19.118.005
Legislative intent.
The
legislature 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.
The legislature further recognizes that good cooperation and
communication between a manufacturer and a new motor vehicle
dealer will considerably increase the likelihood that a new
motor vehicle will be repaired within a reasonable number of
attempts. It is the intent of the legislature to ensure that the
consumer is made aware of his or her rights under this chapter
and is not refused information, documents, or service that would
otherwise obstruct the exercise of his or her rights.
In
enacting these comprehensive measures, it is the intent of the
legislature to create the proper blend of private and public
remedies necessary to enforce this chapter, such that a
manufacturer will be sufficiently induced to take necessary
steps to improve quality control at the time of production or
provide better warranty service for the new motor vehicles that
it sells in this state.
19.118.010
Motor vehicle manufacturers.
Express
warranties; Service and repair facilities.
Every
manufacturer of motor vehicles sold in this state and for which
the manufacturer has made an express warranty shall maintain in
this state sufficient service and repair facilities reasonably
close to all areas in which its motor vehicles are sold to carry
out the terms of the warranties or designate and authorize in
this state as service and repair facilities independent repair
or service facilities reasonably close to all areas in which its
motor vehicles are sold to carry out the terms of the
warranties. As a means of complying with this section, a
manufacturer may enter into warranty service contracts with
independent service and repair facilities.
19.118.021
Definitions.
Unless
the context clearly requires otherwise, the definitions in this
section apply throughout this chapter.
(1)
"Board" means new motor vehicle arbitration board.
(2)
"Collateral charges" means any sales or lease related
charges including but not limited to sales tax, use tax,
arbitration service fees, unused license fees, unused
registration fees, unused title fees, finance charges,
prepayment penalties, credit disability and credit life
insurance costs not otherwise refundable, any other insurance
costs prorated for time out of service, transportation charges,
dealer preparation charges, or any other charges for service
contracts, undercoating, rust proofing, or factory or dealer
installed options.
(3)
"Condition" means a general problem that results from
a defect or malfunction of one or more parts, or their improper
installation by the manufacturer, its agents, or the new motor
vehicle dealer.
(4)
"Consumer" means any person who has entered into an
agreement or contract for the transfer, lease, or purchase of a
new motor vehicle, other than for purposes of resale or
sublease, during the duration of the warranty period defined
under this section.
(5)
"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 chapter.
(6)
"Incidental costs" means any reasonable expenses
incurred by the consumer in connection with the repair of the
new motor vehicle, including any towing charges and the costs of
obtaining alternative transportation.
(7)
"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.
"Manufacturer" does not include any person engaged in
the business of set-up of motorcycles as an agent of a new motor
vehicle dealer if the person does not otherwise construct or
assemble motorcycles.
(8)
"Motorcycle" means any motorcycle as defined in RCW
46.04.330 which has an engine displacement of at least seven
hundred fifty cubic centimeters.
(9)
"Motor home" means a vehicular unit designed to
provide temporary living quarters for recreational, camping, or
travel use, built on or permanently attached to a self-propelled
motor vehicle chassis or on a chassis cab or van that is an
integral part of the completed vehicle.
(10)
"Motor home manufacturer" means the first stage
manufacturer, the component manufacturer, and the final stage
manufacturer.
(a)
"First stage manufacturer" means a person who
manufactures incomplete new motor vehicles such as chassis,
chassis cabs, or vans, that are directly warranted by the first
stage manufacturer to the consumer, and are completed by a final
stage manufacturer into a motor home.
(b)
"Component manufacturer" means a person who
manufactures components used in the manufacture or assembly of a
chassis, chassis cab, or van that is completed into a motor home
and whose components are directly warranted by the component
manufacturer to the consumer.
(c)
"Final stage manufacturer" means a person who
assembles, installs, or permanently affixes a body, cab, or
equipment to an incomplete new motor vehicle such as a chassis,
chassis cab, or van provided by a first stage manufacturer, to
complete the vehicle into a motor home.
(11)
"New motor vehicle" means any new self-propelled
vehicle, including a new motorcycle, primarily designed for the
transportation of persons or property over the public highways
that was originally purchased or leased at retail from a new
motor vehicle dealer or leasing company in this state, and that
was initially registered in this state or for which a temporary
motor vehicle license was issued pursuant to RCW 46.16.460, but
does not include vehicles purchased or leased by a business as
part of a fleet of ten or more vehicles at one time or under a
single purchase or lease agreement. If the motor vehicle is a
motor home, this chapter 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 trucks with nineteen thousand
pounds or more gross vehicle weight rating. The term "new
motor vehicle" includes a demonstrator or lease-purchase
vehicle as long as a manufacturer's warranty was issued as a
condition of sale.
(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, or dealing in new motor vehicles, and who
is licensed or required to be licensed as a vehicle dealer by
the state of Washington.
(13)
"Nonconformity" means a defect, serious safety defect,
or condition that substantially impairs the use, value, or
safety of a new motor vehicle, 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)
"Purchase price" means the cash price of the new motor
vehicle appearing in the sales agreement or contract.
(a)
"Purchase price" in the instance of a lease means the
actual written capitalized cost disclosed to the consumer
contained in the lease agreement. If there is no disclosed
capitalized cost in the lease agreement the "purchase
price" is the manufacturer's suggested retail price
including manufacturer installed accessories or items of
optional equipment displayed on the manufacturer label, required
by 15 U.S.C. Sec. 1232.
(b)
"Purchase price" in the instance of both a vehicle
purchase or lease agreement includes any allowance for a
trade-in vehicle but does not include any
manufacturer-to-consumer rebate appearing in the agreement or
contract that the consumer received or that was applied to
reduce the purchase or lease cost. Where the consumer is a
subsequent transferee and the consumer selects repurchase of the
motor vehicle, "purchase price" means the consumer's
subsequent purchase price. Where the consumer is a subsequent
transferee and the consumer selects replacement of the motor
vehicle, "purchase price" means the original purchase
price.
(15)
"Reasonable offset for use" means the definition
provided in RCW 19.118.041(1)(c) for a new motor vehicle other
than a new motorcycle. The reasonable offset for use for a new
motorcycle shall be computed by the number of miles that the
vehicle traveled before the manufacturer's acceptance of the
vehicle upon repurchase or replacement multiplied by the
purchase price, and divided by twenty-five thousand.
(16)
"Reasonable number of attempts" means the definition
provided in RCW 19.118.041.
(17)
"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 original purchase or lease, including any service
contract, undercoating, rustproofing, and factory or dealer
installed options.
(18)
"Serious safety defect" means a life-threatening
malfunction or nonconformity that impedes the consumer's ability
to control or operate the new motor vehicle for ordinary use or
reasonable intended purposes or creates a risk of fire or
explosion.
(19)
"Subsequent transferee" means a consumer who acquires
a motor vehicle, within the warranty period, as defined in this
section, with an applicable manufacturer's written warranty and
where the vehicle otherwise met the definition of a new motor
vehicle at the time of original retail sale or lease.
(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 below the average
resale value for comparable motor vehicles.
(21)
"Warranty" means any implied warranty, any written
warranty of the manufacturer, or any affirmation of fact or
promise made by the manufacturer in connection with the sale of
a new motor vehicle that becomes part of the basis of the
bargain. The term "warranty" pertains to the
obligations of the manufacturer in relation to materials,
workmanship, and fitness of a new motor vehicle for ordinary use
or reasonably intended purposes throughout the duration of the
warranty period as defined under this section.
(22)
"Warranty period" means the period ending two years
after the date of the original delivery to the consumer of a new
motor vehicle, or the first twenty-four thousand miles of
operation, whichever occurs first.
19.118.031
Manufacturers and new motor vehicle dealers.
Responsibilities
to consumers; Extension of warranty period.
(1)
The manufacturer shall publish an owner's manual and provide it
to the new motor vehicle dealer or leasing company. The owner's
manual shall include a list of the addresses and phone numbers
for the manufacturer's customer assistance division, or zone or
regional offices. A manufacturer shall provide to the new motor
vehicle dealer or leasing company all applicable manufacturer's
written warranties. The dealer or leasing company shall transfer
to the consumer, at the time of original retail sale or lease,
the owner's manual and applicable written warranties as provided
by a manufacturer.
(2)
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 chapter. The written statement
shall be prepared and supplied by the attorney general and shall
contain a toll-free number that the consumer can contact for
information regarding the procedures and remedies under this
chapter.
(3)
For the purposes of this chapter, if a new motor vehicle does
not conform to the warranty and the consumer reports the
nonconformity during the term of the warranty period or the
period of coverage of the applicable manufacturer's written
warranty, whichever is less, to the manufacturer, its agent, or
the new motor vehicle dealer who sold the new motor vehicle, the
manufacturer, its agent, or the new motor vehicle dealer shall
make repairs as are necessary to conform the vehicle to the
warranty, regardless of whether such repairs are made after the
expiration of the warranty period. Any corrections or attempted
repairs undertaken by a new motor vehicle dealer under this
chapter shall be treated as warranty work and billed by the
dealer to the manufacturer in the same manner as other work
under the manufacturer's written warranty is billed. For
purposes of this subsection, the manufacturer's written warranty
shall be at least one year after the date of the original
delivery to the consumer of the vehicle or the first twelve
thousand miles of operation, whichever occurs first.
(4)
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, or shall provide a copy of any
technical service bulletin issued by the manufacturer regarding
the year and model of the consumer's new motor vehicle as it
pertains to any material, feature, component, or the performance
thereof.
(5)
The new motor vehicle dealer shall provide to the consumer each
time the consumer's vehicle is returned from being diagnosed or
repaired under the warranty, 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.
(6)
No manufacturer, its agent, or the new motor vehicle dealer may
refuse to diagnose or repair any nonconformity covered by the
warranty for the purpose of avoiding liability under this
chapter.
(7)
For purposes of this chapter, consumers shall have the rights
and remedies, including a cause of action, against manufacturers
as provided in this chapter.
(8)
The warranty period and thirty-day out-of-service period, and
sixty-day out-of-service period in the case of a motor home,
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.
19.118.041
Replacement or repurchase of nonconforming new motor vehicle.
Reasonable
number of attempts; Notice by consumer regarding motor home
nonconformity; Liabilities and rights of parties; Application of
consumer protection act.
(1)
If the manufacturer, its agent, or the new motor vehicle dealer
is unable to conform the new motor vehicle to the warranty by
repairing or correcting any nonconformity after a reasonable
number of attempts, the manufacturer, within forty calendar days
of a consumer's written request to the manufacturer's corporate,
dispute resolution, zone, or regional office address shall, at
the option of the consumer, replace or repurchase the new motor
vehicle.
(a)
The replacement motor vehicle shall be identical or reasonably
equivalent to the motor vehicle to be replaced as the motor
vehicle to be replaced existed at the time of original purchase
or lease, including any service contract, undercoating, rust
proofing, and factory or dealer installed options. Where the
manufacturer supplies a replacement motor vehicle, the
manufacturer shall be responsible for sales tax, license,
registration fees, and refund of any incidental costs.
Compensation for a reasonable offset for use shall be paid by
the consumer to the manufacturer in the event that the consumer
accepts a replacement motor vehicle.
(b)
When repurchasing the new motor vehicle, the manufacturer shall
refund to the consumer the purchase price, all collateral
charges, and incidental costs, less a reasonable offset for use.
When repurchasing the new motor vehicle, in the instance of a
lease, the manufacturer shall refund to the consumer all
payments made by the consumer under the lease including but not
limited to all lease payments, trade-in value or inception
payment, security deposit, all collateral charges and incidental
costs less a reasonable offset for use. The manufacturer shall
make such payment to the lessor and/or lien holder of record as
necessary to obtain clear title to the motor vehicle and upon
the lessor's and/or lien holder's receipt of that payment and
payment by the consumer of any late payment charges, the
consumer shall be relieved of any future obligation to the
lessor and/or lien holder.
(c)
The reasonable offset for use shall be computed by multiplying
the number of miles that the vehicle traveled directly
attributable to use by the consumer times the purchase price,
and dividing the product by one hundred twenty thousand, except
in the case of a motor home, in which event it shall be divided
by ninety thousand. However, the reasonable offset for use
calculation total for a motor home is subject to modification by
the board by decreasing or increasing the offset total up to a
maximum of one- third of the offset total. The board may modify
the offset total in those circumstances where the board
determines that the wear and tear on those portions of the motor
home designated, used, or maintained primarily as a mobile
dwelling, office, or commercial space are significantly greater
or significantly less than that which could be reasonably
expected based on the mileage attributable to the consumer's use
of the motor home. Where the consumer is a second or subsequent
purchaser, lessee, or transferee of the motor vehicle and the
consumer selects repurchase of the motor vehicle, "the
number of miles that the vehicle traveled" shall be
calculated from the date of purchase or lease by the consumer.
Where the consumer is a second or subsequent purchaser, lessee,
or transferee of the motor vehicle and the consumer selects
replacement of the motor vehicle, "the number of miles that
the vehicle traveled" shall be calculated from the original
purchase, lease, or in-service date.
(2)
Reasonable number of attempts, except in the case of a new motor
vehicle that is a motor home acquired after June 30, 1998, shall
be deemed to have been undertaken by the manufacturer, its
agent, or the new motor vehicle dealer to conform the new motor
vehicle to the warranty within the warranty period, if:
(a)
The same serious safety defect has been subject to diagnosis or
repair two or more times, at least one of which is during the
period of coverage of the applicable manufacturer's written
warranty, and the serious safety defect continues to exist;
(b)
the same nonconformity has been subject to diagnosis or repair
four or more times, at least one of which is during the period
of coverage of the applicable manufacturer's written warranty,
and the nonconformity continues to exist; or
(c)
the vehicle is out of service by reason of diagnosis or repair
of one or more nonconformities for a cumulative total of thirty
calendar days, at least fifteen of them during the period of the
applicable manufacturer's written warranty. For purposes of this
subsection, the manufacturer's written warranty shall be at
least one year after the date of the original delivery to the
consumer of the vehicle or the first twelve thousand miles of
operation, whichever occurs first.
(3)
(a)
In the case of a new motor vehicle that is a motor home acquired
after June 30, 1998, a reasonable number of attempts shall be
deemed to have been undertaken by the motor home manufacturers,
their respective agents, or their respective new motor vehicle
dealers to conform the new motor vehicle to the warranty within
the warranty period, if:
(i)
The same serious safety defect has been subject to diagnosis or
repair one or more times during the period of coverage of the
applicable motor home manufacturer's written warranty, plus a
final attempt to repair the vehicle as provided for in (b) of
this subsection, and the serious safety defect continues to
exist;
(ii)
the same nonconformity has been subject to repair three or more
times, at least one of which is during the period of coverage of
the applicable motor home manufacturer's written warranty, plus
a final attempt to repair the vehicle as provided for in (b) of
this subsection, and the nonconformity continues to exist; or
(iii)
the vehicle is out of service by reason of diagnosis or repair
of one or more nonconformities for a cumulative total of sixty
calendar days aggregating all motor home manufacturer days out
of service, and the motor home manufacturers have had at least
one opportunity to coordinate and complete an inspection and any
repairs of the vehicle's nonconformities after receipt of
notification from the consumer as provided for in (c) of this
subsection. For purposes of this subsection, each motor home
manufacturer's written warranty must be at least one year after
the date of the original delivery to the consumer of the vehicle
or the first twelve thousand miles of operation, whichever
occurs first.
(b)
In the case of a new motor vehicle that is a motor home, after
one attempt has been made to repair a serious safety defect, or
after three attempts have been made to repair the same
nonconformity, the consumer shall give written notification of
the need to repair the nonconformity to each of the motor home
manufacturers at their respective corporate, zone, or regional
office addresses to allow the motor home manufacturers to
coordinate and complete a final attempt to cure the
nonconformity. The motor home manufacturers each have fifteen
days, commencing upon receipt of the notification, to respond
and inform the consumer of the location of the facility where
the vehicle will be repaired. If the vehicle is unsafe to drive
due to a serious safety defect, or to the extent the repair
facility is more than one hundred miles from the motor home
location, the motor home manufacturers are responsible for the
cost of transporting the vehicle to and from the repair
facility. The motor home manufacturers have a cumulative total
of thirty days, commencing upon delivery of the vehicle to the
designated repair facility by the consumer, to conform the
vehicle to the applicable motor home manufacturer's written
warranty. This time period may be extended if the consumer
agrees in writing. If a motor home manufacturer fails to respond
to the consumer or perform the repairs within the time period
prescribed, that motor home manufacturer is not entitled to a
final attempt to cure the nonconformity.
(c)
In the case of a new motor vehicle that is a motor home, if the
vehicle is out of service by reason of diagnosis or repair of
one or more nonconformities by the motor home manufacturers,
their respective agents, or their respective new motor vehicle
dealers for a cumulative total of thirty or more days
aggregating all motor home manufacturer days out of service, the
consumer shall so notify each motor home manufacturer in writing
at their respective corporate, zone, or regional office
addresses to allow the motor home manufacturers, their
respective agents, or their respective new motor vehicle dealers
an opportunity to coordinate and complete an inspection and any
repairs of the vehicle's nonconformities. The motor home
manufacturers have fifteen days, commencing upon receipt of the
notification, to respond and inform the consumer of the location
of the facility where the vehicle will be repaired. If the
vehicle is unsafe to drive due to a serious safety defect, or to
the extent the repair facility is more than one hundred miles
from the motor home location, the motor home manufacturers are
responsible for the cost of transporting the vehicle to and from
the repair facility. Once the buyer delivers the vehicle to the
designated repair facility, the inspection and repairs must be
completed by the motor home manufacturers either
(i)
within ten days or
(ii)
before the vehicle is out of service by reason of diagnosis or
repair of one or more nonconformities for sixty days, whichever
time period is longer.
This
time period may be extended if the consumer agrees in writing.
If a motor home manufacturer fails to respond to the consumer or
perform the repairs within the time period prescribed, that
motor home manufacturer is not entitled to at least one
opportunity to inspect and repair the vehicle's nonconformities
after receipt of notification from the buyer as provided for in
this subsection (3)(c).
(4)
No new motor vehicle dealer may be held liable by the
manufacturer for any collateral charges, incidental costs,
purchase price refunds, or vehicle replacements. Manufacturers
shall not have a cause of action against dealers under this
chapter. Consumers shall not have a cause of action against
dealers under this chapter, but a violation of any
responsibilities imposed upon dealers under this chapter is a
per se violation of chapter 19.86 RCW. Consumers may pursue
rights and remedies against dealers under any other law,
including chapters 46.70 and 46.71 RCW. Manufacturers and
consumers may not make dealers parties to arbitration board
proceedings under this chapter.
19.118.061
Vehicle with nonconformities or out of service.
Notification
of correction; Resale or transfer of title; Issuance of new
title; Disclosure to buyer; Intervening transferor.
(1)
A manufacturer shall be prohibited from reselling any motor
vehicle determined or adjudicated as having a serious safety
defect unless the serious safety defect has been corrected and
the manufacturer warrants upon the first subsequent resale that
the defect has been corrected.
(2)
Before any sale or transfer of a vehicle that has been replaced
or repurchased by the manufacturer that was determined or
adjudicated as having a nonconformity or to have been out of
service for thirty or more calendar days, or sixty or more
calendar days in the case of a motor home, under this chapter,
the manufacturer shall:
(a)
Notify the attorney general and the department of licensing, by
certified mail or by personal service, upon receipt of the motor
vehicle;
(b)
Attach a resale disclosure notice to the vehicle in a manner and
form to be specified by the attorney general. Only the retail
purchaser may remove the resale disclosure notice after
execution of the disclosure form required under subsection (3)
of this section; and
(c)
Notify the attorney general and the department of licensing if
the nonconformity in the motor vehicle is corrected.
(3)
Upon the first subsequent resale, either at wholesale or retail,
or transfer of title of a motor vehicle and which was previously
returned after a final determination, adjudication, or
settlement under this chapter or under a similar statute of any
other state, the manufacturer, its agent, or the new motor
vehicle dealer who has actual knowledge of said final
determination, adjudication or settlement, shall execute and
deliver to the buyer before sale an instrument in writing
setting forth information identifying the nonconformity in a
manner to be specified by the attorney general, and the
department of licensing shall place on the certificate of title
information indicating the vehicle was returned under this
chapter.
(4)
Upon receipt of the manufacturer's notification under subsection
(2) of this section that the nonconformity has been corrected
and upon the manufacturer's request and payment of any fees, the
department of licensing shall issue a new title with information
indicating the vehicle was returned under this chapter and that
the nonconformity has been corrected. Upon the first subsequent
resale, either at wholesale or retail, or transfer of title of a
motor vehicle, as provided under subsection (2)(c) of this
section, the manufacturer shall warrant upon the resale that the
nonconformity has been corrected, and the manufacturer, its
agent, or the new motor vehicle dealer who has actual knowledge
of the corrected nonconformity, shall execute and deliver to the
buyer before sale an instrument in writing setting forth
information identifying the nonconformity and indicating that it
has been corrected in a manner to be specified by the attorney
general.
(5)
After repurchase or replacement and following a manufacturer's
receipt of a vehicle under this section and prior to a vehicle's
first subsequent retail transfer by resale or lease, any
intervening transferor of a vehicle subject to the requirements
of this section who has received the disclosure, correction and
warranty documents, as specified by the attorney general and
required under this chapter, shall deliver the documents with
the vehicle to the next transferor, purchaser or lessee to
ensure proper and timely notice and disclosure. Any intervening
transferor who fails to comply with this subsection shall, at
the option of the subsequent transferor or first subsequent
retail purchaser or lessee:
(a)
Indemnify any subsequent transferor or first subsequent retail
purchaser for all damages caused by such violation; or
(b)
repurchase the vehicle at the full purchase price including all
fees, taxes and costs incurred for goods and services which were
included in the subsequent transaction.
19.118.070
Remedies.
The
remedies provided under this chapter are cumulative and are in
addition to any other remedies provided by law.
19.118.080
New motor vehicle arbitration boards.
Board
proceedings; Prerequisite to filing action in superior court.
(1)
Except as provided in RCW 19.118.160, the attorney general shall
contract with one or more private entities to conduct
arbitration proceedings in order to settle disputes between
consumers and manufacturers as provided in this chapter, and
each private entity shall constitute a new motor vehicle
arbitration board for purposes of this chapter. The entities
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 chapter. No private entity or its officers
or employees conducting board proceedings and no arbitrator
presiding at such proceedings shall be directly involved in the
manufacture, distribution, sale, or warranty service of any
motor vehicle. Payment to the entities for the arbitration
services shall be made from the new motor vehicle arbitration
account.
(2)
The attorney general shall adopt rules for the uniform conduct
of the arbitrations by the boards whether conducted by a private
entity or by the attorney general pursuant to RCW 19.118.160,
which rules shall include but not be limited to the following
procedures:
(a)
At all arbitration proceedings, the parties are entitled to
present oral and written testimony, to present witnesses and
evidence relevant to the dispute, to cross-examine witnesses,
and to be represented by counsel.
(b)
A dealer, manufacturer, or other persons shall produce records
and documents requested by a party which are reasonably related
to the dispute. If a dealer, manufacturer, or other person
refuses to comply with such a request, a party may present a
request to the board for the attorney general to issue a
subpoena on behalf of the board.
The
subpoena shall be issued only for the production of records and
documents which the board has determined are reasonably related
to the dispute, including but not limited to documents described
in RCW 19.118.031 (4) or (5).
If
a party fails to comply with the subpoena, the arbitrator may at
the outset of the arbitration hearing impose any of the
following sanctions:
(i)
Find that the matters which were the subject of the subpoena, or
any other designated facts, shall be taken to be established for
purposes of the hearing in accordance with the claim of the
party which requested the subpoena;
(ii)
refuse to allow the disobedient party to support or oppose the
designated claims or defenses, or prohibit that party from
introducing designated matters into evidence;
(iii)
strike claims or defenses, or parts thereof; or
(iv)
render a decision by default against the disobedient party.
If
a nonparty fails to comply with a subpoena and upon an
arbitrator finding that without such compliance there is
insufficient evidence to render a decision in the dispute, the
attorney general shall enforce such subpoena in superior court
and the arbitrator shall continue the arbitration hearing until
such time as the nonparty complies with the subpoena or the
subpoena is quashed.
(c)
A party may obtain written affidavits from employees and agents
of a dealer, a manufacturer or other party, or from other
potential witnesses, and may submit such affidavits for
consideration by the board.
(d)
Records of the board proceedings shall be open to the public.
The hearings shall be open to the public to the extent
practicable.
(e)
Where the board proceedings are conducted by one or more private
entities, a single arbitrator may be designated to preside at
such proceedings.
(3)
A consumer shall exhaust the new motor vehicle arbitration board
remedy or informal dispute resolution settlement procedure under
RCW 19.118.150 before filing any superior court action.
(4)
The attorney general shall maintain records of each dispute
submitted to the new motor vehicle arbitration board, including
an index of new motor vehicles by year, make, and model.
(5)
The attorney general shall compile aggregate annual statistics
for all disputes submitted to, and decided by, the new motor
vehicle arbitration board, as well as annual statistics for each
manufacturer that include, but shall not be limited to, the
number and percent of:
(a)
Replacement motor vehicle requests;
(b)
purchase price refund requests;
(c)
replacement motor vehicles obtained in prehearing settlements;
(d)
purchase price refunds obtained in prehearing settlements;
(e)
replacement motor vehicles awarded in arbitration;
(f)
purchase price refunds awarded in arbitration;
(g)
board decisions neither complied with during the forty calendar
day period nor petitioned for appeal within the thirty calendar
day period;
(h)
board decisions appealed categorized by consumer or
manufacturer;
(i)
the nature of the court decisions and who the prevailing party
was;
(j)
appeals that were held by the court to be brought without good
cause; and
(k)
appeals that were held by the court to be brought solely for the
purpose of harassment. The statistical compilations shall be
public information.
(6)
The attorney general shall adopt rules to implement this
chapter. Such rules shall include uniform standards by which the
boards shall make determinations under this chapter, including
but not limited to rules which provide:
(a)
A board shall find that a nonconformity exists if it determines
that the consumer's new motor vehicle has a defect, serious
safety defect, or condition that substantially impairs the use,
value, or safety of the vehicle.
(b)
A board shall find that a reasonable number of attempts to
repair a nonconformity have been undertaken if:
(i)
The same serious safety defect has been subject to diagnosis or
repair two or more times, at least one of which is during the
period of coverage of the applicable manufacturer's written
warranty, and the serious safety defect continues to exist;
(ii)
the same nonconformity has been subject to diagnosis or repair
four or more times, at least one of which is during the period
of coverage of the applicable manufacturer's written warranty,
and the nonconformity continues to exist; or
(iii)
the vehicle is out of service by reason of diagnosis or repair
of one or more nonconformities for a cumulative total of thirty
calendar days, at least fifteen of them during the period of the
applicable manufacturer's written warranty. For purposes of this
subsection, the manufacturer's written warranty shall be at
least one year after the date of the original delivery to the
consumer of the vehicle or the first twelve thousand miles of
operation, whichever occurs first.
(c)
A board shall find that a manufacturer has failed to comply with
RCW 19.118.041 if it finds that the manufacturer, its agent, or
the new motor vehicle dealer has failed to correct a
nonconformity after a reasonable number of attempts and the
manufacturer has failed, within forty days of the consumer's
written request, to repurchase the vehicle or replace the
vehicle with a vehicle identical or reasonably equivalent to the
vehicle being replaced.
(7)
The attorney general shall provide consumers with information
regarding the procedures and remedies under this chapter.
19.118.090
Request for arbitration.
Eligibility;
Rejection; Manufacturer's response; Remedies; Defenses;
Acceptance or appeal.
(1)
A consumer may request arbitration under this chapter by
submitting the request to the attorney general. Within ten days
after receipt of an arbitration request, the attorney general
shall make a reasonable determination of the cause of the
request for arbitration and provide necessary information to the
consumer regarding the consumer's rights and remedies under this
chapter. The attorney general shall assign the dispute to a
board, except that if it clearly appears from the materials
submitted by the consumer that the dispute is not eligible for
arbitration, the attorney general may refuse to assign the
dispute and shall explain any required procedures to the
consumer.
(2)
Manufacturers shall submit to arbitration if such arbitration is
requested by the consumer within thirty months from the date of
the original delivery of the new motor vehicle to a consumer at
retail and if the consumer's dispute is deemed eligible for
arbitration by the board. In the case of a motor home, the
thirty-month period will be extended by the amount of time it
takes the motor home manufacturers to complete the final repair
attempt at the designated repair facility as provided for in RCW
19.118.041(3)(b).
(3)
The new motor vehicle arbitration board 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 board to be ineligible for
arbitration due to insufficient evidence may be reconsidered by
the board upon the submission of other information or documents
regarding the dispute that would allegedly qualify for relief
under this chapter. Following a second review, the board may
reject the dispute for arbitration if evidence is still clearly
insufficient to qualify the dispute for relief under this
chapter. A rejection by the board is subject to review by the
attorney general or may be appealed under RCW 19.118.100.
A
decision to reject any dispute for arbitration shall be sent by
certified mail to the consumer and the manufacturer, and shall
contain a brief explanation as to the reason therefore.
(4)
The manufacturer shall complete a written manufacturer response
to the consumer's request for arbitration. The manufacturer
shall provide a response to the consumer and the board within
ten calendar days from the date of the manufacturer's receipt of
the board's notice of acceptance of a dispute for arbitration.
The manufacturer response shall include all issues and
affirmative defenses related to the nonconformities identified
in the consumer's request for arbitration that the manufacturer
intends to raise at the arbitration hearing.
(5)
The arbitration board shall award the remedies under RCW
19.118.041 if it finds a nonconformity and that a reasonable
number of attempts have been undertaken to correct the
nonconformity. The board shall award reasonable costs and
attorneys' fees incurred by the consumer where the manufacturer
has been directly represented by counsel:
(a)
In dealings with the consumer in response to a request to
repurchase or replace under RCW 19.118.041;
(b)
in settlement negotiations;
(c)
in preparation of the manufacturer's statement; or
(d)
at an arbitration board hearing or other board proceeding.
In
the case of an arbitration involving a motor home, the board may
allocate liability among the motor home manufacturers.
(6)
It is an affirmative defense to any claim under this chapter
that:
(a)
The alleged nonconformity does not substantially impair the use,
value, or safety of the new motor vehicle; or
(b)
the alleged nonconformity is the result of abuse, neglect, or
unauthorized modifications or alterations of the new motor
vehicle.
(7)
The board shall have forty-five calendar days from the date the
board receives the consumer's request for arbitration to hear
the dispute. If the board determines that additional information
is necessary, the board may continue the arbitration proceeding
on a subsequent date within ten calendar days of the initial
hearing. The board shall decide the dispute within sixty
calendar days from the date the board receives the consumer's
request for arbitration.
The
decision of the board shall be delivered by certified mail or
personal service to the consumer and the manufacturer, and shall
contain a written finding of whether the new motor vehicle meets
the standards set forth under this chapter.
(8)
The consumer may accept the arbitration board decision or appeal
to superior court, pursuant to RCW 19.118.100. Upon acceptance
by the consumer, the arbitration board decision shall become
final. The consumer shall send written notification of
acceptance or rejection to the arbitration board within sixty
days of receiving the decision and the arbitration board shall
immediately deliver a copy of the consumer's acceptance to the
manufacturer by certified mail, return receipt requested, or by
personal service. Failure of the consumer to respond to the
arbitration board within sixty calendar days of receiving the
decision shall be considered a rejection of the decision by the
consumer. The consumer shall have one hundred twenty calendar
days from the date of rejection to file a petition of appeal in
superior court. At the time the petition of appeal is filed, the
consumer shall deliver, by certified mail or personal service, a
conformed copy of such petition to the attorney general.
(9)
Upon receipt of the consumer's acceptance, the manufacturer
shall have forty calendar days to comply with the arbitration
board decision or thirty calendar days to file a petition of
appeal in superior court. At the time the petition of appeal is
filed, the manufacturer shall deliver, by certified mail or
personal service, a conformed copy of such petition to the
attorney general. If the attorney general receives no notice of
petition of appeal after forty calendar days, the attorney
general shall contact the consumer to verify compliance.
19.118.095
Arbitration decision.
Compliance;
Accomplishment; Dispute; Failure; Fine; Costs; Attorneys' fees.
(1)
Compliance with an arbitration board decision under this chapter
must be accomplished at a time, place, and in a manner to be
determined by the mutual agreement of the consumer and
manufacturer.
(a)
The consumer shall make the motor vehicle available to the
manufacturer free of damage other than that related to any
nonconformity, defect, or condition to which a warranty applied,
or that can reasonably be expected in the use of the vehicle for
ordinary or reasonably intended purposes and in consideration of
the mileage attributable to the consumer's use. Any insurance
claims or settlement proceeds for repair of damage to the
vehicle due to fire, theft, vandalism, or collision must be
assigned to the manufacturer or, at the consumer's option, the
repair must be completed before return of the vehicle to the
manufacturer. The consumer may not remove any equipment or
option that was included in the original purchase or lease of
the vehicle or that is otherwise included in the repurchase or
replacement award. In removing any equipment not included in the
original purchase or lease, the consumer shall exercise
reasonable care to avoid further damage to the vehicle but is
not required to return the vehicle to original condition.
(b)
At the time of compliance with an arbitration board decision
that awards repurchase, the manufacturer shall make full payment
to the consumers and either the lessor or lien holder, or both,
or provide verification to the consumer of prior payment to
either the lessor or lien holder, or both. At the time of
compliance with an arbitration board decision that awards
replacement, the manufacturer shall provide the replacement
vehicle together with any refund of incidental costs.
(c)
At any time before compliance a party may request the board to
resolve disputes regarding compliance with the arbitration board
decision including but not limited to time and place for
compliance, condition of the vehicle to be returned,
clarification or recalculation of refund amounts under the
award, or a determination if an offered vehicle is reasonably
equivalent to the vehicle being replaced. In resolving
compliance disputes the board may not review, alter, or
otherwise change the findings of a decision or extend the time
for compliance beyond the time necessary for the board to
resolve the dispute.
(d)
Failure of the consumer to make the vehicle available within
sixty calendar days in response to a manufacturer's
unconditional tender of compliance is considered a rejection of
the arbitration decision by the consumer, except as provided in
(c) of this subsection or subsection (2) of this section.
(2)
If, at the end of the forty calendar day period, neither
compliance with nor a petition to appeal the board's decision
has occurred, the attorney general may impose a fine of up to
one thousand dollars per day until compliance occurs or a
maximum penalty of one hundred thousand dollars accrues unless
the manufacturer can provide clear and convincing evidence that
any delay or failure was beyond its control or was acceptable to
the consumer as evidenced by a written statement signed by the
consumer. If the manufacturer fails to provide the evidence or
fails to pay the fine, the attorney general may initiate
proceedings against the manufacturer for failure to pay any fine
that accrues until compliance with the board's decision occurs
or the maximum penalty of one hundred thousand dollars results.
If the attorney general prevails in an enforcement action
regarding any fine imposed under this subsection, the attorney
general is entitled to reasonable costs and attorneys' fees.
Fines and recovered costs and fees shall be returned to the new
motor vehicle arbitration account.
19.118.100
Trial de novo.
Posting
security; Recovery.
(1)
The consumer or the manufacturer may request a trial de novo of
the arbitration decision, including a rejection, in superior
court.
(2)
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.
(3)
If the consumer prevails, recovery shall include the monetary
value of the award, attorneys' fees and costs incurred in the
superior court action, and, if the board awarded the consumer
replacement or repurchase of the vehicle and the manufacturer
did not comply, continuing damages in the amount of twenty-five
dollars per day for all days beyond the forty calendar day
period following the manufacturer's receipt of the consumer's
acceptance of the board's decision in which the manufacturer did
not provide the consumer with the free use of a comparable
loaner replacement motor vehicle. If it is determined by the
court that the party that appealed acted without good cause in
bringing the appeal or brought the appeal solely for the purpose
of harassment, the court may triple, but at least shall double,
the amount of the total award.
19.118.110
Arbitration fee
New
motor vehicle arbitration account; Report by attorney general.
A
three-dollar arbitration fee shall be collected by either the
new motor vehicle dealer or vehicle lessor from the consumer
upon execution of a retail sale or lease agreement. The fee
shall be forwarded to the department of licensing at the time of
title application for deposit in the new motor vehicle
arbitration account hereby created in the state treasury. Moneys
in the account shall be used for the purposes of this chapter,
subject to appropriation. During the 1995-97 fiscal biennium,
the legislature may transfer moneys from the account to the
extent that the moneys are not necessary for the purposes of
this chapter.
At
the end of each fiscal year, the attorney general shall prepare
a report listing the annual revenue generated and the expenses
incurred in implementing and operating the arbitration program
under this chapter.
19.118.120
Application of consumer protection act.
A
violation of this chapter shall constitute an unfair or
deceptive trade practice affecting the public interest under
chapter 19.86 RCW. All public and private remedies provided
under that chapter shall be available to enforce this chapter.
19.118.130
Waivers, limitations, disclaimers; Void.
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 RCW 19.118.021 through 19.118.140 shall be void as
contrary to public policy. Said rights shall extend to a
subsequent transferee of such new motor vehicle.
19.118.140
Other rights and remedies not precluded.
Nothing
in this chapter limits the consumer from pursuing other rights
or remedies under any other law.
19.118.150
Informal dispute resolution settlement procedure.
If
a manufacturer has established an informal dispute resolution
settlement procedure which substantially complies with the
applicable provision of Title 16, Code of Federal Regulations
Part 703, as from time to time amended, a consumer may choose to
first submit a dispute under this chapter to the informal
dispute resolution settlement procedure.
19.118.170
History of vehicle.
Availability
to owner.
Notwithstanding
RCW 46.12.380, the department of licensing shall make available
to the registered owner all title history information regarding
the vehicle upon request of the registered owner and receipt of
a statement that he or she is investigating or pursuing rights
under this chapter. |