GEORGIA LEMON LAW:
Georgia Lemon Law
GA Code 10-1-780
10-1-780. Short Title
This article shall be known and may be cited as the "Motor Vehicle Warranty
Rights Act."
(Code 1981, § 10-1-780, enacted by Ga. L. 1990, p. 1013, § 1.)
10-1-781. Legislative intent.
The General Assembly recognizes that a new motor vehicle is a major consumer
purchase and that a defective motor vehicle is likely to create hardship for, or
may cause injury to, the consumer.It is the intent of the General Assembly to
ensure that the consumer is made aware of his or her rights under this
article.In enacting these comprehensive measures, it is the intent of the
General Assembly to create the proper blend of private and public remedies
necessary to enforce this article.
(Code 1981, § 10-1-781, enacted by Ga. L. 1990, p. 1013, § 1.)
10-1-782. Definitions.
Unless the context clearly requires otherwise, the definitions in this Code
section apply throughout this article. As used in this article, the term:
(1) "Administrator" means the administrator appointed pursuant to Code Section
10-1-395.
(2) "Collateral charges" means those additional charges to a consumer or lessor
wholly incurred as a result of the acquisition purchase of the motor vehicle.
For the purposes of this article, collateral charges include but are not limited
to manufacturer installed or dealer installed items or service charges, earned
finance charges incurred by a consumer in the case of a purchase, and by the
lessor in the case of a lease, sales tax, and title charges.
(3) "Consumer" means any person who has entered into an agreement or contract
for the transfer, lease, or purchase of a new motor vehicle primarily for
personal, family, or household purposes, regardless of how the documents
characterize the transaction. The term shall also mean and include any sole
proprietorship, partnership, or corporation which is a commercial owner or
lessee of no more than three new motor vehicles and which has ten or fewer
employees and a net income after taxes of $100,000.00 per annum or less for
federal income tax purposes. For the limited purpose of enforcing the rights
granted under this article, the term "consumer" will also include any person or
entity regularly engaged in the business of leasing new motor vehicles to
consumers.
(4) "Court" means the superior court in the county where the consumer resides,
except if the consumer does not reside in this state, then the superior court in
the county where an arbitration hearing or determination was conducted or made
pursuant to this article.
(5) "Distributor" means a person or entity holding a distribution agreement with
a manufacturer for the distribution of new motor vehicles to new motor vehicle
dealers or who is licensed or otherwise authorized to utilize trademarks or
service marks associated with one or more makes of motor vehicles in connection
with such distribution, who is not responsible to the manufacturer for honoring
the manufacturer's express warranty, and who does not issue an express warranty
to consumers.
(6) "Express warranty" means a warranty which is given by the manufacturer in
writing.
(7) "Incidental costs" means any reasonable expenses incurred by the consumer in
connection with the repair of the new motor vehicle, including but not limited
to payments to dealers for attempted repairs of nonconformities, towing charges,
and the costs of obtaining alternative transportation.
(8) "Informal dispute resolution settlement mechanism" means any procedure
established, employed, utilized, or run by a manufacturer for the purpose of
resolving disputes with consumers regarding any warranty.
(9) "Lemon law rights period" means the period ending one year after the date of
the original delivery of a new motor vehicle to a consumer or the first 12,000
miles of operation after delivery of a new motor vehicle to a consumer,
whichever occurs first.
(10) "Manufacturer" means any person engaged in the business of constructing or
assembling new motor vehicles or engaged in the business of importing new motor
vehicles into the United States for the purpose of selling or distributing new
motor vehicles to new motor vehicle dealers.
(11) "New motor vehicle" means any self-propelled vehicle, primarily designed
for the transportation of persons or property over the public highways, that was
leased or purchased in this state or registered by the original consumer in this
state and on which the original motor vehicle title was issued to the lessor or
purchaser without having been previously issued to any person other than the
selling dealer. If the motor vehicle is a motor home, this article shall apply
to the self-propelled vehicle and chassis, but does not include those portions
of the vehicle designated, used, or maintained primarily as a mobile dwelling,
office, or commercial space. The term "new motor vehicle" does not include
motorcycles or trucks with 10,000 pounds or more gross vehicle weight rating.
The term "new motor vehicle" shall not include any vehicle on which the title
and other transfer documents show a used, rather than new, vehicle. The term
"new motor vehicle" includes a demonstrator or lease-purchase, as long as a
manufacturer's warranty was issued as a condition of sale, unless specifically
excluded under this definition.
(12) "New motor vehicle dealer" means a person who holds a dealer agreement with
a manufacturer for the sale of new motor vehicles, who is engaged in the
business of purchasing, selling, servicing, exchanging, leasing, distributing,
or dealing in new motor vehicles, or who is licensed or otherwise authorized to
utilize trademarks or service marks associated with one or more makes of motor
vehicles in connection with such sales. For the purposes of subsection (d) of
Code Section 10-1-784, concerning private civil actions for violations of this
article, the term "new motor vehicle dealer" shall include any person or entity
regularly engaged in the business of leasing new motor vehicles to consumers.
(13) "Nonconformity" means a defect, serious safety defect, or condition that
substantially impairs the use, value, or safety of a new motor vehicle to the
consumer, but does not include a defect or condition that is the result of
abuse, neglect, or unauthorized modification or alteration of the new motor
vehicle.
(14) "Panel" means a new motor vehicle arbitration panel as designated in Code
Sections 10-1-786 and 10-1-794.
(15) "Purchase price" means in the case of a sale of a new motor vehicle to a
consumer the cash price of the new motor vehicle appearing in the sales
agreement, contract, or leasing agreement, including any reasonable allowance
for a trade-in vehicle. In determining whether the trade-in allowance was
reasonable, the panel may take into account whether the purchase price of the
vehicle was at fair market value or not and make appropriate adjustments to
ensure that the consumer is made whole but not unjustly enriched. In the case of
a consumer lease of a new motor vehicle, "purchase price" means the cash price
paid by the lessor to a dealer or distributor to purchase the new motor vehicle.
(16) "Reasonable offset for use" means an amount directly attributable to use by
the consumer before the consumer requests repurchase or replacement by the
manufacturer pursuant to Code Section 10-1-784. The reasonable offset for use
shall be computed by the number of miles that the vehicle traveled before the
consumer's request of repurchase or replacement multiplied by the purchase price
and divided by 100,000.
(17) "Reasonable number of attempts" under the lemon law rights period means the
definition as provided in Code Section 10-1-784.
(18) "Replacement motor vehicle" means a new motor vehicle that is identical or
reasonably equivalent to the motor vehicle to be replaced, as the motor vehicle
to be replaced existed at the time of purchase or lease.
(19) "Serious safety defect" means a life-threatening malfunction or
nonconformity.
(20) "Substantially impair" means to render the new motor vehicle unreliable, or
unsafe for ordinary use, or to diminish the resale value of the new motor
vehicle more than a meaningful amount below the average resale value for
comparable motor vehicles.
(21) "Warranty" means any express written warranty of the manufacturer but shall
not include any extended coverage purchased by the consumer as a separate item.
(Code 1981, § 10-1-782, enacted by Ga. L. 1990, p. 1013, § 1; Ga. L. 1991, p.
94, § 10.)
10-1-783. Dealers to provide owner's manual with customer service information;
written statement of consumer's rights; reporting nonconformity; copies of
reports; refusal to diagnose or repair; extension of lemon law rights and 30 day
out-of-service periods.
(a) Each new motor vehicle dealer shall provide an owner's manual which shall be
published by the manufacturer and include a list of the addresses and phone
numbers at which consumers may, at no cost, contact the manufacturer's customer
service personnel who are authorized to direct activities regarding repair of
the consumer's vehicle.
(b) At the time of purchase, the new motor vehicle dealer shall provide the
consumer with a written statement that explains the consumer's rights under this
article. The statement shall be written by the administrator and shall contain
information regarding the procedures and remedies under this article.
(c) For the purposes of this article, if a new motor vehicle has a nonconformity
and the consumer reports the nonconformity during the lemon law rights period to
the manufacturer, its agent, or the new motor vehicle dealer who sold the new
motor vehicle, the vehicle shall be repaired at the manufacturer's expense to
correct the nonconformity regardless of whether such repairs are made after the
expiration of the lemon law rights period. If in any subsequent proceeding under
this article it is determined that the consumer's repair did not qualify under
this article, and the manufacturer was not otherwise obligated to repair the
vehicle, the consumer shall be liable to the manufacturer for the costs of the
repair.
(d) Upon request from the consumer, the manufacturer or new motor vehicle dealer
shall provide a copy of any report or computer reading compiled by the
manufacturer's field or zone representative regarding inspection, diagnosis, or
test-drive of the consumer's new motor vehicle.
(e) Each time the consumer's vehicle is returned from being diagnosed or
repaired under the lemon law rights period or under a warranty, the new motor
vehicle dealer shall provide to the consumer a fully itemized, legible statement
or repair order indicating any diagnosis made, and all work performed on the
vehicle, including but not limited to a general description of the problem
reported by the consumer or an identification of the defect or condition, parts
and labor, the date and the odometer reading when the vehicle was submitted for
repair, and the date when the vehicle was made available to the consumer.
(f) No manufacturer, its agent, or new motor vehicle dealer may refuse to
diagnose or repair any nonconformity for the purpose of avoiding liability under
this article.
(g) The lemon law rights period and 30 day out-of-service period shall be
extended by any time that repair services are not available to the consumer as a
direct result of a strike, war, invasion, fire, flood, or other natural
disaster.
(Code 1981, § 10-1-783, enacted by Ga. L. 1990, p. 1013, § 1.)
10-1-784. Nonrepair of vehicle; contractual obligations between lessor and
consumer; replacement of vehicle; attempts to correct nonconformity; duration of
lemon law rights period; liability of dealer or distributor; enforcement of
violations; election of remedies; effect of article on dealer franchise or
distributor agreement.
(a)
(1) If the manufacturer, its agent, or the new motor vehicle dealer is unable to
repair or correct any nonconformity in a new motor vehicle after a reasonable
number of attempts, the consumer shall notify the manufacturer by certified
mail, return receipt requested, at the address provided by the manufacturer. The
manufacturer shall, within seven days after receipt of such notification, notify
the consumer of a reasonably accessible repair facility and after delivery of
the vehicle to the designated repair facility by the consumer, the manufacturer
shall, within 14 days, conform the motor vehicle to the warranty. If the
manufacturer is unable to repair or correct any nonconformity of the new motor
vehicle, the manufacturer shall, within 30 days of the consumer's written
request, by certified mail, return receipt requested, at the option of the
consumer, or the lessor in the event of a leased motor vehicle, replace or
repurchase the new motor vehicle. If the manufacturer fails to notify the
consumer of a reasonably accessible repair facility or perform the repairs
within the time periods prescribed in this subsection, the requirement that the
manufacturer be given a final attempt to cure the nonconformity does not apply.
(2) If a lessor elects replacement, the contractual obligation, except for those
terms of the agreement which identify the vehicle, between the lessor and the
consumer shall not be altered. If a lessor elects repurchase, it shall return to
the consumer a sum equal to the allowance for any trade-in, and down payment or
initial balloon payment, made by the consumer, and all future obligations of the
consumer to the lessor shall cease. In the event a lessor elects to require the
manufacturer to repurchase a leased vehicle, the consumer will remain liable for
all lease obligations arising prior to the date that the lessor elects such
replacement, but will have no future obligations under the lease, and will be
liable for no penalty for early termination. A lessor must elect either a
repurchase or replacement within 30 days of receiving written notice from the
consumer that such an election is desired; if the lessor fails to make such an
election within the 30 days, the consumer may make the election to repurchase or
replace and the lessor shall be bound by the consumer's election.
(3) The replacement motor vehicle shall be identical or reasonably equivalent to
the motor vehicle to be replaced. Such replacement shall include payment of all
collateral charges which the consumer or lessor will incur a second time which
would not have been incurred again except for the replacement, and any and all
incidental costs incurred by the consumer or lessor. In the case of a
replacement motor vehicle, the reasonable offset for use shall be paid by the
consumer to the manufacturer. Compensation for a reasonable offset for use shall
be paid by the consumer to the manufacturer in the event that a replacement
motor vehicle is elected. In the case of a lease where the consumer either has
no option to purchase the motor vehicle at the end of the lease term, or the
consumer has an option to purchase the motor vehicle at the end of the lease
term but does not exercise the option, the lessor shall refund to the consumer
the lesser of (A) the offset for use paid by the consumer to the manufacturer at
the time of delivery of the replacement vehicle, or (B) the gain realized by the
lessor by reason of the difference, if any, between the anticipated residual
value of the original motor vehicle as determined at the inception of the lease
and the realized value of the replacement motor vehicle at the end of the lease.
If the lessor does not realize any gain from the disposition of the replacement
vehicle, there will be no refund due to the consumer from the lessor. The
foregoing rules apply only to leases where the consumer performs all of the
consumer's obligations under the lease agreement and the lease terminates upon
the scheduled expiration of the lease term as set forth in the lease agreement
or any mutually agreed upon extension of the lease term. The administrator may
provide by rule under Chapter 13 of Title 50, the "Georgia Administrative
Procedure Act," for determining the manner of calculating the amount of any
further charges or refunds that may apply in the case of leases terminated
prematurely either by the voluntary election of the parties, or involuntarily by
the lessor in the event of the lessee's default, the loss or destruction of the
vehicle, or for any other reason.
(4) When repurchasing the new motor vehicle, the manufacturer shall refund to
the consumer all collateral charges and incidental costs. In the event of a
repurchase, purchase price refunds shall be made to the consumer and lienholder
of record, if any, as his or her interests may appear, less a reasonable offset
for use. In the event of a lease, purchase price refunds shall be made to the
lessor, less a reasonable offset for use. If it is determined that the lessee is
entitled to a refund, the consumer's lease agreement with the lessor shall be
terminated upon payment of the refund and no penalty for early termination shall
be assessed.
(b) A reasonable number of attempts shall be presumed as a matter of law to have
been undertaken by the manufacturer, its agent, or the new motor vehicle dealer
to repair or correct any nonconformity of a new motor vehicle, if: (1) a serious
safety defect in the braking or steering system has been subject to repair at
least once during the lemon law rights period and has not been corrected; (2)
during any period of 24 months or less, or during any period in which the
vehicle has been driven 24,000 miles or less, whichever occurs first, any other
serious safety defect has been subject to repair two or more times, at least one
of which is during the lemon law rights period, and the nonconformity continues
to exist; (3) during any period of 24 months or less or during any period in
which the vehicle has been driven 24,000 miles or less, whichever occurs first,
the same nonconformity has been subject to repair, three or more times, at least
one of which is during the lemon law rights period, and the nonconformity
continues to exist; or (4) during any period of 24 months or less or during any
period in which the vehicle has been driven 24,000 miles or less, whichever
occurs first, the vehicle is out of service by reason of repair of one or more
nonconformities for a cumulative total of 30 calendar days, at least 15 of them
during the lemon law rights period.If less than 15 days remain under the lemon
law rights period when the new motor vehicle is first brought in for diagnosis
or repair, the lemon law rights period as regards the problem to be diagnosed or
repaired shall be extended for a period of 90 days.
(c) For purposes of this article, the lemon law rights period regarding
nonconformities on all new motor vehicles sold in this state shall be for 12
months following the purchase of the vehicle or for 12,000 miles following the
purchase of the vehicle, whichever occurs first.
(d) This article shall not create and shall not give rise to any cause of action
against and shall not impose any liability upon any new motor vehicle dealer or
distributor except as provided in this Code section. No new motor vehicle dealer
or distributor shall be held liable by the manufacturer or by the consumer for
any collateral charges, damages, costs, purchase price refunds, or vehicle
replacements, and manufacturers and consumers shall not have a cause of action
against a new motor vehicle dealer or distributor under this article.A violation
of any duty or responsibility imposed upon a new motor vehicle dealer or
distributor under this article shall constitute a per se violation of Code
Section 10-1-393; provided, however, that enforcement against such violations
shall be by public enforcement by the administrator and shall not be enforceable
through private enforcement under the provisions of Code Section 10-1-399,
except that a knowing violation of Code Section 10-1-785 shall be enforceable
through private enforcement under the provisions of Code Section 10-1-399.The
provisions of Code Sections 11-2-602 through 11-2-609 shall not apply to the
sale of a new motor vehicle if the consumer seeks to use the remedies provided
for in this article.A consumer shall be deemed to have used the remedies
provided for in this article when he or she completes, signs, and returns forms
prescribed by the administrator for the submission of disputes to an informal
dispute resolution settlement mechanism or to a panel, whichever occurs first.
Such forms shall contain a conspicuous statement clearly advising the consumer
of the rights the consumer is waiving by participating in the procedures under
this article. A consumer may not use the remedies provided for in this article
if the consumer has already sought to use the remedies provided for in Code
Sections 11-2-602 through 11-2-609, unless the nonconformity did not exist or
was not known at the time of using the remedies provided for in such Code
sections. Manufacturers and consumers may not make new motor vehicle dealers or
distributors parties to arbitration panel proceedings or any other proceedings
under this article. The provisions of this article shall not impair any
obligation under any manufacturer-dealer franchise agreement or
manufacturer-distributor agreement; provided, however, that any provision of any
manufacturer-dealer franchise agreement or manufacturer-distributor agreement
which attempts to shift any duty, obligation, responsibility, or liability
imposed upon a manufacturer by this article to a new motor vehicle dealer or
distributor, either directly or indirectly, shall be void and unenforceable,
except for any liability imposed upon a manufacturer by this article which is
directly caused by the gross negligence of the dealer in attempting to repair
the motor vehicle after such gross negligence has been determined by the hearing
officer, as provided in Article 22 of this chapter, the "Georgia Motor Vehicle
Franchise Practices Act."
(Code 1981, § 10-1-784, enacted by Ga. L. 1990, p. 1013, § 1; Ga. L. 1991, p.
94, § 10.)
10-1-785. Resale of nonconforming vehicle.
(a) No manufacturer or other transferor shall knowingly resell, either at
wholesale or retail, lease, transfer a title, or otherwise transfer, except to
sell for scrap, any motor vehicle which has been determined to have a serious
safety defect by reason of a determination, adjudication, or settlement decision
pursuant to this article or similar statute of any other state, unless the
serious safety defect has been corrected; the manufacturer warrants in writing
upon the resale, transfer, or lease that the defect has been corrected; and the
transferor provides the manufacturer's written warranty under this Code section
to the consumer.
(b) After replacement or repurchase pursuant to this article of a motor vehicle
with a nonconformity, other than a serious safety defect, which has not been
corrected, the manufacturer shall notify the administrator, by certified mail,
upon receipt of the manufacturer's motor vehicle.If such nonconformity is
corrected, the manufacturer shall notify the administrator in the same manner of
such correction.If the two events described in this subsection occur within 30
days of one another, both notices may be combined into the same notice.
(c) Upon the resale, either at wholesale or retail, lease, transfer of title, or
other transfer of a motor vehicle with a nonconformity, other than a serious
safety defect, which has not been corrected and which was previously returned
after a final determination, adjudication, or settlement under this article or
under a similar statute of any other state, the manufacturer shall execute and
deliver to the transferee before transfer to a consumer an instrument in writing
setting forth information identifying the nonconformity in a manner to be
specified by the administrator; the transferor shall deliver the instrument to
the consumer before transfer.
(d) Upon the resale, either at wholesale or retail, lease, transfer of title, or
other transfer of a motor vehicle found to have a nonconformity under this
article which has been corrected, the manufacturer shall warrant in writing on
forms prescribed by the administrator upon the transfer that the nonconformity
has been corrected, and the manufacturer, its agent, the new motor vehicle
dealer, or other transferor shall execute and deliver to the transferee before
transfer an instrument in writing setting forth information identifying the
nonconformity and indicating in a manner to be specified by the administrator
that it has been corrected and providing an express manufacturer's warranty on
the vehicle regarding the nonconformity for 12 months or 12,000 miles, whichever
occurs first.
(e) For purposes of this Code section, the term "settlement" includes an
agreement entered into between the manufacturer and the consumer that occurs
after the dispute has been submitted to an informal dispute resolution
settlement mechanism or has been deemed eligible by the administrator for
arbitration before a panel.
(Code 1981, § 10-1-785, enacted by Ga. L. 1990, p. 1013, § 1.)
10-1-786. New motor vehicle arbitration panel.
(a) As provided in Code Section 10-1-794, the administrator may establish a new
motor vehicle arbitration panel or panels to settle disputes between consumers
and manufacturers as provided in this article. The panels shall not be
affiliated with any manufacturer or new motor vehicle dealer and shall have
available the services of persons with automotive technical expertise to assist
in resolving disputes under this article.
(b) The administrator may adopt rules under Chapter 13 of Title 50, the "Georgia
Administrative Procedure Act," for the uniform conduct of arbitrations by panels
and by informal dispute resolution settlement mechanisms under this article,
which rules may include, but not be limited to, the following:
(1) Procedures regarding presentation of oral and written testimony, witnesses
and evidence relevant to the dispute, cross-examination of witnesses, and
representation by counsel. The administrator shall provide by rule for oral
hearings, when appropriate, in panel or informal dispute resolution settlement
mechanism proceedings;
(2) Procedures for production of records and documents requested by a party
which the panel finds are reasonably related to the dispute;
(3) Procedures for issuance of subpoenas on behalf of the panel by the
administrator, which shall be enforced by the superior courts as in Code Section
10-1-398;
(4) Procedures regarding written affidavits from employees and agents of a
dealer, a manufacturer, any party, or from other potential witnesses and the
consideration of such affidavits by a panel; and
(5) Records of panel proceedings and hearings shall be open to the public.
(c) A consumer shall exhaust any certified informal dispute resolution
settlement procedure under Code Section 10-1-793 and the new motor vehicle
arbitration panel remedy before filing any superior court action pursuant to
Code Section 10-1-788.
(d) The administrator may adopt rules under Chapter 13 of Title 50, the "Georgia
Administrative Procedure Act," to implement this article. Such rules may include
uniform standards by which the panel and any informal dispute resolution
settlement mechanism under Code Section 10-1-793 shall make determinations under
this article, including but not limited to rules which may provide for:
(1) Determining that a nonconformity exists;
(2) Determining that a reasonable number of attempts to repair a nonconformity
have been undertaken; or
(3) Determining that a manufacturer has failed to comply with Code Section
10-1-784.
(Code 1981, § 10-1-786, enacted by Ga. L. 1990, p. 1013, § 1; Ga. L. 1991, p.
94, § 10; Ga. L. 1996, p. 6, § 10.)
10-1-787. Arbitration procedure.
(a) A consumer shall request arbitration under this article by submitting a
request in writing to the administrator.Except as otherwise provided in this
article, disputes under the lemon law rights period shall be eligible for
arbitration.The administrator shall make a reasonable determination of the
eligibility of the request for arbitration and may provide necessary information
to the consumer regarding the consumer's rights and remedies under this
article.The administrator may adopt rules under Chapter 13 of Title 50, the
"Georgia Administrative Procedure Act," regarding the eligibility of requests
for arbitration. The administrator shall assign a dispute he deems eligible to a
panel.
(b) Manufacturers shall submit to arbitration under this article if the
consumer's dispute is deemed eligible for arbitration by the administrator and
by the panel.
(c) The new motor vehicle arbitration panel may reject for arbitration any
dispute that it determines to be frivolous, fraudulent, filed in bad faith, res
judicata, or beyond its authority.Any dispute deemed by the panel to be
ineligible for arbitration due to insufficient evidence may be reconsidered by
the panel upon the submission of other information or documents regarding the
dispute that would allegedly qualify for relief under this article.Following a
second review, the panel may reject the dispute for arbitration if evidence is
still clearly insufficient to qualify the dispute for relief under this
article.The administrator may adopt rules under Chapter 13 of Title 50, the
"Georgia Administrative Procedure Act," governing rejection of disputes by a
panel.A decision to reject any dispute for arbitration shall be sent by
certified mail, return receipt requested, to the consumer and the manufacturer.
(d) An arbitration panel shall award the remedies under Code Section 10-1-784 if
it finds a nonconformity and that a reasonable number of attempts have been
undertaken to correct the nonconformity.The panel may in its discretion award
attorney's fees and technical or expert witness costs to a consumer.
(e) It is an affirmative defense to any claim under this article that: (1) the
alleged nonconformity does not substantially impair the use, value, or safety of
the new motor vehicle to the consumer; or (2) the alleged nonconformity is the
result of abuse, neglect, or unauthorized modifications or alterations of the
new motor vehicle.
(f) The panel's decision shall be sent by certified mail, return receipt
requested, to the consumer.The consumer must reject the decision in writing by
certified mail, return receipt requested, addressed to the panel within 30 days
of receipt of the panel's decision, or he or she shall be deemed to have
accepted the panel's decision.The panel shall immediately notify the
manufacturer by certified mail, return receipt requested, whether the consumer
has accepted, rejected, or has been deemed to have accepted.
(g) Upon receipt of the panel's notice, the manufacturer shall have 40 calendar
days to comply with the arbitration panel decision or to file a petition of
appeal in superior court.At the time the petition of appeal is filed, the
manufacturer shall send, by certified mail, a conformed copy of such petition to
the administrator.
(h) If, at the end of the 40 calendar day period, neither compliance with nor a
petition to appeal the panel's decision has occurred, the administrator may
impose a fine of up to $1,000.00 per day until compliance occurs or until a
maximum penalty of double the value of the vehicle or $100,000.00, whichever is
less, accrues.If the manufacturer can provide clear and convincing evidence
either that any delay or failure was beyond its control, or that any delay was
acceptable to the consumer, the fine shall not be imposed.If the manufacturer
fails to provide such evidence or fails to pay the fine, the administrator may
initiate proceedings against the manufacturer for failure to pay any accrued
fine and may initiate proceedings on behalf of the state to require specific
performance of an arbitration decision under this article.The administrator
shall deposit any fines in the state treasury.
(Code 1981, § 10-1-787, enacted by Ga. L. 1990, p. 1013, § 1.)
10-1-788. Appeal of arbitration decision.
(a) After the manufacturer has received notice of the consumer's acceptance or
rejection, the consumer or the manufacturer shall have 40 days to request a
trial de novo of the arbitration decision in superior court.
(b) If the manufacturer appeals, the court may require the manufacturer to post
security for the consumer's financial loss due to the passage of time for
review.
(c) If the manufacturer appeals and the consumer prevails, recovery may include
the monetary value of the award, collateral charges, continuing incidental
costs, if any, and attorney's fees and costs.
(Code 1981, § 10-1-788, enacted by Ga. L. 1990, p. 1013, § 1.)
10-1-789. Collection of consumer fee for operating arbitration program.
(a) Effective July 1, 1990, a fee of $3.00 shall be collected by the new motor
vehicle dealer from the consumer at completion of a sale or a lease of each new
motor vehicle.The fee shall be forwarded quarterly to the Office of Planning and
Budget for deposit in the new motor vehicle arbitration account created in the
state treasury. The first quarterly payments are due and payable on October 1,
1990, and shall be mailed by the dealer not later than October 10; thereafter,
all payments are due and payable the first of the month in each quarter and
shall be mailed by the dealer not later than the tenth day of such month.Moneys
in the account shall be used for the purposes of this article, subject to
appropriation. Funds in the new motor vehicle arbitration account shall be
transferred to the general treasury at the end of each fiscal year. One dollar
of each fee collected shall be retained by the dealer to cover administrative
costs.
(b) At the end of each fiscal year, the administrator shall prepare a report
listing the annual revenue generated and the expenses incurred in implementing
and operating the arbitration program under this chapter.The Office of Planning
and Budget shall provide the administrator with the figures regarding revenue
generated.
(c) It is the intent of the General Assembly that any consumer who, on or after
July 1, 1990, but prior to January 1, 1991, pays or should have paid the fee
designated in this Code section shall be entitled to utilize the remedies
provided in Code Sections 10-1-786, 10-1-787, and 10-1-788 in addition to any
other remedies which exist in law or in equity regarding defective automobiles,
notwithstanding the effective dates of this article or the effective dates of
any provisions of this article.
(Code 1981, § 10-1-789, enacted by Ga. L. 1990, p. 1013, § 1; Ga. L. 1991, p.
604, § 1.)
10-1-790. Violation of article.
A violation of this article, or any failure of any person, including a
manufacturer or its agents, to honor any express warranty, automotive or
otherwise, issued by that person, regardless of whether or not such warranty was
purchased as a separate item by the consumer and regardless of whether or not
any dispute under the warranty is deemed eligible for arbitration under this
article, shall constitute an unfair and deceptive act or practice and a consumer
transaction under Part 2 of Article 15 of this chapter.In determining whether
there is an unfair and deceptive act or practice under this Code section, the
principles in this article regarding a reasonable number of attempts may serve
as guidelines. All public and private remedies provided under Part 2 of Article
15 of this chapter shall be available to enforce this article, subject to the
affirmative defenses provided in Code Section 10-1-787, and except as provided
in Code Section 10-1-784.
(Code 1981, § 10-1-790, enacted by Ga. L. 1990, p. 1013, § 1; Ga. L. 1991, p.
94, § 10.)
10-1-791. Waiver of rights under article as contrary to public policy.
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 article shall be
void as contrary to public policy. Said rights shall extend to a subsequent
transferee of a new motor vehicle.
(Code 1981, § 10-1-791, enacted by Ga. L. 1990, p. 1013, § 1.)
10-1-792. Other rights and remedies.
Nothing in this article shall limit anyone from pursuing other rights or
remedies under any other law, except as otherwise provided in this article.
(Code 1981, § 10-1-792, enacted by Ga. L. 1990, p. 1013, § 1.)
10-1-793. Informal dispute resolution settlement mechanism.
(a) If a manufacturer has established an informal dispute resolution settlement
mechanism in this state and is operating in accordance with rules promulgated by
the administrator under this article, and the administrator has certified that
the informal dispute resolution settlement procedure complies with and is
operating in accordance with such rules, a consumer must submit a dispute under
this article to the informal dispute resolution settlement procedure before
submitting it to the new motor vehicle arbitration panel.The administrator may
adopt rules consistent with this article under Chapter 13 of Title 50, the
"Georgia Administrative Procedure Act," regarding the informal dispute
resolution settlement mechanisms, including but not limited to the composition,
function, training, procedures, and conduct of informal dispute resolution
settlement mechanisms and including eligibility requirements and procedures for
appeals to a panel.Such rules must be complied with prior to certification.
(b) Informal dispute resolution settlement mechanisms shall take into account
the principles contained in this article and in any rules promulgated thereunder
and shall take into account all legal and equitable factors germane to a fair
and just decision.A decision shall include any remedies appropriate under the
circumstances, including repair, replacement, refund, reimbursement for
collateral and incidental charges, and compensation for loss of value.For
purposes of this Code section, the phrase: "Take into account the principles
contained in this article" means to be aware of the provisions of this article,
to understand how they might apply to the circumstances of the particular
dispute, and to apply them if it is appropriate and fair to both parties to do
so.
(c) At any time the administrator has reason to believe that a certified
informal dispute resolution settlement mechanism is not acting in conformity
with this article or with rules promulgated thereunder, he may initiate
proceedings under Chapter 13 of Title 50, the "Georgia Administrative Procedure
Act," to revoke the certification of the informal dispute resolution settlement
mechanism.An informal dispute resolution settlement mechanism shall keep such
records as prescribed by the administrator in rules under this article and shall
submit without notice to inspection and copying of these records by the
administrator's employees.Expenses of any copying shall be borne by the informal
dispute resolution settlement mechanism.
(Code 1981, § 10-1-793, enacted by Ga. L. 1990, p. 1013, § 1; Ga. L. 1991, p.
94, § 10.)
10-1-794. Establishment and operation of arbitration panels; panel membership;
staff.
The new motor vehicle arbitration panel or panels shall begin operating on
January 2, 1991.The administrator in his discretion may establish and operate
the panel or panels under any of the following procedures, provided that
disputes filed during the same time period shall not be handled under different
procedures: (1) contracting with private or public entities to conduct
arbitrations under the procedures and standards in this article, (2) appointing
private citizens to serve on a panel or panels, or (3) hiring temporary or
permanent employees to serve on the panel or panels. Each new motor vehicle
arbitration panel shall consist of three members, none of whom may be directly
or indirectly involved in the manufacture, distribution, sale, or service of any
motor vehicle or employed by or related to the consumer. All panel members shall
have a degree from an American Bar Association Accredited School of Law or shall
have at least two years' experience in professional arbitration.Any private
citizens appointed by the administrator to serve as panel members shall be
reimbursed for expenses as are members of the General Assembly and shall be
compensated at an hourly rate as determined by the administrator. Temporary or
permanent employees hired to serve on the panels shall be in the unclassified
service and may serve on a full or part-time basis at a salary determined by the
administrator. All administrative staff hired by the administrator to aid
in the administration of this article shall be in the unclassified service and
compensated at a salary determined by the administrator.
(Code 1981, § 10-1-794, enacted by Ga. L. 1990, p. 1013, § 1.)
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