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Washington State Lemon Law
Washington Revised
Code Annotated, 19.118.005 to 19.118.170
19.118.005
Legislative intent.
The legislature
recognizes that a new motor vehicle is a major consumer purchase and
that a defective motor vehicle is likely to create hardship for, or
may cause injury to, the consumer. The legislature further
recognizes that good cooperation and communication between a
manufacturer and a new motor vehicle dealer will considerably
increase the likelihood that a new motor vehicle will be repaired
within a reasonable number of attempts. It is the intent of the
legislature to ensure that the consumer is made aware of his or her
rights under this chapter and is not refused information, documents,
or service that would otherwise obstruct the exercise of his or her
rights.
In enacting
these comprehensive measures, it is the intent of the legislature to
create the proper blend of private and public remedies necessary to
enforce this chapter, such that a manufacturer will be sufficiently
induced to take necessary steps to improve quality control at the
time of production or provide better warranty service for the new
motor vehicles that it sells in this state.
19.118.010 Motor
vehicle manufacturers.
Express
warranties; Service and repair facilities.
Every
manufacturer of motor vehicles sold in this state and for which the
manufacturer has made an express warranty shall maintain in this
state sufficient service and repair facilities reasonably close to
all areas in which its motor vehicles are sold to carry out the
terms of the warranties or designate and authorize in this state as
service and repair facilities independent repair or service
facilities reasonably close to all areas in which its motor vehicles
are sold to carry out the terms of the warranties. As a means of
complying with this section, a manufacturer may enter into warranty
service contracts with independent service and repair facilities.
19.118.021
Definitions.
Unless the
context clearly requires otherwise, the definitions in this section
apply throughout this chapter.
(1)
"Board" means new motor vehicle arbitration board.
(2)
"Collateral charges" means any sales or lease related charges
including but not limited to sales tax, use tax, arbitration service
fees, unused license fees, unused registration fees, unused title
fees, finance charges, prepayment penalties, credit disability and
credit life insurance costs not otherwise refundable, any other
insurance costs prorated for time out of service, transportation
charges, dealer preparation charges, or any other charges for
service contracts, undercoating, rust proofing, or factory or dealer
installed options.
(3)
"Condition" means a general problem that results from a defect or
malfunction of one or more parts, or their improper installation by
the manufacturer, its agents, or the new motor vehicle dealer.
(4)
"Consumer" means any person who has entered into an agreement or
contract for the transfer, lease, or purchase of a new motor
vehicle, other than for purposes of resale or sublease, during the
duration of the warranty period defined under this section.
(5)
"Court" means the superior court in the county where the consumer
resides, except if the consumer does not reside in this state, then
the superior court in the county where an arbitration hearing or
determination was conducted or made pursuant to this chapter.
(6)
"Incidental costs" means any reasonable expenses incurred by the
consumer in connection with the repair of the new motor vehicle,
including any towing charges and the costs of obtaining alternative
transportation.
(7)
"Manufacturer" means any person engaged in the business of
constructing or assembling new motor vehicles or engaged in the
business of importing new motor vehicles into the United States for
the purpose of selling or distributing new motor vehicles to new
motor vehicle dealers. "Manufacturer" does not include any person
engaged in the business of set-up of motorcycles as an agent of a
new motor vehicle dealer if the person does not otherwise construct
or assemble motorcycles.
(8)
"Motorcycle" means any motorcycle as defined in RCW 46.04.330 which
has an engine displacement of at least seven hundred fifty cubic
centimeters.
(9)
"Motor home" means a vehicular unit designed to provide temporary
living quarters for recreational, camping, or travel use, built on
or permanently attached to a self-propelled motor vehicle chassis or
on a chassis cab or van that is an integral part of the completed
vehicle.
(10)
"Motor home manufacturer" means the first stage manufacturer, the
component manufacturer, and the final stage manufacturer.
(a)
"First stage manufacturer" means a person who manufactures
incomplete new motor vehicles such as chassis, chassis cabs, or
vans, that are directly warranted by the first stage manufacturer to
the consumer, and are completed by a final stage manufacturer into a
motor home.
(b)
"Component manufacturer" means a person who manufactures components
used in the manufacture or assembly of a chassis, chassis cab, or
van that is completed into a motor home and whose components are
directly warranted by the component manufacturer to the consumer.
(c)
"Final stage manufacturer" means a person who assembles, installs,
or permanently affixes a body, cab, or equipment to an incomplete
new motor vehicle such as a chassis, chassis cab, or van provided by
a first stage manufacturer, to complete the vehicle into a motor
home.
(11)
"New motor vehicle" means any new self-propelled vehicle, including
a new motorcycle, primarily designed for the transportation of
persons or property over the public highways that was originally
purchased or leased at retail from a new motor vehicle dealer or
leasing company in this state, and that was initially registered in
this state or for which a temporary motor vehicle license was issued
pursuant to RCW 46.16.460, but does not include vehicles purchased
or leased by a business as part of a fleet of ten or more vehicles
at one time or under a single purchase or lease agreement. If the
motor vehicle is a motor home, this chapter shall apply to the
self-propelled vehicle and chassis, but does not include those
portions of the vehicle designated, used, or maintained primarily as
a mobile dwelling, office, or commercial space. The term "new motor
vehicle" does not include trucks with nineteen thousand pounds or
more gross vehicle weight rating. The term "new motor vehicle"
includes a demonstrator or lease-purchase vehicle as long as a
manufacturer's warranty was issued as a condition of sale.
(12)
"New motor vehicle dealer" means a person who holds a dealer
agreement with a manufacturer for the sale of new motor vehicles,
who is engaged in the business of purchasing, selling, servicing,
exchanging, or dealing in new motor vehicles, and who is licensed or
required to be licensed as a vehicle dealer by the state of
Washington.
(13)
"Nonconformity" means a defect, serious safety defect, or condition
that substantially impairs the use, value, or safety of a new motor
vehicle, but does not include a defect or condition that is the
result of abuse, neglect, or unauthorized modification or alteration
of the new motor vehicle.
(14)
"Purchase price" means the cash price of the new motor vehicle
appearing in the sales agreement or contract.
(a)
"Purchase price" in the instance of a lease means the actual written
capitalized cost disclosed to the consumer contained in the lease
agreement. If there is no disclosed capitalized cost in the lease
agreement the "purchase price" is the manufacturer's suggested
retail price including manufacturer installed accessories or items
of optional equipment displayed on the manufacturer label, required
by 15 U.S.C. Sec. 1232.
(b)
"Purchase price" in the instance of both a vehicle purchase or lease
agreement includes any allowance for a trade-in vehicle but does not
include any manufacturer-to-consumer rebate appearing in the
agreement or contract that the consumer received or that was applied
to reduce the purchase or lease cost. Where the consumer is a
subsequent transferee and the consumer selects repurchase of the
motor vehicle, "purchase price" means the consumer's subsequent
purchase price. Where the consumer is a subsequent transferee and
the consumer selects replacement of the motor vehicle, "purchase
price" means the original purchase price.
(15)
"Reasonable offset for use" means the definition provided in RCW
19.118.041(1)(c) for a new motor vehicle other than a new
motorcycle. The reasonable offset for use for a new motorcycle shall
be computed by the number of miles that the vehicle traveled before
the manufacturer's acceptance of the vehicle upon repurchase or
replacement multiplied by the purchase price, and divided by
twenty-five thousand.
(16)
"Reasonable number of attempts" means the definition provided in RCW
19.118.041.
(17)
"Replacement motor vehicle" means a new motor vehicle that is
identical or reasonably equivalent to the motor vehicle to be
replaced, as the motor vehicle to be replaced existed at the time of
original purchase or lease, including any service contract,
undercoating, rustproofing, and factory or dealer installed options.
(18)
"Serious safety defect" means a life-threatening malfunction or
nonconformity that impedes the consumer's ability to control or
operate the new motor vehicle for ordinary use or reasonable
intended purposes or creates a risk of fire or explosion.
(19)
"Subsequent transferee" means a consumer who acquires a motor
vehicle, within the warranty period, as defined in this section,
with an applicable manufacturer's written warranty and where the
vehicle otherwise met the definition of a new motor vehicle at the
time of original retail sale or lease.
(20)
"Substantially impair" means to render the new motor vehicle
unreliable, or unsafe for ordinary use, or to diminish the resale
value of the new motor vehicle below the average resale value for
comparable motor vehicles.
(21)
"Warranty" means any implied warranty, any written warranty of the
manufacturer, or any affirmation of fact or promise made by the
manufacturer in connection with the sale of a new motor vehicle that
becomes part of the basis of the bargain. The term "warranty"
pertains to the obligations of the manufacturer in relation to
materials, workmanship, and fitness of a new motor vehicle for
ordinary use or reasonably intended purposes throughout the duration
of the warranty period as defined under this section.
(22)
"Warranty period" means the period ending two years after the date
of the original delivery to the consumer of a new motor vehicle, or
the first twenty-four thousand miles of operation, whichever occurs
first.
19.118.031
Manufacturers and new motor vehicle dealers.
Responsibilities to consumers; Extension of warranty period.
(1)
The manufacturer shall publish an owner's manual and provide it to
the new motor vehicle dealer or leasing company. The owner's manual
shall include a list of the addresses and phone numbers for the
manufacturer's customer assistance division, or zone or regional
offices. A manufacturer shall provide to the new motor vehicle
dealer or leasing company all applicable manufacturer's written
warranties. The dealer or leasing company shall transfer to the
consumer, at the time of original retail sale or lease, the owner's
manual and applicable written warranties as provided by a
manufacturer.
(2)
At the time of purchase, the new motor vehicle dealer shall provide
the consumer with a written statement that explains the consumer's
rights under this chapter. The written statement shall be prepared
and supplied by the attorney general and shall contain a toll-free
number that the consumer can contact for information regarding the
procedures and remedies under this chapter.
(3)
For the purposes of this chapter, if a new motor vehicle does not
conform to the warranty and the consumer reports the nonconformity
during the term of the warranty period or the period of coverage of
the applicable manufacturer's written warranty, whichever is less,
to the manufacturer, its agent, or the new motor vehicle dealer who
sold the new motor vehicle, the manufacturer, its agent, or the new
motor vehicle dealer shall make repairs as are necessary to conform
the vehicle to the warranty, regardless of whether such repairs are
made after the expiration of the warranty period. Any corrections or
attempted repairs undertaken by a new motor vehicle dealer under
this chapter shall be treated as warranty work and billed by the
dealer to the manufacturer in the same manner as other work under
the manufacturer's written warranty is billed. For purposes of this
subsection, the manufacturer's written warranty shall be at least
one year after the date of the original delivery to the consumer of
the vehicle or the first twelve thousand miles of operation,
whichever occurs first.
(4)
Upon request from the consumer, the manufacturer or new motor
vehicle dealer shall provide a copy of any report or computer
reading compiled by the manufacturer's field or zone representative
regarding inspection, diagnosis, or test-drive of the consumer's new
motor vehicle, or shall provide a copy of any technical service
bulletin issued by the manufacturer regarding the year and model of
the consumer's new motor vehicle as it pertains to any material,
feature, component, or the performance thereof.
(5)
The new motor vehicle dealer shall provide to the consumer each time
the consumer's vehicle is returned from being diagnosed or repaired
under the warranty, a fully itemized, legible statement or repair
order indicating any diagnosis made, and all work performed on the
vehicle including but not limited to, a general description of the
problem reported by the consumer or an identification of the defect
or condition, parts and labor, the date and the odometer reading
when the vehicle was submitted for repair, and the date when the
vehicle was made available to the consumer.
(6)
No manufacturer, its agent, or the new motor vehicle dealer may
refuse to diagnose or repair any nonconformity covered by the
warranty for the purpose of avoiding liability under this chapter.
(7)
For purposes of this chapter, consumers shall have the rights and
remedies, including a cause of action, against manufacturers as
provided in this chapter.
(8)
The warranty period and thirty-day out-of-service period, and
sixty-day out-of-service period in the case of a motor home, shall
be extended by any time that repair services are not available to
the consumer as a direct result of a strike, war, invasion, fire,
flood, or other natural disaster.
19.118.041
Replacement or repurchase of nonconforming new motor vehicle.
Reasonable
number of attempts; Notice by consumer regarding motor home
nonconformity; Liabilities and rights of parties; Application of
consumer protection act.
(1)
If the manufacturer, its agent, or the new motor vehicle dealer is
unable to conform the new motor vehicle to the warranty by repairing
or correcting any nonconformity after a reasonable number of
attempts, the manufacturer, within forty calendar days of a
consumer's written request to the manufacturer's corporate, dispute
resolution, zone, or regional office address shall, at the option of
the consumer, replace or repurchase the new motor vehicle.
(a)
The replacement motor vehicle shall be identical or reasonably
equivalent to the motor vehicle to be replaced as the motor vehicle
to be replaced existed at the time of original purchase or lease,
including any service contract, undercoating, rust proofing, and
factory or dealer installed options. Where the manufacturer supplies
a replacement motor vehicle, the manufacturer shall be responsible
for sales tax, license, registration fees, and refund of any
incidental costs. Compensation for a reasonable offset for use shall
be paid by the consumer to the manufacturer in the event that the
consumer accepts a replacement motor vehicle.
(b)
When repurchasing the new motor vehicle, the manufacturer shall
refund to the consumer the purchase price, all collateral charges,
and incidental costs, less a reasonable offset for use. When
repurchasing the new motor vehicle, in the instance of a lease, the
manufacturer shall refund to the consumer all payments made by the
consumer under the lease including but not limited to all lease
payments, trade-in value or inception payment, security deposit, all
collateral charges and incidental costs less a reasonable offset for
use. The manufacturer shall make such payment to the lessor and/or
lien holder of record as necessary to obtain clear title to the
motor vehicle and upon the lessor's and/or lien holder's receipt of
that payment and payment by the consumer of any late payment
charges, the consumer shall be relieved of any future obligation to
the lessor and/or lien holder.
(c)
The reasonable offset for use shall be computed by multiplying the
number of miles that the vehicle traveled directly attributable to
use by the consumer times the purchase price, and dividing the
product by one hundred twenty thousand, except in the case of a
motor home, in which event it shall be divided by ninety thousand.
However, the reasonable offset for use calculation total for a motor
home is subject to modification by the board by decreasing or
increasing the offset total up to a maximum of one- third of the
offset total. The board may modify the offset total in those
circumstances where the board determines that the wear and tear on
those portions of the motor home designated, used, or maintained
primarily as a mobile dwelling, office, or commercial space are
significantly greater or significantly less than that which could be
reasonably expected based on the mileage attributable to the
consumer's use of the motor home. Where the consumer is a second or
subsequent purchaser, lessee, or transferee of the motor vehicle and
the consumer selects repurchase of the motor vehicle, "the number of
miles that the vehicle traveled" shall be calculated from the date
of purchase or lease by the consumer. Where the consumer is a second
or subsequent purchaser, lessee, or transferee of the motor vehicle
and the consumer selects replacement of the motor vehicle, "the
number of miles that the vehicle traveled" shall be calculated from
the original purchase, lease, or in-service date.
(2)
Reasonable number of attempts, except in the case of a new motor
vehicle that is a motor home acquired after June 30, 1998, shall be
deemed to have been undertaken by the manufacturer, its agent, or
the new motor vehicle dealer to conform the new motor vehicle to the
warranty within the warranty period, if:
(a)
The same serious safety defect has been subject to diagnosis or
repair two or more times, at least one of which is during the period
of coverage of the applicable manufacturer's written warranty, and
the serious safety defect continues to exist;
(b)
the same nonconformity has been subject to diagnosis or repair four
or more times, at least one of which is during the period of
coverage of the applicable manufacturer's written warranty, and the
nonconformity continues to exist; or
(c)
the vehicle is out of service by reason of diagnosis or repair of
one or more nonconformities for a cumulative total of thirty
calendar days, at least fifteen of them during the period of the
applicable manufacturer's written warranty. For purposes of this
subsection, the manufacturer's written warranty shall be at least
one year after the date of the original delivery to the consumer of
the vehicle or the first twelve thousand miles of operation,
whichever occurs first.
(3)
(a)
In the case of a new motor vehicle that is a motor home acquired
after June 30, 1998, a reasonable number of attempts shall be deemed
to have been undertaken by the motor home manufacturers, their
respective agents, or their respective new motor vehicle dealers to
conform the new motor vehicle to the warranty within the warranty
period, if:
(i)
The same serious safety defect has been subject to diagnosis or
repair one or more times during the period of coverage of the
applicable motor home manufacturer's written warranty, plus a final
attempt to repair the vehicle as provided for in (b) of this
subsection, and the serious safety defect continues to exist;
(ii)
the same nonconformity has been subject to repair three or more
times, at least one of which is during the period of coverage of the
applicable motor home manufacturer's written warranty, plus a final
attempt to repair the vehicle as provided for in (b) of this
subsection, and the nonconformity continues to exist; or
(iii)
the vehicle is out of service by reason of diagnosis or repair of
one or more nonconformities for a cumulative total of sixty calendar
days aggregating all motor home manufacturer days out of service,
and the motor home manufacturers have had at least one opportunity
to coordinate and complete an inspection and any repairs of the
vehicle's nonconformities after receipt of notification from the
consumer as provided for in (c) of this subsection. For purposes of
this subsection, each motor home manufacturer's written warranty
must be at least one year after the date of the original delivery to
the consumer of the vehicle or the first twelve thousand miles of
operation, whichever occurs first.
(b)
In the case of a new motor vehicle that is a motor home, after one
attempt has been made to repair a serious safety defect, or after
three attempts have been made to repair the same nonconformity, the
consumer shall give written notification of the need to repair the
nonconformity to each of the motor home manufacturers at their
respective corporate, zone, or regional office addresses to allow
the motor home manufacturers to coordinate and complete a final
attempt to cure the nonconformity. The motor home manufacturers each
have fifteen days, commencing upon receipt of the notification, to
respond and inform the consumer of the location of the facility
where the vehicle will be repaired. If the vehicle is unsafe to
drive due to a serious safety defect, or to the extent the repair
facility is more than one hundred miles from the motor home
location, the motor home manufacturers are responsible for the cost
of transporting the vehicle to and from the repair facility. The
motor home manufacturers have a cumulative total of thirty days,
commencing upon delivery of the vehicle to the designated repair
facility by the consumer, to conform the vehicle to the applicable
motor home manufacturer's written warranty. This time period may be
extended if the consumer agrees in writing. If a motor home
manufacturer fails to respond to the consumer or perform the repairs
within the time period prescribed, that motor home manufacturer is
not entitled to a final attempt to cure the nonconformity.
(c)
In the case of a new motor vehicle that is a motor home, if the
vehicle is out of service by reason of diagnosis or repair of one or
more nonconformities by the motor home manufacturers, their
respective agents, or their respective new motor vehicle dealers for
a cumulative total of thirty or more days aggregating all motor home
manufacturer days out of service, the consumer shall so notify each
motor home manufacturer in writing at their respective corporate,
zone, or regional office addresses to allow the motor home
manufacturers, their respective agents, or their respective new
motor vehicle dealers an opportunity to coordinate and complete an
inspection and any repairs of the vehicle's nonconformities. The
motor home manufacturers have fifteen days, commencing upon receipt
of the notification, to respond and inform the consumer of the
location of the facility where the vehicle will be repaired. If the
vehicle is unsafe to drive due to a serious safety defect, or to the
extent the repair facility is more than one hundred miles from the
motor home location, the motor home manufacturers are responsible
for the cost of transporting the vehicle to and from the repair
facility. Once the buyer delivers the vehicle to the designated
repair facility, the inspection and repairs must be completed by the
motor home manufacturers either
(i)
within ten days or
(ii)
before the vehicle is out of service by reason of diagnosis or
repair of one or more nonconformities for sixty days, whichever time
period is longer.
This time
period may be extended if the consumer agrees in writing. If a motor
home manufacturer fails to respond to the consumer or perform the
repairs within the time period prescribed, that motor home
manufacturer is not entitled to at least one opportunity to inspect
and repair the vehicle's nonconformities after receipt of
notification from the buyer as provided for in this subsection
(3)(c).
(4)
No new motor vehicle dealer may be held liable by the manufacturer
for any collateral charges, incidental costs, purchase price
refunds, or vehicle replacements. Manufacturers shall not have a
cause of action against dealers under this chapter. Consumers shall
not have a cause of action against dealers under this chapter, but a
violation of any responsibilities imposed upon dealers under this
chapter is a per se violation of chapter 19.86 RCW. Consumers may
pursue rights and remedies against dealers under any other law,
including chapters 46.70 and 46.71 RCW. Manufacturers and consumers
may not make dealers parties to arbitration board proceedings under
this chapter.
19.118.061 Vehicle
with nonconformities or out of service.
Notification of
correction; Resale or transfer of title; Issuance of new title;
Disclosure to buyer; Intervening transferor.
(1)
A manufacturer shall be prohibited from reselling any motor vehicle
determined or adjudicated as having a serious safety defect unless
the serious safety defect has been corrected and the manufacturer
warrants upon the first subsequent resale that the defect has been
corrected.
(2)
Before any sale or transfer of a vehicle that has been replaced or
repurchased by the manufacturer that was determined or adjudicated
as having a nonconformity or to have been out of service for thirty
or more calendar days, or sixty or more calendar days in the case of
a motor home, under this chapter, the manufacturer shall:
(a)
Notify the attorney general and the department of licensing, by
certified mail or by personal service, upon receipt of the motor
vehicle;
(b)
Attach a resale disclosure notice to the vehicle in a manner and
form to be specified by the attorney general. Only the retail
purchaser may remove the resale disclosure notice after execution of
the disclosure form required under subsection (3) of this section;
and
(c)
Notify the attorney general and the department of licensing if the
nonconformity in the motor vehicle is corrected.
(3)
Upon the first subsequent resale, either at wholesale or retail, or
transfer of title of a motor vehicle and which was previously
returned after a final determination, adjudication, or settlement
under this chapter or under a similar statute of any other state,
the manufacturer, its agent, or the new motor vehicle dealer who has
actual knowledge of said final determination, adjudication or
settlement, shall execute and deliver to the buyer before sale an
instrument in writing setting forth information identifying the
nonconformity in a manner to be specified by the attorney general,
and the department of licensing shall place on the certificate of
title information indicating the vehicle was returned under this
chapter.
(4)
Upon receipt of the manufacturer's notification under subsection (2)
of this section that the nonconformity has been corrected and upon
the manufacturer's request and payment of any fees, the department
of licensing shall issue a new title with information indicating the
vehicle was returned under this chapter and that the nonconformity
has been corrected. Upon the first subsequent resale, either at
wholesale or retail, or transfer of title of a motor vehicle, as
provided under subsection (2)(c) of this section, the manufacturer
shall warrant upon the resale that the nonconformity has been
corrected, and the manufacturer, its agent, or the new motor vehicle
dealer who has actual knowledge of the corrected nonconformity,
shall execute and deliver to the buyer before sale an instrument in
writing setting forth information identifying the nonconformity and
indicating that it has been corrected in a manner to be specified by
the attorney general.
(5)
After repurchase or replacement and following a manufacturer's
receipt of a vehicle under this section and prior to a vehicle's
first subsequent retail transfer by resale or lease, any intervening
transferor of a vehicle subject to the requirements of this section
who has received the disclosure, correction and warranty documents,
as specified by the attorney general and required under this
chapter, shall deliver the documents with the vehicle to the next
transferor, purchaser or lessee to ensure proper and timely notice
and disclosure. Any intervening transferor who fails to comply with
this subsection shall, at the option of the subsequent transferor or
first subsequent retail purchaser or lessee:
(a)
Indemnify any subsequent transferor or first subsequent retail
purchaser for all damages caused by such violation; or
(b)
repurchase the vehicle at the full purchase price including all
fees, taxes and costs incurred for goods and services which were
included in the subsequent transaction.
19.118.070
Remedies.
The remedies
provided under this chapter are cumulative and are in addition to
any other remedies provided by law.
19.118.080 New
motor vehicle arbitration boards.
Board
proceedings; Prerequisite to filing action in superior court.
(1)
Except as provided in RCW 19.118.160, the attorney general shall
contract with one or more private entities to conduct arbitration
proceedings in order to settle disputes between consumers and
manufacturers as provided in this chapter, and each private entity
shall constitute a new motor vehicle arbitration board for purposes
of this chapter. The entities shall not be affiliated with any
manufacturer or new motor vehicle dealer and shall have available
the services of persons with automotive technical expertise to
assist in resolving disputes under this chapter. No private entity
or its officers or employees conducting board proceedings and no
arbitrator presiding at such proceedings shall be directly involved
in the manufacture, distribution, sale, or warranty service of any
motor vehicle. Payment to the entities for the arbitration services
shall be made from the new motor vehicle arbitration account.
(2)
The attorney general shall adopt rules for the uniform conduct of
the arbitrations by the boards whether conducted by a private entity
or by the attorney general pursuant to RCW 19.118.160, which rules
shall include but not be limited to the following procedures:
(a)
At all arbitration proceedings, the parties are entitled to present
oral and written testimony, to present witnesses and evidence
relevant to the dispute, to cross-examine witnesses, and to be
represented by counsel.
(b)
A dealer, manufacturer, or other persons shall produce records and
documents requested by a party which are reasonably related to the
dispute. If a dealer, manufacturer, or other person refuses to
comply with such a request, a party may present a request to the
board for the attorney general to issue a subpoena on behalf of the
board.
The subpoena
shall be issued only for the production of records and documents
which the board has determined are reasonably related to the
dispute, including but not limited to documents described in RCW
19.118.031 (4) or (5).
If a party
fails to comply with the subpoena, the arbitrator may at the outset
of the arbitration hearing impose any of the following sanctions:
(i)
Find that the matters which were the subject of the subpoena, or any
other designated facts, shall be taken to be established for
purposes of the hearing in accordance with the claim of the party
which requested the subpoena;
(ii)
refuse to allow the disobedient party to support or oppose the
designated claims or defenses, or prohibit that party from
introducing designated matters into evidence;
(iii)
strike claims or defenses, or parts thereof; or
(iv)
render a decision by default against the disobedient party.
If a nonparty
fails to comply with a subpoena and upon an arbitrator finding that
without such compliance there is insufficient evidence to render a
decision in the dispute, the attorney general shall enforce such
subpoena in superior court and the arbitrator shall continue the
arbitration hearing until such time as the nonparty complies with
the subpoena or the subpoena is quashed.
(c)
A party may obtain written affidavits from employees and agents of a
dealer, a manufacturer or other party, or from other potential
witnesses, and may submit such affidavits for consideration by the
board.
(d)
Records of the board proceedings shall be open to the public. The
hearings shall be open to the public to the extent practicable.
(e)
Where the board proceedings are conducted by one or more private
entities, a single arbitrator may be designated to preside at such
proceedings.
(3)
A consumer shall exhaust the new motor vehicle arbitration board
remedy or informal dispute resolution settlement procedure under RCW
19.118.150 before filing any superior court action.
(4)
The attorney general shall maintain records of each dispute
submitted to the new motor vehicle arbitration board, including an
index of new motor vehicles by year, make, and model.
(5)
The attorney general shall compile aggregate annual statistics for
all disputes submitted to, and decided by, the new motor vehicle
arbitration board, as well as annual statistics for each
manufacturer that include, but shall not be limited to, the number
and percent of:
(a)
Replacement motor vehicle requests;
(b)
purchase price refund requests;
(c)
replacement motor vehicles obtained in prehearing settlements;
(d)
purchase price refunds obtained in prehearing settlements;
(e)
replacement motor vehicles awarded in arbitration;
(f)
purchase price refunds awarded in arbitration;
(g)
board decisions neither complied with during the forty calendar day
period nor petitioned for appeal within the thirty calendar day
period;
(h)
board decisions appealed categorized by consumer or manufacturer;
(i)
the nature of the court decisions and who the prevailing party was;
(j)
appeals that were held by the court to be brought without good
cause; and
(k)
appeals that were held by the court to be brought solely for the
purpose of harassment. The statistical compilations shall be public
information.
(6)
The attorney general shall adopt rules to implement this chapter.
Such rules shall include uniform standards by which the boards shall
make determinations under this chapter, including but not limited to
rules which provide:
(a)
A board shall find that a nonconformity exists if it determines that
the consumer's new motor vehicle has a defect, serious safety
defect, or condition that substantially impairs the use, value, or
safety of the vehicle.
(b)
A board shall find that a reasonable number of attempts to repair a
nonconformity have been undertaken if:
(i)
The same serious safety defect has been subject to diagnosis or
repair two or more times, at least one of which is during the period
of coverage of the applicable manufacturer's written warranty, and
the serious safety defect continues to exist;
(ii)
the same nonconformity has been subject to diagnosis or repair four
or more times, at least one of which is during the period of
coverage of the applicable manufacturer's written warranty, and the
nonconformity continues to exist; or
(iii)
the vehicle is out of service by reason of diagnosis or repair of
one or more nonconformities for a cumulative total of thirty
calendar days, at least fifteen of them during the period of the
applicable manufacturer's written warranty. For purposes of this
subsection, the manufacturer's written warranty shall be at least
one year after the date of the original delivery to the consumer of
the vehicle or the first twelve thousand miles of operation,
whichever occurs first.
(c)
A board shall find that a manufacturer has failed to comply with RCW
19.118.041 if it finds that the manufacturer, its agent, or the new
motor vehicle dealer has failed to correct a nonconformity after a
reasonable number of attempts and the manufacturer has failed,
within forty days of the consumer's written request, to repurchase
the vehicle or replace the vehicle with a vehicle identical or
reasonably equivalent to the vehicle being replaced.
(7)
The attorney general shall provide consumers with information
regarding the procedures and remedies under this chapter.
19.118.090 Request
for arbitration.
Eligibility;
Rejection; Manufacturer's response; Remedies; Defenses; Acceptance
or appeal.
(1)
A consumer may request arbitration under this chapter by submitting
the request to the attorney general. Within ten days after receipt
of an arbitration request, the attorney general shall make a
reasonable determination of the cause of the request for arbitration
and provide necessary information to the consumer regarding the
consumer's rights and remedies under this chapter. The attorney
general shall assign the dispute to a board, except that if it
clearly appears from the materials submitted by the consumer that
the dispute is not eligible for arbitration, the attorney general
may refuse to assign the dispute and shall explain any required
procedures to the consumer.
(2)
Manufacturers shall submit to arbitration if such arbitration is
requested by the consumer within thirty months from the date of the
original delivery of the new motor vehicle to a consumer at retail
and if the consumer's dispute is deemed eligible for arbitration by
the board. In the case of a motor home, the thirty-month period will
be extended by the amount of time it takes the motor home
manufacturers to complete the final repair attempt at the designated
repair facility as provided for in RCW 19.118.041(3)(b).
(3)
The new motor vehicle arbitration board may reject for arbitration
any dispute that it determines to be frivolous, fraudulent, filed in
bad faith, res judicata or beyond its authority. Any dispute deemed
by the board to be ineligible for arbitration due to insufficient
evidence may be reconsidered by the board upon the submission of
other information or documents regarding the dispute that would
allegedly qualify for relief under this chapter. Following a second
review, the board may reject the dispute for arbitration if evidence
is still clearly insufficient to qualify the dispute for relief
under this chapter. A rejection by the board is subject to review by
the attorney general or may be appealed under RCW 19.118.100.
A decision to
reject any dispute for arbitration shall be sent by certified mail
to the consumer and the manufacturer, and shall contain a brief
explanation as to the reason therefore.
(4)
The manufacturer shall complete a written manufacturer response to
the consumer's request for arbitration. The manufacturer shall
provide a response to the consumer and the board within ten calendar
days from the date of the manufacturer's receipt of the board's
notice of acceptance of a dispute for arbitration. The manufacturer
response shall include all issues and affirmative defenses related
to the nonconformities identified in the consumer's request for
arbitration that the manufacturer intends to raise at the
arbitration hearing.
(5)
The arbitration board shall award the remedies under RCW 19.118.041
if it finds a nonconformity and that a reasonable number of attempts
have been undertaken to correct the nonconformity. The board shall
award reasonable costs and attorneys' fees incurred by the consumer
where the manufacturer has been directly represented by counsel:
(a)
In dealings with the consumer in response to a request to repurchase
or replace under RCW 19.118.041;
(b)
in settlement negotiations;
(c)
in preparation of the manufacturer's statement; or
(d)
at an arbitration board hearing or other board proceeding.
In the case of
an arbitration involving a motor home, the board may allocate
liability among the motor home manufacturers.
(6)
It is an affirmative defense to any claim under this chapter that:
(a)
The alleged nonconformity does not substantially impair the use,
value, or safety of the new motor vehicle; or
(b)
the alleged nonconformity is the result of abuse, neglect, or
unauthorized modifications or alterations of the new motor vehicle.
(7)
The board shall have forty-five calendar days from the date the
board receives the consumer's request for arbitration to hear the
dispute. If the board determines that additional information is
necessary, the board may continue the arbitration proceeding on a
subsequent date within ten calendar days of the initial hearing. The
board shall decide the dispute within sixty calendar days from the
date the board receives the consumer's request for arbitration.
The decision of
the board shall be delivered by certified mail or personal service
to the consumer and the manufacturer, and shall contain a written
finding of whether the new motor vehicle meets the standards set
forth under this chapter.
(8)
The consumer may accept the arbitration board decision or appeal to
superior court, pursuant to RCW 19.118.100. Upon acceptance by the
consumer, the arbitration board decision shall become final. The
consumer shall send written notification of acceptance or rejection
to the arbitration board within sixty days of receiving the decision
and the arbitration board shall immediately deliver a copy of the
consumer's acceptance to the manufacturer by certified mail, return
receipt requested, or by personal service. Failure of the consumer
to respond to the arbitration board within sixty calendar days of
receiving the decision shall be considered a rejection of the
decision by the consumer. The consumer shall have one hundred twenty
calendar days from the date of rejection to file a petition of
appeal in superior court. At the time the petition of appeal is
filed, the consumer shall deliver, by certified mail or personal
service, a conformed copy of such petition to the attorney general.
(9)
Upon receipt of the consumer's acceptance, the manufacturer shall
have forty calendar days to comply with the arbitration board
decision or thirty calendar days to file a petition of appeal in
superior court. At the time the petition of appeal is filed, the
manufacturer shall deliver, by certified mail or personal service, a
conformed copy of such petition to the attorney general. If the
attorney general receives no notice of petition of appeal after
forty calendar days, the attorney general shall contact the consumer
to verify compliance.
19.118.095
Arbitration decision.
Compliance;
Accomplishment; Dispute; Failure; Fine; Costs; Attorneys' fees.
(1)
Compliance with an arbitration board decision under this chapter
must be accomplished at a time, place, and in a manner to be
determined by the mutual agreement of the consumer and manufacturer.
(a)
The consumer shall make the motor vehicle available to the
manufacturer free of damage other than that related to any
nonconformity, defect, or condition to which a warranty applied, or
that can reasonably be expected in the use of the vehicle for
ordinary or reasonably intended purposes and in consideration of the
mileage attributable to the consumer's use. Any insurance claims or
settlement proceeds for repair of damage to the vehicle due to fire,
theft, vandalism, or collision must be assigned to the manufacturer
or, at the consumer's option, the repair must be completed before
return of the vehicle to the manufacturer. The consumer may not
remove any equipment or option that was included in the original
purchase or lease of the vehicle or that is otherwise included in
the repurchase or replacement award. In removing any equipment not
included in the original purchase or lease, the consumer shall
exercise reasonable care to avoid further damage to the vehicle but
is not required to return the vehicle to original condition.
(b)
At the time of compliance with an arbitration board decision that
awards repurchase, the manufacturer shall make full payment to the
consumers and either the lessor or lien holder, or both, or provide
verification to the consumer of prior payment to either the lessor
or lien holder, or both. At the time of compliance with an
arbitration board decision that awards replacement, the manufacturer
shall provide the replacement vehicle together with any refund of
incidental costs.
(c)
At any time before compliance a party may request the board to
resolve disputes regarding compliance with the arbitration board
decision including but not limited to time and place for compliance,
condition of the vehicle to be returned, clarification or
recalculation of refund amounts under the award, or a determination
if an offered vehicle is reasonably equivalent to the vehicle being
replaced. In resolving compliance disputes the board may not review,
alter, or otherwise change the findings of a decision or extend the
time for compliance beyond the time necessary for the board to
resolve the dispute.
(d)
Failure of the consumer to make the vehicle available within sixty
calendar days in response to a manufacturer's unconditional tender
of compliance is considered a rejection of the arbitration decision
by the consumer, except as provided in (c) of this subsection or
subsection (2) of this section.
(2)
If, at the end of the forty calendar day period, neither compliance
with nor a petition to appeal the board's decision has occurred, the
attorney general may impose a fine of up to one thousand dollars per
day until compliance occurs or a maximum penalty of one hundred
thousand dollars accrues unless the manufacturer can provide clear
and convincing evidence that any delay or failure was beyond its
control or was acceptable to the consumer |