This Article shall provide State and private remedies
against motor vehicle manufacturers for persons injured by new
motor vehicles failing to conform to express warranties. (1987,
c. 385.)

As used in this Article:
          (1)     "Consumer" means the purchaser, other than for
purposes of resale, or lessee from a commercial lender, lessor,
or from a manufacturer or dealer, of a motor vehicle, and any
other person entitled by the terms of an express warranty to
enforce the obligations of that warranty.
          (2)     "Manufacturer" means any person or corporation,
resident or nonresident, who manufactures or assembles or imports
or distributes new motor vehicles which are sold in the State of
North Carolina.
          (3)     "Motor vehicle" includes a motor vehicle as
defined in G.S. 20-4.01 which is sold or leased in this State,
but does not include "house trailer" as defined in G.S. 20-4.01
or any motor vehicle with a gross vehicle weight of 10,000 pounds
or more.
          (4)     "New motor vehicle" means a motor vehicle for
which a certificate of origin, as required by G.S. 20-52.1 or a
similar requirement in another state, has never been supplied to
a consumer, or which a manufacturer, its agent, or its authorized
dealer states in writing is being sold as a new motor vehicle.
(1987, c. 385; 1989, c. 43, s. 2, c. 519, s. 2.)

(a)  Express warranties for a new motor vehicle shall remain
in effect at least one year or 12,000 miles.  If a new motor
vehicle does not conform to all applicable express warranties for
a period of one year, or the term of the express warranties,
whichever is greater, following the date of original delivery of
the motor vehicle to the consumer, and the consumer reports the
nonconformity to the manufacturer, its agent, or its authorized
dealer during such period, the manufacturer shall make, or
arrange to have made, repairs necessary to conform the vehicle to
the express warranties, whether or not these repairs are made
after the expiration of the applicable warranty period.
     (b)  Any express warranty for a new motor vehicle expressed
in terms of a certain number of miles shall begin to accrue from
the mileage on the odometer at the date of original delivery to
the consumer. (1987, c. 385; 1989, c. 14.)

(a) When the consumer is the purchaser or a person entitled
by the terms of the express warranty to enforce the obligations
of the warranty, if the manufacturer is unable, after a
reasonable number of attempts, to conform the motor vehicle to
any express warranty by repairing or correcting, or arranging for
the repair or correction of, any defect or condition or series of
defects or conditions which substantially impair the value of the
motor vehicle to the consumer, and which occurred no later than
24 months or 24,000 miles following original delivery of the
vehicle, the manufacturer shall, at the option of the consumer,
replace the vehicle with a comparable new motor vehicle or accept
return of the vehicle from the consumer and refund to the
consumer the following:
          (1)     The full contract price including, but not
limited to, charges for undercoating, dealer preparation and
transportation, and installed options, plus the non-refundable
portions of extended warranties and service contracts;
          (2)     All collateral charges, including but not
limited to, sales tax, license and registration fees, and similar
government charges;
          (3)     All finance charges incurred by the consumer
after he first reports the nonconformity to the manufacturer, its
agent, or its authorized dealer; and
          (4)     Any incidental damages and monetary
consequential damages.
      (b)  When consumer is a lessee, if the manufacturer is
unable, after a reasonable number of attempts, to conform the
motor vehicle to any express warranty by repairing or correcting,
or arranging for the repair or correction of, any defect or
condition or series of defects or conditions which substantially
impair the value of the motor vehicle to the consumer, and which
occurred no later than 24 months or 24,000 miles following
original delivery of the vehicle, the manufacturer shall, at the
option of the consumer, replace the vehicle with a comparable new
motor vehicle or accept return of the vehicle from the consumer
and refund the following:
          (1)     To the consumer:
               a.     All sums previously paid by the consumer
under the terms of the lease;
               b.     All sums previously paid by the consumer in
connection with entering into the lease agreement, including, but
not limited to, any capitalized cost reduction, sales tax,
license and registration fees, and similar government charges;
and
               c.     Any incidental and monetary consequential
damages.
          (2)     To the lessor, a full refund of the lease
price, plus an additional amount equal to five percent (5%) of
the lease price, less eighty-five percent (85%) of the amount
actually paid by the consumer to the lessor pursuant to the
lease.  The lease price means the actual purchase cost of the
vehicle to the lessor.
In the case of a refund, the leased vehicle shall be returned to
the manufacturer and the consumer's written lease shall be
terminated by the lessor without any penalty to the consumer.
The lessor shall transfer title of the motor vehicle to the
manufacturer as necessary to effectuate the consumer's rights
pursuant to this Article, whether the consumer chooses vehicle
replacement or refund.
     (c)  Refunds shall be made to the consumer, lessor and any
lienholders as their interests may appear.  The refund to the
consumer shall be reduced by a reasonable allowance for the
consumer's use of the vehicle.  A reasonable allowance for use is
that amount directly attributable to use by the consumer prior to
his first report of the nonconformity to the manufacturer, its
agent, or its authorized dealer, and during any subsequent period
when the vehicle is not out of service because of repair.
"Reasonable allowance" is presumed to be the cash price or the
lease price, as the case may be, of the vehicle multiplied by a
fraction having as its denominator 100,000 miles and its
numerator the number of miles attributed to the consumer.
     (d)  If a manufacturer, its agent, or its authorized dealer
resells a motor vehicle that was returned pursuant to this
Article or any other State's applicable law, regardless of
whether there was any judicial determination that the motor
vehicle had any defect or that it failed to conform to all
express warranties, the manufacturer, its agent, or its
authorized dealer shall disclose to the subsequent purchaser
prior to the sale:
          (1)     That the motor vehicle was returned pursuant to
this Article or pursuant to the applicable law of any other
State; and
          (2)     The defect or condition or series of defects or
conditions which substantially impaired the value of the motor
vehicle to the consumer.
Any subsequent purchaser who purchases the motor vehicle for
resale with notice of the return, shall make the required
disclosures to any person to whom he resells the motor vehicle.
(1987, c. 385; 1989, c. 43, s. 1, c. 519, s. 1.)

It is an affirmative defense to any claim under this Article
that an alleged nonconformity or series of nonconformities are
the result of abuse, neglect, odometer tampering by the consumer
or unauthorized modifications or alterations of a motor vehicle.
(1987, c. 385.)

(a)  It is presumed that a reasonable number of attempts
have been undertaken to conform a motor vehicle to the applicable
express warranties if:
          (1)     The same nonconformity has been presented for
repair to the manufacturer, its agent, or its authorized dealer
four or more times but the same nonconformity continues to exist;
or
          (2)     The vehicle was out of service to the consumer
during or while awaiting repair of the nonconformity or a series
of nonconformities for a cumulative total of 20 or more business
days during any 12-month period of the warranty,
provided that the consumer has notified the manufacturer directly
in writing of the existence of the nonconformity or series of
nonconformities and allowed the manufacturer a reasonable period,
not to exceed 15 calendar days, in which to correct the
nonconformity or series of nonconformities.  The manufacturer
must clearly and conspicuously disclose to the consumer in the
warranty or owners manual that written notification of a
nonconformity is required before a consumer may be eligible for a
refund or replacement of the vehicle and the manufacturer shall
include in the warranty or owners manual the name and address
where the written notification may be sent.  Provided, further,
that notice to the manufacturer shall not be required if the
manufacturer fails to make the disclosures provided herein.
     (b)  The consumer may prove that a defect or condition
substantially impairs the value of the motor vehicle to the
consumer in a manner other than that set forth in subsection (a)
of this section.
     (c)  The term of an express warranty, the one-year period,
and the 20-day period shall be extended by any period of time
during which repair services are not available to the consumer
because of war, strike, or natural disaster. (1987, c. 385.)

Whenever, in his opinion, the interests of the public
require it, it shall be the duty of the Attorney General upon his
ascertaining that any of the provisions of this Article have been
violated by the manufacturer to bring a civil action in the name
of the State, or any officer or department thereof as provided by
law, or in the name of the State on relation of the Attorney
General. (1987, c. 385.)

A consumer injured by reason of any violation of the
provisions of this Article may bring a civil action against the
manufacturer; provided, however, the consumer has given the
manufacturer written notice of his intent to bring an action
against the manufacturer at least 10 days prior to filing such
suit.  Nothing in this section shall prevent a manufacturer from
requiring a consumer to utilize an informal settlement procedure
prior to litigation if that procedure substantially complies in
design and operation with the Magnuson-Moss Warranty Act, 15 USC
§ 2301 et seq., and regulations promulgated thereunder,
and that requirement is written clearly and conspicuously, in the
written warranty and any warranty instructions provided to the
consumer. (1987, c. 385.)

In any action brought under this Article, the court may
grant as relief:
          (1)     A permanent or temporary injunction or other
equitable relief as the court deems just;
          (2)     Monetary damages to the injured consumer in the
amount fixed by the verdict.  Such damages shall be trebled upon
a finding that the manufacturer unreasonably refused to comply
with G.S. 20-351.2 or G.S. 20-351.3.  The jury may consider as
damages all items listed for refund under G.S. 20-351.3;
          (3)     A reasonable attorney's fee for the attorney of
the prevailing party, payable by the losing party, upon a finding
by the court that:
               a.     The manufacturer unreasonably failed or
refused to fully resolve the matter which constitutes the basis
of such action; or
               b.     The party instituting the action knew, or
should have known, the action was frivolous and malicious. (1987,
c. 385.)

No authorized dealer shall be held liable by the
manufacturer for any refunds or vehicle replacements in the
absence of evidence indicating that dealership repairs have been
carried out in a manner substantially inconsistent with the
manufacturers' instructions.  This Article does not create any
cause of action by a consumer against an authorized dealer.
(1987, c. 385.)

This Article does not limit the rights or remedies which are
otherwise available to a consumer under any other law. (1987, c.
385.)