In this subtitle the following words have the meanings
The purchaser, other than for purposes of resale, of a new motor
(2) Any person to whom a new motor vehicle is transferred during
the duration of the warranty applicable to such motor vehicle;
(3) Any other person who is entitled to enforce the obligations
of the warranty.
"Motor vehicle" means a vehicle that is registered in
this State as a:
Class A (passenger) vehicle;
(ii) Class D (motorcycle) vehicle;
(iii) Class E (truck) vehicle with a 3/4 ton or less
manufacturer's rated capacity; or
(iv) Class M (multipurpose) vehicle.
"Motor vehicle" does not include a motor home. For the
purpose of administering this subtitle, the Motor Vehicle
Administration shall promulgate a regulation defining a motor
"Dealer" has the meaning provided in § 15-101(b) of
the Transportation Article.
"Manufacturer, factory branch, or distributor" means a
person, partnership, association, corporation, or entity engaged
in the business of manufacturing or assembling motor vehicles or
of distributing motor vehicles to motor vehicle dealers as
defined in § 15-201(b), (c), and (e) of the Transportation
"Warranty" means warranties as defined in §§ 2-312,
2-313, 2-314, and 2-315 of this article.
"Manufacturer's warranty period" means the earlier of:
The period of the motor vehicle's first 15,000 miles of
(ii) 15 months following the date of original delivery of the
motor vehicle to the consumer.
This subsection does not extend any manufacturer's express
If the manufacturer's warranty period is to include those miles
of operation when the new motor vehicle is in the possession of
any person other than the consumer, the manufacturer shall state
that fact in 12 point bold face type in the manufacturer's
If a new motor vehicle does not conform to all applicable
warranties during the warranty period, the consumer shall,
during such period, report the nonconformity, defect, or
condition by giving written notice to the manufacturer or
factory branch by certified mail, return receipt requested.
Notice of this procedure shall be conspicuously disclosed to the
consumer in writing at the time of sale or delivery of the motor
(2) The consumer shall provide an opportunity for the
manufacturer or factory branch, or its agent to cure the
nonconformity, defect, or condition.
(3) The manufacturer or factory branch, its agent, or its
authorized dealer shall correct the nonconformity, defect, or
condition at no charge to the consumer, even if repairs are made
after the expiration of the warranty period. The corrections
shall be completed within 30 days of the manufacturer's receipt
of the consumer's notification of the nonconformity, defect, or
If, during the warranty period, the manufacturer or factory
branch, its agent, or its authorized dealer is unable to repair
or correct any defect or condition that substantially impairs
the use and market value of the motor vehicle to the consumer
after a reasonable number of attempts, the manufacturer or
factory branch, at the option of the consumer, shall:
Replace the motor vehicle with a comparable motor vehicle
acceptable to the consumer; or
(ii) Accept return of the motor vehicle from the consumer and
refund to the consumer the full purchase price including all
license fees, registration fees, and any similar governmental
A reasonable allowance for the consumer's use of the vehicle not
to exceed 15 percent of the purchase price; and
2. A reasonable allowance for damage not attributable to normal
wear but not to include damage resulting from a nonconformity,
defect, or condition.
The manufacturer or factory branch shall make refunds under this
section to the consumer and lien holder, if any, as their
interests appear on the records of ownership maintained by the
Motor Vehicle Administration.
(3) It is an affirmative defense to any claim under this section
that the nonconformity, defect, or condition:
Does not substantially impair the use and market value of the
motor vehicle; or
(ii) Is the result of abuse, neglect, or unauthorized
modifications or alterations of the motor vehicle.
It shall be presumed that a reasonable number of attempts have
been undertaken to conform a motor vehicle to the applicable
The same nonconformity, defect, or condition has been subject to
repair 4 or more times by the manufacturer or factory branch, or
its agents or authorized dealers, within the warranty period but
such nonconformity, defect, or condition continues to exist;
(2) The vehicle is out of service by reason of repair of 1 or
more nonconformities, defects, or conditions for a cumulative
total of 30 or more days during the warranty period; or
(3) A nonconformity, defect, or condition resulting in failure
of the braking or steering system has been subject to the same
repair at least once within the warranty period, and the
manufacturer has been notified and given the opportunity to cure
the defect, and the repair does not bring the vehicle into
compliance with the motor vehicle safety inspection laws of the
The term of any warranty, the warranty period, and the 30 day
out of service period shall be extended by any time during which
repair services are not available to the consumer by reason of
war, invasion, strike, or fire, flood, or other natural
It shall be the duty of a dealer to notify the manufacturer of
the existence of a nonconformity, defect, or condition within 7
days when the motor vehicle is delivered to the same dealer for
a fourth time for repair of the same nonconformity or when the
vehicle is out of service by reason of repair of one or more
nonconformities, defects, or conditions for a cumulative total
of 20 days.
(ii) The notification shall be sent by certified mail and a copy
of the notification shall be sent to the Motor Vehicle
Administration; however, failure of the dealer to give the
required notice required under this subsection shall not affect
the consumer's right under this subtitle.
If a motor vehicle is returned to a manufacturer or factory
branch either under this subtitle, or by judgment, decree,
arbitration award, or by voluntary agreement, the manufacturer
or factory branch shall notify the Motor Vehicle Administration
in writing within 15 days of the fact that the vehicle was
If a motor vehicle that is returned to the manufacturer under
either this subtitle or by judgment, decree, arbitration award,
settlement agreement, or by voluntary agreement in this or any
other state and is then transferred to a dealer in Maryland, the
manufacturer shall disclose this information to the dealer.
(ii) The manufacturer's disclosure under this paragraph shall be
in writing on a separate piece of paper in 10 point all capital
type and shall state in a clear and conspicuous manner:
That the motor vehicle was returned to the manufacturer or
2. The nature of the defect, if any, that resulted in the
3. The condition of the motor vehicle at the time that it is
transferred to the dealer.
If the returned vehicle is then made available for resale, the
seller shall provide a copy of the manufacturer's disclosure
form to the consumer prior to sale.
(ii) If the returned vehicle is sold, the seller shall send a
copy of the manufacturer's disclosure form, signed by the
consumer, to the Administration.
This section does not limit the rights or remedies that are
otherwise available to a consumer under any other law, including
any implied warranties.
If a manufacturer or factory branch has established an informal
dispute settlement procedure which complies in all respects with
the provisions of Title 16, Code of Federal Regulations, Part
703, as amended, a consumer may resort to that procedure before
subsection (c) of this section applies.
(2) A consumer who has resorted to an informal dispute
settlement procedure may not be precluded from seeking the
rights or remedies available by law.
Any agreement entered into by a consumer for the purchase of a
new motor vehicle that waives, limits, or disclaims the rights
set forth in this section shall be void.
(2) The rights available to a consumer under this section shall
inure to a subsequent transferee of a new motor vehicle for the
duration of the applicable warranties.
Any action brought under this section shall be commenced within
3 years of the date of original delivery of the motor vehicle to
A court may award reasonable attorney's fees to a prevailing
plaintiff under this section.
(2) If it appears to the satisfaction of the court that an
action is brought in bad faith or is of a frivolous nature, the
court may order the offending party to pay to the other party
reasonable attorney's fees.
This subtitle does not apply to a fleet purchase of five or more
The Motor Vehicle Administration shall:
Develop a notice that describes the rights provided to consumers
under this subtitle;
(2) Make the notice available to all dealers that sell new motor
vehicles in the State; and
(3) Adopt regulations as necessary to implement the provisions
of this section.
The notice shall:
Be written in simple and readable plain language; and
(2) Contain sufficient detail to fully inform consumers about
the rights and remedies available under this subtitle and the
procedures to follow to enforce those rights and remedies.
Each dealer that sells a new motor vehicle in the State shall
provide to the purchaser, at the time of the sale or delivery of
the motor vehicle, a copy of the notice developed by the Motor
Vehicle Administration under this section.
If a dealer, manufacturer, factory branch, or distributor is
required under a judgment, decree, arbitration award, or
settlement agreement to accept, or by voluntary agreement
accepts, return of a motor vehicle from a consumer, the consumer
shall be entitled to recover from the Motor Vehicle
Administration the excise taxes originally paid by the consumer,
subject to subsection (b) of this section.
If a dealer, manufacturer, factory branch, or distributor
replaces a motor vehicle with a comparable motor vehicle under
§ 14-1502(c)(1)(i) of this subtitle, the Motor Vehicle
Administration shall allow a credit against the excise tax
imposed for the replacement vehicle in the amount of the excise
taxes originally paid by the consumer for the returned vehicle,
subject to subsection (b) of this section.
If the excise tax on the replacement vehicle exceeds the credit
allowed under subparagraph (i) of this paragraph, the dealer
shall collect only that portion of excise tax due; or
2. If the excise tax on the vehicle being replaced exceeds the
excise tax on the replacement vehicle, the consumer shall be
entitled to recover from the Motor Vehicle Administration the
excess of the excise tax paid.
The excise taxes that a consumer is entitled to recover under
this section shall be calculated based on the amount of the
purchase price or any portion of the purchase price of the motor
vehicle that the dealer, manufacturer, factory branch, or
distributor refunds to the consumer.
A dealer, manufacturer, factory branch, or distributor who is
required under a judgment, decree, arbitration award, or
settlement agreement to accept, or who accepts, by voluntary
agreement, return of a motor vehicle shall notify the consumer
in writing that the consumer is entitled to recover the excise
taxes from the Motor Vehicle Administration.
A violation of this subtitle shall be an unfair and deceptive
trade practice under Title 13 of the Commercial Law Article.
In addition to any other remedies that may be available under
this subtitle, if a manufacturer, factory branch, or distributor
is found to have acted in bad faith, the court may award the
consumer damages of up to $10,000.