1998 Legislation
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SENATE BILL NO. 1434, As Amended – Motor vehicles, new, warranties

SENATE BILL NO. 1434, As Amended

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Daily Data Tracking History



S1434aa.....................................by COMMERCE AND HUMAN RESOURCES
MOTOR VEHICLES - WARRANTIES - Repeals and adds to existing law to rewrite
Idaho's "Lemon Law" regarding warranties on new motor vehicles.

02/11    Senate intro - 1st rdg - to printing
02/12    Rpt prt - to Com/HuRes
02/27    Rpt out - to 14th Ord
03/05    Rpt out amen - to engros
03/06    Rpt engros - 1st rdg - to 2nd rdg as amen
03/09    2nd rdg - to 3rd rdg as amen
03/10    3rd rdg as amen - PASSED - 34-0-1
      AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
      Crow, Danielson, Darrington, Deide, Dunklin, Frasure, Geddes, Hansen,
      Hawkins, Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh, Parry,
      Richardson, Riggs, Risch, Sandy, Schroeder, Stennett, Sweeney,
      Thorne, Twiggs, Wheeler, Whitworth
      NAYS--None
      Absent and excused--Sorensen
    Floor Sponsor - Ipsen
    Title apvd - to House
03/11    House intro - 1st rdg as amen - to Bus
03/18    Rpt out - rec d/p - to 2nd rdg as amen
03/19    2nd rdg - to 3rd rdg as amen
03/19    Rls susp as amen - PASSED - 69-0-1
      AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Bivens,
      Black(15), Black(23), Boe, Bruneel, Callister, Chase, Clark, Crane,
      Crow, Cuddy, Deal, Denney, Ellsworth, Field(13), Field(20), Gagner,
      Geddes, Gould, Hadley, Hansen, Henbest, Hornbeck, Jaquet, Jones(9),
      Jones(22), Jones(20), Judd, Kellogg, Kempton, Kendell, Kjellander,
      Kunz, Lake, Linford, Loertscher, Mader, Marley, McKague, Meyer,
      Miller, Mortensen, Newcomb, Pischner, Pomeroy, Reynolds, Richman,
      Ridinger, Robison, Sali, Schaefer, Stevenson, Stoicheff, Stone,
      Stubbs, Taylor, Tilman, Tippets, Trail, Watson, Wheeler, Wood,
      Zimmermann, Mr Speaker
      NAYS -- None
      Absent and excused -- Campbell,
    Floor Sponsor - Tillman
    Title apvd - to Senate
03/20    To enrol - rpt enrol - Pres signed
03/23    Sp signed - to Governor
03/25    Governor signed
         Session Law Chapter 333
         Effective: 07/01/98

Bill Text


S1434


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fourth Legislature                 Second Regular Session - 1998
                                                                        

                                      IN THE SENATE

                             SENATE BILL NO. 1434, As Amended

                        BY COMMERCE AND HUMAN RESOURCES COMMITTEE

 1                                        AN ACT
 2    RELATING TO WARRANTIES FOR NEW MOTOR VEHICLES; REPEALING CHAPTER 9, TITLE  48,
 3        IDAHO  CODE; AMENDING TITLE 48, IDAHO CODE, BY THE ADDITION OF A NEW CHAP-
 4        TER 9, TITLE 48, IDAHO CODE, TO DEFINE TERMS, TO PROVIDE A  MANUFACTURER'S
 5        DUTY  TO REPAIR, TO PROVIDE A MANUFACTURER'S DUTY TO REFUND OR REPLACE, TO
 6        PROVIDE A MANUFACTURER'S DUTY TO CONSUMERS WITH LEASED VEHICLES,  TO  PRO-
 7        VIDE  FOR RESALE OR RE-LEASE OF RETURNED MOTOR VEHICLES, TO PROVIDE FOR AN
 8        ALTERNATIVE DISPUTE SETTLEMENT MECHANISM, TO PROVIDE FOR EFFECT AND ADMIS-
 9        SIBILITY OF INFORMAL DISPUTE SETTLEMENT MECHANISM, TO PROVIDE  FOR  TREBLE
10        DAMAGES,  TO  PROVIDE  FOR  CIVIL  REMEDIES, TO PROVIDE FOR LIMITATIONS ON
11        ACTIONS, TO PROVIDE THAT THE REMEDY SHALL BE NONEXCLUSIVE,  TO  PROVIDE  A
12        DISCLOSURE REQUIREMENT AND TO PROVIDE FOR DEALER LIABILITY.

13    Be It Enacted by the Legislature of the State of Idaho:

14        SECTION  1.  That   Chapter  9,  Title 48, Idaho Code, be, and the same is
15    hereby repealed.

16        SECTION 2.  That Title 48, Idaho Code, be, and the same is hereby  amended
17    by  the addition thereto of a  NEW CHAPTER , to be known and desig-
18    nated as Chapter 9, Title 48, Idaho Code, and to read as follows:

19                                      CHAPTER 9
20            NEW MOTOR VEHICLE WARRANTIES -- MANUFACTURER'S DUTY TO REPAIR,
21                                  REFUND OR REPLACE

22        48-901.  DEFINITIONS. For purposes of this chapter,  the  following  terms
23    have the following meanings:
24        (1)  "Consumer"  means the purchaser or lessee, other than for purposes of
25    resale or sublease, of a new motor vehicle used  for  personal  business  use,
26    personal,  family  or  household  purposes,  or a person to whom the new motor
27    vehicle is transferred for the same purposes during the duration of an express
28    warranty applicable to the motor vehicle.
29        (2)  "Early termination costs" means expenses and  obligations incurred by
30    a motor vehicle lessor as a result of an  early termination of a written lease
31    agreement and surrender of  a motor vehicle to a  manufacturer  under  section
32    48-904,  Idaho  Code,  including  penalties for prepayment of finance arrange-
33    ments.
34        (3)  "Informal dispute settlement mechanism" means an  arbitration process
35    or procedure by which the manufacturer  attempts to resolve disputes with con-
36    sumers regarding motor  vehicle nonconformities and repairs that arise  during
37    the  vehicle's warranty period.
38        (4)  "Lease"  means a contract in the form of a lease or  bailment for the
39    use of personal property by a natural person for a period  of  time  exceeding
40    four  (4)  months, used for personal business use, personal, family, or house-
41    hold purposes, whether or not the lessee has the option to purchase or  other-


                                          2

 1    wise become the owner of the property at the expiration of  the lease.
 2        (5)  "Manufacturer" means a person engaged in the business of  manufactur-
 3    ing,  assembling  or distributing motor vehicles, who will, under normal busi-
 4    ness conditions during the year, manufacture, assemble or distribute to  deal-
 5    ers at least ten (10) new  motor vehicles.
 6        (6)  "Manufacturer's  express  warranty"  and "warranty" mean  the written
 7    warranty of the manufacturer of a new motor vehicle  of its condition and fit-
 8    ness for use, including any terms or  conditions precedent to the  enforcement
 9    of obligations under  that warranty.
10        (7)  "Motor  vehicle" means a motor vehicle as defined in chapter 1, title
11    49, Idaho Code, which is sold or licensed in this state but does not include:
12        (a)  Motorcycle or farm tractor as defined in sections 49-107 and  49-114,
13        Idaho Code; or
14        (b)  Trailer as defined in section 49-121, Idaho Code; or
15        (c)  Any  motor  vehicle  with  a  gross laden weight over twelve thousand
16        (12,000) pounds.
17        (8)  "Motor vehicle lessor" means a person who  holds  title  to  a  motor
18    vehicle  leased  to  a lessee under a written lease agreement or who holds the
19    lessor's rights under such agreement.

20        48-902.  MANUFACTURER'S DUTY TO REPAIR. If a new motor  vehicle  does  not
21    conform  to  all  applicable  express warranties, and the consumer reports the
22    nonconformity to the manufacturer, its agent, or its authorized dealer  during
23    the  term of the applicable express warranties or during the period of two (2)
24    years following the date of original delivery of the new motor  vehicle  to  a
25    consumer,  or  during  the period ending with the date on which the mileage on
26    the motor vehicle reaches twenty-four thousand (24,000)  miles,  whichever  is
27    the earliest date, the manufacturer, its agent, or its authorized dealer shall
28    make  the  repairs  necessary to conform the vehicle to the applicable express
29    warranties, notwithstanding the fact that the  repairs   are  made  after  the
30    expiration of the warranty term or the two (2) year period.

31        48-903.  MANUFACTURER'S  DUTY  TO  REFUND  OR REPLACE. (1) If the manufac-
32    turer, its agents, or its authorized dealers are unable  to  conform  the  new
33    motor  vehicle  to  any applicable express warranty by repairing or correcting
34    any defect or  condition which impairs the use or market value  of  the  motor
35    vehicle  to  the  consumer after a reasonable number of attempts, the manufac-
36    turer shall either replace the new motor   vehicle  with  a  comparable  motor
37    vehicle  or  accept return of the  vehicle from the consumer and refund to the
38    consumer the amount the consumer paid for the vehicle, inclusive of the  value
39    of  any  trade-in,  not  to  exceed  one  hundred  five  percent (105%) of the
40    manufacturer's suggested retail price of the motor vehicle. The manufacturer's
41    suggested retail price shall include all manufacturer installed  options.  The
42    one  hundred  five percent (105%) cap shall include the cost of any options or
43    other modifications arranged, installed, or made by the manufacturer's  agent,
44    or  its  authorized  dealer within thirty (30) days after the date of original
45    delivery. The manufacturer shall refund to  the  consumer  all  other  charges
46    including,  but   not limited to, sales or excise tax, license fees and regis-
47    tration fees, reimbursement for towing and rental vehicle expenses incurred by
48    the consumer as a result of the vehicle being  out  of  service  for  warranty
49    repair.  A reasonable allowance for the consumer's use of the vehicle shall be
50    deducted from the refund to the consumer not to exceed  the  number  of  miles
51    attributable  to the consumer up to the date of the arbitration hearing multi-
52    plied by the purchase price of the vehicle and divided by one hundred thousand
53    (100,000). If the manufacturer offers a replacement vehicle  under  this  sec-


                                          3

 1    tion,  the  consumer  has  the option of rejecting the replacement vehicle and
 2    requiring the manufacturer to provide a refund. Refunds must be  made  to  the
 3    consumer,  and lienholder, if any, as their interests appear on the records of
 4    the division of motor vehicles of the Idaho transportation department. A manu-
 5    facturer must give to the consumer an itemized statement listing each  of  the
 6    amounts  refunded  under  this  section.  If the amount of sales or excise tax
 7    refunded is not separately stated, or if the  manufacturer does not apply  for
 8    a  refund  of  the tax within one (1) year of the return of the motor vehicle,
 9    the state tax commission may refund the tax, as  determined  under  subsection
10    (8) of this section, directly to the consumer and lienholder, if any, as their
11    interests  appear  on  the records of the division of motor vehicles. It is an
12    affirmative defense to any claim under this chapter: (a) that an alleged  non-
13    conformity  does not impair the use or market value, or (b) that a nonconform-
14    ity is the result of abuse, neglect, or unauthorized modifications or  altera-
15    tions  of  a motor vehicle by anyone other than the manufacturer, its agent or
16    its authorized dealer.
17        (2)  It is presumed that a reasonable number of attempts have been  under-
18    taken to conform a new motor vehicle to the applicable express warranties, if:
19    (a)  the  same nonconformity has been subject to repair four (4) or more times
20    by the manufacturer, its agents, or its authorized dealers within the applica-
21    ble express warranty term or during the period of two (2) years following  the
22    date of original delivery of the new motor vehicle to a consumer or during the
23    period  ending with the date on which the mileage on the motor vehicle reaches
24    twenty-four thousand (24,000) miles, whichever is the earliest date,  but  the
25    nonconformity  continues  to  exist.  However,  the manufacturer shall have at
26    least one (1) opportunity to attempt to repair the vehicle before it  is  pre-
27    sumed  a  reasonable  number  of  attempts have been undertaken to conform the
28    vehicle to the applicable express warranty; or (b) the vehicle is out of  ser-
29    vice by reason of repair for a cumulative total of thirty (30) or  more  busi-
30    ness days during the term or during the period, whichever is the earlier date.
31        (3)  If  the nonconformity results in a complete failure of the braking or
32    steering system of the new motor vehicle and is   likely  to  cause  death  or
33    serious  bodily injury if the vehicle is driven, it is presumed that a reason-
34    able number of attempts have been undertaken to conform  the  vehicle  to  the
35    applicable  express warranties if the nonconformity has been subject to repair
36    at least once by the manufacturer,  its  agents,  or  its  authorized  dealers
37    within  the  applicable  express warranty term or during the period of two (2)
38    years following the date of original delivery  of the new motor vehicle  to  a
39    consumer or during the period ending with the date on which the mileage on the
40    motor  vehicle  reaches  twenty-four thousand (24,000) miles, whichever is the
41    earliest date, and the nonconformity continues to exist. However, the manufac-
42    turer shall have at least one (1) opportunity to attempt to repair the vehicle
43    before it is presumed a reasonable number of attempts have been undertaken  to
44    conform the vehicle to the applicable express warranty.
45        (4)  The  term  of an applicable express warranty, the two (2) year period
46    and the thirty (30) day period shall be extended by any period of time  during
47    which  repair  services  are  not  available to the consumer because of a war,
48    invasion, strike, or fire, flood,  or other natural disaster.
49        (5)  The presumption contained in subsection (2) of this  section  applies
50    against  a manufacturer only if the manufacturer, its agent, or its authorized
51    dealer has received prior written notification from or on behalf of  the  con-
52    sumer  at  least  once  and  an opportunity to cure the defect alleged. If the
53    notification is received by the manufacturer's agent or authorized dealer, the
54    agent or dealer must forward it to the manufacturer by certified  mail, return
55    receipt requested. However, if the manufacturer is not notified either by  the


                                          4

 1    consumer  or  the manufacturer's agent or authorized dealer, then the manufac-
 2    turer shall have at least one (1) opportunity to cure the alleged defect.
 3        (6)  The expiration of the time periods set forth  in  subsection  (2)  of
 4    this  section  does not bar a consumer from receiving a refund or  replacement
 5    vehicle under subsection (1) of this  section  if  the  reasonable  number  of
 6    attempts to correct the nonconformity causing the substantial impairment occur
 7    within  three  (3)  years  following  the date of original delivery of the new
 8    motor vehicle to a consumer,  provided the consumer first reported the noncon-
 9    formity to the manufacturer, its agent, or its authorized  dealer  during  the
10    term of the applicable express warranty.
11        (7)  The manufacturer shall provide to its agent or authorized dealer and,
12    at  the  time  of  purchase  or  lease, the manufacturer's agent or authorized
13    dealer shall provide a written statement to the  consumer  in  the  new  motor
14    vehicle  warranty  guide,  in  10-point all capital type, in substantially the
15    following form: "IMPORTANT: IF THIS VEHICLE IS DEFECTIVE, YOU MAY BE  ENTITLED
16    UNDER  THE STATE'S LEMON LAW TO  REPLACEMENT OF IT OR A REFUND OF ITS PURCHASE
17    PRICE OR YOUR LEASE PAYMENTS. HOWEVER, TO BE ENTITLED TO REFUND  OR   REPLACE-
18    MENT,  YOU  MUST  FIRST  NOTIFY THE MANUFACTURER, ITS AGENT, OR ITS AUTHORIZED
19    DEALER OF THE PROBLEM IN WRITING AND GIVE THEM AN OPPORTUNITY  TO  REPAIR  THE
20    VEHICLE.   YOU  ALSO HAVE A RIGHT TO SUBMIT YOUR CASE TO THE CONSUMER ARBITRA-
21    TION PROGRAM WHICH THE MANUFACTURER MUST OFFER IN THIS STATE."
22        (8)  The amount of the sales or excise tax to be paid by the  manufacturer
23    to  the consumer under subsection (1) of this section shall be the tax paid by
24    the consumer when the vehicle was purchased less an amount equal  to  the  tax
25    paid multiplied by a fraction, the  denominator of which is the purchase price
26    of  the  vehicle and the numerator of which is the allowance deducted from the
27    refund  for the consumer's use of the vehicle.

28        48-904.  MANUFACTURER'S DUTY TO CONSUMERS WITH LEASED VEHICLES. A consumer
29    who leases a new motor vehicle has the same rights  against  the  manufacturer
30    under  this  section  as  a consumer who purchases a new motor vehicle, except
31    that, if it  is determined that the manufacturer must  accept  return  of  the
32    consumer's  leased  vehicle  pursuant  to section 48-903, Idaho Code, then the
33    consumer lessee is not entitled to a replacement vehicle, but is entitled only
34    to a refund as provided in this section. In such a case, the consumer's leased
35    vehicle shall be returned to the manufacturer and the consumer's written lease
36    with the motor vehicle lessor must be terminated after all  charges  are  set-
37    tled.  The  manufacturer  shall provide the consumer with a full refund of all
38    costs and charges described below less a reasonable  allowance  for  use.  The
39    manufacturer  shall provide to the consumer a refund of the pro rata amount of
40    any down payment paid by the consumer on  the  written  lease.  The  pro  rata
41    amount of such a refund shall be the amount of the down payment divided by the
42    number of months of the lease agreement and that amount multiplied by the num-
43    ber  of  months  remaining after the date of the arbitration. The manufacturer
44    shall also refund to the consumer amounts identified as additional charges set
45    forth in section 48-903, Idaho Code, if actually paid  by  the  consumer.  The
46    reasonable  allowance for use shall be the lease payments made by the consumer
47    until the time of the award of a refund. The manufacturer  shall  provide  the
48    motor  vehicle lessor or its assignee with a full refund of the early termina-
49    tion charges plus the residual value of the vehicle, as specified in the lease
50    agreement. The amount of any refund by the manufacturer to  the  consumer  for
51    the  pro rata portion of the down payment plus the amount of the refund to the
52    motor vehicle lessor or its assignee by the manufacturer shall not exceed  one
53    hundred five percent (105%) of the vehicle's original manufacturer's suggested
54    retail price.


                                          5

 1        48-905.  RESALE  OR  RE-LEASE  OF  RETURNED  MOTOR VEHICLE. (1) If a motor
 2    vehicle has been returned under the provisions of section 48-903, Idaho  Code,
 3    or a similar statute of another state, whether as the result of a legal action
 4    or  as  the result of an informal dispute settlement proceeding, it may not be
 5    resold or re-leased in this state unless:
 6        (a)  The manufacturer provides the same express warranty  it  provided  to
 7        the  original  purchaser,  except  that the term of the warranty need only
 8        last for twelve thousand (12,000) miles or twelve (12)  months  after  the
 9        date of resale, whichever is earlier; and
10        (b)  The  manufacturer provides the consumer with a written statement on a
11        separate piece of paper, in 10-point all capital  type,  in  substantially
12        the  following form: "IMPORTANT: THIS VEHICLE WAS RETURNED TO THE MANUFAC-
13        TURER BECAUSE IT DID NOT CONFORM TO THE  MANUFACTURER'S  EXPRESS  WARRANTY
14        AND  THE  NONCONFORMITY WAS NOT CURED WITHIN A REASONABLE TIME AS PROVIDED
15        BY IDAHO LAW."
16        The provisions of this chapter apply to  the  resold  or  re-leased  motor
17    vehicle  for full term of the warranty required under this section. If a manu-
18    facturer has a program similar to the requirements of this subsection and that
19    program provides, at a minimum, substantially the same protections for  subse-
20    quent consumers, then the manufacturer shall be considered to be in compliance
21    with this subsection.
22        (2)  Notwithstanding  the provisions of subsection (1) of this section, if
23    a new motor vehicle has been returned under the provisions of section  48-903,
24    Idaho  Code,  or a similar statute of another state because of a nonconformity
25    resulting in a complete failure of the braking  or   steering  system  of  the
26    motor  vehicle  likely to cause death or  serious bodily injury if the vehicle
27    was driven and the failure has not been  repaired  by  the  manufacturer,  its
28    agent  or  its  authorized dealer, the motor vehicle may not be resold in this
29    state.

30        48-906.  ALTERNATIVE DISPUTE SETTLEMENT MECHANISM.  (1)  Any  manufacturer
31    doing  business in this state, entering into franchise agreements for the sale
32    of its motor vehicles in this  state, or offering express  warranties  on  its
33    motor  vehicles  sold  or distributed for sale in this state shall operate, or
34    participate in, an informal dispute settlement mechanism located  in the state
35    of Idaho which complies with the provisions of title 16, code of federal regu-
36    lations, part 703, and the requirements of this  section.  The  provisions  of
37    section  48-903, Idaho Code, concerning refunds or replacement do not apply to
38    a consumer who  has not first used this mechanism before  commencing  a  civil
39    action,  unless the manufacturer allows a consumer to commence an action with-
40    out first using this mechanism.
41        (2)  An informal dispute settlement mechanism provided for by this chapter
42    shall, at the time a request for arbitration is made, provide to the  consumer
43    and  to  each  person  who  will arbitrate the consumer's dispute, information
44    about this chapter as approved and directed by the attorney general,  in  con-
45    sultation  with interested parties. The informal dispute  settlement mechanism
46    shall permit the parties to present or submit  any  arguments  based  on  this
47    chapter  and  shall  not  prohibit or discourage the consideration of any such
48    arguments.
49        (3)  If, in an informal dispute settlement mechanism, it is  decided  that
50    a  consumer  is  entitled  to  a  replacement  vehicle or refund under section
51    48-903, Idaho Code, then any refund or replacement offered by the manufacturer
52    or selected by a consumer shall include and itemize all amounts authorized  by
53    section 48-903, Idaho Code. If  the amount of excise tax refunded is not sepa-
54    rately  stated,  or if the manufacturer does not apply for a refund of the tax


                                          6

 1    within one (1) year of the return of the motor vehicle, the state tax  commis-
 2    sion  may  refund the sales tax, as determined under subsection (8) of section
 3    48-903, Idaho Code, directly to the consumer and lienholder, if any, as  their
 4    interests appear on the records of the division of motor vehicles of the Idaho
 5    transportation department.
 6        (4)  No  documents  shall  be  received by any informal dispute settlement
 7    mechanism unless those documents have been provided to each of the parties  in
 8    the  dispute  at  or prior to the mechanism's meeting, with an opportunity for
 9    the parties to comment on the documents either in writing or orally. If a con-
10    sumer is present during the informal dispute settlement  mechanism's  meeting,
11    the consumer may request postponement of the mechanism's meeting to allow suf-
12    ficient  time  to  review  any  documents presented at the time of the meeting
13    which had not been presented to the consumer prior to the meeting.
14        (5)  The informal dispute settlement mechanism shall allow  each party  to
15    appear and make an oral presentation in the state of Idaho unless the consumer
16    agrees  to  submit the dispute for decision on the basis of documents alone or
17    by telephone, or unless the party fails to appear  for  an  oral  presentation
18    after reasonable prior written notice. However, the manufacturer or its repre-
19    sentative may participate in the informal dispute settlement mechanism's meet-
20    ing  by  telephone if it chooses. If the consumer agrees to submit the dispute
21    for decision on the basis of documents alone, then manufacturer or dealer rep-
22    resentatives may not participate in the discussion or decision of the dispute.
23        (6)  Consumers shall  be  given  an  adequate  opportunity  to  contest  a
24    manufacturer's assertion that a nonconformity falls within intended specifica-
25    tions  for  the  vehicle  by  having  the  basis  of  the manufacturer's claim
26    appraised by a technical expert selected and paid for by the consumer prior to
27    the informal dispute settlement hearing.
28        (7)  Where there has been a recent attempt by the manufacturer to repair a
29    consumer's vehicle, but no response has yet been received by the informal dis-
30    pute mechanism from the consumer as to whether the repairs  were  successfully
31    completed, the parties must be given the opportunity to present any additional
32    information  regarding  the  manufacturer's  recent  repair attempt before any
33    final decision is rendered by the informal dispute settlement mechanism.  This
34    provision shall not prejudice a consumer's rights under this chapter.
35        (8)  If  the manufacturer knows that a technical service bulletin directly
36    applies to the specific mechanical problem being  disputed  by  the  consumer,
37    then the manufacturer shall provide the technical service bulletin to the con-
38    sumer  at  reasonable  cost  upon request. The mechanism shall review any such
39    technical  service bulletins submitted by either party.
40        (9)  A consumer may be charged a fee to participate in an informal dispute
41    settlement mechanism required by this chapter, but the fee may not exceed  the
42    conciliation  court  filing  fee  in  the county where the arbitration is con-
43    ducted.
44        (10) Any party to the dispute has the right to be represented by an attor-
45    ney in an informal dispute settlement mechanism.
46        (11) The informal dispute  settlement  mechanism  has  all  the  evidence-
47    gathering powers granted an arbitrator under the uniform arbitration act.
48        (12) A  decision  issued  in  an  informal  dispute  settlement  mechanism
49    required by this section may be in writing and signed.

50        48-907.  EFFECT AND ADMISSIBILITY OF DECISION BY  INFORMAL DISPUTE SETTLE-
51    MENT  MECHANISM.  The decision issued in an informal dispute settlement mecha-
52    nism required by this  chapter is nonbinding on the parties  involved,  unless
53    otherwise  agreed  by the parties. Any party, upon application, may remove the
54    decision to district court for a  trial  de  novo.  If  the   manufacturer  is


                                          7

 1    aggrieved  by  the  decision  of the informal dispute settlement mechanism, an
 2    application to remove the decision must be filed in the district court  within
 3    thirty  (30)  days  after the date the decision is received by the parties. If
 4    the application to remove is not made within thirty (30) days, then  the  dis-
 5    trict court shall, upon application of a party, issue an  order confirming the
 6    decision.  A  written decision issued by an informal dispute settlement mecha-
 7    nism, and any written findings upon which the decision is based, are  admissi-
 8    ble  as nonbinding evidence in any subsequent legal action and are not subject
 9    to further foundation requirements.

10        48-908.  TREBLE DAMAGES FOR BAD FAITH APPEAL OF DECISION. If the  district
11    court finds that a party has removed a decision of an informal dispute settle-
12    ment  mechanism   in bad faith, by asserting a claim or defense that is frivo-
13    lous and costly to the other party, or by  asserting  an  unfounded   position
14    solely to delay recovery by the other party, then the court shall award to the
15    prevailing  party  three (3) times the actual damages sustained, together with
16    costs and attorney's fees.

17        48-909.  CIVIL REMEDY. Any consumer injured by a violation of this chapter
18    may bring a civil action to enforce this chapter and recover  costs  and  dis-
19    bursements, including reasonable attorney's fees incurred in the civil action.
20    However,  the provisions of this section do not include recovery of attorney's
21    fees previously incurred in the course  of  informal  dispute  resolution.  In
22    addition  to  the remedies provided herein, the attorney general  may, when in
23    the public interest, bring an action pursuant to the Idaho consumer protection
24    act, chapter 6, title 48, Idaho Code, against any manufacturer  for  violation
25    of this chapter. For purposes of such action, violations of this chapter shall
26    be  deemed  to  be  violations of Idaho's consumer protection act. In any such
27    action, the attorney general and district court shall have the same  authority
28    as is granted the attorney general and district court under the Idaho consumer
29    protection act.

30        48-910.  LIMITATION  ON ACTIONS. A civil action brought under this chapter
31    must be commenced within three (3) years of the date of original  delivery  of
32    the new motor vehicle to a consumer, except that if the consumer applies to an
33    informal  dispute  settlement  mechanism within three (3) years of the date of
34    original delivery of the new motor vehicle to a consumer, and if the  consumer
35    is  aggrieved  by  the  decision of the informal dispute settlement mechanism,
36    then any appeal of that decision brought under this chapter must be  commenced
37    within three (3) months after the date of the final decision by the mechanism.

38        48-911.  REMEDY NONEXCLUSIVE. Nothing in this chapter limits the rights or
39    remedies which are otherwise available to a consumer under any other law.

40        48-912.  DISCLOSURE  REQUIREMENT.  In addition to any investigative powers
41    authorized by law, the attorney general may inspect the records of the  infor-
42    mal  dispute settlement mechanism upon reasonable notice, during regular busi-
43    ness hours, and may make available to the public information about the  opera-
44    tion  of   the  mechanism, but data on an individual case may not be disclosed
45    without the prior consent of the affected parties.

46        48-913.  DEALER LIABILITY. Nothing in this chapter imposes liability on  a
47    dealer  or  creates  an  additional  cause  of  action by a consumer against a
48    dealer, except for written express warranties made by the  dealer  apart  from
49    the  manufacturer's  warranties.  The  manufacturer  shall  not charge back or


                                          8

 1    require reimbursement by the dealer for any costs, including, but not  limited
 2    to,  any refunds or vehicle replacements, incurred by the manufacturer arising
 3    out of this chapter, unless there is evidence that the related repairs had not
 4    been carried out by the dealer in a timely manner or in a manner substantially
 5    consistent with the manufacturer's published instructions.

Statement of Purpose / Fiscal Impact


    





                          STATEMENT OF PURPOSE
    
                               RS 07576C2
    
    This legislation is designed to furnish relief to Idaho 
    citizens who purchase or lease motor vehicle(s)with factory 
    defects. This proposed legislation will repeal the present 
    "Lemon Law" (Chapter 9, Title 48)and replace the repealed 
    law with legislation containing needed definitions, more 
    definite time frames and improved remedies.
    
                               FISCAL NOTE
    
    There should be no fiscal impact except in instances where 
    the Office of the Attorney General may choose to intervene 
    as a consumer protection effort. If the case is prosecuted 
    and prevailed, the impact could be positive.
    
    CONTACT: Senator Grant R. Ipsen - 332-1330
             Representative Fred Tilman
    
    STATEMENT OF PURPOSE/ FISCAL NOTE
    
    Bill No S 1434