(a) In this subtitle the following words have
the meanings indicated.
(1) The purchaser, other than for purposes of
resale, of a new motor vehicle;
(2) Any person to whom a new motor vehicle is
transferred during the duration of the warranty applicable to such motor
(3) Any other person who is entitled to
enforce the obligations of the warranty.
(1) "Motor vehicle"
means a vehicle that is registered in this State as a:
(i) Class A (passenger) vehicle;
(ii) Class D (motorcycle) vehicle;
(iii) Class E (truck) vehicle with a 3/4 ton
or less manufacturer's rated capacity; or
(iv) Class M (multipurpose) vehicle.
(2) "Motor vehicle"
does not include a motor home. For the purpose of administering this
subtitle, the Motor Vehicle Administration shall promulgate a regulation
defining a motor home.
(d) "Dealer" has
the meaning provided in § 15-101(b) of the Transportation Article.
factory branch, or distributor" means a person, partnership,
association, corporation, or entity engaged in the business of
manufacturing or assembling motor vehicles or of distributing motor
vehicles to motor vehicle dealers as defined in § 15-201(b), (c), and (e)
of the Transportation Article.
means warranties as defined in §§ 2-312, 2-313, 2-314, and 2-315 of this
warranty period" means the earlier of:
(i) The period of the motor vehicle's
first 15,000 miles of operation; or
(ii) 15 months following the date of original
delivery of the motor vehicle to the consumer.
(2) This subsection does not extend any
manufacturer's express warranty.
(a) If the manufacturer's warranty period is
to include those miles of operation when the new motor vehicle is in the
possession of any person other than the consumer, the manufacturer shall
state that fact in 12 point bold face type in the manufacturer's written
(1) If a new motor vehicle does not conform
to all applicable warranties during the warranty period, the consumer
shall, during such period, report the nonconformity, defect, or condition
by giving written notice to the manufacturer or factory branch by
certified mail, return receipt requested. Notice of this procedure shall
be conspicuously disclosed to the consumer in writing at the time of sale
or delivery of the motor vehicle.
(2) The consumer shall provide an opportunity
for the manufacturer or factory branch, or its agent to cure the
nonconformity, defect, or condition.
(3) The manufacturer or factory branch, its
agent, or its authorized dealer shall correct the nonconformity, defect,
or condition at no charge to the consumer, even if repairs are made after
the expiration of the warranty period. The corrections shall be completed
within 30 days of the manufacturer's receipt of the consumer's
notification of the nonconformity, defect, or condition.
(1) If, during the warranty period, the
manufacturer or factory branch, its agent, or its authorized dealer is
unable to repair or correct any defect or condition that substantially
impairs the use and market value of the motor vehicle to the consumer
after a reasonable number of attempts, the manufacturer or factory branch,
at the option of the consumer, shall:
(i) Replace the motor vehicle with a
comparable motor vehicle acceptable to the consumer; or
(ii) Accept return of the motor vehicle from
the consumer and refund to the consumer the full purchase price including
all license fees, registration fees, and any similar governmental charges,
1. A reasonable allowance for the consumer's
use of the vehicle not to exceed 15 percent of the purchase price; and
2. A reasonable allowance for damage not
attributable to normal wear but not to include damage resulting from a
nonconformity, defect, or condition.
(2) The manufacturer or factory branch shall
make refunds under this section to the consumer and lien holder, if any,
as their interests appear on the records of ownership maintained by the
Motor Vehicle Administration.
(3) It is an affirmative defense to any claim
under this section that the nonconformity, defect, or condition:
(i) Does not substantially impair the use and
market value of the motor vehicle; or
(ii) Is the result of abuse, neglect, or
unauthorized modifications or alterations of the motor vehicle.
(d) It shall be presumed that a reasonable
number of attempts have been undertaken to conform a motor vehicle to the
applicable warranties if:
(1) The same nonconformity, defect, or
condition has been subject to repair 4 or more times by the manufacturer
or factory branch, or its agents or authorized dealers, within the
warranty period but such nonconformity, defect, or condition continues to
(2) The vehicle is out of service by reason
of repair of 1 or more nonconformities, defects, or conditions for a
cumulative total of 30 or more days during the warranty period; or
(3) A nonconformity, defect, or condition
resulting in failure of the braking or steering system has been subject to
the same repair at least once within the warranty period, and the
manufacturer has been notified and given the opportunity to cure the
defect, and the repair does not bring the vehicle into compliance with the
motor vehicle safety inspection laws of the State.
(e) The term of any warranty, the warranty
period, and the 30 day out of service period shall be extended by any time
during which repair services are not available to the consumer by reason
of war, invasion, strike, or fire, flood, or other natural disaster.
(i) It shall be the duty of a dealer to
notify the manufacturer of the existence of a nonconformity, defect, or
condition within 7 days when the motor vehicle is delivered to the same
dealer for a fourth time for repair of the same nonconformity or when the
vehicle is out of service by reason of repair of one or more
nonconformities, defects, or conditions for a cumulative total of 20 days.
(ii) The notification shall be sent by
certified mail and a copy of the notification shall be sent to the Motor
Vehicle Administration; however, failure of the dealer to give the
required notice required under this subsection shall not affect the
consumer's right under this subtitle.
(2) If a motor vehicle is returned to a
manufacturer or factory branch either under this subtitle, or by judgment,
decree, arbitration award, or by voluntary agreement, the manufacturer or
factory branch shall notify the Motor Vehicle Administration in writing
within 15 days of the fact that the vehicle was returned.
(i) If a motor vehicle that is returned to
the manufacturer under either this subtitle or by judgment, decree,
arbitration award, settlement agreement, or by voluntary agreement in this
or any other state and is then transferred to a dealer in Maryland, the
manufacturer shall disclose this information to the dealer.
(ii) The manufacturer's disclosure under this
paragraph shall be in writing on a separate piece of paper in 10 point all
capital type and shall state in a clear and conspicuous manner:
1. That the motor vehicle was returned to the
manufacturer or factory branch;
2. The nature of the defect, if any, that
resulted in the return; and
3. The condition of the motor vehicle at the
time that it is transferred to the dealer.
(i) If the returned vehicle is then made
available for resale, the seller shall provide a copy of the
manufacturer's disclosure form to the consumer prior to sale.
(ii) If the returned vehicle is sold, the
seller shall send a copy of the manufacturer's disclosure form, signed by
the consumer, to the Administration.
(h) This section does not limit the rights or
remedies that are otherwise available to a consumer under any other law,
including any implied warranties.
(1) If a manufacturer or factory branch has
established an informal dispute settlement procedure which complies in all
respects with the provisions of Title 16, Code of Federal Regulations,
Part 703, as amended, a consumer may resort to that procedure before
subsection (c) of this section applies.
(2) A consumer who has resorted to an
informal dispute settlement procedure may not be precluded from seeking
the rights or remedies available by law.
(1) 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 section shall be void.
(2) The rights available to a consumer under
this section shall inure to a subsequent transferee of a new motor vehicle
for the duration of the applicable warranties.
(k) Any action brought under this section
shall be commenced within 3 years of the date of original delivery of the
motor vehicle to the consumer.
(1) A court may award reasonable attorney's
fees to a prevailing plaintiff under this section.
(2) If it appears to the satisfaction of the
court that an action is brought in bad faith or is of a frivolous nature,
the court may order the offending party to pay to the other party
reasonable attorney's fees.
(m) This subtitle does not apply to a fleet
purchase of five or more motor vehicles.
(a) The Motor Vehicle Administration shall:
(1) Develop a notice that describes the
rights provided to consumers under this subtitle;
(2) Make the notice available to all dealers
that sell new motor vehicles in the State; and
(3) Adopt regulations as necessary to
implement the provisions of this section.
(b) The notice shall:
(1) Be written in simple and readable plain
(2) Contain sufficient detail to fully inform
consumers about the rights and remedies available under this subtitle and
the procedures to follow to enforce those rights and remedies.
(c) Each dealer that sells a new motor
vehicle in the State shall provide to the purchaser, at the time of the
sale or delivery of the motor vehicle, a copy of the notice developed by
the Motor Vehicle Administration under this section.
(1) If a dealer, manufacturer, factory
branch, or distributor is required under a judgment, decree, arbitration
award, or settlement agreement to accept, or by voluntary agreement
accepts, return of a motor vehicle from a consumer, the consumer shall be
entitled to recover from the Motor Vehicle Administration the excise taxes
originally paid by the consumer, subject to subsection (b) of this
(i) If a dealer, manufacturer, factory
branch, or distributor replaces a motor vehicle with a comparable motor
vehicle under § 14-1502(c)(1)(i) of this subtitle, the Motor Vehicle
Administration shall allow a credit against the excise tax imposed for the
replacement vehicle in the amount of the excise taxes originally paid by
the consumer for the returned vehicle, subject to subsection (b) of this
1. If the excise tax on the replacement
vehicle exceeds the credit allowed under subparagraph (i) of this
paragraph, the dealer shall collect only that portion of excise tax due;
2. If the excise tax on the vehicle being
replaced exceeds the excise tax on the replacement vehicle, the consumer
shall be entitled to recover from the Motor Vehicle Administration the
excess of the excise tax paid.
(b) The excise taxes that a consumer is
entitled to recover under this section shall be calculated based on the
amount of the purchase price or any portion of the purchase price of the
motor vehicle that the dealer, manufacturer, factory branch, or
distributor refunds to the consumer.
(c) A dealer, manufacturer, factory branch,
or distributor who is required under a judgment, decree, arbitration
award, or settlement agreement to accept, or who accepts, by voluntary
agreement, return of a motor vehicle shall notify the consumer in writing
that the consumer is entitled to recover the excise taxes from the Motor
(a) A violation of this subtitle shall be an
unfair and deceptive trade practice under Title 13 of the Commercial Law
(b) In addition to any other remedies that
may be available under this subtitle, if a manufacturer, factory branch,
or distributor is found to have acted in bad faith, the court may award
the consumer damages of up to $10,000.