An Act To Amend the Maine"Lemon Law LR 1367(02)
Maine Legislature, Session 121, LD 0887
Committee Amendment CA_A_H382 (House)
Amends: Title 26, Section 162, 10 MRSA §1161, 10 MRSA §1161-A, 10 MRSA §1163, 10 MRSA §1168, 10 MRSA §1169

COMMITTEE AMENDMENT "If" to H. P . 
664, L.D. 887, Bill, "An 
Act To Amend the Maine "Lemon Law"" 
Amend the bill by striking out everything after the enacting 
clause and before the summary and inserting in its place the 
following: 
'Sec. 1. 10 MRSA c. 203-A is amended by repealing the chapter 
headnote and enacting the following in its place: 
CHAPTER 203-A 
MANUFACTURER WARRANTIES ON MO'l'QR VEHICLES 
Sec. 2. 10 MRSA § 1161, sub-§3, as amended by PL 1987, c. 359, 
§2, is further amended to read: 
3. 
Motor vehicle. "Motor vehicle" means any motor driven 
vehicle, designed for the conveyance of passengers or property on 
the public highwaysT-whieh ~ 
is sold or leased in this State, 
except that the 
term 
"motor 
vehicle" 
does 
not 
include 
any 
e9mmeFeia~ vehicle used primarily for commercial purposes with a 
gross vehicle weight of 8,500 pounds or more. 
Sec. 3. 10 MRSA §1161, sub-§4, as amended by PL 1999, c. 212, 
§l, is further amended to read: 
4. 
Reasonable allowance for use. 
"Reasonable allowance for 
use" means an amount that can not exceed the lesser of 1/3 of 
that amount 
allowed per mile 
by 
the United States Internal 
Revenue Service as provided by regulation, revenue procedure or 
revenue 
ruling promulgated 
under 
the 
United 
States 
Internal 
Page l-LR1367(2) 
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Revenue Code, Title 26, Section 162 for the use of a personal 
vehicle for business purposes based upon the mileage reported for 
that 
motor 
vehicle 
on 
the 
application 
for 
state-certified 
arbitration accepted by the State plus all mileage directly 
attributable to use by a consumer beyond 20,000 miles or 10% of 
the purchase price of the vehicle. 
Sec.4. 10 MRSA §1161-A is enacted to read: 
§II6I-A. 
Short title 
This chapter may be known and cited as "the Maine Lemon Law." 
Sec. 5. 10 MRSA §1163, as amended by PL 1999, c. 212, §2, is 
further amended to read: 
§II63. 
Rights and duties 
I. 
Repair of nonconformities. 
If a Rew motor vehicle does 
not conform to all express warranties, 
the manufacturer, its 
agent or authorized dealer shall make those repairs necessary to 
conform the vehicle to the express warranties if ·the consumer 
reports the nonconformity to 
the manufacturer, 
its agent or 
authorized dealer during the term of the express warranties, 
within a period of a .1 years following the date of original 
delivery of the motor vehicle to a consumerT or during the first 
18,000 miles of operation of that motor vehicle, whichever is-~Re 
eaFlieF---Qa~e 
occurs 
earliest. 
This 
obligation 
exists 
notwithstanding the fact that the repairs are made after the 
expiration of the appropriate time period. 
2. 
Failure to make effective repair. 
If the manufacturer 
or its agents or authorized dealers are unable to conform the 
motor vehicle to any applicable express warranty by repairing or 
correcting any defect or condition, or combination of defects or 
conditionsT-wh-ieR .tllirt. substantially impairs the use, safety or 
value of the motor vehicle after a reasonable number of attempts, 
the manufacturer shall either replace the motor vehicle wi th a 
comparable Rew motor vehicle or accept return of the vehicle from 
the consumer and make a refund to the consumer and lienholder, if 
any, as their interests may appear. 
The consumer may reject any 
offered replacement and receiVe instead a 
refund. 
The refund 
sRall n:rnll consist of the following items, less a 
reasonable 
allowance for use of the vehicle: 
A. 
The full purchase price or, if a leased vehicle, the 
lease payments made to date, 
including any paid finance 
charges on the purchased or leased vehicle; 
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B. 
All collateral charges, including, but not limited to, 
sales 
tax, 
~ieeDse--aa~ registration 
fees 
and 
similar 
government charges; and 
C. 
Reasonable costs incurred by the consumer for towing and 
storage 
of 
the 
vehicle 
and 
for 
procuring 
alternative 
transportation while the vehicle could not be driven because 
it did not conform to any applicable express warranty. 
The 
provisions 
of 
this 
section 
saa~~ 
~ not 
affect 
the 
obligations of a consumer under a loan or sales contract or the 
secured interest of any secured party. The secured party shall 
consent to the 
replacement of the security interest with 
a 
corresponding security interest on a replacement motor vehicle 
waiea ~ 
is accepted by the consumer in exchange for the motor 
vehicle, if the replacement motor vehicle is comparable in value 
to the original motor vehicle. If, for any reason, the security 
interest in the Dew motor vehicle having a defect or condition is 
not able to be replaced with a corresponding security interest on 
a Rew motor vehicle accepted by the consumer, the consumer 
saa~~ 
aeeep~ is entitled to a 
refund. 
Refunds 
required under this 
section saa~~ ~ 
be made to the consumer and the secured party, 
if any, as their interests exist at the time the refund is to be 
made. Similarly, refunds to a lessor and lessee 
saa~~ ~ 
be 
made as their interests exist at the time the refund is to be 
made. 
3. 
Reasonable number of attempts; presumption. 
There is a 
presumption that 
a 
reasonable 
number 
of 
attempts 
have 
been 
undertaken to conform a motor vehicle to the applicable express 
warranties if: 
A. 
The 
same nonconformity has been subject to 
.Q repair 
attempt 3 or more times by the manufacturer or its agents or 
authorized dealers within the express warranty term, during 
the period of a .3. years following the date of original 
delivery of the motor vehicle to a consumer or during the 
first 18,000 miles of operation of that motor vehicle, 
whichever is-~~~-~~r-Qa~e occurs earliest, and a~-~eas~ 
a-~-~~e6e--~~s-~~-same-~-e~-~k&r-~~~~-~ae 
~epai~-BH~ the nonconformity continues to exist; e~ 
A-2. 
The 
Same 
nonconformity has 
resulted in a 
serious 
failure of either the braking or steering systems in the 
vehicle and has been subject to a repair attempt one or more 
times 
by 
the manufacturer 
or its agents 
or 
authorized 
dealers during the warranty term or the appropriate time 
period. whichever occurs earlier: or 
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COMMITTEE AMENDMENT "Ii, to H. P. 664, L. D . 887 
B. 
The vehicle is out of service by reason of .2 repair 
attempt 
by 
the 
manufacturer, 
its 
agents 
or 
authorized 
dealer, of any defect or condition or combination of defects 
for a cumulative total of 15 or more business days during 
that warranty term or the appropriate time period, whichever 
is-ehe occurs earlier eaee. 
3-A. 
Final opportunity to repair. If the manufacturer or 
his ~ 
agents have been unable to make the repairs necessary to 
conform the vehicle to the express warranties, the consumer shall 
notify, in writing, the manufacturer or the authorized dealer of 
his the consumer's desire for a 
refund or replacement. 
This 
notice can be given after one repair attempt if the nonconformity 
has resulted in a 
serious failure of either the braking or 
steering systems 
in the vehicle. 
For 
the 
business 
days 
following receipt by the dealer or the manufacturer of this 
notice, the manufacturer shall-aave ~ 
a final opportunity to 
correct or repair any nonconformities. This final repair effort 
sha~~ ~ 
be at a repair facility that is reasonably accessible 
to the consumer. This repair effort sha~~ ~ 
not stay the time 
period within which the manufacturer must provide an arbitration 
hearing pursuant to section 1165. 
4. 
Time limit; extension. 
The term of an express warranty, 
ehe--<.me-}"&a-F---and---2-yea-£--peFiees the 18,000 mileage term, 
the 
3-year period following delivery and the 15-day period provided 
in subsection 3, paragraph B, 
sha~~ ~ 
be extended by any 
period of time during which repair services are not available to 
the consumer because of a war, invasionT QI strike or fire, flood 
or other natural disaster. 
5. 
Dealer liability. 
Nothing 
in this 
chapter 
may 
be 
construed as imposing any liability on a dealer or creating a 
cause of action by 
a 
consumer 
against 
a 
dealer under this 
section, except regarding any written express warranties made by 
the dealer apart from the manufacturer's own warranties. 
6. 
Disclosure of notice requirement. 
No consumer may be 
required 
to notify the manufacturer 
of 
a 
claim 
under 
this 
section, unless the manufacturer has clearly and conspicuously 
disclosed to the consumer, in the warranty or owner's manual, 
that written notification of the nonconformity is required before 
the consumer may be eligible for a refund or replacement of the 
vehicle. 
The manufacturer shall include with the warranty or 
owner's manual the name and address to which the consumer shall 
send the written notification. 
6-A. 
Rotification of dealer. Consumers may also satisfy a 
manufacturer's notice requirement by notifying in writing the 
authorized dealer of a claim under this section. The dealer shall 
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act as the manufacturer's agent and immediately communicate to 
the manufacturer the consumer's claim. 
7. 
Disclosure at time of resale for failure to make 
effective repair. 
Ne A motor vehicle whieh .th.9.t. is returned to 
the manufacturer under subsection 2T may nQ.t. be resold without 
clear 
and 
conspicuous 
written 
disclosure 
to 
any 
subsequent 
purchaser, whether that purchaser is a consumer or a dealer, of 
the following information: 
A. 
That the motor vehicle was returned to the manufacturer 
under this chapter; 
B. 
That 
the 
motor 
vehicle 
did 
not 
conform 
to 
the 
manufacturer's express warranties; and 
C. 
The ways in which the motor vehicle did not conform to 
the manufacturer's express warranties. 
8. 
Disclosure at time of retail sale under settlement 
agreement. 
A motor vehicle that is surrendered to a manufacturer 
as a result of a settlement of a state-certified arbitration 
must, at the time that motor vehicle is first offered for retail 
sale to the public, 
be affixed with a clear and conspicuous 
written disclosure stating that the vehicle was the subject of a 
Maine Lemon Law settlement agreement. 
Sec. 6. 10 MRSA §1168, sub-§I, 1f1fA and B, as enacted by PL 
1987, c. 359, §8, are amended to read: 
A. 
Those warranties saaJ.J.--&e ~ 
deemed to apply to the 
leased motor vehicles; and 
B. 
The consumer lessee shall-se II deemed to be the first 
purchaser of the motor vehicle for 
the purpose of 
any 
warranty 
provisions 
limiting 
warranty 
benefits 
to 
the 
original purchaser. 
Sec. 7. 10 MRSA §1169, sub-§I, as amended by PL 1999, c. 212, 
§4, is further amended to read: 
1. 
Neutral motor vehicle arbitration. 
All manufacturers 
shall 
submit 
to 
state-certifiedT--~--ea~ 
motor 
vehicle 
arbitration if arbitration is requested by the consumer within 6 
~ years from the date of original delivery to the consumer of a 
Rew motor vehicle' or wi thin the term of the express warranties, 
whichever comes first, and the State has accepted the application 
as 
making 
proper 
Maine 
Lemon 
Law 
claims. 
State-certified 
arbitration must be performed by one or more neutral arbitrators 
selected by the Department of the Attorney General operating in 
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COMMITTEE AMENDMENT .. fl .. to H.P. 664, L.D. 887 
accordance with the rules adopted pursuant to this chapter. 
The 
Attorney General 
may 
contract with an 
independent entity to 
provide arbitration or the Attorney General's office may appoint 
neutral arbitrators. 
Each party to an arbitration is entitled to 
one rejection of a proposed arbitrator.' 
SUMMARY 
This amendment replaces the bill. 
The amendment amends the 
lemon law by: 
1. 
Expanding the term of protection under the 
from 
to 
years, 
the warranty period or 18,000 
operation, whichever occurs earliest; 
lemon law 
miles of 
2. 
Allowing consumers, after one repair attempt, to claim 
the presumption that a reasonable number of repair attempts have 
been undertaken when the claimed nonconformity has resulted in a 
serious failure of either the braking or steering systems in the 
vehicle; 
3. 
Requiring 
that 
a 
motor 
vehicle 
surrendered 
to 
a 
manufacturer as a result of a settlement under the lemon law be 
affixed with a notice, when that vehicle is first offered for 
resale to the public, stating that the vehicle was the subject of 
a Maine Lemon Law settlement agreement; 
4. 
Expanding the time limit 
state arbitration from 2 years to 
expiration of the manufacturer's 
occurs earlier; 
for applying for 
lemon law 
years or to any time before 
express warranties, whichever 
5. 
Eliminating the requirement that 2 attempts to repair 
the defect or defects must be made by the same dealer; and 
6. 
Limiting the amount that may be deducted from the refund 
required under the lemon law for mileage to the mileage that is 
reported on the application accepted by the State for lemon law 
arbitration and any mileage directly attributable to use by a 
consumer beyond 20,000 miles. 
FISCAL NOTE REQllRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05/02/03 ;t;vae 
Office of Fiscal and Program Review 
LD887 
An Act To Amend the Maine"Lemon Law" 
LR 1367(02) 
Fiscal Note for Bill as Amended by Committee Amendment" " 
Committee: Business, Research and Economic Development 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
LR1367(2) - Fiscal Note - Page 1 of 1