How does the lemon law process work in North Carolina?
North Carolina's lemon law is enforced through civil court following any required manufacturer arbitration.
1. Governing Statute
N.C. Gen. Stat. §§ 20-351 to 20-351.10 (the New Motor Vehicles Warranties Act). Enforcement assistance from the N.C. Attorney General's Consumer Protection Division.
2. Coverage
Covers new motor vehicles, including motorcycles, sold and registered in North Carolina, that are not used primarily for commercial purposes. Demonstrator vehicles included. Leased vehicles are covered. Used vehicles, off-road vehicles, vehicles modified by aftermarket installers, and vehicles over 10,000 lbs GVWR (excepting motor homes' chassis/powertrain) are excluded.
3. Lemon Presumption
Under § 20-351.5, a reasonable number of attempts is presumed if within 24 months, 24,000 miles, or the warranty term (whichever first): (a) the same nonconformity has been subject to repair 4 or more times, or (b) the vehicle is out of service by reason of repair for a total of 20 or more business days during any 12-month period of the warranty.
4. Notice to Manufacturer
Section 20-351.5(a)(2) requires the consumer to give the manufacturer written notice of the need for repair to allow the manufacturer an opportunity to cure.
5. Manufacturer's Buy-Back / Replacement
At the consumer's option, manufacturer must replace the vehicle with a comparable new motor vehicle or refund the full contract price (including all collateral charges: taxes, license, registration, dealer add-ons, finance charges), minus a reasonable mileage offset (§ 20-351.3).
6. Arbitration
If the manufacturer has established a state-certified informal dispute settlement procedure (e.g., BBB AUTO LINE), the consumer must use it before filing suit (§ 20-351.7). Decision is binding on the manufacturer; consumer may reject and sue.
7. Lawsuit & Fee-Shifting
A prevailing consumer recovers reasonable attorney's fees (§ 20-351.8). Where the manufacturer's refusal was unreasonable, treble damages are available. Parallel federal Magnuson-Moss Warranty Act (15 U.S.C. § 2310(d)) and N.C. Unfair and Deceptive Trade Practices Act (N.C. Gen. Stat. § 75-1.1) claims are typical.
This is legal information, not legal advice.
- Treble damages potential for unreasonable manufacturer refusal
- Manufacturer's certified arbitration produced an unfavorable decision
- Out-of-service days dispute over what counts as 'business days'
- N.C. Gen. Stat. §§ 20-351 to 20-351.10 (New Motor Vehicles Warranties Act)
- N.C. Gen. Stat. § 75-1.1 (UDTPA)
- 15 U.S.C. § 2301 (Magnuson-Moss)
- 16 CFR Part 703
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.