North Carolina Lemon Laws

North Carolina (“NC”) lemon laws are stated under New Motor Vehicles Warranties Act (“Act”).  The Act is enumerated in NC General Statutes, Chapter 20, Article 15A.  Under Section 20-351.3, nonconformity of a motor vehicle to the manufacturer’s express warranties is a defect or condition that significantly affects the market value of the vehicle.  The period within which the buyer should notify the nonconformity and the manufacturer should repair the vehicle is either on completing 24,000 miles or 24 months of vehicle’s operation from the date of delivery, whichever happens earlier.

If the manufacturer is not able to repair the motor vehicle after reasonable attempts, at the buyer’s option the manufacturer will have to replace the vehicle with a new comparable vehicle or repurchase and refund the price of the vehicle to the buyer.  When refunding, the manufacturer should pay the full purchase price which include all charges for undercoating, preparation, transportation, and instillation.  Also, purchase price may include all collateral charges, financial charges, and incidental and consequential damages relating to a vehicle trade.  The manufacturer is permitted to deduct an amount attributable to the use of vehicle by the buyer before discovering the nonconformity.

N.C. Gen. Stat. § 20-351.3 reads in part:

 “§ 20-351.3. Replacement or refund; disclosure requirement
   (a) When the consumer is the purchaser or a person entitled by the terms of the express warranty to enforce the obligations of the warranty, if the manufacturer is unable, after a reasonable number of attempts, to conform the motor vehicle to any express warranty by repairing or correcting, or arranging for the repair or correction of, any defect or condition or series of defects or conditions which substantially impair the value of the motor vehicle to the consumer, and which occurred no later than 24 months or 24,000 miles following original delivery of the vehicle, the manufacturer shall, at the option of the consumer, replace the vehicle with a comparable new motor vehicle or accept return of the vehicle from the consumer and refund to the consumer the following:
   (1) The full contract price including, but not limited to, charges for undercoating, dealer preparation and transportation, and installed options, plus the non-refundable portions of extended warranties and service contracts;
   (2) All collateral charges, including but not limited to, sales tax, license and registration fees, and similar government charges;
   (3) All finance charges incurred by the consumer after he first reports the nonconformity to the manufacturer, its agent, or its authorized dealer; and
   (4) Any incidental damages and monetary consequential damages.”

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Inside North Carolina Lemon Laws