CHAPTER 743g* Automobile Manufacturers' Warranty Adjustment
*See also chapter 743b (Sec. 42-179 et seq.) re new automobile
warranties. See also chapter 743f (Sec. 42-220 et seq.) re used
Sec. 42-227. Automobile manufacturer's warranty adjustment
(a) For the purposes of this section:
(1) "Consumer" means the purchaser, other than for purposes of
resale, of a motor vehicle, a lessee of a motor vehicle, any person
to whom such motor vehicle is transferred during the duration of an
express warranty applicable to such motor vehicle and any person
entitled by the terms of such warranty to enforce the obligations of
(2) "Dealer" means any person selling or agreeing to sell,
leasing or agreeing to lease in this state one or more motor
vehicles under a retail agreement with a manufacturer, manufacturer
branch, distributor or distributor branch, or agent of any of them.
(3) "Lessee" means any consumer who leases a motor vehicle
pursuant to a written lease which provides that the lessee is
responsible for repairs to such motor vehicles.
(4) "Adjustment program" means any program or policy that expands
or extends the consumer's warranty beyond its stated limit or under
which a manufacturer offers to pay for all or any part of the cost
of repairing, or to reimburse consumers for all or any part of the
cost of repairing, any condition that may substantially affect
vehicle durability, reliability or performance, other than service
provided under a safety or emission-related recall campaign. This
term does not include adjustments made by a manufacturer on a case
by case basis.
(5) "Manufacturer" means (A) any person who manufactures or
assembles new motor vehicles for sale or distribution or (B) any
person who is engaged in the business of importing new motor
vehicles for sale or distribution to dealers or through
distributors, or factory branches.
(6) "Motor vehicle" means a passenger motor vehicle, as defined
in section 14-1.
(7) "Service bulletin" means any document issued by a
manufacturer pertaining to any adjustment program.
(b) A manufacturer shall establish a procedure in this state
whereby a consumer (1) shall be informed of any adjustment program
applicable to his motor vehicle and (2) shall be entitled to receive a
copy of any service bulletin or index thereof upon request.
(c) Within ninety days of the adoption of an adjustment program a
manufacturer shall notify, by first-class mail, all consumers eligible
under such program of the condition in the motor vehicle which is
covered by an adjustment program and the principal terms and
conditions of the adjustment program.
(d) Each manufacturer either directly or through its authorized
agent shall cause to be given to the original purchaser of a new motor
vehicle, at the time of purchase, a notice outlining the provisions of
this section and the rights and remedies provided hereunder. The
written notice shall be deemed sufficient if done in substantially the
following form: "Sometimes (insert manufacturer's name) offers a
special adjustment program to pay all or part of the cost of certain
repairs beyond the terms of the warranty. Check with your dealer to
determine whether any adjustment program is applicable to your motor
(e) A dealer shall disclose to a consumer seeking repairs for a
particular condition at its repair shop, the principal terms and
conditions of the manufacturer's adjustment program covering such
condition if the dealer has received a service bulletin concerning
such adjustment program or otherwise has knowledge of it.
(f) A manufacturer who establishes an adjustment program shall
implement procedures to assure reimbursement of each consumer eligible
under an adjustment program who incurs expenses for repair of a
condition subject to the program prior to acquiring knowledge of the
program. Such reimbursement shall be consistent with the terms and
conditions of the particular program.
(g) Any claim for reimbursement under subsection (f) of this
section shall be made in writing to the manufacturer within two years
of the date of the consumer's payment for repair of the condition. The
manufacturer shall notify the consumer within twenty- one business
days of receiving a claim for reimbursement whether the claim will be
allowed or denied. If the claim is denied, the specific reasons for
the denial shall be stated in writing.
(h) A violation of any of the provisions of this section shall be
deemed an unfair or deceptive trade practice under chapter 735a.
(P.A. 90-52, S. 1-5.)
Secs. 42-228 and 42-229. Reserved for future use.