Lemon Law Basics: Maryland Lemon Laws
Understanding Maryland lemon law
Who is covered under Maryland lemon law?
Maryland lemon law applies to all new or used vehicles that are registered
as passenger vehicles (Class A), motorcycles (Class D), multipurpose vehicles
(Class M) or trucks with a rated capacity of less than three-quarters
of a ton (Class E). Motor homes and fleets of more than five vehicles
are not covered by Maryland lemon law.
What defects are covered by Maryland lemon law?
Maryland lemon law covers serious defects that cause a vehicle to fail
to conform to its warranty. This nonconformity must occur within the first
15,000 miles of use or the first 15 months of purchase, which is known
as the manufacturer's warranty period. In order to be considered a serious
nonconformity, the defect must hamper the use, value, or safety of the
vehicle. Purely cosmetic defects are not covered, nor are nonconformities
that were caused by abuse, neglect, or unauthorized modification.
What is the process for relief under Maryland lemon law?
According to Maryland lemon law, the consumer must notify the manufacturer
in writing of any nonconformity. The notice must be sent by certified
mail with a return receipt. After receiving notification, the manufacturer
must be given a reasonable chance to repair the nonconformity. If these
repairs are not successfully completed within 30 days of receipt of the
notification, the manufacturer must repurchase or replace the vehicle.
A reasonable chance to repair the vehicle is considered to be four attempts
to repair the same nonconformity, 30 cumulative days that the vehicle
is out of commission for repairs, or one unsuccessful attempt to repair
a life-threatening nonconformity involving the brakes or steering mechanisms.
Filing a claim under Maryland lemon law
The latest that a consumer may file a claim under Maryland lemon law is
three years after the purchase of a vehicle, or one year after the expiration
of a lease. If the manufacturer has a settlement board in place to handle
lemon law claims, the consumer has the option of using it before going
before a judicial board, though it is not required.
Settlements allowed under Maryland lemon law
If the manufacturer repurchases an owned vehicle, they must pay the consumer
an amount that includes the full purchase price and government charges
like license and registration fees. A reasonable amount for the consumer's
use of the vehicle, which may not exceed 15% of the purchase price, and
an amount for any damage done to the vehicle is subtracted from this total.
Under Maryland lemon law, if a leased vehicle is repurchased by the manufacturer,
both the lessee and the lessor must be reimbursed for any money spent
on the lemon vehicle. For the lessee, this includes lease payments made
to the lessor, any amount spent to attempt to repair the nonconformity,
and any government charges. A reasonable amount for usage and damage,
as indicated above, may be subtracted from this amount. The lessee cannot
be required to pay any fees for early termination of the lease.
Maryland lemon law also states that the lessor should receive from the
manufacturer all remaining payments due on the vehicle as part of the
repurchase settlement.
If an owned vehicle is replaced, Maryland lemon law states that the new
vehicle must be satisfactory to the consumer. If a leased vehicle is replaced,
the lessee must have the same credit terms as for the original vehicle.
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