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New Hampshire Lemon Law
New cars and other new motor vehicles are covered by manufacturers' warranties. These warranties must follow the rules set by the federal Magnuson-Moss Warranty Act and the Uniform Commercial Code (UCC) (refer to the section on WARRANTIES for more information). The manufacturer's warranty is provided at no extra cost to the buyer. Sometimes, despite the best efforts of a dealer's service department, a defect cannot be satisfactorily fixed. These unfixable vehicles are popularly referred to as "lemons." New HampshiresLemon Law provides a method for the "lemon" owner to satisfactorily resolve the problem.
The Lemon Law
New Hampshire Lemon Law (RSA 357-D) applies only to new vehicles purchased from New Hampshire dealerships. New Hampshire consumers who find themselves with a defective new vehicle that the dealer has been unable to repair may turn to the Motor Vehicle Arbitration Board (MVAB). The MVAB will decide whether the motor vehicle is so impaired by its defect that the manufacturer should take the vehicle back. The MVAB, a five-person panel of consumers, auto dealers and certified mechanics, has been in existence since January 1, 1992. The MVAB reviews consumer complaints about defective vehicles and holds evidentiary hearings which typically include inspecting and/or test driving the vehicle. If a majority of the panel members find that the vehicle is substantially impaired due to defects covered by the manufacturer's warranty, the board will order the manufacturer to either buy the "lemon" back from the consumer or, at the consumer's option, trade the "lemon" for another vehicle of equal value. The MVAB can also award "damages" which can include license and registration fees as well as the finance charges (interest) for the loan to purchase the defective vehicle. Either the consumer or manufacturer can appeal a MVAB decision to the Superior Court.
A vehicle is considered to be a "lemon" if:
- the new vehicle is substantially impaired in use, value, or safety due to a defect covered by the manufacturer's warranty that the manufacturer or its authorized representative has not fixed.
In order to qualify for arbitration, a consumer must ordinarily show either:
- the manufacturer or its representative has made at least three unsuccessful attempts to fix the motor vehicle; or
- the motor vehicle has been out of service for 30 or more business days (cumulative) due to defects or nonconformities covered by the warranty.
New Hampshire Lemon Law requires that manufacturers of new motor vehicles provide purchasers with a notice of their rights to arbitration under New Hampshire law, including a "demand for arbitration" form. Furthermore, New Hampshire dealerships are required to post a notice of consumer rights under this statute in all new car showrooms.
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