Rules relating to defective motor vehicles are dealt with in Title XXIX, Chapter 367 (Consumer Protection), Section 367.840 et seq. (Defective New Cars). According to Section 367.841 (6), nonconformity means a failure to conform with an express warranty in a manner which substantially impairs the use, value, or safety of the motor vehicle. Pursuant to Section 367.842, time period for manufacturer repair is 12 months following date of delivery or first 12,000 miles, whichever is first.
According to Section 367.842 (2), if the manufacturer is unable to repair or correct any nonconformity or defect of any motor vehicle after a reasonable number of attempts, then the manufacturer at the option of the buyer should either replace the vehicle with a comparable motor vehicle or accept return and refund full purchase price including amount paid for vehicle, finance charge, all sales tax, license fee, registration fee, any similar governmental charges, plus all collateral charges. From this amount the manufacturer can deduct a reasonable offset for use.
KRS § 367.841
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(6) “Nonconformity” means a failure to conform with an express warranty in a manner which substantially impairs the use, value, or safety of the motor vehicle.
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KRS § 367.842
(1) If, after a reasonable number of attempts, the manufacturer or its agents are unable to repair the nonconformity in the motor vehicle to the express warranty during the first twelve thousand (12,000) miles of operation or during the first twelve (12) months following the date of delivery to the buyer, whichever is the earlier date, that buyer shall report the nonconformity, in writing, to the manufacturer.
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KRS § 367.842
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(2) If, within the period specified in subsection (1) of this section, the manufacturer or its agents, are unable to repair or correct any nonconformity or defect that substantially impairs the use, value, or safety of the motor vehicle, after a reasonable number of attempts, the manufacturer, at the option of the buyer, shall replace the motor vehicle with a comparable motor vehicle, or accept return of the vehicle from the buyer and refund to the buyer the full purchase price. The full purchase price shall include the amount paid for the motor vehicle, finance charge, all sales tax, license fee, registration fee, and any similar governmental charges plus all collateral charges, less a reasonable allowance for the buyer’s use of the vehicle. Refunds shall be made to the buyer and lienholder, if any, as their interests may appear on the records of ownership kept by the Department of Vehicle Regulation. The provisions of this section shall not affect the interests of a lienholder, unless the lienholder consents to the replacement of the lien with a corresponding lien on the automobile accepted by the consumer in exchange for the automobile having a nonconformity, the lienholder shall be paid in full the amount due on the lien, including finance charges and other charges, before an exchange of automobiles or a refund to the consumer is made.
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