Texas
Lemon LawTexas
Lemon Law
Texas
Motor Vehicle Board Lemon Law Rules
Warranty Performance Obligations
16 TAC §§107.1‑107.12
§107.1 Objective.
§107.2 Filings of Complaints.
§107.3 Review of Complaints.
§107.4 Notification of
Manufacturer, Converter or Distributor.
§107.5 Mediation; Settlement.
§107.6 Hearings.
§107.7 Contested Cases; Decisions
and Final Orders.
§107.8 Decisions.
§107.9 Incidental Expenses.
§107.10 Compliance with Orders
Granting Relief.
§107.11 Reports to Board.
These rules
are promulgated under the authority of the Texas Occupations Code Annotated §2301.602.
§107.1.
Objective. It
is the objective of these sections to implement the intent of the legislature as
declared in the Texas Motor Vehicle Commission Code (TMVCC) §3.06 and §6.07(e),
by prescribing rules to provide a simplified and fair procedure for the
enforcement and implementation of the Texas lemon law (TMVCC, §6.07) and
consumer complaints covered by general warranty agreements (TMVCC, §3.08(i))
including the processing of complaints, the conduct of hearings, and the
disposition of complaints filed by owners of motor vehicles seeking relief under
these provisions of the Code.
Source:
The provisions of this §107.1 adopted to be effective October 20, 1986,
11 TexReg 4152; amended effective November 15, 1995, 20 TexReg 9003; reviewed
pursuant to requirements of Section 167, Appropriations Act of 1997, HB 1,
Article IX, effective 7/23/99, 24 TexReg 5759.
Amended effective March 26, 2000, 25 TexReg 2337. Reviewed pursuant to
Gov't Code § 2001.039, effective 9/20/02, 27 TexReg 9399. Reviewed pursuant to
Gov't Code §2001.039, effective 3/26/04, 29 TexReg 3665.
§107.2.
Filing of Complaints.
(a)
Complaints for relief under the lemon law must be in writing and filed
with the Board at its office in Austin. Complaints may be in letter form or any
other written format or may be submitted on complaint forms provided by the
Board.
(b)
Complaints should state sufficient facts to enable the Board and the
party complained against to know the nature of the complaint and the specific
problems or circumstances which form the basis of the claim for relief under the
lemon law.
(c)
Complaints should provide the following information:
(1)
name, address, and phone number of vehicle owner;
(2)
identification of vehicle by make, model, and year, and manufacturer's
vehicle identification number;
(3)
type of warranty coverage;
(4)
name and address of dealer, or other person, from whom vehicle was
purchased or leased, including the name and address of the current lessor, if
applicable;
(5)
date of delivery of vehicle to original owner; and in the case of a
demonstrator, the date the vehicle was placed into demonstrator service;
(6)
vehicle mileage at time vehicle was purchased or leased, mileage when
problems with vehicle were first reported, name of dealer or manufacturer's,
converter's, or distributor's agent to whom problems were first reported, and
current mileage;
(7)
identification of existing problems and brief description of history of
problems and repairs on vehicle, including date and mileage of each repair, with
copies of repair orders where possible;
(8)
date on which written notification of complaint was given to the vehicle
manufacturer, converter, or distributor, and if the vehicle has been inspected
by manufacturer, converter, or distributor, the date and results of such
inspection;
(9)
any other information which the complainant believes to be pertinent to
the complaint.
(d)
The Board's staff will provide information concerning the complaint
procedure and complaint forms to any person requesting information or
assistance.
(e)
The Texas Motor Vehicle Commission Code (TMVCC) §6.07 complaint filing
fee should be remitted with the complaint by check or money order. No filing fee
is required for a TMVCC §3.08(i) complaint. The filing fee is nonrefundable,
but a complainant who prevails in a case
is entitled to reimbursement of the amount of the filing fee. Failure to remit
the filing fee with the complaint will result in delaying the commencement of
the 150-day requirement provided in §107.6(11) of this title (relating to
Hearings) and may result in dismissal of the complaint.
Source:
The provisions of this §107.2
adopted to be effective October 20, 1986, 11 TexReg 4152; amended to be
effective December 24, 1987, 12 TexReg 4635; amended to be effective April 1,
1991, 16 TexReg 1631; amended to be effective October 16, 1991, 16 TexReg 5399;
reviewed pursuant to requirements of Section 167, Appropriations Act of 1997, HB
1, Article IX, effective 7/23/99, 24 TexReg 5759. Amended effective March 26,
2000, 25 TexReg 2337. Reviewed pursuant to Gov't Code § 2001.039, effective
9/20/02, 27 TexReg 9399. Reviewed pursuant to Gov't Code §2001.039, effective
3/26/04, 29 TexReg 3665.
§107.3.
Review of Complaints. All
complaints will be reviewed promptly by the Board's staff to determine whether
they satisfy the requirements of the Texas Motor Vehicle Commission Code §§3.08(i)
or 6.07.
(1)
If it cannot be determined whether a complaint satisfies the requirements
of §§3.08(i) or 6.07, the complainant will be contacted for additional
information.
(2)
If it is determined that the complaint does not meet the requirements of
§§3.08(i) or 6.07, the complainant will be notified of this fact.
(3)
If it is determined that the complaint does meet the requirements of §§3.08(i)
or 6.07, the complaint will be processed in accordance with the procedures set
forth in this chapter.
(4)
For purposes of §6.07(h), the commencement of a proceeding means the
filing of a complaint with the Board, and the date of filing is determined by
the date of receipt by the Board.
Source:
The provisions of this §107.3
adopted to be effective October 20, 1986, 11 TexReg 4152 reviewed pursuant to
requirements of Section 167, Appropriations Act of 1997, HB 1, Article IX,
effective 7/23/99, 24 TexReg 5759. Amended effective March 26, 2000, 25 TexReg
2337. Reviewed pursuant to Gov't Code § 2001.039, effective 9/20/02, 27 TexReg
9399. Reviewed pursuant to Gov't Code §2001.039, effective 3/26/04, 29 TexReg
3665.
§107.4.
Notification to Manufacturer, Converter, or Distributor.
Upon receipt of a complaint for relief under the Texas Motor Vehicle
Commission Code §§3.08(i) or 6.07, notification thereof, with a copy of the
complaint, will be given to the appropriate manufacturer, converter, or
distributor, and a response to the complaint will be requested.
A copy of the complaint and notification thereof will also be provided to
the selling dealer and any other dealers that have been involved with the
complaint and a response may be requested.
Source:
The provisions of this §107.4
adopted to be effective October 20, 1986, 11 TexReg 4152 reviewed pursuant to
requirements of Section 167, Appropriations Act of 1997, HB 1, Article IX,
effective 7/23/99, 24 TexReg 5759. Amended effective March 26, 2000, 25 TexReg
2337. Reviewed pursuant to Gov't Code § 2001.039, effective 9/20/02, 27 TexReg
9399. Reviewed pursuant to Gov't Code §2001.039, effective 3/26/04, 29 TexReg
3665.
Cross References:
This Section cited in 16 TAC §107.3,
(relating to Review of Complaints).
§107.5.
Mediation; Settlement. If,
from a review of the complaint and the responses received from the manufacturer,
converter, distributor, or dealer, it appears to the Board staff that a
settlement or resolution of the complaint may be possible without the necessity
for a hearing, the Board staff will attempt to effect a settlement or resolution
of the complaint.
Source:
The provisions of this §107.5
adopted to be effective October 20, 1986, 11 TexReg 4152 reviewed pursuant to
requirements of Section 167, Appropriations Act of 1997, HB 1, Article IX,
effective 7/23/99, 24 TexReg 5759. Amended effective March 26, 2000, 25 TexReg
2337. Reviewed pursuant to Gov't Code § 2001.039, effective 9/20/02, 27 TexReg
9399. Reviewed pursuant to Gov't Code §2001.039, effective 3/26/04, 29 TexReg
3665.
Cross References:
This Section cited in 16 TAC §107.3,
(relating to Review of Complaints).
§107.6.
Hearings. Complaints
which satisfy the jurisdictional requirements of the Texas Occupations Code §2301.204
and §§2301.601 – 2301.613, will be set for hearing and notification of the
date, time, and place of the hearing will be given to all parties by certified
mail.
(1) Where possible, and
subject to the availability of Board personnel and funds, hearings will be held
in the city where the complainant resides or at a location reasonably convenient
to the complainant.
(2) Hearings will be
scheduled at the earliest date possible, provided that ten days prior notice, or
as otherwise provided by law, must be given to all parties.
(3) Hearings will be
conducted by Board staff hearing officers or by independent hearing officers
designated by the director of the Board.
(4) Hearings will be
informal, it being the intent of this section to provide a procedure and forum
which does not necessitate the services of attorneys and which does not involve
strict legal formalities applicable to trials in county or district court.
(5) The parties have the
right to be represented by attorneys at a hearing, although attorneys are not
necessary. Any party who intends to
be represented by an attorney at a hearing must notify the Board and the other
party at least five business days prior to the hearing and failure to do so will
constitute grounds for postponement of the hearing if requested by the other
party.
(6) The parties have the
right to present their cases in full, including testimony from witnesses;
documentary evidence such as repair orders, warranty documents, vehicle sales
contract, etc., subject to the hearing officer’s rulings.
(7) By agreement of the
parties and with the approval of the hearing officer, the hearing may be
conducted by written submissions only or by telephone.
(8) Except for hearings
conducted by written submission only, each party will be subject to being
questioned by the other party, within limits to be governed by the hearing
officer.
(9) Except for hearings
conducted by written submission only or by telephone, the complainant will be
required to bring the vehicle in question to the hearing for the purpose of
having the vehicle inspected and test driven, unless otherwise ordered by the
hearing officer upon a showing of good cause as to why the complainant should
not be required to bring the vehicle to the hearing.
(10) The Board may have the vehicle in question inspected prior to
the hearing by an expert, where the opinion of such expert will be of assistance
to the hearing officer and the Board in arriving at a decision.
Any such inspection shall be made upon prior notice to all parties who
shall have the right to be present at such inspection, and copies of any
findings or report resulting from such inspection will be provided to all
parties prior to, or at, the hearing.
(11) Except for hearings conducted by written submission only, all
hearings will be recorded on tape by the hearing officer.
Copies of the tape recordings of a hearing will be provided to any party
upon request and upon payment as provided by law.
(12)
All hearings will be conducted expeditiously.
However, if a Board hearing officer has not issued a decision within 150
days after the Texas Occupations Code §§2301.601 – 2301.613 complaint and
filing-fee were received, Board staff shall notify the parties by certified mail
that complainant has a right to file a civil action in state district court to
pursue rights under §§2301.601 – 2301.613.
The 150-day period shall be extended upon request of the complainant or
if a delay in the proceeding is caused by the complainant. The notice will
inform the complainant of the right to elect to continue the lemon law complaint
through the Board.
Source:
The provisions of this §107.6
adopted to be effective October 20, 1986, 11 TexReg 4152; amended to be
effective October 16, 1991, 16 TexReg 5399; amended to be effective November 15,
1995, 20 TexReg 9003 reviewed pursuant to requirements of Section 167,
Appropriations Act of 1997, HB 1, Article IX, effective 7/23/99, 24 TexReg 5759.
Amended effective March 26, 2000, 25 TexReg 2337. Amended effective May 26, 2002, 27 TexReg 4567.. Reviewed
pursuant to Gov't Code § 2001.039, effective 9/20/02, 27 TexReg 9399. Reviewed
pursuant to Gov't Code §2001.039, effective 3/26/04, 29 TexReg 3665.
Amended effective April 21, 2004, 29 TexReg 3790.
Cross References:
This Section cited in 16 TAC §101.45,
(relating to Recording and Transcriptions of Hearing:
Cost); 16 TAC §107.2,
(relating to Filing of Complaints); 16 TAC §107.3,
(relating to Review of Complaints).
§107.7.
Contested Cases: Decisions and Final Orders. To expedite the resolution of Texas Motor Vehicle Commission
Code §3.08(i) and 6.07 cases, the director is authorized to conduct hearings
and issue final orders for the enforcement of these sections, including the
delegation of this duty to hearing officers.
Review of the hearings officers' decisions and final orders shall be
according to the procedures as follows:
(1)
A hearing officer will prepare a written decision and final order as soon as
possible but not later than 60 days after the hearing is closed, or as otherwise
provided by law. The decision and order will include the hearing officer's
findings of fact and conclusions of law.
(2)
The decision and final order shall be sent to all parties of record by certified
mail.
(3)
The decision and order is final and binding on the parties, in the absence of a
timely motion for rehearing, on the expiration of the period for filing a motion
for rehearing.
(4)
A party who disagrees with the decision and final order may file a motion for
rehearing within 20 days from the date of the notification of the final order. A
motion for rehearing must include all the specific reasons, exceptions, or
grounds that are asserted by a party as the basis of the request for a
rehearing. It shall recite, if applicable, the specific findings of fact,
conclusions of law, or any other portions of the decision to which the party
objects. Replies to a motion for rehearing must be filed with the agency within
30 days after the date of the notification of the final order.
A party or attorney of record notified by mail is presumed to have been
notified on the third day after the date on which the order was mailed.
(5)
A motion for rehearing may be directed either to the director or to the Board,
as a body, at the election of the party filing the motion.
If the party filing the motion does not include a specific request for a
rehearing by the members of the Board, the motion shall be deemed to be a
request for a rehearing by the director. If more than one party files a motion
for rehearing, the first motion filed will determine the decision authority for
all motions.
(6)
The director or the Board, as appropriate, must act on the motion within 45 days
after the date of notification of the final order, or as otherwise provided by
law, or it is overruled by operation of law. The director or the Board, as
appropriate, may, by written order, extend the period for filing, replying to,
and taking action on a motion for rehearing, not to exceed 90 days after the
date of notification of the final order. In the event of an extension of time,
the motion for rehearing is overruled by operation of law on the date fixed by
the written order of extension, or in the absence of a fixed date, 90 days after
the date of notification of the final order.
(7)
If the director or the Board grants a motion for rehearing, the parties will be
notified by first class mail. A
rehearing before the director will be scheduled as promptly as possible. A rehearing before the Board will be scheduled at the
earliest possible meeting of the Board. After rehearing, the director or Board
shall issue a final order and any additional findings of fact or conclusions of
law necessary to support the decision or order. The director or the Board may
also issue an order granting the relief requested in a motion for rehearing or
replies thereto without the need for a rehearing. Any motion for rehearing filed
by the parties as a result of the rehearing will be directed to the same
decision authority as granted the motion. If
a motion for rehearing and the relief requested is denied, an order so stating
will be issued.
(8)
A party who has exhausted all administrative remedies, and who is aggrieved by a
final decision in a contested case from which appeal may be taken is entitled to
judicial review pursuant to Section 7.01 of the Texas Motor Vehicle Commission
Code, under the substantial evidence rule. The petition shall be filed in a
district court of Travis County or in the Court of Appeals for the Third Court
of Appeals District within 30 days after the decision or order of the agency is
final and appealable. A copy of the petition must be served on the agency and
any other parties of record. After service of the petition on the agency and
within the time permitted for filing an answer, the agency shall transmit to the
reviewing court the original or a certified copy of the entire record of the
proceeding. If the court orders new evidence to be presented to the agency, the
agency may modify its findings and decision or order by reason of the new
evidence, and shall transmit the additional record to the court.
Source:
The provisions of this §107.7
adopted to be effective November 27, 1991, 16 TexReg 6597 reviewed pursuant to
requirements of Section 167, Appropriations Act of 1997, HB 1, Article IX,
effective 7/23/99, 24 TexReg 5759. Amended effective March 26, 2000, 25 TexReg
2337. Amended effective May 26, 2002, 27 TexReg 4567. Reviewed pursuant to Gov't
Code § 2001.039, effective 9/20/02, 27 TexReg 9399. Reviewed pursuant to Gov't
Code §2001.039, effective 3/26/04, 29 TexReg 3665.
Cross References:
This Section cited in 16 TAC §107.3,
(relating to Review of Complaints).
§107.8.
Decisions. Unless
otherwise indicated, this section applies to decisions made pursuant to Texas
Motor Vehicle Commission Code §6.07. Decisions shall give effect to the
presumptions provided in the Texas Motor Vehicle Commission Code, §6.07(d),
where applicable.
(1)
If it is found that the manufacturer, distributor, or converter is not able to
conform the vehicle to an applicable express warranty by repairing or correcting
a defect in the complainant's vehicle which creates a serious safety hazard or
substantially impairs the use or market value of the vehicle after a reasonable
number of attempts, and that the affirmative defenses provided under the Texas
Motor Vehicle Commission Code, §6.07(c), are not applicable, the Board shall
order the manufacturer, distributor, or converter to replace the vehicle with a
comparable vehicle, or accept the return of the vehicle from the owner and
refund to the owner the full purchase price of the vehicle, less a reasonable
allowance for the owner's use of the vehicle.
(2)
In any decision in favor of the complainant, the Board will accommodate the
complainant's request with respect to replacement or repurchase of the vehicle,
to the extent possible.
(3)
Where a refund of the purchase price of a vehicle is ordered, the purchase price
shall be the amount of the total purchase price of the vehicle, but shall not
include the amount of any interest or finance charge or insurance premiums. The
award to the vehicle owner shall include reimbursement for the amount of the
lemon law complaint filing fee paid by or on behalf of the vehicle owner. The
refund shall be made payable to the vehicle owner and the lienholder, if any, as
their interests require.
(4)
There is a rebuttable presumption that a motor vehicle has a useful life of
120,000 miles. Except in cases where the preponderance of the evidence shows
that the vehicle has a longer or shorter expected useful life than 120,000
miles, the reasonable allowance for the owner's use of the vehicle shall be that
amount obtained by adding subparagraphs (A) and (B) of this paragraph.
(A)
the product obtained by multiplying the purchase price of the vehicle, as
defined in paragraph (3) of this section, by a fraction having as its
denominator 120,000 and having as its numerator the number of miles that the
vehicle traveled from the time of delivery to the owner to the first report of
the defect or condition forming the basis of the repurchase order; and
(B)
50% of the product obtained by multiplying the purchase price by a fraction
having as its denominator 120,000 and having as its numerator the number of
miles that the vehicle traveled after the first report of the defect or
condition forming the basis of the repurchase order. The number of miles during
the period covered in this paragraph shall be determined from the date of the
first report of the defect or condition forming the basis of the repurchase
order through the date of the Board hearing.
(5)
There is a rebuttable presumption that the useful life of a towable recreational
vehicle is 3,650 days (10 years). Except in cases where preponderance of the
evidence shows that the vehicle has a longer or shorter expected useful life
than 3,650 days (10 years), the reasonable allowance for the owner's use of the
towable recreational vehicle shall be that amount obtained by adding
subparagraphs (A) and (B) of this paragraph.
(A)
The product obtained by multiplying the purchase price of the towable
recreational vehicle, as defined in paragraph (3) of this section, by a fraction
having as its denominator 3,650 days (10 years), except the denominator shall be
1,825 days (5 years), if the towable recreational vehicle is occupied on a full
time basis, and having as its numerator the number of days from the time of
delivery to the owner to the first report of the defect or condition forming the
basis of the repurchase order.
(B)
50% of the product obtained by multiplying the purchase price by a fraction
having as its denominator 3,650 days (10 years), except the denominator shall be
1,825 days (5 years), if the towable recreational vehicle is occupied on a full
time basis, and having as its numerator the number of days of ownership after
the first report of the defect or condition forming the basis of the repurchase
order. The number of days during the period covered in this paragraph shall be
determined from the date of the first report of the defect or condition forming
the basis of the repurchase order through the date of the Board hearing.
(C)
Any day or part of a day that the vehicle is out of service for repair will be
deducted from the numerator in determining the reasonable allowance for use of a
towable recreational vehicle in this subsection.
(6)
Except in cases involving unusual and extenuating circumstances, supported by a
preponderance of the evidence, where refund of the purchase price of a leased
vehicle is ordered, the purchase price shall be allocated and paid to the lessee
and the lessor, respectively as follows.
(A)The
lessee shall receive the total of:
(i)all
lease payments previously paid by him to the lessor under the terms of the
lease; and
(ii)all
sums previously paid by him to the lessor in connection with the entering into
the lease agreement, including, but not limited to, any capitalized cost
reduction, down payment, trade-in, or similar cost, plus sales tax, license and
registration fees, and other documentary fees, if applicable.
(B)The
lessor shall receive the total of:
(i)
the actual price paid by the lessor for the vehicle, including tax, title,
license, and documentary fees, if paid by lessor, and as evidenced in a bill of
sale, bank draft demand, tax collector's receipt, or similar instrument; plus
(ii)
an additional 5.0% of such purchase price plus any amount or fee, if any, paid
by lessor to secure the lease or interest in the lease;
(iii)
provided, however, that a credit, reflecting all of the payments made by the
lessee, shall be deducted from the actual purchase price which the manufacturer,
converter, or distributor is required to pay the lessor, as specified in causes
(i) and (ii) of this subparagraph.
(C)
When the Board orders a manufacturer, converter, or distributor to refund the
purchase price in a lease vehicle transaction, the vehicle shall be returned to
the manufacturer, converter or distributor with clear title upon payment of the
sums indicated in subparagraphs (A) and (B) of this paragraph. The lessor shall
transfer title of the vehicle to the manufacturer, converter, or distributor, as
necessary in order to effectuate the lessee's rights under this rule. In
addition, the lease shall be terminated without any penalty to the lessee.
(D)
Refunds shall be made to the lessee, lessor, and any lienholders as their
interest may appear. The refund to the lessee under subparagraph (A) of this
paragraph shall be reduced by a reasonable allowance for the lessee's use of the
vehicle. A reasonable allowance for use shall be computed according to the
formula in paragraph (4) or (5) of this section, using the amount in
subparagraph (B) (i) of this paragraph as the applicable purchase price.
(7)
In any award in favor of a complainant, the director may require the dealer
involved to reimburse the complainant, manufacturer, converter, or distributor,
for the cost of any items of options added to the vehicle but only to the extent
that one or more of such items or options contributed to the defect that served
as the basis for the order or repurchase or replacement. In no event shall this
paragraph be interpreted to mean that a manufacturer, converter, or distributor,
will be required to repurchase a vehicle due to a defect or condition that was
solely caused by a dealer add-on item or option.
(8)
If it is found by the Board that a complainant's vehicle does not qualify for
replacement or repurchase, then the Board shall enter an order dismissing the
complaint insofar as relief under the Texas Motor Vehicle Commission Code §6.07(c)
is concerned. However, the Board may enter an order in any proceeding, where
appropriate, requiring repair work to be performed or other action taken to
obtain compliance with the manufacturer's, converter's, or distributor's,
warranty obligations.
(9)
If the vehicle is substantially damaged or there is an adverse change in its
condition, beyond ordinary wear and tear, from the date of the hearing to the
date of repurchase, and the parties are unable to agree on an amount of an
allowance for such damage or condition, either party shall have the right to
request reconsideration by the Board of the repurchase price contained in the
final order.
(10)
The Board will issue a written order in each Texas Motor Vehicle Commission Code
§3.08(i) or 6.07 case in which a hearing is held and a copy of the order will
be sent to all parties.
Source:
The provisions of this §107.8
adopted to be effective October 20, 1986, 11 TexReg 4152; amended to be
effective December 24, 1987, 12 TexReg 4635; amended to be effective October 11,
1988, 13 TexReg 4778; amended to be effective April 1, 1991, 16 TexReg 1631;
amended to be effective October 16, 1991, 16 TexReg 5399, amended to be
effective January 8, 1998, 23 TexReg 132; amended to be effective August 17,
1998, 23 TexReg 8425 reviewed pursuant to requirements of Section 167,
Appropriations Act of 1997, HB 1, Article IX, effective 7/23/99, 24 TexReg 5759.
Amended effective March 26, 2000, 25 TexReg 2337. Amended effective May 26,
2002, 27 TexReg 4567. Reviewed pursuant to Gov't Code § 2001.039, effective
9/20/02, 27 TexReg 9399. Reviewed pursuant to Gov't Code §2001.039, effective
3/26/04, 29 TexReg 3665.
Cross References:
This Section cited in 16 TAC §107.3,
(relating to Review of Complaints).
§107.9.
Incidental Expenses.
(a)
When a refund of the purchase price of a vehicle is ordered, the
complainant shall be reimbursed for certain incidental expenses incurred by the
complainant from loss of use of the motor vehicle because of the defect or
nonconformity which is the basis of the complaint. The expenses must be
reasonable and verified through receipts or similar written documents.
Reimbursable incidental expenses include but are not limited to the following
costs:
(1)
alternate transportation;
(2)
towing;
(3)
telephone calls or mail charges directly attributable to contacting the
manufacturer, distributor, converter, or dealer regarding the vehicle;
(4)
meals and lodging necessitated by the vehicle's failure during out - of -
town trips;
(5)
loss or damage to personal property;
(6)
attorney fees if the complainant retains counsel after notification that
the respondent is represented by counsel; and
(7)
items or accessories added to the vehicle at or after purchase, less a
reasonable allowance for use.
(b)
Incidental expenses shall be included in the final repurchase price
required to be paid by a manufacturer, converter, or distributor to a prevailing
complainant or in the case of a vehicle replacement, shall be tendered to the
complainant at the time of replacement.
(c)
In regards to the cost of items or accessories presented under subsection
(a)(7) of this section, the hearing officer shall consider the permanent nature,
functionality and value added by the items or accessories and whether the items
or accessories are original equipment manufacturer parts (OEM) or non-OEM parts.
Source:
The provisions of this §107.9
adopted to be effective October 1, 1991, 11 TexReg 5399 reviewed pursuant to
requirements of Section 167, Appropriations Act of 1997, HB 1, Article IX,
effective 7/23/99, 24 TexReg 5759. Amended effective March 26, 2000, 25 TexReg
2337. Reviewed pursuant to Gov't Code § 2001.039, effective 9/20/02, 27 TexReg
9399. Reviewed pursuant to Gov't Code §2001.039, effective 3/26/04, 29 TexReg
3665.
Cross References:
This Section cited in 16 TAC §107.3,
(relating to Review of Complaints).
§107.10.
Compliance with Order Granting Relief.
Compliance with the Board's order will be monitored by the Board.
(1)
A complainant is not bound by the Board's decision and order and may either
accept or reject the decision.
(2)
If a complainant does not accept the Board's final decision, the proceeding
before the Board will be deemed concluded and the complaint file closed.
(3)
If the complainant accepts the Board's decision, then the manufacturer,
converter, or distributor and the dealer to the extent of the dealer's
responsibility, if any, shall immediately take such action as is necessary to
implement the Board's decision and order.
(4)
If a manufacturer, converter, or distributor replaces or repurchases a vehicle
pursuant to a Board order, reacquires a vehicle to settle a Texas Motor Vehicle
Commission Code §3.08(i) or §6.07 complaint, or brings a vehicle into the
state of Texas which has been reacquired to resolve a warranty claim in another
jurisdiction, the manufacturer, converter, or distributor shall, prior to resale
of such vehicle, re-title the vehicle in Texas and
issue a disclosure statement on a form provided by or approved by the Board
through its director. In
addition, the manufacturer, converter, or distributor reacquiring the vehicle
shall affix a disclosure label provided by or approved by the Board through its
director on an approved location in or on the vehicle.
Both the disclosure statement and the disclosure label shall accompany
the vehicle through the first retail purchase.
Neither the manufacturer, converter, or distributor nor any person
holding a license or general distinguishing number issued
by the Board under the Code or Chapter 503, Transportation Code, shall
remove or cause the removal of the disclosure label until delivery of the
vehicle to the first retail purchaser. A
manufacturer, converter, or distributor shall provide the Board, in writing, the
name, address and telephone number of any transferee, regardless of residence,
to whom the manufacturer, distributor or converter, as the case may be,
transfers the vehicle within 60 days of each transfer.
The selling dealer shall return the completed disclosure statement to the
Board within 60 days of the retail sale of a reacquired vehicle.
Any manufacturer, converter, or distributor or holder of a general
distinguishing number who violates this section is liable for a civil penalty or
other sanctions prescribed by the Code. In
addition, the manufacturer, converter, or distributor must repair the defect or
condition in the vehicle that resulted in the vehicle being reacquired and
issue, at a minimum, a basic warranty (12 months/12,000 mile, whichever comes
first), except for non-original equipment manufacturer items or accessories, on
a form provided by or approved by the Board through its director, which warranty
shall be provided to the first retail purchaser of the vehicle.
(5)
In the event of any conflict between this rule and the terms contained in a
cease and desist order, the terms of the cease and desist order shall prevail.
(6)
The failure of any manufacturer, converter, distributor or dealer to comply with
a decision and order of the Board within the time period prescribed in the order
may subject the manufacturer, converter, or distributor, or dealer to formal
action by the Board and the assessment of civil penalties or other sanctions
prescribed by the Texas Motor Vehicle Commission Code for the failure to comply
with an order of the Board.
(7)
All subsequent motions within the Motor Vehicle Board's jurisdiction,
including motions to suspend the enforcement of a final order filed pursuant to
the Texas Motor Vehicle Commission Code, §7.01(f), will be directed to the same
decision authority that heard the motion for rehearing.
Source:
The provisions of this §107.10
adopted to be effective October 16, 1991, 16 TexReg 5399, amended to be
effective January 8, 1998, 23 TexReg 131; reviewed pursuant to requirements of
Section 167, Appropriations Act of 1997, HB 1, Article IX, effective 7/23/99, 24
TexReg 5759. Amended effective March 26, 2000, 25 TexReg 2337.
Amended effective May 26, 2002, 27 TexReg 4567. Reviewed pursuant to
Gov't Code § 2001.039, effective 9/20/02, 27 TexReg 9399; amended to be
effective October 30, 2002, 27 TexReg 10025. Reviewed pursuant to Gov't Code §2001.039,
effective 3/26/04, 29 TexReg 3665.
§107.11.
Reports to Board.
The director shall inform the Board
concerning the administration and enforcement of the lemon law.
The director shall provide monthly reports to the Board which include
data about the number of complaints received, number of complaints resolved
before a hearing is set and after a hearing is set, pursuant to written orders,
number of vehicles ordered repurchased, and any other information that may be
requested by the Board.
Source:
The provisions of this §107.11
adopted to be effective October 16, 1991, 16 TexReg 5399; reviewed pursuant to
requirements of Section 167, Appropriations Act of 1997, HB 1, Article IX,
effective 7/23/99, 24 TexReg 5759. Amended effective March 26, 2000, 25 TexReg
2337. Reviewed pursuant to Gov't Code § 2001.039, effective 9/20/02, 27 TexReg
9399. Reviewed pursuant to Gov't Code §2001.039, effective 3/26/04, 29 TexReg
3665.
§107.12.
Contested Cases under General Warranty Provisions:
Decisions and Final Orders.
REPEALED
3/26/2000.
Source:
The provisions of this §107.12
adopted to be effective November 15, 1995; 20 TexReg 9003; REPEALED effective March 26, 2000, 25 TexReg 2340.
DISCLAIMER OF LIABILITY
With respect to any information found on this web site, the owner of this website makes no warranty, express or implied, including the warranties of merchantability and fitness for a particular purpose, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights.
INDEMNIFICATION
User agrees to defend, indemnify, and hold harmless, this website, its owner and contributors, any entity jointly created by them, their respective affiliates and their respective directors, officers, employees, and agents from and against all claims and expenses, including attorney's fees, arising out of the use of the on-line service by user in reference to any claim however caused and on any theory of liability, whether in contract, strict liability, or tort (including negligence).
IN ALL MATTERS OF LAW, YOU SHOULD SEEK COMPETENT LEGAL COUNSEL.