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STANDARDS OF THE IDAHO LEMON LAW

The following is an brief explanation of most relevant provisions of the Idaho lemon law. The complete text of the lemon law can be found at Idaho Code section 48-901 et seq.

VEHICLES COVERED BY THE IDAHO LEMON LAW

The Idaho lemon law covers motor vehicles that are sold or licensed in Idaho. The lemon law appears to cover used vehicles, but does not cover motorcycles, farm tractors, trailers, or motor vehicles with a gross laden weight over 12, 000 pounds.

CONSUMERS COVERED BY THE IDAHO LEMON LAW

The Idaho lemon law covers the following —consumers“:

  1. The purchaser or lessee, other than for purposes of resale or sublease, of a new motor vehicle used for personal business use or personal, family, or household purposes; and

  2. A person to whom the new motor vehicle is transferred for the same purposes during the duration of an express warranty applicable to the motor vehicle.

PROBLEMS COVERED BY THE IDAHO LEMON LAW

The Idaho lemon law covers any defect or condition that impairs the use or market value of the motor vehicle to the consumer. This is referred to as a nonconformity.

The lemon law provides manufacturers with an affirmative defense if it can be shown that the nonconformity is the result of abuse, neglect, or unauthorized modifications or alterations of the motor vehicle by anyone other than the manufacturer, its agent or authorized dealer.

MANUFACTURER«S DUTY TO REPAIR

If a motor vehicle does not conform to all applicable express warranties, and the consumer reports the nonconformity to the manufacturer, its agent or authorized dealer during the earlier of:

  1. the term of the applicable express warranties;

  2. the period of two years following the date of the motor vehicle‘s original delivery to a consumer; or

  3. the period ending on the date on which the mileage on the motor vehicle reaches 24,000 miles;

then the manufacturer, its agent or authorized dealer must make the necessary repairs to conform the motor vehicle to the warranties. The necessary repairs must be made even after the expiration of the manufacturer‘s warranty term of the two-year period.

MANUFACTURER«S DUTY TO REPURCHASE OR REPLACE A VEHICLE

If the manufacturer, its agents or authorized dealers are unable to conform an owned motor vehicle to any applicable express warranty by repairing or correcting any nonconformity after a reasonable number of repair attempts within three years following the date of the vehicle‘s original delivery to a consumer, then the manufacturer must either replace the motor vehicle with a comparable motor vehicle or repurchase the motor vehicle. The consumer has the option of requiring the manufacturer to provide a refund rather than a replacement motor vehicle.

If the manufacturer, its agents or authorized dealers are unable to conform a leased motor vehicle to any applicable express warranty by repairing or correcting any nonconformity after a reasonable number of repair attempts within three years following the date of the vehicle‘s original delivery to a consumer, then the manufacturer must repurchase the motor vehicle. The Idaho lemon law does not provide for the replacement of a leased vehicle.

REASONABLE NUMBER OF REPAIR ATTEMPTS

The manufacturer must repurchase or replace the motor vehicle if a reasonable number of repair attempts to correct a nonconformity occur within three years following the date of the motor vehicle‘s original delivery to a consumer.

The Idaho lemon law establishes a presumption that a reasonable number of attempts has been undertaken to conform a motor vehicle to the applicable express warranties if, during the term of the express warranty, the period of two years following the date of the motor vehicle‘s original delivery to a consumer, or the period ending with the date on which the mileage on the motor vehicle reaches 24,000 miles, whichever is earlier, any of the following occurs:

  1. The same nonconformity has been subject to repair four or more times by the manufacturer, its agents or authorized dealers; the manufacturer had at least one opportunity to attempt to repair the vehicle; and the nonconformity continues to exist;

  2. The motor vehicle is out of service by reason of repair for a cumulative total of 30 or more business days; or

  3. A nonconformity results in a complete failure of the braking or steering system and is likely to cause death or serious bodily injury if the vehicle is driven; the nonconformity has been subject to repair at least once by the manufacturer, its agents or authorized dealers; the manufacturer had at least one opportunity to attempt to repair the vehicle; and the nonconformity continues to exist.

The presumption‘s two-year or 24,000 mile period is extended if the consumer first reported the nonconformity to the manufacturer, its agent or authorized dealer during the term of the applicable express warranty, and if the reasonable number of repair attempts occur within three years following the date of the motor vehicle‘s original delivery to a consumer.

The term of an applicable express warranty, the two year period, and the 30 day period are extended by any period of time during which repair services are not available to the consumer because of war, invasion, strike, or fire, flood, or other natural disaster.

NOTICE AND OPPORTUNITY TO REPAIR

The presumption that a reasonable number of repair attempts has occurred does not apply against a manufacturer unless the manufacturer, its agent or authorized dealer has received prior written notification from or on behalf of the consumer and has had an opportunity to cure the alleged defect. If the manufacturer‘s agent or authorized dealer receives the notification, the agent or dealer must forward it to the manufacturer by certified mail, return receipt requested. If the manufacturer is not notified by either the consumer or the manufacturer‘s agent or authorized dealer, then the manufacturer has at least one opportunity to cure the alleged defect.

DISPUTE RESOLUTION

Any manufacturer doing business in Idaho, entering into franchise agreements for the sale of its vehicles in Idaho, or offering express warranties on its vehicles sold or distributed in Idaho, must operate or participate in an informal dispute settlement mechanism. The informal mechanism must be located in Idaho and must comply with 16 C.F.R. Part 703 and the lemon law.

The lemon law provisions requiring repurchase or replacement of a nonconforming motor vehicle do not apply to a consumer who has not first used the informal mechanism before commencing a civil action, unless the manufacturer allows a consumer to forego the mechanism.

TIME PERIOD FOR FILING CLAIMS

An action must be commenced within three years of the date of the vehicle‘s original delivery to a consumer. A consumer who applies to an informal dispute settlement mechanism may commence an appeal of the mechanism‘s decision with three months after the date of the mechanism‘s final decision.

This information is not intended as legal advice. Please direct specific questions to your legal counsel.

 

REMEDIES UNDER THE IDAHO LEMON LAW REPURCHASE OF OWNED VEHICLES

The Idaho lemon law sets out the following amounts that a manufacturer must pay when it repurchases an owned motor vehicle under the lemon law:

1. The amount the consumer paid for the motor vehicle, including the value of any trade-in, not to exceed 105% of the Manufacturer‘s Suggested Retail Price of the motor vehicle (the

M.S.R.P. includes all manufacturer-installed options and the cost of any options or other modifications arranged, installed, or made by the manufacturer‘s agent or authorized dealer within 30 days after the date of original delivery); and

  1. All other charges, including but not limited to sales or excise tax (see below), license fees, registration fees, reimbursement for towing, and rental vehicle expenses incurred by the consumer as a result of the vehicle being out of service for warranty repair;

  2. Less a reasonable allowance for the consumer‘s use of the motor vehicle.

The sales or excise tax refunded by the manufacturer to the consumer is calculated using the following formula:

Tax paid* œ ( Tax paid* x Reasonable allowance for use) Vehicle‘s purchase price

* Tax paid by the consumer when the vehicle was purchased.

Refunds must be made to the consumer and lienholder, if any, as their interests appear on the records of the Division of Motor Vehicles of the Idaho Transportation Department.

The reasonable allowance for use may not exceed the amount determined by the following formula:

Number of miles attributable to the consumer up to the date of the arbitration hearing œœœœœœœœœœœœœœœœœœœœœœœx purchase price 120,000

REPURCHASE OF LEASED VEHICLES

The Idaho lemon law sets out the following amounts that a manufacturer must pay when it repurchases a leased motor vehicle under the lemon law:

To the lessor œ

  1. The early termination charges; and

  2. The residual value of the vehicle as specified in the lease agreement.

To the lessee œ

  1. The pro rata amount of any down payment paid by the lessee on the written lease (see below); and

  2. All other charges actually paid by the lessee, including but not limited to lease payments, sales or excise tax, license fees, registration fees, reimbursement for towing, and rental vehicle expenses incurred by the consumer as a result of the vehicle being out of service for warranty repair.

The pro rata amount of any down payment refunded by the manufacturer is calculated using the following formula:

down payment x Number of months remaining after the date of arbitration number of months of the lease agreement

The Idaho lemon law provides that the repurchase amount be reduced by a reasonable allowance for the consumer‘s use of the motor vehicle. The reasonable allowance for use is defined as the lease payments made by the lessee until the time of the repurchase award.

The pro rata down payment refund plus the amount refunded to the lessor may not exceed 105% of the motor vehicle‘s original Manufacturer‘s Suggested Retail Price.

REPLACEMENT OF OWNED VEHICLES

If a manufacturer replaces an owned vehicle under the Idaho lemon law, the consumer must receive a replacement vehicle that is comparable to the replaced motor vehicle. The reasonable allowance for use does not apply to a replacement.

This information is not intended as legal advice. Please direct specific questions to your legal counsel.

 

IDAHO LEMON LAW SUMMARY

EXECUTIVE SUMMARY
TIME PERIOD FOR FILING CLAIMS Three years following original delivery. To file in court, three
months after arbitration decision.
ELIGIBLE VEHICLE Motor vehicles sold or licensed in Idaho. Excludes motorcycles, farm tractors, trailers, and vehicles with a gross laden weight over 12,000 pounds.
Appears to cover used vehicles.
ELIGIBLE CONSUMER (1) The purchaser or lessee, other than for purposes of resale or sublease, of a new motor vehicle used for personal business use or personal, family, or household purposes; or (2) a person to whom the new motor vehicle is transferred for the same purposes during the duration of an express warranty applicable to the motor vehicle.
TIME PERIOD FOR FIRST Earlier of warranty term, two years following original delivery, or
OCCURRENCE OR NOTICE 24,000 miles.
TIME PERIOD FOR REASONABLE Three years after original delivery.
NUMBER OF ATTEMPTS TO REPAIR
PRESUMPTION OR DEFINITION Presumption: during earlier of warranty term, two years following original delivery, or 24,000 miles, (1) four or more attempts, (2) one attempt to a serious nonconformity, or (3) out of service for 30 business days.
NOTICE TO MANUFACTURER For presumption to apply, prior written notification.
FINAL OPPORTUNITY TO REPAIR For presumption to apply, an opportunity to cure.
REASONABLE ALLOWANCE Refund only: For purchased vehicle, may not exceed miles by consumer at arbitration divided by 120,000, multiplied by purchase
price. For leased vehicle, the lease payments made by the
consumer until the time of the award.
DISPUTE RESOLUTION Manufacturer must offer program that complies with 16 C.F.R. Part
703 and lemon law. Before obtaining lemon law remedies,
consumer must resort to manufacturer‘s program.
DISCLOSURE TO SUBSEQUENT Yes.
PURCHASER
TITLE BRANDING No.

 

IDAHO LEMON LAW SUMMARY

1. Citation Idaho Statutes §§ 48-901 through 48-913.
2. Motor vehicle covered Motor vehicles that are sold or licensed in Idaho. Excludes motorcycles, farm tractors, trailers, and vehicles with a gross laden weight over 12,000 pounds.
3. Consumer covered (1) The purchaser or lessee, other than for purposes of resale or sublease, of a new motor vehicle used for personal business use or personal, family, or household purposes; or (2) A person to whom the new motor vehicle is transferred for the same purposes during the duration of an express warranty applicable to the motor vehicle.
4. Nonconformity defined Not defined. Any defect or condition that impairs the use or market value of the motor vehicle to the consumer is referred to as a nonconformity.
5. Warranty defined —Manufacturer‘s express warranty“ and —warranty“ are defined as the written warranty of the manufacturer of a new motor vehicle of its condition and fitness for use, including any terms or conditions precedent to the enforcement of obligations under that warranty.
6. Lemon law rights period Not defined.
7. Manufacturer‘s obligation to repair If the consumer reports the nonconformity to the manufacturer, agent or authorized dealer during the earlier of (1) the term of the applicable express warranties; (2) the period of two years following the date of the motor vehicle‘s original delivery to a consumer; or (3) the period ending on the date on which the mileage on the motor vehicle reaches 24,000 miles, then the manufacturer, agent or authorized dealer must make the necessary repairs to conform the motor vehicle to the warranties. The necessary repairs must be made even after the expiration of the manufacturer‘s warranty term of the two-year period.
8. Manufacturer‘s obligation to repurchase or replace If the manufacturer, its agents or authorized dealers are unable to conform a purchased motor vehicle to any applicable express warranty by repairing or correcting any nonconformity after a reasonable number of repair attempts within three years following the date of the vehicle‘s original delivery to a consumer, then the manufacturer must either replace the motor vehicle with a comparable motor vehicle or repurchase the motor vehicle. The consumer has the option of requiring the manufacturer to provide a refund rather than a replacement motor vehicle. If the manufacturer, its agents or authorized dealers are unable to conform a leased motor vehicle to any applicable express warranty by repairing or correcting any nonconformity after a reasonable number of repair attempts within three years following the date of the vehicle‘s original delivery to a consumer, then the manufacturer must repurchase the motor vehicle. The Idaho lemon law does not provide for the replacement of a leased vehicle.
9. Criteria for reasonable number of repair attempts Presumed if, during the term of the express warranty, the period of two years following the date of the motor vehicle‘s original delivery to a consumer, or the period ending with the date on which the mileage on the motor vehicle reaches 24,000 miles, whichever is earlier, any of the following occurs: (1) The same nonconformity has been subject to repair four or more times by the manufacturer, its agents or authorized dealers; the manufacturer had at least one opportunity to attempt to repair the vehicle; and the nonconformity continues to exist; (2) The motor vehicle is out of service by reason of repair for a cumulative total of 30 or more business days; or (3) A nonconformity results in a complete failure of the braking or steering system and is likely to cause death or serious bodily injury if the vehicle is driven; the nonconformity has been subject to repair at least once by the manufacturer, its agents or authorized dealers; the manufacturer had at least one opportunity to attempt to repair the vehicle; and the nonconformity continues to exist. The presumption‘s two-year or 24,000 mile period is extended if the consumer first reported the nonconformity to the manufacturer, its agent or authorized dealer during the term of the applicable express warranty, and if the reasonable number of repair attempts occur within three years following the date of the motor vehicle‘s original delivery to a consumer.
 
10. Notice of nonconformity and final opportunity to repair The presumption that a reasonable number of repair attempts has occurred does not apply against a manufacturer unless the manufacturer, its agent or authorized dealer has received prior written notification from or on behalf of the consumer and has had an opportunity to cure the alleged defect. If the manufacturer‘s agent or authorized dealer receives the notification, the agent or dealer must forward it to the manufacturer by certified mail, return receipt requested. If the manufacturer is not notified by either the consumer or the manufacturer‘s agent or authorized dealer, then the manufacturer has at least one opportunity to cure the alleged defect.
11. Affirmative defenses It is an affirmative defense that: (1) An alleged nonconformity does not impair the use or market value, or (2) The nonconformity is the result of abuse, neglect, or unauthorized modifications or alterations of a motor vehicle by anyone other than the manufacturer, its agent or authorized dealer.
12. Refund Purchased vehicle Refund consists of: (1) The amount the consumer paid for the motor vehicle, including the value of any trade-in, not to exceed 105% of the Manufacturer‘s Suggested Retail Price of the motor vehicle (the M.S.R.P. includes all manufacturer-installed options and the cost of any options or other modifications arranged, installed, or made by the manufacturer‘s agent or authorized dealer within 30 days after the date of original delivery); and (2) All other charges, including but not limited to sales or excise tax (see below), license fees, registration fees, reimbursement for towing, and rental vehicle expenses incurred by the consumer as a result of the vehicle being out of service for warranty repair; (3) Less a reasonable allowance for the consumer‘s use of the motor vehicle. The amount of sales tax to be refunded to the consumer is calculated as follows: Tax paid by consumer – ⎡Tax paid by consumer x Reasonable allowance for use At time of purchase ⎣at time of purchase Vehicle’s purchase price  Leased vehicle To the lessor œ (1) The early termination charges; and (2) The residual value of the vehicle as specified in the lease agreement. To the lessee œ (1) The pro rata amount of any down payment paid by the lessee on the written lease (see below); and (2) All other charges actually paid by the lessee, including but not limited to lease payments, sales or excise tax, license fees, registration fees, reimbursement for towing, and rental vehicle expenses incurred by the consumer as a result of the vehicle being out of service for warranty repair; (3) Less a reasonable allowance for the consumer‘s use of the motor vehicle. The pro rata amount of any down payment refunded by the manufacturer is calculated using the following formula: Down payment X Number of months remaining after the date of arbitration Number of months of the lease agreement
13. Replacement Replacement is a comparable motor vehicle.
14. Reasonable allowance Applies to a refund but not to a replacement. The reasonable allowance for the consumer‘s use of a purchased motor vehicle may not exceed: Number of miles attributable To the consumer up to the vehicle’s Date of the arbitration hearing X purchase 120,000 price The reasonable allowance for the consumer‘s use of a leased motor vehicle is the lease payments made by the consumer until the time of the award of a refund.
15. Refund of sales tax Manufacturer refunds sales tax to the consumer. No provision for the manufacturer to obtain a refund of sales tax from the state, although the lemon law does state that if the amount of sales or excise tax refunded to the consumer is not separately listed on an itemized statement of refund amounts, or if the manufacturer does not apply for a refund of the tax within 1 year of the return of the motor vehicle, the state tax commission may refund the tax directly to the consumer and lienholder, if any, as their interests appear on DMV records.
 
16. Enhanced damages If a court finds that a party has removed to the court a decision of an informal dispute settlement mechanism in bad faith, by asserting a claim or defense that is frivolous and costly to the other party, or by asserting an unfounded position solely to delay recovery by the other party, then the court must award to the prevailing party 3 times the actual damages sustained, along with costs and attorney‘s fees. Violations of the lemon law are deemed to be violations of the Idaho consumer protection act.
17. Attorney‘s fees The court may award to the consumer costs and disbursements, including reasonable attorney‘s fees incurred in the civil action but not in the course of informal dispute resolution.
18. Statute of limitations An action must be commenced within three years of the date of the motor vehicle‘s original delivery to a consumer. A consumer who applies to an informal dispute settlement mechanism may commence an appeal of the mechanism‘s decision with three months after the date of the mechanism‘s final decision.
19. Manufacturersponsored arbitration Any manufacturer doing business in Idaho, entering into franchise agreements for the sale of its vehicles in Idaho, or offering express warranties on its vehicles sold or distributed in Idaho, must operate or participate in an informal dispute settlement mechanism. The informal mechanism must be located in Idaho and must comply with 16 C.F.R. Part 703 and the lemon law. The lemon law provisions requiring repurchase or replacement of a nonconforming motor vehicle do not apply to a consumer who has not first used the informal mechanism before commencing a civil action, unless the manufacturer allows a consumer to forego the mechanism.
20. State-sponsored arbitration Not specified.
21. Dealer liability Nothing in the lemon law imposes liability on a dealer or creates an additional cause of action by a consumer against a dealer, except for written express warranties made by the dealer apart from the manufacturer‘s warranties. The manufacturer must not charge back or require reimbursement by the dealer for any costs, including but not limited to refunds or replacements, incurred by the manufacturer arising out of the lemon law, unless there is evidence that the related repairs had not been carried out by the dealer in a timely manner or in a manner substantially consistent with the manufacturer‘s published instructions.
22. Restrictions on resale of returned vehicles A motor vehicle that was returned under Idaho‘s or another state‘s lemon law, whether as the result of a legal action or an informal dispute settlement proceeding, must not be resold or re-leased in Idaho unless: (1) The manufacturer provides the same express warranty it provided to the original purchaser, though the term of the warranty need only be for 12,000 miles or 12 months after resale, whichever is earlier; and (2) The manufacturer provides the consumer with a written statement on a piece of paper, in allcapital 10-point type, in substantially the following form: —IMPORTANT THIS VEHICLE WAS RETURNED TO THE MANUFACTURER BECAUSE IT DID NOT CONFORM TO THE MANUFACTURER’S EXPRESS WARRANTY AND THE NONCONFORMITY WAS NOT CURED WITHIN A REASONABLE TIME AS PROVIDED BY IDAHO LAW.“ Lemon law provisions apply to the resold or re-leased motor vehicle for the full term of the required warranty. The manufacturer complies with these requirements if it offers a similar program that provides, at a minimum, substantially the same protections for subsequent consumers. If a motor vehicle that was returned under Idaho‘s or another state‘s lemon law because of a nonconformity resulting in a complete failure of the braking or steering system likely to cause death or serious bodily injury if the vehicle was driven, and the failure has not been repaired by the manufacturer, its agent or authorized dealer, then the motor vehicle may not be resold in Idaho.
 
23. Point of sale notice of lemon law rights The manufacturer must provide to its agent or authorized dealer, and at the time of purchase or lease the agent or dealer must provide to the consumer, a written statement in the new motor vehicle warranty guide, in all capital 10-point type, in substantially the following form: IMPORTANT IF THIS VEHICLE IS DEFECTIVE, YOU MAY BE ENTITLED UNDER THE STATE‘S LEMON LAW TO REPLACEMENT OF IT OR A REFUND OF ITS PURCHASE PRICE OR YOUR LEASE PAYMENTS. HOWEVER, TO BE ENTITLED TO REFUND OR REPLACEMENT, YOU MUST FIRST NOTIFY THE MANUFACTURER, ITS AGENT, OR ITS AUTHORIZED DEALER OF THE PROBLEM IN WRITING AND GIVE THEM AN OPPORTUNITY TO REPAIR THE VEHICLE. YOU ALSO HAVE A RIGHT TO SUBMIT YOUR CASE TO THE CONSUMER ARBITRATION PROGRAM WHICH THE MANUFACTURER MUST OFFER IN THIS STATE.
24. Limitation on waiver Not specified.





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