Article shall provide State and private remedies against motor
vehicle manufacturers for persons injured by new motor vehicles
failing to conform to express warranties.
used in this Article:
"Consumer" means the purchaser, other than for
purposes of resale, or lessee from a commercial lender, lessor,
or from a manufacturer or dealer, of a motor vehicle, and any
other person entitled by the terms of an express warranty to
enforce the obligations of that warranty.
"Manufacturer" means any person or corporation,
resident or nonresident, who manufactures or assembles or
imports or distributes new motor vehicles which are sold in the
State of North Carolina.
"Motor vehicle" includes a motor vehicle as defined in
G.S. 20-4.01 which is sold or leased in this State, but does not
include "house trailer" as defined in G.S. 20-4.01 or
any motor vehicle with a gross vehicle weight of 10,000 pounds
"New motor vehicle" means a motor vehicle for which a
certificate of origin, as required by G.S. 20-52.1 or a similar
requirement in another state, has never been supplied to a
consumer, or which a manufacturer, its agent, or its authorized
dealer states in writing is being sold as a new motor vehicle.
mileage warranty begins to accrue.
Express warranties for a new motor vehicle shall remain in
effect at least one year or 12,000 miles. If a new motor vehicle
does not conform to all applicable express warranties for a
period of one year, or the term of the express warranties,
whichever is greater, following the date of original delivery of
the motor vehicle to the consumer, and the consumer reports the
nonconformity to the manufacturer, its agent, or its authorized
dealer during such period, the manufacturer shall make, or
arrange to have made, repairs necessary to conform the vehicle
to the express warranties, whether or not these repairs are made
after the expiration of the applicable warranty period.
Any express warranty for a new motor vehicle expressed in terms
of a certain number of miles shall begin to accrue from the
mileage on the odometer at the date of original delivery to the
Replacement or refund; disclosure requirement.
When the consumer is the purchaser or a person entitled by the
terms of the express warranty to enforce the obligations of the
warranty, if the manufacturer is unable, after a reasonable
number of attempts, to conform the motor vehicle to any express
warranty by repairing or correcting, or arranging for the repair
or correction of, any defect or condition or series of defects
or conditions which substantially impair the value of the motor
vehicle to the consumer, and which occurred no later than 24
months or 24,000 miles following original delivery of the
vehicle, the manufacturer shall, at the option of the consumer,
replace the vehicle with a comparable new motor vehicle or
accept return of the vehicle from the consumer and refund to the
consumer the following:
The full contract price including, but not limited to, charges
for undercoating, dealer preparation and transportation, and
installed options, plus the non-refundable portions of extended
warranties and service contracts;
All collateral charges, including but not limited to, sales tax,
license and registration fees, and similar government charges;
All finance charges incurred by the consumer after he first
reports the nonconformity to the manufacturer, its agent, or its
authorized dealer; and
Any incidental damages and monetary consequential damages.
When consumer is a lessee, if the manufacturer is unable, after
a reasonable number of attempts, to conform the motor vehicle to
any express warranty by repairing or correcting, or arranging
for the repair or correction of, any defect or condition or
series of defects or conditions which substantially impair the
value of the motor vehicle to the consumer, and which occurred
no later than 24 months or 24,000 miles following original
delivery of the vehicle, the manufacturer shall, at the option
of the consumer, replace the vehicle with a comparable new motor
vehicle or accept return of the vehicle from the consumer and
refund the following:
To the consumer:
All sums previously paid by the consumer under the terms of the
All sums previously paid by the consumer in connection with
entering into the lease agreement, including, but not limited
to, any capitalized cost reduction, sales tax, license and
registration fees, and similar government charges; and
Any incidental and monetary consequential damages.
To the lessor, a full refund of the lease price, plus an
additional amount equal to five percent (5%) of the lease price,
less eighty-five percent (85%) of the amount actually paid by
the consumer to the lessor pursuant to the lease. The lease
price means the actual purchase cost of the vehicle to the
the case of a refund, the leased vehicle shall be returned to
the manufacturer and the consumer's written lease shall be
terminated by the lessor without any penalty to the consumer.
The lessor shall transfer title of the motor vehicle to the
manufacturer as necessary to effectuate the consumer's rights
pursuant to this Article, whether the consumer chooses vehicle
replacement or refund.
Refunds shall be made to the consumer, lessor and any lien
holders as their interests may appear. The refund to the
consumer shall be reduced by a reasonable allowance for the
consumer's use of the vehicle. A reasonable allowance for use is
that amount directly attributable to use by the consumer prior
to his first report of the nonconformity to the manufacturer,
its agent, or its authorized dealer, and during any subsequent
period when the vehicle is not out of service because of repair.
"Reasonable allowance" is presumed to be the cash
price or the lease price, as the case may be, of the vehicle
multiplied by a fraction having as its denominator 100,000 miles
and its numerator the number of miles attributed to the
If a manufacturer, its agent, or its authorized dealer resells a
motor vehicle that was returned pursuant to this Article or any
other State's applicable law, regardless of whether there was
any judicial determination that the motor vehicle had any defect
or that it failed to conform to all express warranties, the
manufacturer, its agent, or its authorized dealer shall disclose
to the subsequent purchaser prior to the sale:
That the motor vehicle was returned pursuant to this Article or
pursuant to the applicable law of any other State; and
The defect or condition or series of defects or conditions which
substantially impaired the value of the motor vehicle to the
subsequent purchaser who purchases the motor vehicle for resale
with notice of the return, shall make the required disclosures
to any person to whom he resells the motor vehicle.
is an affirmative defense to any claim under this Article that
an alleged nonconformity or series of nonconformities are the
result of abuse, neglect, odometer tampering by the consumer or
unauthorized modifications or alterations of a motor vehicle.
It is presumed that a reasonable number of attempts have been
undertaken to conform a motor vehicle to the applicable express
The same nonconformity has been presented for repair to the
manufacturer, its agent, or its authorized dealer four or more
times but the same nonconformity continues to exist; or
The vehicle was out of service to the consumer during or while
awaiting repair of the nonconformity or a series of
nonconformities for a cumulative total of 20 or more business
days during any 12-month period of the warranty, provided that
the consumer has notified the manufacturer directly in writing
of the existence of the nonconformity or series of
nonconformities and allowed the manufacturer a reasonable
period, not to exceed 15 calendar days, in which to correct the
nonconformity or series of nonconformities. The manufacturer
must clearly and conspicuously disclose to the consumer in the
warranty or owners manual that written notification of a
nonconformity is required before a consumer may be eligible for
a refund or replacement of the vehicle and the manufacturer
shall include in the warranty or owners manual the name and
address where the written notification may be sent. Provided,
further, that notice to the manufacturer shall not be required
if the manufacturer fails to make the disclosures provided
The consumer may prove that a defect or condition substantially
impairs the value of the motor vehicle to the consumer in a
manner other than that set forth in subsection (a) of this
The term of an express warranty, the one-year period, and the
20-day period shall be extended by any period of time during
which repair services are not available to the consumer because
of war, strike, or natural disaster.
Civil action by the Attorney General.
in his opinion, the interests of the public require it, it shall
be the duty of the Attorney General upon his ascertaining that
any of the provisions of this Article have been violated by the
manufacturer to bring a civil action in the name of the State,
or any officer or department thereof as provided by law, or in
the name of the State on relation of the Attorney General.
Civil action by the consumer.
consumer injured by reason of any violation of the provisions of
this Article may bring a civil action against the manufacturer;
provided, however, the consumer has given the manufacturer
written notice of his intent to bring an action against the
manufacturer at least 10 days prior to filing such suit. Nothing
in this section shall prevent a manufacturer from requiring a
consumer to utilize an informal settlement procedure prior to
litigation if that procedure substantially complies in design
and operation with the Magnuson-Moss Warranty Act, 15 USC 2301
et seq., and regulations promulgated there under, and that
requirement is written clearly and conspicuously, in the written
warranty and any warranty instructions provided to the consumer.
any action brought under this Article, the court may grant as
A permanent or temporary injunction or other equitable relief as
the court deems just;
Monetary damages to the injured consumer in the amount fixed by
the verdict. Such damages shall be trebled upon a finding that
the manufacturer unreasonably refused to comply with G.S.
20-351.2 or G.S. 20-351.3. The jury may consider as damages all
items listed for refund under G.S. 20-351.3;
A reasonable attorney's fee for the attorney of the prevailing
party, payable by the losing party, upon a finding by the court
The manufacturer unreasonably failed or refused to fully resolve
the matter which constitutes the basis of such action; or
The party instituting the action knew, or should have known, the
action was frivolous and malicious.
authorized dealer shall be held liable by the manufacturer for
any refunds or vehicle replacements in the absence of evidence
indicating that dealership repairs have been carried out in a
manner substantially inconsistent with the manufacturers'
instructions. This Article does not create any cause of action
by a consumer against an authorized dealer.
Preservation of other remedies.
Article does not limit the rights or remedies which are
otherwise available to a consumer under any other law.