NEVADA LEMON LAW SUMMARY

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1 EXECUTIVE SUMMARY TIME PERIOD FOR FILING CLAIMS ELIGIBLE VEHICLE 18 months following original delivery to the consumer. Any self-propelled vehicle in, upon or by which any person or property is or may be transported upon a public highway. Excludes motor homes and off-road vehicles. Appears to cover used vehicles. ELIGIBLE CONSUMER TIME PERIOD FOR FIRST OCCURRENCE OR NOTICE TIME PERIOD FOR REASONABLE NUMBER OF ATTEMPTS TO REPAIR PRESUMPTION OR DEFINITION NOTICE TO MANUFACTURER FINAL OPPORTUNITY TO REPAIR REASONABLE ALLOWANCE DISPUTE RESOLUTION DISCLOSURE TO SUBSEQUENT PURCHASER TITLE BRA NDING Buyer defined as (1) a person who purchases or contracts to purchase, for purposes other than resale, a motor vehicle normally used for personal, family or household purposes; (2) 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; and (3) any other person entitled by the terms of the warranty to enforce its obligations. Appears not to cover lessees. Earlier of the expiration of the warranties or one year after original delivery. Presumption: during earlier of the express warranty or one year following original delivery, either (1) four or more repair attempts or (2) out of service for 30 or more calendar days. Written notification to the manufacturer within earlier of the express warranty or within one year following original delivery. Refund only: use by the buyer before first report of the nonconformity and during any subsequent period when the vehicle is not out of service for repairs. Before seeking refund or replacement, consumer must resort to manufacturer s program if it complies with 16 C.F.R. Part 703. No. No. 1

2 1. Citation Nevada Rev. Stat through Motor vehicle covered Covers a motor vehicle, defined as any self-propelled vehicle in, upon or by which any person or property is or may be transported upon a public highway. Excludes motor homes and off-road vehicles. Appears to cover used vehicles. 3. Consumer covered 4. Nonconformity defined 5. Warranty defined 6. Lemon law rights period 7. Manufacturer s obligation to repair Covers the buyer, defined as: (1) A person who purchases or contracts to purchase, for purposes other than resale, a motor vehicle normally used for personal, family or household purposes; (2) 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; and (3) Any other person entitled by the terms of the warranty to enforce its obligations. Appears not to cover lessees. Not defined. Any defect or condition that substantially impairs the use and value of the motor vehicle to the buyer is referred to as a nonconformity. A nonconformity may not be the result of abuse, neglect or unauthorized modifications or alterations of the motor vehicle. Not defined. Not defined. If a 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 before the expiration of the manufacturer s express warranties or one year after the date of the motor vehicle s delivery to the original buyer whichever is earlier then the manufacturer, its agent or authorized dealer must make the necessary repairs to conform the motor vehicle to the express warranty. The necessary repairs must be made even if the term of the warranty or the one year period has expired. 8. Manufacturer s obligation to repurchase or replace 9. Criteria for reasonable number of repair attempts 10. Notice of nonconformity and final opportunity to repair If the manufacturer, its agent or authorized dealer is unable to conform the motor vehicle to any applicable express warranty by repairing or correcting a nonconformity after a reasonable number of attempts, the manufacturer must either replace or repurchase the motor vehicle. Presumed if, within the time the express warranty is in effect or within one year following the date of the motor vehicle s delivery to the original buyer, whichever occurs first, either of the following occurs: (1) The same nonconformity has been subject to repair four or more times by the manufacturer, its agent or authorized dealer but the nonconformity continues to exist, or (2) The motor vehicle is out of service for repairs for a cumulative total of 30 or more calendar days. The 30 day period is extended by any period of time in which the necessary repairs cannot be made for reasons that are beyond the control of the manufacturer, its agent or authorized dealer. Buyer must report the nonconformity in writing to the manufacturer before the expiration of the manufacturer s express warranties or one year after the date of the motor vehicle s delivery to the original buyer whichever is earlier 2

3 11. Affirmative defenses 12. Refund Refund consists of: (1) The full purchase price, and (2) All sales taxes, license fees, registration fees and other similar governmental charges; (3) Less a reasonable allowance for the buyer s use of the vehicle. 13. Replacement Replacement is 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. 14. Reasonable allowance 15. Refund of sales tax 16. Enhanced damages Applies to a refund only. A reasonable allowance for use is that amount directly attributable to use by the buyer before the 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. Manufacturer refunds sales tax to the consumer. No provision for the manufacturer to obtain a refund of sales tax from the state. 17. Attorney s fees No provision allowing the consumer to recover attorney s fees in an action for repurchase or replacement. A court may award attorneys fees in an action for failure t o comply with provisions relating to title branding and resale notices. 18. Statute of limitations 19. Manufacturer - sponsored arbitration 20. State-sponsored arbitration An action must be commenced within 18 months after the date of the vehicle s original delivery to the buyer. If the manufacturer has established or designated an informal dispute settlement procedure that complies with 16 C.F.R. Part 703, then they buyer may not bring an action under the provisions requiring refund or replacement unless the buyer has first resorted to the infor mal dispute settlement procedure. 21. Dealer liability 22. Restrictions on resale of returned vehicles A manufacturer, or its agent or authorized dealer, who reacquires a motor vehicle under the lemon law, or who assists a lienholder in reacquiring a motor vehicle, must, before selling, leasing or transferring ownership of the motor vehicle in Nevada or exporting the motor vehicle to another state for sale, lease or transfer: (1) Cause the motor vehicle to be retitled in the name of the manufacturer; (2) Request the Department of Motor Vehicles to inscribe the certificate of ownership for the motor vehicle with the notation Lemon Law Buyback ; and (3) Affix a decal to the left front doorframe of the motor vehicle or, if the motor vehicle does not have a left front doorframe, in a location designated by the Department of Motor Vehicles. The decal must specify that the certificate of title to the motor vehicle has been permanently inscribed with the notation Lemon Law Buyback. Any manufacturer who reacquires, or assists a dealer or lienholder in reacquiring, a motor vehicle in response to a request by the buyer or lessee that the motor vehicle be replaced or accepted for a refund because the motor vehicle did not conform to express warranties must, before the sale, lease or other transfer of the motor vehicle, execute and deliver to the subsequent transferee a notice and obtain the transferee s written acknowledgment of the notice as described below. 3

4 Any person, including any dealer, who acquires a motor vehicle for resale and knows that the motor vehicle was reacquired by the manufacturer of the motor vehicle under the lemon law must, before the sale, lease or other transfer, execute and deliver to the subsequent transferee a notice and obtain the transferee s written acknowledgment of the notice as described below. Any person, including any manufacturer or dealer, who sells, leases or transfers ownership of a motor vehicle when the certificate of ownership for the motor vehicle is inscribed with the notation Lemon Law Buyback must, before the sale, lease, or ownership transfer of the motor vehicle, submit to the transferee a written disclosure signed by the transferee stating that: THIS VEHICLE WAS REPURCHASED BY ITS MANUFACTURER BECAUSE OF A DEFECT IN THE VEHICLE PURSUANT TO CONSUMER WARRANTY LAWS. THE TITLE TO THIS VEHICLE HAS BEEN PERMANENTLY INSCRIBED WITH THE NOTATION LEMON LAW BUYBACK. The requirements for disclosure are in addition to any other notice requirements for consumers and do not relieve any person, including any dealer or manufacturer, from complying with any other applicable law. A person shall not knowingly remove or alter any decal affixed to a motor vehicle pursuant to this subsection, regardless of whether the motor vehicle is licensed pursuant to this chapter. The notice required above must be prepared by the manufacturer of the reacquired motor vehicle and specify: (1) The year, make, model and vehicle identification number of the motor vehicle. (2) Whether the certificate of title for the motor vehicle has been inscribed with the notation Lemon Law Buyback. (3) The nature of each nonconformity reported by the original buyer or lessee of the motor vehicle. (4) The repairs, if any, made to the motor vehicle in an attempt to correct each nonconformity reported by the original buyer or lessee. The notice must be included on a form 8 1/2 x 11 inches in size and printed in a size equal to at least 10-point black type on a white background. The form must only contain the following information and be completed by the manufacturer: WARRANTY BUYBACK NOTICE (Check One) / / This vehicle was repurchased by the vehicle s manufacturer after the last retail owner or lessee requested its repurchase because of the problems listed below. / / THIS VEHICLE WAS REPURCHASED BY ITS MANUFACTURER BECAUSE OF A DEFECT IN THE VEHICLE PURSUANT TO CONSUMER WARRANTY LAWS. THE TITLE TO THIS VEHICLE HAS BEEN PERMANENTLY INSCRIBED WITH THE NOTATION LEMON LAW BUYBACK. Under Nevada law, the manufacturer must warrant to you, for 1 year, that the vehicle is free of the problems listed below. V.I.N. Year Make Model Problem(s) Reported by Original Owner Repairs Made, if any, to Correct Reported Problem(s) Signature of Manufacturer 4

5 Signature of Dealers Signature of Retail Buyer or Lessee A manufacturer, importer, distributor, dealer or lienholder who reacquires or assists in reacquiring a motor vehicle, whether by judgment, decree, arbitration award, settlement agreement or voluntary agreement, shall not: (1) Require, as a condition of the reacquisition of the motor vehicle, a buyer or lessee who is a resident of this State to agree to refrain from disclosing the problems with the motor vehicle experienced by the buyer or lessee or the nonfinancial terms of the reacquisition. (2) Include, in any release or other agreement, whether prepared by the manufacturer, importer, distributor, dealer or lienholder, for signature by the buyer or lessee, a confidentiality clause, gag clause or similar clause prohibiting the buyer or lessee from disclosing information to any other person concerning the problems with the motor vehicle or the nonfinancial terms of the reacquisition of the motor vehicle by the manufacturer, importer, distributor, dealer or lienholder. Any confidentiality clause, gag clause or similar clause included in the release or other agreement in violation of this section is void. The provisions of this section do not prohibit the inclusion within the release or other agreement any confidentiality clause, gag clause or similar clause regarding the financial terms of the reacquisition of the motor vehicle. A person who incurs an injury or damages as the proximate result of a violation of the titling and disclosure provisions may commence an action in a court of competent jurisdiction for the recovery of his actual damages, costs and reasonable attorney s fees and for any punitive damages that the facts may warrant. 23. Point of sale notice of lemon law rights 24. Limitation on waiver Any provision in any agreement between the manufacturer or its agent or authorized dealer and the buyer that provides that the buyer agrees to waive or forego any rights or remedies afforded by the lemon law is void. 5

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