STANDARDS OF THE MAINE LEMON LAW
The following is a brief explanation of most relevant provisions of the Maine lemon law.
The complete text of the lemon law can be found at10 Maine Rev. Stat. Ann. Section 1161
et seq.
VEHICLES COVERED
The Maine lemon law covers any motor driven vehicle sold or leased in the state that is
designed for the conveyance of passengers or property on the public highways.
The lemon law covers used vehicles, but does not cover motor vehicles used primarily
for commercial purposes with a gross vehicle weight of 8,500 pounds or more.
CONSUMERS COVERED
The lemon law covers the following consumers:
1. The purchaser, for purposes other than resale, or the lessee of a motor vehicle;
2. Any person to whom the motor vehicle is transferred during the duration of an
express warranty applicable to the motor vehicle; and
3. Any other person entitled by the terms of the warranty to enforce the obligations of
the warranty.
The lemon law does not cover any government entity, or any business or commercial
enterprise that registers three or more motor vehicles.
VEHICLE CONVERTERS
The lemon law applies to vehicle converters.
PROBLEMS COVERED
The lemon law covers any defect or condition, or combination of defects or conditions,
that substantially impairs the use, safety or value of the motor vehicle. This is referred to
as a nonconformity.
The lemon law provides manufacturers with an affirmative defense if it can be shown
that the nonconformity is the result of abuse, neglect, or unauthorized modifications or
alterations of a motor vehicle by anyone other than the manufacturer, its agents or
authorized dealer after delivery to the consumer.
MANUFACTURER’S DUTY TO REPAIR A VEHICLE
If a motor vehicle does not conform to all express warranties and the consumer reports
the nonconformity to the manufacturer, its agent or authorized dealer during the term
of the express warranties; a period of three years following the date of the motor
vehicle’s original delivery to a consumer; or the vehicle’s first 18,000 miles of operation
– whichever occurs earliest – then the manufacturer, its agent or authorized dealer must
make the necessary repairs to conform the vehicle to the express warranties. The
necessary repairs must be made even after the expiration of the term of the express
warranties, the three year period, or the first 18,000 miles.
MANUFACTURER’S DUTY TO REPURCHASE OR REPLACE A VEHICLE
If the manufacturer, its agents or authorized dealers are unable to conform the vehicle
to any applicable express warranty by repairing or correcting any nonconformity after a
reasonable number of repair attempts, the manufacturer must either replace or
repurchase the motor vehicle. The consumer may reject any offered replacement and
receive a repurchase instead.
REASONABLE NUMBER OF REPAIR ATTEMPTS
The Maine lemon law establishes a presumption that a reasonable number of repair
attempts has been undertaken to conform a motor vehicle to the applicable express
warranties if, within the express warranty term, during the period of three years
following the date of the motor vehicle’s original delivery to a consumer, or during the
vehicle’s first 18,000 miles of operation, whichever occurs earliest, any of the following
occurs:
1. The same nonconformity has been subject to a repair attempt three or more times by
the manufacturer, its agents or authorized dealers, and the nonconformity continues
to exist;
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, its agents or authorized dealers; or
3. The motor vehicle is out of service by reason of a repair attempt by the
manufacturer, its agents or authorized dealers of any defect, condition, or
combination of defects for a cumulative total of 15 or more business days.
The term of an express warranty, and the one year, two year, and 15 day periods are
extended by any period of time during which repair services are not available to the
consumer because of a war, invasion, strike or fire, flood or other natural disaster.
NOTICE AND FINAL REPAIR ATTEMPT
If the manufacturer or its agents are unable to conform the motor vehicle to the express
warranties, the consumer must notify the manufacturer or authorized dealer in writing
of the consumer’s desire for refund or replacement. This notice can be given after one
repair attempt to a nonconformity resulting in a serious failure of the braking or
steering systems.
The notice requirement does not apply unless the manufacturer has clearly and
conspicuously disclosed, 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.
The manufacturer has seven business days following receipt by the dealer or
manufacturer of the written notice from the consumer to correct or repair any
nonconformities. The final repair effort must be at a repair facility reasonably accessible
to the consumer.
DISPUTE RESOLUTION
The provisions requiring refund or replacement do not apply unless the consumer has
first resorted to the state-operated arbitration program or an informal dispute
settlement procedure that complies with 16 C.F.R. Part 703. This prior resort
requirement is satisfied 40 days after notification to the procedure or when the
procedure’s duties are completed, whichever occurs sooner.
TIME PERIOD FOR FILING CLAIMS
A claim must be filed within the earlier of (1) three years from the date of the vehicle’s
original delivery to the consumer, or (2) the term of the express warranties.
REMEDIES UNDER THE MAINE LEMON LAW
REPURCHASE OF OWNED VEHICLE
The Maine lemon law sets out the following amounts that a manufacturer must pay
when it repurchases an owned motor vehicle under the lemon law:
1. The full purchase price of the motor vehicle, including any paid finance charges;
2. All collateral charges, including but not limited to sales tax, registration fees and
similar government charges; and
3. Reasonable costs incurred by the consumer for towing and storage of the motor
vehicle and for procuring alternative transportation while the vehicle could not be
driven because it did not conform to any applicable express warranty;
4. Less a reasonable allowance for use of the motor vehicle.
Refunds must be made to the consumer and lienholder, if any, as their interests exist at
the time the refund is to be made.
The reasonable allowance for use may not exceed the lesser of (1) one-third of the
amount allowed per mile by the Internal Revenue Service for the use of a personal
vehicle for business purposes, based on the mileage reported on the application for
arbitration PLUS all mileage directly attributable to use by a consumer beyond 20,000
miles; or (2) 10% of the purchase price of the vehicle.
REPURCHASE OF LEASED VEHICLES
The Maine lemon law sets out the following amounts that a manufacturer must pay
when it repurchases a leased motor vehicle under the lemon law:
1. Lease payments made to date, including any paid finance charges;
2. All collateral charges, including but not limited to sales tax, license and registration
fees and similar government charges; and
3. Reasonable costs incurred by the consumer for towing and storage of the motor
vehicle and for procuring alternative transportation while the vehicle could not be
driven because it did not conform to any applicable express warranty;
4. Less a reasonable allowance for use of the motor vehicle.
Refunds must be made to the lessor and lessee as their interests exist at the time the
refund is to be made. The lessee’s lease agreement with the lessor and all contractual
obligations terminate upon a decision that the vehicle does not conform to the express
warranty and the vehicle is returned. The lessee may not be liable to the manufacturer
or lessor for any further costs or charges under the lease agreement. The lessor shall
release the motor vehicle title to the manufacturer upon payment by the manufacturer
under the lemon law.
The reasonable allowance for use may not exceed one-third of the amount allowed per
mile by the Internal Revenue Service for the use of a personal vehicle for business
purposes, or 10% of the purchase price of the vehicle, whichever is less.
REPLACEMENT
When replacing a vehicle under the Maine lemon law, the manufacturer must provide a
comparable motor vehicle. The reasonable allowance for use does not apply to a
replacement.
Any secured party must consent to the replacement of the security interest with a
corresponding security interest on a replacement motor vehicle if the replacement
motor vehicle is comparable in value to the original motor vehicle. If the security
interest in the vehicle to be replaced is not able to be replaced with a corresponding
security interest on a replacement motor vehicle, the consumer is entitled to a refund.