Maryland (“MD”) lemon laws are stated in MD Commercial Law Code, Title 14, Subtitle 15 (Automotive Warranty Enforcement Act). According to Section 14-1502, nonconformity to all applicable express warranties that substantially affects use or market value of the vehicle will make the manufacturer liable to the buyer. The period within which the buyer should notify the nonconformity, and the manufacturer should repair the vehicle is the term specified in the express warranty.
If the manufacturer is not able to repair the motor vehicle after making reasonable attempts, at the option of the buyer the manufacture will have to replace the vehicle with a new comparable vehicle or repurchase and refund the price of the vehicle. When refunding the buyer, the manufacturer should pay the full purchase price which includes registration fees, excise tax license fees, and any governmental charges after reducing an amount towards the use of vehicle by the buyer before discovering the nonconformity. The deductible amount should not exceed 15 percent of the purchase price.
Md. COMMERCIAL LAW Code Ann. § 14-1502
“§ 14-1502. Automobile warranty enforcement
(a) Warranty period limitations to be specified in warranty. — 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 boldface type in the manufacturer’s written warranty.
(b) Correction of defects. —
(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.
(c) Uncorrectable defects. —
(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, less:
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.”