Maryland Code § CL-14-2004

Section CL-14-2004
Open in Lexace · Ask the AI about this section
(a) To the extent that §§ 2-313 through 2-318, inclusive, of this article
apply to the purchase of a motor vehicle, the rights and remedies provided for in those
sections shall apply to the lease of a motor vehicle and may be exercised by any lessee.
(b) If the warranty period is to include those miles of operation when the
new motor vehicle is in the possession of any person other than the lessee, the
manufacturer shall state that fact in 12 point boldface type in the manufacturer's
written warranty.

(c) (1) (i) If a new motor vehicle does not conform to all applicable
warranties during the warranty period, the lessee shall, during the warranty period,
report the nonconformity, defect, or condition by giving written notice to the
manufacturer, factory branch, or lessor by certified mail, return receipt requested.
(ii) Notice of this procedure shall be conspicuously disclosed to
the lessee in writing at the time of lease of the motor vehicle.
(2) The lessee shall provide an opportunity for the manufacturer or
factory branch, its agent or authorized dealer, or the lessor or the lessor's agent to
cure the nonconformity, defect, or condition.
(3) The manufacturer or factory branch, its agent or its authorized
dealer, or the lessor or the lessor's agent shall correct the nonconformity, defect, or
condition at no charge to the lessee, even if repairs are made after the expiration of
the warranty period.
(d) (1) (i) If, during the warranty period, the manufacturer or factory
branch, its agent or authorized dealer, or the lessor or the lessor's agent is unable to
repair or correct any nonconformity, defect, or condition that substantially impairs
the use and market value of the motor vehicle to the lessee after a reasonable number
of attempts, the manufacturer or factory branch, at the option of the lessee shall:
1. Replace the motor vehicle with a comparable motor
vehicle acceptable to the lessee; or
2. Accept return of the motor vehicle from the lessee
and refund to the lessee all money paid by the lessee to repair the defect, condition,
or nonconformity pursuant to a lease, including all excise tax, license fees,
registration fees, and any similar governmental charges, less a reasonable allowance
for the lessee's unimpaired use of the vehicle; and
(ii) In the event a motor vehicle is replaced under paragraph
(1)(i)1 of this subsection and provided that the lessee meets the lessor's then current
credit criteria with respect to the lease, the lessor shall:
1. Transfer the title of the defective motor vehicle to
the manufacturer;
2. Accept title to the comparable replacement motor
vehicle;
3. Transfer possession of the comparable replacement
motor vehicle to the lessee; and

4. Execute a lease agreement with the lessee with the
same time period, terms, and conditions of the original lease.
(2) (i) In the event a manufacturer accepts return of a motor
vehicle, under paragraph (1)(i)2 of this subsection, the lessee shall be compensated
by the manufacturer for any money paid during the period in which the motor vehicle
was not available due to the defect, condition, or nonconformity and the lessor shall
be paid by the manufacturer all amounts due to the lessor under the terms of the
lease.
(ii) This subsection shall be construed to provide a mechanism
through which the lessee and the lessor shall be made whole for losses incurred as a
result of a motor vehicle's nonconformity, defect, or condition, and actions taken to
conform the motor vehicle to applicable warranties.
(3) If a manufacturer, factory branch, dealer, or lessor accepts return
of a motor vehicle as described under paragraph (1)(i) of this subsection, the lessee
may not be obligated to pay any penalties, early termination fees, or other charges as
a consequence of the return of the motor vehicle.
(e) It shall be presumed that a reasonable number of attempts have been
undertaken to conform a motor vehicle to the applicable warranties if:
(1) The same nonconformity, defect, or condition has been subject to
repair 4 or more times by the manufacturer or factory branch, or its agents or
authorized dealers, within the warranty period but such nonconformity, defect, or
condition continues to exist;
(2) The motor vehicle is out of service by reason of repair of 1 or more
nonconformities, defects, or conditions for a cumulative total of 30 or more days
during the warranty period; or
(3) A nonconformity, defect, or condition resulting in failure of the
braking or steering system has been subject to the same repair at least once within
the warranty period, and the manufacturer has been notified and given the
opportunity to cure the defect, and the repair does not bring the vehicle into
compliance with the motor vehicle safety inspection laws of the State.
(f) The term of any warranty, the warranty period, and the 30-day out-of-
service period shall be extended by any time during which repair services are not
available to the lessee by reason of war, invasion, strike, or fire, flood, or other natural
disaster.

(g) If a motor vehicle is returned to a manufacturer or factory branch under
subsection (d)(1)(i) of this section, the manufacturer or factory branch shall notify the
Motor Vehicle Administration of the fact that the vehicle was returned under this
subtitle as defective.
(h) If a motor vehicle that is returned under this subtitle is then made
available for resale or subsequent lease, the seller or lessor shall disclose prior to sale
or lease in writing in a clear and conspicuous manner, on a separate piece of paper in
10 point all capital type, to a lessee or buyer the material fact that this motor vehicle
was returned to the manufacturer or factory branch, the nature of the defect which
resulted in the return, and the condition of the motor vehicle at the time of resale or
subsequent lease.

‹ Prev All Maryland sections Next ›


Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.