10-1-780
This article shall be
known and may be cited as
the "Motor Vehicle
Warranty Rights Act."
10-1-781
The General Assembly
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. It
is the intent of the
General Assembly to ensure
that the consumer is made
aware of his or her rights
under this article. In
enacting these
comprehensive measures, it
is the intent of the
General Assembly to create
the proper blend of
private and public
remedies necessary to
enforce this article.
10-1-782
Unless the context
clearly requires
otherwise, the definitions
in this Code section apply
throughout this article.
As used in this article,
the term:
(1)
"Administrator"
means the administrator
appointed pursuant to Code
Section 10-1-395.
(2) "Collateral
charges" means those
additional charges to a
consumer or lessor wholly
incurred as a result of
the acquisition purchase
of the motor vehicle. For
the purposes of this
article, collateral
charges include but are
not limited to
manufacturer installed or
dealer installed items or
service charges, earned
finance charges incurred
by a consumer in the case
of a purchase, and by the
lessor in the case of a
lease, sales tax, and
title charges.
(3)
"Consumer" means
any person who has entered
into an agreement or
contract for the transfer,
lease, or purchase of a
new motor vehicle
primarily for personal,
family, or household
purposes, regardless of
how the documents
characterize the
transaction. The term
shall also mean and
include any sole
proprietorship,
partnership, or
corporation which is a
commercial owner or lessee
of no more than three new
motor vehicles and which
has ten or fewer employees
and a net income after
taxes of $100,000.00 per
annum or less for federal
income tax purposes. For
the limited purpose of
enforcing the rights
granted under this
article, the term
"consumer" will
also include any person or
entity regularly engaged
in the business of leasing
new motor vehicles to
consumers.
(4) "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 article.
(5)
"Distributor"
means a person or entity
holding a distribution
agreement with a
manufacturer for the
distribution of new motor
vehicles to new motor
vehicle dealers or who is
licensed or otherwise
authorized to utilize
trademarks or service
marks associated with one
or more makes of motor
vehicles in connection
with such distribution,
who is not responsible to
the manufacturer for
honoring the
manufacturer's express
warranty, and who does not
issue an express warranty
to consumers.
(6) "Express
warranty" means a
warranty which is given by
the manufacturer in
writing.
(7) "Incidental
costs" means any
reasonable expenses
incurred by the consumer
in connection with the
repair of the new motor
vehicle, including but not
limited to payments to
dealers for attempted
repairs of
nonconformities, towing
charges, and the costs of
obtaining alternative
transportation.
(8) "Informal
dispute resolution
settlement mechanism"
means any procedure
established, employed,
utilized, or run by a
manufacturer for the
purpose of resolving
disputes with consumers
regarding any warranty.
(9) "Lemon law
rights period" means
the period ending one year
after the date of the
original delivery of a new
motor vehicle to a
consumer or the first
12,000 miles of operation
after delivery of a new
motor vehicle to a
consumer, whichever occurs
first.
(10)
"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.
(11) "New motor
vehicle" means any
self-propelled vehicle,
primarily designed for the
transportation of persons
or property over the
public highways, that was
leased or purchased in
this state or registered
by the original consumer
in this state and on which
the original motor vehicle
title was issued to the
lessor or purchaser
without having been
previously issued to any
person other than the
selling dealer. If the
motor vehicle is a motor
home, this article 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 motorcycles or
trucks with 10,000 pounds
or more gross vehicle
weight rating. The term
"new motor
vehicle" shall not
include any vehicle on
which the title and other
transfer documents show a
used, rather than new,
vehicle. The term
"new motor
vehicle" includes a
demonstrator or
lease-purchase, as long as
a manufacturer's warranty
was issued as a condition
of sale, unless
specifically excluded
under this definition.
(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,
leasing, distributing, or
dealing in new motor
vehicles, or who is
licensed or otherwise
authorized to utilize
trademarks or service
marks associated with one
or more makes of motor
vehicles in connection
with such sales. For the
purposes of subsection (d)
of Code Section 10-1-784,
concerning private civil
actions for violations of
this article, the term
"new motor vehicle
dealer" shall include
any person or entity
regularly engaged in the
business of leasing new
motor vehicles to
consumers.
(13)
"Nonconformity"
means a defect, serious
safety defect, or
condition that
substantially impairs the
use, value, or safety of a
new motor vehicle to the
consumer, 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) "Panel"
means a new motor vehicle
arbitration panel as
designated in Code
Sections 10-1-786 and
10-1-794.
(15) "Purchase
price" means in the
case of a sale of a new
motor vehicle to a
consumer the cash price of
the new motor vehicle
appearing in the sales
agreement, contract, or
leasing agreement,
including any reasonable
allowance for a trade-in
vehicle. In determining
whether the trade-in
allowance was reasonable,
the panel may take into
account whether the
purchase price of the
vehicle was at fair market
value or not and make
appropriate adjustments to
ensure that the consumer
is made whole but not
unjustly enriched. In the
case of a consumer lease
of a new motor vehicle,
"purchase price"
means the cash price paid
by the lessor to a dealer
or distributor to purchase
the new motor vehicle.
(16) "Reasonable
offset for use" means
an amount directly
attributable to use by the
consumer before the
consumer requests
repurchase or replacement
by the manufacturer
pursuant to Code Section
10-1-784. The reasonable
offset for use shall be
computed by the number of
miles that the vehicle
traveled before the
consumer's request of
repurchase or replacement
multiplied by the purchase
price and divided by
100,000.
(17) "Reasonable
number of attempts"
under the lemon law rights
period means the
definition as provided in
Code Section 10-1-784.
(18) "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 purchase or lease.
(19) "Serious
safety defect" means
a life-threatening
malfunction or
nonconformity.
(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 more than a
meaningful amount below
the average resale value
for comparable motor
vehicles.
(21)
"Warranty" means
any express written
warranty of the
manufacturer but shall not
include any extended
coverage purchased by the
consumer as a separate
item.
10-1-783
(a) Each new motor
vehicle dealer shall
provide an owner's manual
which shall be published
by the manufacturer and
include a list of the
addresses and phone
numbers at which consumers
may, at no cost, contact
the manufacturer's
customer service personnel
who are authorized to
direct activities
regarding repair of the
consumer's vehicle.
(b) 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 article.
The statement shall be
written by the
administrator and shall
contain information
regarding the procedures
and remedies under this
article.
(c) For the purposes of
this article, if a new
motor vehicle has a
nonconformity and the
consumer reports the
nonconformity during the
lemon law rights period to
the manufacturer, its
agent, or the new motor
vehicle dealer who sold
the new motor vehicle, the
vehicle shall be repaired
at the manufacturer's
expense to correct the
nonconformity regardless
of whether such repairs
are made after the
expiration of the lemon
law rights period. If in
any subsequent proceeding
under this article it is
determined that the
consumer's repair did not
qualify under this
article, and the
manufacturer was not
otherwise obligated to
repair the vehicle, the
consumer shall be liable
to the manufacturer for
the costs of the repair.
(d) 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.
(e) Each time the
consumer's vehicle is
returned from being
diagnosed or repaired
under the lemon law rights
period or under a
warranty, the new motor
vehicle dealer shall
provide to the consumer 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.
(f) No manufacturer,
its agent, or new motor
vehicle dealer may refuse
to diagnose or repair any
nonconformity for the
purpose of avoiding
liability under this
article.
(g) The lemon law
rights period and 30 day
out-of-service period
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.
10-1-784
(a)(1) If the
manufacturer, its agent,
or the new motor vehicle
dealer is unable to repair
or correct any
nonconformity in a new
motor vehicle after a
reasonable number of
attempts, the consumer
shall notify the
manufacturer by certified
mail, return receipt
requested, at the address
provided by the
manufacturer. The
manufacturer shall, within
seven days after receipt
of such notification,
notify the consumer of a
reasonably accessible
repair facility and after
delivery of the vehicle to
the designated repair
facility by the consumer,
the manufacturer shall,
within 14 days, conform
the motor vehicle to the
warranty. If the
manufacturer is unable to
repair or correct any
nonconformity of the new
motor vehicle, the
manufacturer shall, within
30 days of the consumer's
written request, by
certified mail, return
receipt requested, at the
option of the consumer, or
the lessor in the event of
a leased motor vehicle,
replace or repurchase the
new motor vehicle. If the
manufacturer fails to
notify the consumer of a
reasonably accessible
repair facility or perform
the repairs within the
time periods prescribed in
this subsection, the
requirement that the
manufacturer be given a
final attempt to cure the
nonconformity does not
apply.
(2) If a lessor elects
replacement, the
contractual obligation,
except for those terms
of the agreement which
identify the vehicle,
between the lessor and
the consumer shall not
be altered. If a lessor
elects repurchase, it
shall return to the
consumer a sum equal to
the allowance for any
trade-in, and down
payment or initial
balloon payment, made by
the consumer, and all
future obligations of
the consumer to the
lessor shall cease. In
the event a lessor
elects to require the
manufacturer to
repurchase a leased
vehicle, the consumer
will remain liable for
all lease obligations
arising prior to the
date that the lessor
elects such replacement,
but will have no future
obligations under the
lease, and will be
liable for no penalty
for early termination. A
lessor must elect either
a repurchase or
replacement within 30
days of receiving
written notice from the
consumer that such an
election is desired; if
the lessor fails to make
such an election within
the 30 days, the
consumer may make the
election to repurchase
or replace and the
lessor shall be bound by
the consumer's election.(3) The replacement
motor vehicle shall be
identical or reasonably
equivalent to the motor
vehicle to be replaced.
Such replacement shall
include payment of all
collateral charges which
the consumer or lessor
will incur a second time
which would not have
been incurred again
except for the
replacement, and any and
all incidental costs
incurred by the consumer
or lessor. In the case
of a replacement motor
vehicle, the reasonable
offset for use shall be
paid by the consumer to
the manufacturer.
Compensation for a
reasonable offset for
use shall be paid by the
consumer to the
manufacturer in the
event that a replacement
motor vehicle is
elected. In the case of
a lease where the
consumer either has no
option to purchase the
motor vehicle at the end
of the lease term, or
the consumer has an
option to purchase the
motor vehicle at the end
of the lease term but
does not exercise the
option, the lessor shall
refund to the consumer
the lesser of (A) the
offset for use paid by
the consumer to the
manufacturer at the time
of delivery of the
replacement vehicle, or
(B) the gain realized by
the lessor by reason of
the difference, if any,
between the anticipated
residual value of the
original motor vehicle
as determined at the
inception of the lease
and the realized value
of the replacement motor
vehicle at the end of
the lease. If the lessor
does not realize any
gain from the
disposition of the
replacement vehicle,
there will be no refund
due to the consumer from
the lessor. The
foregoing rules apply
only to leases where the
consumer performs all of
the consumer's
obligations under the
lease agreement and the
lease terminates upon
the scheduled expiration
of the lease term as set
forth in the lease
agreement or any
mutually agreed upon
extension of the lease
term. The administrator
may provide by rule
under Chapter 13 of
Title 50, the
"Georgia
Administrative Procedure
Act," for
determining the manner
of calculating the
amount of any further
charges or refunds that
may apply in the case of
leases terminated
prematurely either by
the voluntary election
of the parties, or
involuntarily by the
lessor in the event of
the lessee's default,
the loss or destruction
of the vehicle, or for
any other reason.
(4) When repurchasing
the new motor vehicle,
the manufacturer shall
refund to the consumer
all collateral charges
and incidental costs. In
the event of a
repurchase, purchase
price refunds shall be
made to the consumer and
lienholder of record, if
any, as his or her
interests may appear,
less a reasonable offset
for use. In the event of
a lease, purchase price
refunds shall be made to
the lessor, less a
reasonable offset for
use. If it is determined
that the lessee is
entitled to a refund,
the consumer's lease
agreement with the
lessor shall be
terminated upon payment
of the refund and no
penalty for early
termination shall be
assessed.
(b) A reasonable number
of attempts shall be
presumed as a matter of
law to have been
undertaken by the
manufacturer, its agent,
or the new motor vehicle
dealer to repair or
correct any nonconformity
of a new motor vehicle,
if: (1) a serious safety
defect in the braking or
steering system has been
subject to repair at least
once during the lemon law
rights period and has not
been corrected; (2) during
any period of 24 months or
less, or during any period
in which the vehicle has
been driven 24,000 miles
or less, whichever occurs
first, any other serious
safety defect has been
subject to repair two or
more times, at least one
of which is during the
lemon law rights period,
and the nonconformity
continues to exist; (3)
during any period of 24
months or less or during
any period in which the
vehicle has been driven
24,000 miles or less,
whichever occurs first,
the same nonconformity has
been subject to repair,
three or more times, at
least one of which is
during the lemon law
rights period, and the
nonconformity continues to
exist; or (4) during any
period of 24 months or
less or during any period
in which the vehicle has
been driven 24,000 miles
or less, whichever occurs
first, the vehicle is out
of service by reason of
repair of one or more
nonconformities for a
cumulative total of 30
calendar days, at least 15
of them during the lemon
law rights period. If less
than 15 days remain under
the lemon law rights
period when the new motor
vehicle is first brought
in for diagnosis or
repair, the lemon law
rights period as regards
the problem to be
diagnosed or repaired
shall be extended for a
period of 90 days.
(c) For purposes of
this article, the lemon
law rights period
regarding nonconformities
on all new motor vehicles
sold in this state shall
be for 12 months following
the purchase of the
vehicle or for 12,000
miles following the
purchase of the vehicle,
whichever occurs first.
(d) This article shall
not create and shall not
give rise to any cause of
action against and shall
not impose any liability
upon any new motor vehicle
dealer or distributor
except as provided in this
Code section. No new motor
vehicle dealer or
distributor shall be held
liable by the manufacturer
or by the consumer for any
collateral charges,
damages, costs, purchase
price refunds, or vehicle
replacements, and
manufacturers and
consumers shall not have a
cause of action against a
new motor vehicle dealer
or distributor under this article. A
violation of any duty or
responsibility imposed
upon a new motor vehicle
dealer or distributor
under this article shall
constitute a per se
violation of Code Section
10-1-393; provided,
however, that enforcement
against such violations
shall be by public
enforcement by the
administrator and shall
not be enforceable through
private enforcement under
the provisions of Code
Section 10-1-399, except
that a knowing violation
of Code Section 10-1-785
shall be enforceable
through private
enforcement under the
provisions of Code Section
10-1-399.The provisions of
Code Sections 11-2-602
through 11-2-609 shall not
apply to the sale of a new
motor vehicle if the
consumer seeks to use the
remedies provided for in
this article. A consumer
shall be deemed to have
used the remedies provided
for in this article when
he or she completes,
signs, and returns forms
prescribed by the
administrator for the
submission of disputes to
an informal dispute
resolution settlement
mechanism or to a panel,
whichever occurs first.
Such forms shall contain a
conspicuous statement
clearly advising the
consumer of the rights the
consumer is waiving by
participating in the
procedures under this
article. A consumer may
not use the remedies
provided for in this
article if the consumer
has already sought to use
the remedies provided for
in Code Sections 11-2-602
through 11-2-609, unless
the nonconformity did not
exist or was not known at
the time of using the
remedies provided for in
such Code sections.
Manufacturers and
consumers may not make new
motor vehicle dealers or
distributors parties to
arbitration panel
proceedings or any other
proceedings under this
article. The provisions of
this article shall not
impair any obligation
under any
manufacturer-dealer
franchise agreement or
manufacturer-distributor
agreement; provided,
however, that any
provision of any
manufacturer-dealer
franchise agreement or
manufacturer-distributor
agreement which attempts
to shift any duty,
obligation,
responsibility, or
liability imposed upon a
manufacturer by this
article to a new motor
vehicle dealer or
distributor, either
directly or indirectly,
shall be void and
unenforceable, except for
any liability imposed upon
a manufacturer by this
article which is directly
caused by the gross
negligence of the dealer
in attempting to repair
the motor vehicle after
such gross negligence has
been determined by the
hearing officer, as
provided in Article 22 of
this chapter, the
"Georgia Motor
Vehicle Franchise
Practices Act."
10-1-785
(a) No manufacturer or
other transferor shall
knowingly resell, either
at wholesale or retail,
lease, transfer a title,
or otherwise transfer,
except to sell for scrap,
any motor vehicle which
has been determined to
have a serious safety
defect by reason of a
determination,
adjudication, or
settlement decision
pursuant to this article
or similar statute of any
other state, unless the
serious safety defect has
been corrected; the
manufacturer warrants in
writing upon the resale,
transfer, or lease that
the defect has been
corrected; and the
transferor provides the
manufacturer's written
warranty under this Code
section to the consumer.
(b) After replacement
or repurchase pursuant to
this article of a motor
vehicle with a
nonconformity, other than
a serious safety defect,
which has not been
corrected, the
manufacturer shall notify
the administrator, by
certified mail, upon
receipt of the
manufacturer's motor vehicle. If
such nonconformity is
corrected, the
manufacturer shall notify
the administrator in the
same manner of such correction. If
the two events described
in this subsection occur
within 30 days of one
another, both notices may
be combined into the same
notice.
(c) Upon the resale,
either at wholesale or
retail, lease, transfer of
title, or other transfer
of a motor vehicle with a
nonconformity, other than
a serious safety defect,
which has not been
corrected and which was
previously returned after
a final determination,
adjudication, or
settlement under this
article or under a similar
statute of any other
state, the manufacturer
shall execute and deliver
to the transferee before
transfer to a consumer an
instrument in writing
setting forth information
identifying the
nonconformity in a manner
to be specified by the
administrator; the
transferor shall deliver
the instrument to the
consumer before transfer.
(d) Upon the resale,
either at wholesale or
retail, lease, transfer of
title, or other transfer
of a motor vehicle found
to have a nonconformity
under this article which
has been corrected, the
manufacturer shall warrant
in writing on forms
prescribed by the
administrator upon the
transfer that the
nonconformity has been
corrected, and the
manufacturer, its agent,
the new motor vehicle
dealer, or other
transferor shall execute
and deliver to the
transferee before transfer
an instrument in writing
setting forth information
identifying the
nonconformity and
indicating in a manner to
be specified by the
administrator that it has
been corrected and
providing an express
manufacturer's warranty on
the vehicle regarding the
nonconformity for 12
months or 12,000 miles,
whichever occurs first.
(e) For purposes of
this Code section, the
term
"settlement"
includes an agreement
entered into between the
manufacturer and the
consumer that occurs after
the dispute has been
submitted to an informal
dispute resolution
settlement mechanism or
has been deemed eligible
by the administrator for
arbitration before a
panel.
10-1-786
(a) As provided in Code
Section 10-1-794, the
administrator may
establish a new motor
vehicle arbitration panel
or panels to settle
disputes between consumers
and manufacturers as
provided in this article.
The panels 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 article.
(b) The administrator
may adopt rules under
Chapter 13 of Title 50,
the "Georgia
Administrative Procedure
Act," for the uniform
conduct of arbitrations by
panels and by informal
dispute resolution
settlement mechanisms
under this article, which
rules may include, but not
be limited to, the
following:
(1) Procedures regarding
presentation of oral and
written testimony,
witnesses and evidence
relevant to the dispute,
cross-examination of
witnesses, and
representation by
counsel. The
administrator shall
provide by rule for oral
hearings, when
appropriate, in panel or
informal dispute
resolution settlement
mechanism proceedings;(2) Procedures for
production of records
and documents requested
by a party which the
panel finds are
reasonably related to
the dispute;
(3) Procedures for
issuance of subpoenas on
behalf of the panel by
the administrator, which
shall be enforced by the
superior courts as in
Code Section 10-1-398;
(4) Procedures
regarding written
affidavits from
employees and agents of
a dealer, a
manufacturer, any party,
or from other potential
witnesses and the
consideration of such
affidavits by a panel;
and
(5) Records of panel
proceedings and hearings
shall be open to the
public.
(c) A consumer shall
exhaust any certified
informal dispute
resolution settlement
procedure under Code
Section 10-1-793 and the
new motor vehicle
arbitration panel remedy
before filing any superior
court action pursuant to
Code Section 10-1-788.
(d) The administrator
may adopt rules under
Chapter 13 of Title 50,
the "Georgia
Administrative Procedure
Act," to implement
this article. Such rules
may include uniform
standards by which the
panel and any informal
dispute resolution
settlement mechanism under
Code Section 10-1-793
shall make determinations
under this article,
including but not limited
to rules which may provide
for:
(1) Determining that a
nonconformity exists;(2) Determining that
a reasonable number of
attempts to repair a
nonconformity have been
undertaken; or
(3) Determining that
a manufacturer has
failed to comply with
Code Section 10-1-784.
10-1-787
(a) A consumer shall
request arbitration under
this article by submitting
a request in writing to
the administrator. Except
as otherwise provided in
this article, disputes
under the lemon law rights
period shall be eligible
for arbitration. The
administrator shall make a
reasonable determination
of the eligibility of the
request for arbitration
and may provide necessary
information to the
consumer regarding the
consumer's rights and
remedies under this article. The
administrator may adopt
rules under Chapter 13 of
Title 50, the
"Georgia
Administrative Procedure
Act," regarding the
eligibility of requests
for arbitration. The
administrator shall assign
a dispute he deems
eligible to a panel.
(b) Manufacturers shall
submit to arbitration
under this article if the
consumer's dispute is
deemed eligible for
arbitration by the
administrator and by the
panel.
(c) The new motor
vehicle arbitration panel
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
panel to be ineligible for
arbitration due to
insufficient evidence may
be reconsidered by the
panel upon the submission
of other information or
documents regarding the
dispute that would
allegedly qualify for
relief under this article. Following
a second review, the panel
may reject the dispute for
arbitration if evidence is
still clearly insufficient
to qualify the dispute for
relief under this article. The
administrator may adopt
rules under Chapter 13 of
Title 50, the
"Georgia
Administrative Procedure
Act," governing
rejection of disputes by a
panel. A decision to
reject any dispute for
arbitration shall be sent
by certified mail, return
receipt requested, to the
consumer and the
manufacturer.
(d) An arbitration
panel shall award the
remedies under Code
Section 10-1-784 if it
finds a nonconformity and
that a reasonable number
of attempts have been
undertaken to correct the nonconformity. The
panel may in its
discretion award
attorney's fees and
technical or expert
witness costs to a
consumer.
(e) It is an
affirmative defense to any
claim under this article
that: (1) the alleged
nonconformity does not
substantially impair the
use, value, or safety of
the new motor vehicle to
the consumer; or (2) the
alleged nonconformity is
the result of abuse,
neglect, or unauthorized
modifications or
alterations of the new
motor vehicle.
(f) The panel's
decision shall be sent by
certified mail, return
receipt requested, to the consumer. The
consumer must reject the
decision in writing by
certified mail, return
receipt requested,
addressed to the panel
within 30 days of receipt
of the panel's decision,
or he or she shall be
deemed to have accepted
the panel's decision. The
panel shall immediately
notify the manufacturer by
certified mail, return
receipt requested, whether
the consumer has accepted,
rejected, or has been
deemed to have accepted.
(g) Upon receipt of the
panel's notice, the
manufacturer shall have 40
calendar days to comply
with the arbitration panel
decision or to file a
petition of appeal in
superior court. At the
time the petition of
appeal is filed, the
manufacturer shall send,
by certified mail, a
conformed copy of such
petition to the
administrator.
(h) If, at the end of
the 40 calendar day
period, neither compliance
with nor a petition to
appeal the panel's
decision has occurred, the
administrator may impose a
fine of up to $1,000.00
per day until compliance
occurs or until a maximum
penalty of double the
value of the vehicle or
$100,000.00, whichever is
less, accrues. If the
manufacturer can provide
clear and convincing
evidence either that any
delay or failure was
beyond its control, or
that any delay was
acceptable to the
consumer, the fine shall
not be imposed. If the
manufacturer fails to
provide such evidence or
fails to pay the fine, the
administrator may initiate
proceedings against the
manufacturer for failure
to pay any accrued fine
and may initiate
proceedings on behalf of
the state to require
specific performance of an
arbitration decision under
this article. The
administrator shall
deposit any fines in the
state treasury.
10-1-788
(a) After the
manufacturer has received
notice of the consumer's
acceptance or rejection,
the consumer or the
manufacturer shall have 40
days to request a trial de
novo of the arbitration
decision in superior
court.
(b) If the manufacturer
appeals, the court may
require the manufacturer
to post security for the
consumer's financial loss
due to the passage of time
for review.
(c) If the manufacturer
appeals and the consumer
prevails, recovery may
include the monetary value
of the award, collateral
charges, continuing
incidental costs, if any,
and attorney's fees and
costs.
10-1-789
(a) Effective July 1,
1990, a fee of $3.00 shall
be collected by the new
motor vehicle dealer from
the consumer at completion
of a sale or a lease of
each new motor vehicle. The
fee shall be forwarded
quarterly to the Office of
Planning and Budget for
deposit in the new motor
vehicle arbitration
account created in the
state treasury. The first
quarterly payments are due
and payable on October 1,
1990, and shall be mailed
by the dealer not later
than October 10;
thereafter, all payments
are due and payable the
first of the month in each
quarter and shall be
mailed by the dealer not
later than the tenth day
of such month. Moneys in
the account shall be used
for the purposes of this
article, subject to
appropriation. Funds in
the new motor vehicle
arbitration account shall
be transferred to the
general treasury at the
end of each fiscal year.
One dollar of each fee
collected shall be
retained by the dealer to
cover administrative
costs.
(b) At the end of each
fiscal year, the
administrator shall
prepare a report listing
the annual revenue
generated and the expenses
incurred in implementing
and operating the
arbitration program under
this chapter. The Office
of Planning and Budget
shall provide the
administrator with the
figures regarding revenue
generated.
(c) It is the intent of
the General Assembly that
any consumer who, on or
after July 1, 1990, but
prior to January 1, 1991,
pays or should have paid
the fee designated in this
Code section shall be
entitled to utilize the
remedies provided in Code
Sections 10-1-786,
10-1-787, and 10-1-788 in
addition to any other
remedies which exist in
law or in equity regarding
defective automobiles,
notwithstanding the
effective dates of this
article or the effective
dates of any provisions of
this article.
10-1-790
A violation of this
article, or any failure of
any person, including a
manufacturer or its
agents, to honor any
express warranty,
automotive or otherwise,
issued by that person,
regardless of whether or
not such warranty was
purchased as a separate
item by the consumer and
regardless of whether or
not any dispute under the
warranty is deemed
eligible for arbitration
under this article, shall
constitute an unfair and
deceptive act or practice
and a consumer transaction
under Part 2 of Article 15
of this chapter. In
determining whether there
is an unfair and deceptive
act or practice under this
Code section, the
principles in this article
regarding a reasonable
number of attempts may
serve as guidelines. All
public and private
remedies provided under
Part 2 of Article 15 of
this chapter shall be
available to enforce this
article, subject to the
affirmative defenses
provided in Code Section
10-1-787, and except as
provided in Code Section
10-1-784.
10-1-791
Any agreement entered
into by a consumer for the
purchase of a new motor
vehicle that waives,
limits, or disclaims the
rights set forth in this
article shall be void as
contrary to public policy.
Said rights shall extend
to a subsequent transferee
of a new motor vehicle.
10-1-792
Nothing in this article
shall limit anyone from
pursuing other rights or
remedies under any other
law, except as otherwise
provided in this article.
10-1-793
(a) If a manufacturer
has established an
informal dispute
resolution settlement
mechanism in this state
and is operating in
accordance with rules
promulgated by the
administrator under this
article, and the
administrator has
certified that the
informal dispute
resolution settlement
procedure complies with
and is operating in
accordance with such
rules, a consumer must
submit a dispute under
this article to the
informal dispute
resolution settlement
procedure before
submitting it to the new
motor vehicle arbitration panel. The
administrator may adopt
rules consistent with this
article under Chapter 13
of Title 50, the
"Georgia
Administrative Procedure
Act," regarding the
informal dispute
resolution settlement
mechanisms, including but
not limited to the
composition, function,
training, procedures, and
conduct of informal
dispute resolution
settlement mechanisms and
including eligibility
requirements and
procedures for appeals to
a panel. Such rules must
be complied with prior to
certification.
(b) Informal dispute
resolution settlement
mechanisms shall take into
account the principles
contained in this article
and in any rules
promulgated hereunder and
shall take into account
all legal and equitable
factors germane to a fair
and just decision. A
decision shall include any
remedies appropriate under
the circumstances,
including repair,
replacement, refund,
reimbursement for
collateral and incidental
charges, and compensation
for loss of value. For
purposes of this Code
section, the phrase:
"Take into account
the principles contained
in this article"
means to be aware of the
provisions of this
article, to understand how
they might apply to the
circumstances of the
particular dispute, and to
apply them if it is
appropriate and fair to
both parties to do so.
(c) At any time the
administrator has reason
to believe that a
certified informal dispute
resolution settlement
mechanism is not acting in
conformity with this
article or with rules
promulgated hereunder, he
may initiate proceedings
under Chapter 13 of Title
50, the "Georgia
Administrative Procedure
Act," to revoke the
certification of the
informal dispute
resolution settlement mechanism. An
informal dispute
resolution settlement
mechanism shall keep such
records as prescribed by
the administrator in rules
under this article and
shall submit without
notice to inspection and
copying of these records
by the administrator's employees. Expenses
of any copying shall be
borne by the informal
dispute resolution
settlement mechanism.
10-1-794
The new motor vehicle
arbitration panel or
panels shall begin
operating on January 2,
1991.The administrator in
his discretion may
establish and operate the
panel or panels under any
of the following
procedures, provided that
disputes filed during the
same time period shall not
be handled under different
procedures: (1)
contracting with private
or public entities to
conduct arbitrations under
the procedures and
standards in this article,
(2) appointing private
citizens to serve on a
panel or panels, or (3)
hiring temporary or
permanent employees to
serve on the panel or
panels. Each new motor
vehicle arbitration panel
shall consist of three
members, none of whom may
be directly or indirectly
involved in the
manufacture, distribution,
sale, or service of any
motor vehicle or employed
by or related to the consumer. All
panel members shall have a
degree from an American
Bar Association Accredited
School of Law or shall
have at least two years'
experience in professional
arbitration. Any private
citizens appointed by the
administrator to serve as
panel members shall be
reimbursed for expenses as
are members of the General
Assembly and shall be
compensated at an hourly
rate as determined by the
administrator. Temporary
or permanent employees
hired to serve on the
panels shall be in the
unclassified service and
may serve on a full or
part-time basis at a
salary determined by the administrator. All
administrative staff hired
by the administrator to
aid in the administration
of this article shall be
in the unclassified
service and compensated at
a salary determined by the
administrator.
