MONTANA LEMON LAW:
Montana Lemon Law
Title 61, Chapter 4, Part 5
61-4-501. Definitions. For purposes of this part, the following definitions
apply:
(1) "Collateral charge" means all governmental charges, including but not
limited to sales tax, property tax, license and registration fees, and fees in
lieu of tax.
(2) "Consumer" means the purchaser, other than for purposes of resale, of a
motor vehicle that has not been brought into nonconformity as the result of
abuse, neglect, or unauthorized modifications or alterations by the purchaser,
any person to whom the motor vehicle is transferred during the duration of an
express warranty applicable to the motor vehicle, or any other person entitled
by the terms of the warranty to the benefits of its provisions.
(3) "Incidental damage" means incidental and consequential damage as defined in
30-2-715.
(4) "Manufacturer" has the meaning applied to that word in 61-4-201.
(5)(a)"Motor vehicle" means a vehicle, including the nonresidential portion of a
motor home as defined in 61-1-130, propelled by its own power, designed
primarily to transport persons or property upon the public highways, and sold or
registered in this state.
(b)The term does not include a truck with 10,000 pounds or more gross vehicle
weight rating. Motor vehicle does not include components, systems, fixtures,
appliances, furnishings, accessories, and features that are designed, used, and
maintained primarily for residential purposes.
(6) "Reasonable allowance for use" is an amount directly attributable to use of
the motor vehicle by the consumer and any previous consumers prior to the first
written notice of the nonconformity to the manufacturer or its agent and during
any subsequent period when the vehicle is not out of service because of
nonconformity. The reasonable allowance for use must be computed by multiplying
the total contract price of the vehicle by a fraction having as its denominator
100,000 and having as its numerator the number of miles that the vehicle
traveled prior to the manufacturer's acceptance of its return.
(7) "Warranty period" means the period ending 2 years after the date of the
original delivery to the consumer of a new motor vehicle or during the first
18,000 miles of operation, whichever is earlier.
History: En. Sec. 1, Ch. 144, L. 1983; amd. Sec. 1, Ch. 744, L. 1985; amd. Sec.
2, Ch. 300, L. 1991; amd. Sec. 1, Ch. 360, L. 2003.
61-4-502. Notice -- warranty enforceable after warranty period -- when.
(1) If a consumer notifies in writing the manufacturer or its agent during the
warranty period that a new motor vehicle does not conform to all applicable
express warranties, the repairs necessary to conform the new motor vehicle to
the express warranties shall be made by or at the expense of the warrantor,
regardless of the expiration of the warranty period after notification of
nonconformity is given by the consumer.
(2) The warranty period of an express warranty is extended to equal the time
that repair services are not available because of war or invasion or because of
strike or fire, flood, or other natural disaster. The presumption provided
herein may not apply against a manufacturer who has not received prior written
notification from or on behalf of the consumer and has not had an opportunity to
cure the alleged defect.
(3) The manufacturer must clearly and conspicuously disclose to the consumer in
the warranty or owner's manual that written notification of a nonconformity is
required before a consumer may be eligible for a refund or replacement of the
vehicle. The manufacturer must include with the warranty or owner's manual the
name and address where the written notification must be sent.
History: (1)En. Sec. 2, Ch. 144, L. 1983; (2)En. Sec. 5, Ch. 144, L. 1983; amd.
Sec. 2, Ch. 744, L. 1985.
61-4-503. Replacement for nonconformity to warranty.
(1) If after a reasonable number of attempts the manufacturer or its agent or
authorized dealer is unable, during the warranty period, to conform the new
motor vehicle to any applicable express warranty by repairing or correcting any
defect or condition that substantially impairs the use and market value or
safety of the motor vehicle to the consumer, the manufacturer shall replace it
with a new motor vehicle of the same model and style and of equal value, unless
for reasons of lack of availability such replacement is impossible, in which
case the manufacturer shall replace it with a vehicle of comparable market
value.
(2) As an alternative to replacement, the manufacturer may accept return of the
new motor vehicle from the consumer upon refund to him of the full purchase
price, plus reasonable collateral charges and incidental damages, less a
reasonable allowance for the consumer's use of the motor vehicle. The refund
shall be paid to the consumer and to a lienholder, if any, in proportion to
their interests.
History: En. Sec. 3, Ch. 144, L. 1983; amd. Sec. 3, Ch. 744, L. 1985.
61-4-504. Reasonable number of attempts -- presumption. A reasonable number of
attempts to conform a new motor vehicle to the applicable express warranties is
presumed to have been made for purposes of 61-4-503(1) if:
(1) the same nonconformity has been subject to repair four or more times by the
manufacturer or its agent or authorized dealer during the warranty period but
the nonconformity continues to exist; or
(2) the vehicle is out of service because of nonconformity for a cumulative
total of 30 or more business days during the warranty period after notification
of the manufacturer, agent, or dealer.
History: En. Sec. 4, Ch. 144, L. 1983.
61-4-505. Dealer exemption -- liability to manufacturer.
(1) Nothing in this part imposes any liability on a dealer or creates a cause of
action by a consumer against a dealer under 61-4-503.
(2) A dealer is not liable to a manufacturer for any refunds or vehicle
replacements in the absence of evidence indicating that repairs made by the
dealer were carried out in a manner inconsistent with the manufacturer's
instructions.
History: En. Sec. 8, Ch. 144, L. 1983; amd. Sec. 4, Ch. 744, L. 1985.
61-4-506. Provisions nonexclusive -- applicability of U.C.C. -- defenses.
(1) The provisions of this part do not limit the rights or remedies available to
a consumer under any other law.
(2) All express warranties arising from the sale of a new motor vehicle are
subject to the provisions of Title 30, chapter 2, part 3.
(3) It is an affirmative defense to a claim brought under this part that an
alleged nonconformity does not substantially impair the use, market value, or
safety of the vehicle or that the nonconformity is the result of abuse, neglect,
or unauthorized modification or alteration of a motor vehicle by the consumer.
History: En. Sec. 6, Ch. 144, L. 1983; amd. Sec. 5, Ch. 744, L. 1985.
61-4-507. Exhaustion of remedies under federal law. The provisions of 61-4-503
are not applicable against a manufacturer who has established an informal
dispute settlement procedure certified by the department of administration to be
in substantial compliance with the provisions of Title 16, Code of Federal
Regulations, part 703, as those provisions read on October 1, 1983, unless the
consumer has first resorted to that procedure without satisfaction.
History: En. Sec. 7, Ch. 144, L. 1983; amd. Sec. 6, Ch. 744, L. 1985; amd. Sec.
195, Ch. 483, L. 2001.
61-4-508 through 61-4-510 reserved.
61-4-511. Manufacturer's dispute settlement procedure -- certification --
prohibited contents.
(1) A manufacturer who has established an informal dispute settlement procedure
under the provisions of Title 16, Code of Federal Regulations, part 703 (16 CFR,
part 703), as those provisions read on October 1, 1983, shall submit a copy of
the procedure to the department of administration. The department of
administration shall issue a certificate of approval to a manufacturer whose
procedure complies in all respects with the federal regulations and subsection
(2). The department of administration shall report to the department of justice
all manufacturer's procedures certified. The department of administration may
issue subpoenas requiring the attendance of witnesses and the production of
records, documents, or other evidence necessary to it in an investigation
related to the certification of a manufacturer's informal dispute settlement
procedure.
(2) A manufacturer's informal dispute settlement procedure must afford the
consumer or the consumer's representative an opportunity to appear and present
evidence in Montana at a location reasonably convenient to the consumer and,
further, may not include any practices that:
(a) delay a decision in any dispute beyond 60 days after the date on which the
consumer initially resorts to the dispute settlement procedure;
(b) delay performance of remedies awarded in a settlement beyond 10 days after a
decision, except that a manufacturer may have 30 days following the date of
decision to replace a motor vehicle or make refund to the consumer as provided
in 61-4-503;
(c) require the consumer to make the vehicle available for inspection by a
manufacturer's representative more than once;
(d) fail to consider in decisions any remedies provided by this part; or
(e) require the consumer to take any action or assume any obligation not
specifically authorized under the federal regulations referred to in subsection
(1).
History: En. Sec. 7, Ch. 744, L. 1985; amd. Sec. 13, Ch. 503, L. 1985; amd. Sec.
196, Ch. 483, L. 2001.
61-4-512. Annual audit -- revocation or suspension of certification.
(1) A manufacturer establishing an informal dispute resolution procedure shall
file with the department of administration a copy of the annual audit required
under Title 16, Code of Federal Regulations, part 703 (16 CFR, part 703), as
those provisions read on October 1, 1983, along with any additional information
that the department of administration may require, including the number of
refunds and replacements made by the manufacturer during the period audited.
(2) The department of administration may, after notice and hearing as provided
in Title 2, chapter 4, suspend or revoke the certification of a manufacturer's
informal dispute resolution procedure upon a finding that the procedure is being
used to create hardship to consumers. The department of administration shall
notify the department of justice of any revocation or suspension of a
certification. The department of administration may consider the revocation or
suspension in licensing manufacturers under Title 61, chapter 4, part 2.
History: En. Sec. 8, Ch. 744, L. 1985; amd. Sec. 13, Ch. 503, L. 1985; amd. Sec.
197, Ch. 483, L. 2001.
61-4-513 and 61-4-514 reserved.
61-4-515. Arbitration procedure.
(1) The department of administration shall provide an independent forum and
arbitration procedure for the settlement of disputes between consumers and
manufacturers of motor vehicles that do not conform to all applicable warranties
under the provisions of this part. The procedure must conform to Title 27,
chapter 5. All arbitration must take place in Montana at a place reasonably
convenient to the consumer.
(2) Except as provided in 61-4-520, a consumer owning a motor vehicle that fails
to conform to all applicable warranties may bring a grievance before an
arbitration panel only if the manufacturer of the motor vehicle has not
established an informal dispute settlement procedure that has been certified by
the department of administration under 61-4-511
History: En. Sec. 10, Ch. 744, L. 1985; amd. Sec. 23, Ch. 744, L. 1985; amd.
Sec. 198, Ch. 483, L. 2001.
61-4-516. Selection of arbitrator. An arbitrator for a grievance under this part
must be chosen by the department of administration. The department of
administration shall maintain a list of persons willing to serve as an
arbitrator.
History: En. Sec. 11, Ch. 744, L. 1985; amd. Sec. 199, Ch. 483, L. 2001; amd.
Sec. 2, Ch. 360, L. 2003.
61-4-517. Implementation of arbitration.
(1) A consumer may initiate a request for arbitration by filing a notice with
the department of administration. The consumer shall file, on a form prescribed
by the department of administration, any information considered relevant to the
resolution of the dispute and shall return the form, along with a $50 filing
fee, within 5 days after receiving it. The complaint form must offer the
consumer the choice of presenting any subsequent testimony orally or in writing,
but not both.
(2) The department of administration shall determine whether the complaint
alleges the violation of any applicable warranty under this part. If the
department of administration determines that a complaint does not allege a
warranty violation, it shall refund the filing fee.
(3) Upon acceptance of a complaint, the department of administration shall
notify the manufacturer of the filing of a request for arbitration and shall
obtain from the manufacturer, on a form prescribed by the department of
administration, any information considered relevant to the resolution of the
dispute. The manufacturer shall return the form within 15 days of receipt, with
a filing fee of $250.
(4) Fees collected under this section must be deposited in a special revenue
fund for the use of the department of administration in administering this part.
(5) The manufacturer's fee provided in subsection (3) is due only if the
department of administration arbitration procedures are used.
History: En. Sec. 12, Ch. 744, L. 1985; amd. Sec. 200, Ch. 483, L. 2001.
61-4-518. Arbitration -- role of department of administration -- expert.
(1) The department of administration shall investigate, gather, and organize all
information necessary for a fair and timely decision in each dispute. The
department of administration may, on behalf of the arbitrator, issue subpoenas
to compel the attendance of witnesses and the production of documents, papers,
and records relevant to the dispute.
(2) If requested by the arbitrator, the department of administration may forward
a copy of all written testimony and documentary evidence to an independent
technical expert certified by the national institute of automotive excellence.
The expert may review the material and be available to advise and consult with
the arbitrator. The expert, at the arbitrator's request, may be present whenever
oral testimony is presented.
History: En. Sec. 13, Ch. 744, L. 1985; amd. Sec. 13, Ch. 503, L. 1985; amd.
Sec. 201, Ch. 483, L. 2001; amd. Sec. 3, Ch. 360, L. 2003.
61-4-519. Action by arbitrator -- decision.
(1) The arbitrator shall, as expeditiously as possible, but not later than 60
days after the department of administration has accepted a complaint, render a
fair decision based on the information gathered and disclose the arbitrator's
findings and reasoning to the parties.
(2) The decision shall provide appropriate remedies, including but not limited
to:
(a) repair of the vehicle;
(b) replacement of the vehicle with an identical vehicle or a comparable vehicle
acceptable to the consumer;
(c) refund as provided in 61-4-503 (2);
(d) any other remedies available under the applicable warranties or 15 U.S.C.
2301 through 2312, as in effect on October 1, 1983; or
(e) reimbursement of expenses and costs to the prevailing party.
(3) The decision must specify a date for performance and completion of all
awarded remedies. The department of administration shall contact the prevailing
party within 10 working days after the date for performance to determine whether
performance has occurred. The parties shall act in good faith in abiding by any
decision. In addition, if the decision is not accepted, the parties shall follow
the provisions of Title 27, chapter 5. If it is determined by the court that the
appellant has acted without good cause in bringing an appeal of an award, the
court, in its discretion, may grant to the respondent costs and reasonable
attorney fees.
History: En. Sec. 14, Ch. 744, L. 1985; amd. Sec. 23, Ch. 744, L. 1985; amd.
Sec. 202, Ch. 483, L. 2001; amd. Sec. 4, Ch. 360, L. 2003.
61-4-520. Nonconforming procedure -- arbitration de novo. A consumer injured by
the operation of any procedure that does not conform with procedures established
by a manufacturer pursuant to 61-4-511 and the provisions of Title 16, Code of
Federal Regulations, part 703, as in effect on October 1, 1983, may appeal any
decision rendered as the result of the procedure by requesting arbitration de
novo of the dispute by a department of administration panel. Filing procedures
and fees for appeals must be the same as those required in 61-4-515 through
61-4-517. The findings of the manufacturer's informal dispute settlement
procedure are admissible in evidence at the department of administration
arbitration panel hearing and in any civil action arising out of any warranty
obligation or matter related to the dispute.
History: En. Sec. 16, Ch. 744, L. 1985; amd. Sec. 203, Ch. 483, L. 2001.
61-4-521 through 61-4-524 reserved.
61-4-525. Notice on resale of replaced vehicle. A motor vehicle which is
returned to the manufacturer and which requires replacement or refund may not be
sold in the state without a clear and conspicuous written disclosure of the fact
that the vehicle was returned. The department of justice may prescribe by rule
the form and content of the disclosure statement and a procedure by which the
disclosure may be removed upon a determination that the vehicle is no longer
defective.
History: En. Sec. 9, Ch. 744, L. 1985; amd. Sec. 13, Ch. 503, L. 1985.
61-4-526. Records of disputes The department of administration shall maintain
records of each dispute as it determines, including an index of disputes by
brand name and model. The department of administration shall, at intervals of no
more than 6 months, compile and maintain statistics indicating the record of
compliance with arbitration decisions and the number of refunds or replacements
awarded. The statistical summary must be considered by the department of
administration in determining the issuance of any manufacturer license required
under Title 61, chapter 4, part 2.
History: En. Sec. 15, Ch. 744, L. 1985; amd. Sec. 13, Ch. 503, L. 1985; amd.
Sec. 204, Ch. 483, L. 2001.
61-4-527 through 61-4-530 reserved.
61-4-531. Nondelegable. The liabilities and obligations contained in this part
may not be delegated or assigned to or assumed by any other person or entity.
61-4-532. Rulemaking. The department of administration may adopt rules to
implement the provisions of this part.
History: En. Sec. 18, Ch. 744, L. 1985; amd. Sec. 205, Ch. 483, L. 2001.
61-4-533. Penalty. A violation of any provision of this part is an unfair or
deceptive trade practice under Title 30, chapter 14, part 2, and the penalties
provided in 30-14-224(1) apply.
History: En. Sec. 19, Ch. 744, L. 1985.
Get your own Professional Payroll Business!
Post nasal drip, lose weight, diabetes, Alzheimer's, more
how to clean athletic shoes, get rid of roaches
Guides for Better Living