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North Carolina

NORTH CAROLINA Lemon Law:

N.C. Gen. Stat. §§ 20-351 to 20-351.10

Vehicles covered: Vehicles, as defined in N.C. Gen. Stat. § 20-4.01,

sold or leased in-state; excludes house trailers and vehicles over

10,000 lbs. (§ 20-351.1(3)).

Persons covered: Purchaser, lessee, transferee or any person entitled

to enforce the warranty (§ 20-351.1(1)).

Period covered: Consumer entitled to repairs for defects reported

within the first twelve months or 12,000 miles (§ 20-351.2).

Disclosure requirements: Manufacturer must provide in warranty

or owner’s manual clear and conspicuous notice of consumer’s

obligation to provide written notice before exercising lemon law

rights to refund or replacement (§ 20-351.5(a)); to establish arbitration

requirement clear and conspicuous notice of arbitration

process is required in the warranty (§ 20-351.7).

Required consumer notice: Must report the nonconformity to the

manufacturer, its agent or an authorized dealer (§ 20-351.2(a));

written direct notice to manufacturer (§ 20-351.5(a)); written

notice ten days prior to filing a civil suit (§ 20-351.7).

Repair requirements: It is presumed that a reasonable number of

attempts have been made if the same nonconformity is subjected to

four or more repairs, or the vehicle is out of service for a cumulative

total of twenty or more business days (§ 20-351.5(a)).

Manufacturer has fifteen day opportunity to cure following receipt

of consumer notice (§ 20-351.5(a)).

Affırmative defenses: The nonconformity is the result of abuse,

neglect, odometer tampering by the consumer, or unauthorized

modifications or alterations (§ 20-351.4).

Replace/refund: At the consumer’s option, the manufacturer shall

replace with a new comparable vehicle, or refund the full purchase

price less a reasonable use allowance (§ 20-351.3(a)).

Other reimbursement: Collateral charges (defined), finance

charges, and incidental and consequential damages (§ 20-

351.3(a)); attorney fees (20-351.8).

Other remedies: There is no limit on other consumer remedies

(§ 20-351.10). Injunctive relief, monetary damages (trebled for

unreasonable non-compliance) (§ 20-351.8). No cause of action

created against dealer (§ 20-351.9).

Informal dispute resolution: For remedies under this section a

consumer must use an informal dispute settlement procedure established

by the manufacturer, provided the procedure complies

with 15 U.S.C. § 2301 and provided consumer was given notice of

required procedure in warranty (§ 20-351.7).

Resale of lemon: Full disclosure required (§ 20-351.3(d)).