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STANDARDS OF THE COLORADO LEMON LAW

The following is an brief explanation of most relevant provisions of the Colorado lemon law. The complete text of the lemon law can be found at Colorado Rev. Stat. 42-12-101 et seq.

VEHICLES COVERED BY THE COLORADO LEMON LAW

The Colorado lemon law covers motor vehicles, which means private passenger vehicles, pickup trucks and vans that are:

  1. Designed primarily for travel on the public highways;

  2. Used to carry not more than ten persons; and

  3. Sold to consumers in Colorado.

The Colorado lemon law does not cover motor homes or vehicles designed to travel on three or fewer wheels in contact with the ground. The lemon law does not cover leased vehicles but appears to cover used vehicles.

CONSUMERS COVERED BY THE COLORADO LEMON LAW

The Colorado lemon law covers consumers who fall into any one of the following categories:

  1. The purchaser, other than for purposes of resale, of a motor vehicle normally used for personal, family, or household purposes;

  2. Any person to whom such motor vehicle is transferred for the same purposes during the term of the manufacturer‘s express warranty; or

  3. Any other person entitled by the terms of such warranty to enforce its obligations.

PROBLEMS COVERED BY THE COLORADO LEMON LAW

The Colorado lemon law covers any defect or condition that substantially impairs the use and market value of the motor vehicle. This is referred to as a nonconformity.

The Colorado lemon law provides manufacturers with an affirmative defense if it can be shown that the alleged nonconformity is the result of abuse, neglect, or unauthorized modifications or alterations of the vehicle by the consumer.

MANUFACTURER‘S DUTY TO REPAIR

If a motor vehicle does not conform to the manufacturer‘s written warranty and the consumer reports the nonconformity to the manufacturer, its agent, or its authorized dealer during the term of the warranty or within one year after the vehicle‘s original delivery to a consumer, whichever comes first, the manufacturer, its agent, or its authorized dealer must make the necessary repairs to conform the motor vehicle to the warranty. Such repairs must be made even if they occur after the expiration of the warranty term or the one-year period.

This information is not intended as legal advice. Please direct specific questions to your legal counsel.

 

MANUFACTURER‘S DUTY TO REPURCHASE OR REPLACE A VEHICLE

If the manufacturer, its agent, or its authorized dealer is unable to repair or correct a nonconformity after a reasonable number of repair attempts, the manufacturer must, at its option, replace or repurchase the motor vehicle.

REASONABLE NUMBER OF REPAIR ATTEMPTS

The Colorado lemon law establishes a presumption that a manufacturer has had a reasonable number of repair attempts if, within the warranty term or one year after the vehicle‘s original delivery, whichever comes first, either of the following occurs:

  1. The same nonconformity has been subject to repair four or more times by the manufacturer, its agent, or its authorized dealer and the nonconformity continues to exist, or

  2. The motor vehicle has been out of service by reason of repair for a cumulative total of 30 or more business days of the repairer.

The warranty term, the 12-month period and the thirty-day period are extended by any period of time during which repair services are unavailable due to war or invasion, strike, or natural disaster.

NOTICE AND FINAL REPAIR ATTEMPT

The above presumption applies only to manufacturers that received prior written notice by certified mail from or on behalf of the consumer, and had an opportunity to cure the alleged defect. The manufacturer‘s opportunity to cure counts as one repair attempt towards meeting the reasonable number of repair attempts presumption.

DISPUTE RESOLUTION

If the manufacturer has established or participates in an informal dispute settlement procedure that substantially complies with 16 C.F.R. Part 703, the provisions requiring refund or replacement do not apply unless the consumer has first resorted to the informal dispute settlement procedure.

TIME PERIOD FOR FILING CLAIMS

An action must be commenced within the earlier of (1) six months following the expiration date of any warranty term, or (2) one year following the date of the vehicle‘s original delivery to a consumer. The time periods do not run during the period the consumer has submitted to the informal dispute settlement procedure.

This information is not intended as legal advice. Please direct specific questions to your legal counsel.

 

REMEDIES UNDER THE COLORADO LEMON LAW REPURCHASE

The Colorado lemon law provides that a manufacturer must pay the following amounts when it repurchases an owned vehicle under the lemon law:

  1. Full Purchase price of the vehicle; and

  2. Sales tax, license fees, registration fees and any similar governmental charges;

  3. Less a reasonable allowance for the consumer‘s use of the motor vehicle.

A reasonable allowance for use is the amount directly attributable to use by the consumer or any previous consumer prior to the consumer‘s first written report of the nonconformity to the manufacturer, its agent, or dealer and during any subsequent period when the vehicle is not out of service for repair.

REPLACEMENT

When replacing a vehicle under the Colorado lemon law, the manufacturer must provide a comparable motor vehicle. The reasonable allowance for use appears not to apply to a replacement.

This information is not intended as legal advice. Please direct specific questions to your legal counsel.

 


COLORADO LEMON LAW SUMMARY

EXECUTIVE SUMMARY
TIME PERIOD FOR FILING CLAIMS Earlier of (1) 6 months after warranty term or (2) 1 year following
original delivery. To file in court, the time period does not run
while the consumer participates in dispute resolution procedure.
ELIGIBLE VEHICLE Private passenger vehicle, pickup truck and van that is (1) designed primarily for travel on the public highways; (2) used to carry not more than ten persons; and (3) sold to a consumer in Colorado. Excludes motor homes and vehicles with three or fewer wheels.
Does not cover leased vehicles; appears to cover used vehicles.
ELIGIBLE CONSUMER (1) Purchaser, other than for purposes of resale, of a motor vehicle
normally used for personal, family, or household purposes; (2) any
person to whom the vehicle is transferred for the same purposes
during the warranty; or (3) any other person entitled by the terms of such warranty to enforce its obligations.
TIME PERIOD FOR FIRST Earlier of warranty term or one year after original delivery.
OCCURRENCE OR NOTICE
TIME PERIOD FOR REASONABLE Not specified.
NUMBER OF ATTEMPTS TO REPAIR
PRESUMPTION Presumption: within earlier of warranty term or 1 year after
OR DEFINITION original delivery, (1) four or more attempts or (2) out of service for 30 business days
NOTICE TO MANUFACTURER Certified mail; required to assert presumption.
FINAL OPPORTUNITY TO REPAIR Required to assert presumption.
REASONABLE ALLOWANCE Use by any consumer before first written report of nonconformity
and any subsequent period when vehicle not out of service.
DISPUTE RESOLUTION Before applying the provisions requiring refund or replacement,
consumer must resort to manufacturer‘s program if it complies with
16 C.F.R. Part 703.
DISCLOSURE TO SUBSEQUENT Yes.
PURCHASER
TITLE BRANDING No.

 

COLORADO LEMON LAW SUMMARY

1. Citation Colorado Revised Statutes §§ 42-10-101 through 42-10-107.
2. Motor vehicle covered —Motor vehicle“ means a private passenger vehicle, pickup truck and van that is (1) designed primarily for travel on the public highways; (2) used to carry not more than ten persons; and (3) sold to a consumer in Colorado. Excludes motor homes and vehicles designed to travel on three or fewer wheels in contact with the ground. Does not cover leased vehicles.
3. Consumer defined (1) The purchaser, other than for purposes of resale, of a motor vehicle normally used for personal, family, or household purposes; (2) Any person to whom such motor vehicle is transferred for the same purposes during the term of the manufacturer's express warranty; or (3) Any other person entitled by the terms of such warranty to enforce its obligations. Does not cover a lessee. Appears to cover the owner of a used vehicle.
4. Nonconformity defined Not defined. Any defect or condition that substantially impairs the use and market value of the motor vehicle is referred to as a nonconformity.
5. Warranty defined —Warranty“ is the written warranty, so labeled, of the manufacturer of a new motor vehicle, including any terms or conditions precedent to the enforcement of obligations under that warranty.
6. Lemon law rights period Not specified.
7. Manufacturer‘s obligation to repair If the consumer reports the nonconformity to the manufacturer, its agent, or its authorized dealer during the term of the warranty or within one year after the vehicle's original delivery to a consumer, whichever comes first, the manufacturer, its agent, or its authorized dealer must make the necessary repairs to conform the motor vehicle to the warranty. Such repairs must be made even if they occur after the expiration of the warranty term or the one-year period.
8. Manufacturer‘s obligation to repurchase or replace If the manufacturer, its agent or authorized dealer is unable to repair or correct a nonconformity after a reasonable number of repair attempts, the manufacturer must, at its option, replace or repurchase the motor vehicle.
9. Criteria for reasonable number of repair attempts Presumed if, within the warranty term or one year after the vehicle's original delivery, whichever comes first: (1) The same nonconformity has been subject to repair four or more times by the manufacturer, its agent, or its authorized dealer and the nonconformity continues to exist, or (2) The motor vehicle has been out of service by reason of repair for a cumulative total of 30 or more business days of the repairer.
10. Notice of nonconformity and final opportunity to repair The presumption applies only to a manufacturer that received prior written notice by certified mail from or on behalf of the consumer, and had an opportunity to cure the alleged defect. The manufacturer's opportunity to cure counts as one repair attempt towards meeting the four-attempts prong of the presumption.
11. Affirmative defenses It is an affirmative defense that the alleged nonconformity is the result of abuse, neglect, or unauthorized modifications or alterations of the vehicle by the consumer.
12. Refund Refund consists of: (1) Full Purchase price of the vehicle; and (2) Sales tax, license fees, registration fees and any similar governmental charges; (3) Less a reasonable allowance for the consumer's use of the motor vehicle.
13. Replacement Replacement is a comparable motor vehicle.
 
14. Reasonable allowance A reasonable allowance for use must be that amount directly attributable to use by the consumer or any previous consumer prior to the consumer's first written report of the nonconformity to the manufacturer, its agent, or dealer and during any subsequent period when the vehicle is not out of service for repair.
15. Refund of sales tax Manufacturer refunds sales tax to the consumer. No provision for the manufacturer to obtain a refund of sales tax from the state.
16. Enhanced damages Not specified.
17. Attorney‘s fees The court must award reasonable attorney‘s fees to the prevailing side in any action brought to enforce the provisions of the lemon law.
18. Statute of limitations An action must be commenced within the earlier of (1) six months following the expiration date of any warranty term, or (2) one year following the date of the vehicle‘s original delivery to a consumer. The time periods do not run during the period the consumer has submitted to the informal dispute settlement procedure.
19. Manufacturersponsored arbitration If the manufacturer has established or participates in an informal dispute settlement procedure that substantially complies with 16 C.F.R. Part 703, the provisions requiring refund or replacement do not apply unless the consumer has first resorted to the informal dispute settlement procedure.
20. State-sponsored arbitration Not specified.
21. Dealer liability Nothing in the lemon law is to be construed as imposing a liability on any authorized dealer with respect to a manufacturer, or creating a cause of action by a manufacturer against its authorized dealer œ except that failure by an authorized dealer to properly prepare a motor vehicle for sale, properly install options, or properly make repairs, when such preparation, installation or repairs would have prevented or cured a nonconformity, is actionable by the manufacturer. Nothing in the lemon law affects the other rights and duties between the consumer and a seller, lessor, or lienholder of a motor vehicle or the rights between any of them.
22. Restrictions on resale of returned vehicles It is a deceptive trade practice to fail to disclose in writing, prior to sale, to the purchaser that a motor vehicle that a vehicle was repurchased by or returned to the manufacturer from a previous owner for inability to conform the motor vehicle to the manufacturer's warranty in accordance with the lemon law or with any other state or federal motor vehicle warranty law.
23. Point of sale notice of lemon law rights Not specified.
24. Limitation on waiver Not specified.

This information is not intended as legal advice. Please direct specific questions to your legal counsel.Inc






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