive a refund, the consumer must file a claim with
  the Commissioner of Motor Vehicles within 90 days of the effective date of the order. (2) In the case of a recreation vehicle, the warrantor of the chassis shall be responsible
  for any refund under subdivision (1)(B) of this subsection or under subsection (i)
  of this section, even if the consumer’s or lessee’s right to the refund results from
  a nonconformity caused by the final stage assembler of the completed recreation vehicle
  or by another warranted component subject to this chapter. (f) It shall be an affirmative defense to any claim under this chapter that an alleged
  nonconformity does not substantially impair the use, market value, or safety, or that
  the nonconformity is the result of abuse, neglect, or unauthorized modifications or
  alterations of a motor vehicle by a consumer. (g) It shall be presumed that a reasonable number of attempts have been undertaken to
  conform a motor vehicle to the applicable warranties if: (1) the same nonconformity as identified in any written examination or repair order has
  been subject to repair at least three times by the manufacturer, its agent, or authorized
  dealer and at least the first repair attempt occurs within the express warranty term
  and the same nonconformity 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 30 or more calendar days during the
  term of the express warranty. The term of any warranty and the 30-day period shall
  be extended by any period of time during which repair services were not available
  to the consumer because of war, invasion, strike, fire, flood, or other natural disaster.
  If an extension of time is necessitated due to these conditions, the manufacturer
  shall cause provision for the free use of a vehicle to the consumer whose vehicle
  is out of service. A vehicle shall not be deemed out of service if it is available
  to the consumer for a major part of the day. (h) In order for an attempt at repair to qualify for the presumptions of this section,
  the attempt at repair must be evidenced by a written examination or repair order issued
  by the manufacturer, its agent, or its authorized dealer. The presumptions of this
  section shall only apply to three attempts at repair evidenced by written examination
  or repair orders undertaken by the same agent or authorized dealer, unless the consumer
  shows good cause for taking the vehicle to a different agent or authorized dealer. (i) In cases in which the lessee elects a replacement vehicle, a collateral change with
  appropriate adjustments for any model year difference or excess mileage, or both,
  shall be incorporated into an amended lease agreement. In cases in which a refund
  is tendered by a manufacturer for a leased motor vehicle under subsection (e) of this
  section, the refund and rights of the motor vehicle lessor, lessee, and manufacturer
  shall be in accordance with the following: (1) The manufacturer shall provide to the lessee the aggregate deposit and rental payments
  previously paid to the motor vehicle lessor by the lessee, and incidental and consequential
  damages, if applicable, minus a reasonable allowance for use and allocated payments
  for purchase and use tax. The aggregate deposit shall include all cash payments and
  trade-in allowances tendered by the lessee to the motor vehicle lessor under the lease
  agreement. The reasonable allowance for use shall be calculated by multiplying the
  aggregate deposit and rental payments made by the lessee on the motor vehicle by a
  fraction having as its denominator the number of miles allowed in the lease contract
  and having as its numerator the number of miles that the vehicle traveled prior to
  the first attempt at repairing the vehicle. Any miles in excess of those allowed in
  the lease contract shall be added to the mileage at the first repair attempt or first
  day out of service prior to calculating the reasonable allowance for use. (2) The manufacturer shall provide to the motor vehicle lessor the aggregate of the following: (A) the lessor’s actual purchase cost, less payments made by the lessee; (B) the freight cost, if applicable; (C) the cost for dealer or manufacturer-installed accessories, if applicable; (D) any fee paid to another to obtain the lease; and (E) an amount equal to five percent of the lessor’s actual purchase cost. The amount in
  this subdivision shall be instead of any early termination costs as defined in subdivision
  4171(3) of this chapter or as described in the lease agreement. (3) Vermont motor vehicle purchase and use tax shall be refunded by the State to whomever
  paid the tax. The party must file a claim with the Commissioner of Motor Vehicles
  within 90 days of the effective date of the order. (4) The lessee’s lease agreement with the motor vehicle lessor and all contractual obligations
  shall be terminated upon a decision of the Board in favor of the lessee as of the
  effective date of the order. The lessee shall not be liable for any further costs
  or charges to the manufacturer or motor vehicle lessor under the lease agreement. (5) The motor vehicle lessor shall release the motor vehicle title to the manufacturer
  upon payment by the manufacturer under the provisions of this subsection. (6) The Board shall give notice to the motor vehicle lessor of the lessee’s filing of
  a request for arbitration under this chapter and shall notify the motor vehicle lessor
  of the date, time, and place scheduled for a hearing before the Board. The motor
  vehicle lessor shall provide testimony and evidence necessary to the arbitration proceedings.
  Any decision of the Board shall be binding upon the motor vehicle lessor. (Added 1983, No. 211 (Adj. Sess.), § 1; amended 1985, No. 260 (Adj. Sess.), § 2; 1987, No. 242 (Adj. Sess.),§§ 3, 4; 1989, No. 157 (Adj. Sess.), § 1, eff. April 30, 1990; 1999, No. 18, § 28, eff. May 13, 1999; 2017, No. 206 (Adj. Sess.), § 15.)