KRS 367.841 to
367.844 shall be liberally construed and applied to promote the
underlying purposes of KRS 367.841 to 367.844, which purposes
protect consumers who buy or lease new motor vehicles that do
not conform to applicable warranties by holding manufacturers
accountable for certain nonconformities;
limit the number of attempts and the amount of times that a
manufacturer or its agents shall have to cure such
require manufacturers to provide, in as expeditious a manner as
possible, a refund, not to exceed the amount in KRS 367.842, or
replacement vehicle that is acceptable to the aggrieved consumer
when the manufacturer or its agents fail to cure any
nonconformity within the specified limits.
"Buyer" means any resident person who buys, contracts
to buy, or leases a new motor vehicle in the Commonwealth of
Kentucky. In the case of the lease of a new motor vehicle,
"buyer" shall mean the lessor, lessee, or both.
"Manufacturer" means any person or corporation,
resident or nonresident, who manufactures or assembles new motor
vehicles, including new conversion van manufacturers, which are
sold in the Commonwealth of Kentucky.
"Motor vehicle" means every vehicle which is
self-propelled, and which is intended primarily for use and
operation on the public highways and required to be registered
or licensed in the Commonwealth prior to such use or operation;
however, "motor vehicle" shall not include:
vehicle substantially altered after its initial sale from a
dealer to an individual;
tractors and other machines used in the production, harvesting,
and care of farm products; or
Vehicles which have more than two (2) axles.
"New motor vehicle" means a motor vehicle which has
been finally and completely assembled and is in the possession
of a manufacturer, factory branch, distributor, wholesaler, or
an authorized motor vehicle dealer operating under a valid sales
and service agreement, franchise, or contract for the sale of
such vehicle granted by the manufacturer, factory branch,
distributor, or wholesaler which is, in fact, new and on which
the original title has never been issued.
"Express warranty" or "warranty" means the
written warranty, so labeled, of the manufacturer of a new
automobile, including any terms or conditions precedent to the
enforcement of obligations under the warranty.
"Nonconformity" means a failure to conform with an
express warranty in a manner which substantially impairs the
use, value, or safety of the motor vehicle.
"Reasonable allowance for use" means the amount
directly attributable to a consumer's use of the vehicle other
than those time periods when the vehicle is out of service due
to the nonconformity.
Options of buyer.
unable to repair nonconformity in new motor vehicle; Rights of
lien holder; Resolution of disputes; Dealer not liable.
after a reasonable number of attempts, the manufacturer or its
agents are unable to repair the nonconformity in the motor
vehicle to the express warranty during the first twelve thousand
(12,000) miles of operation or during the first twelve (12)
months following the date of delivery to the buyer, whichever is
the earlier date, that buyer shall report the nonconformity, in
writing, to the manufacturer.
within the period specified in subsection (1) of this section,
the manufacturer or its agents, are unable to repair or correct
any nonconformity or defect that substantially impairs the use,
value, or safety of the motor vehicle, after a reasonable number
of attempts, the manufacturer, at the option of the buyer, shall
replace the motor vehicle with a comparable motor vehicle, or
accept return of the vehicle from the buyer and refund to the
buyer the full purchase price. The full purchase price shall
include the amount paid for the motor vehicle, finance charge,
all sales tax, license fee, registration fee, and any similar
governmental charges plus all collateral charges, less a
reasonable allowance for the buyer's use of the vehicle. Refunds
shall be made to the buyer and lien holder, if any, as their
interests may appear on the records of ownership kept by the
Department of Vehicle Regulation. The provisions of this section
shall not affect the interests of a lien holder, unless the lien
holder consents to the replacement of the lien with a
corresponding lien on the automobile accepted by the consumer in
exchange for the automobile having a nonconformity, the lien
holder shall be paid in full the amount due on the lien,
including finance charges and other charges, before an exchange
of automobiles or a refund to the consumer is made. It shall be
an affirmative defense to any claim under this section that:
nonconformity, defect, or condition does not substantially
impair the use, value, or safety of the motor vehicle; or
nonconformity, defect, or condition is the result of abuse,
neglect, or unauthorized modification or alteration of the motor
vehicle by the buyer.
shall be presumed that a reasonable number of attempts have been
undertaken to conform a motor vehicle to the applicable express
warranty if, within the first twelve thousand (12,000) miles of
operation or during the period of, twelve (12) months following
the date of original delivery of the motor vehicle to the buyer,
whichever is the earlier date:
same nonconformity, defect, or condition has been subject to
repair four (4) or more times by the manufacturer, but such
nonconformity, defect, or condition continues to exist; or
vehicle is out of service/use by reason of repair of the same
nonconformity, defect, or condition for a cumulative total of at
least thirty (30) calendar days.
Disputes arising under subsection (2) of this section concerning
refund or replacement shall be resolved through the dispute
resolution system established under either KRS 367.860 to
367.870, or 16 C.F.R. part 703. Such remedy shall be pursued
prior to seeking any judicial relief under KRS 367.843.
Nothing in this chapter may be construed as imposing any
liability on a dealer or creating a cause of action by a
consumer against a dealer.
Nothing in this section shall in any way limit the rights or
remedies which are otherwise available to a buyer under any
agreement entered into by a buyer for the purchase of a new
motor vehicle which waives, limits, or disclaims the rights set
forth in this section shall be void as contrary to public
action brought pursuant to this section shall be commenced
within two (2) years after the date of original delivery of the
new motor vehicle to the buyer.
court may award reasonable attorney's fees to a prevailing
for relief by purchaser.
Any person who
purchases a motor vehicle and thereby suffers any ascertainable
loss of money or property, real or personal, as a result of a
violation of KRS 367.842, may bring an action under the
provisions of KRS 367.220 for relief.
Manufacturer prohibited from exposing franchised dealer to
shall, directly or indirectly, by any means or methods, expose
or attempt to expose any franchised dealer to liability as
forbidden in KRS 367.842(4) and (5). Any violation of this
section shall be subject to all applicable provisions of the
law, including but not limited to the provisions of KRS
Enforcement of provisions of KRS 367.842 to 367.844 by Attorney
with the provisions of KRS 367.842 to 367.844 by a manufacturer
shall be unlawful. The Attorney General shall have authority to
enforce KRS 367.842 to 367.844 in accordance with powers
provided by KRS 367.190 and 367.230, pertaining to acts declared
unlawful by KRS 367.170. Any expenses accruing to the Attorney
General from the provisions of KRS 367.842 to 367.844 shall be
assessed by his office upon the motor vehicle manufacturer
involved in any action cited in the provisions herein.
Application of KRS 367.840 to 367.845.
KRS 367.840 to
367.845 shall apply to new motor vehicles purchased after July
15, 1986, and to motor vehicles leased after July 15, 1998.