Business Vehicles — Lemon Law in Georgia

Georgia Lemon Law covers new passenger vehicles, SUVs, vans, and trucks under 10,000 pounds, as well as the motorized portions of RVs and demonstrators that are sold as new motor vehicles with a manufacturer's warranties that are purchased or leased in Georgia. In order to be considered a "lemon," the vehicle must be owned or leased by a business that owns or leases only one or two vehicles, has ten or fewer employees, and has an annual net income of $100,000 or less, and meet the following requirements:

• Does not conform to the manufacturer's express warranty
• Has substantial defects affecting the use, safety or value of the vehicle
• Has manufacturer's defects that occurred during the first year from the delivery date or 12,000 miles on the odometer (whichever comes first)
• Has been taken in for repair during the first year from the delivery date or 12,000 miles on the odometer (whichever comes first), and has been taken in for subsequent repairs within 24 months or 24,000 miles of the date of the first repair attempt
• Has been taken in one time for a serious defect in the brakes or steering system, two times for another life-threatening defect, or the vehicle has been out of service for a total of 30 calendar days (15 of them within one year or 12,000 miles) or taken in three times for the same defect
• After the dealer has tried to repair the vehicle the required number of times, you have notified the manufacturer via certified mail and the manufacturer has had the opportunity to make a final repair attempt

Under Georgia Lemon Law, you must notify the manufacturer and give the manufacturer the opportunity to fix the problems one last time. (sample notification letter) According to the law, the notification letter must be sent by certified mail, with a return receipt requested.

Once the manufacturer receives your letter, it has seven calendar days to contact you, either by phone or in writing, and tell you where you should take your vehicle for the final repair attempt. Once you take your vehicle in, the facility has 14 days to correct the defect. If the problem still isn't fixed, you must send a 30-Day Demand Letter to the manufacturer via certified mail with a return receipt requested. (sample notification letter)

Before you are eligible to file a Lemon Law claim in court, you must also submit your dispute to the Governor's Office of Consumer Affairs for a state-operated arbitration hearing. It is critical to note that, if you go through the Office of Consumer Affairs program, you must give up your rights under Georgia's Uniform Commercial Code and commit to only pursuing your rights under Georgia Lemon Law.

Once you submit your application to the Governor's Office of Consumer Affairs, it will decide whether or not you have met the requirements for arbitration. If so, it will forward your application to the state arbitration panel.

Once your case has been accepted for state arbitration and the hearing has been scheduled, you will receive a video explaining how the arbitration hearing is conducted.

A panel of three arbitrators who are trained and experienced in dealing with Lemon Law claims will preside over your hearing. Both you and a representative from the manufacturer speak before the panel. You will speak first. The attorneys for the manufacturer can question you; when the attorneys for the manufacturer speak, you can question them. You can bring and question witnesses. You should bring your vehicle to the hearing unless it is inoperable or unsafe to drive.

While the arbitration hearing is less formal than an actual court proceeding, you need to come prepared to present your case. You will need the records that outline all of the work done on your car and all of the diagnosed problems; an odometer reading; copies of correspondence with the dealer and/or manufacturer; statements from mechanics or other experts; statements from witnesses; appraisals or estimates of the resale value of the vehicle with its defects; proof that the manufacturer has had the opportunity for one final attempt at repair; and a variety of financial records. It is also important that you have your records in chronological order and ready to present to the panel in an organized fashion.

You must prove to the arbitration panel that the claims you are making are true, and that the defect negatively impacts the use, market value, or safety of the vehicle. It is absolutely vital that you bring proof of each and every point you plan on making. A "he-said-she-said" argument will never result in a ruling in your favor.

At the end of the hearing, the panel will reach a decision outlining whether or not your vehicle meets the standards for a refund or replacement. If so, you get to decide whether you want a replace or a refund, which can include:

• The purchase price (the amount you agreed to pay before taxes were added and any trade-in value or down payment subtracted)
• Collateral charges (including, but not limited to, sales tax and other government charges, dealer charges, dealer-installed items, extended warranty, and all interest you paid on the vehicle loan)
• Incidental costs associated with repairing the vehicle, such as towing, alternate transportation, and repair charges
• Expert witness costs
• Attorney's fees

The amount of the refund may be reduced by a deduction for your use of the vehicle, which is calculated by multiplying the purchase price by the mileage at the time you sent the 30-Day Demand Letter and dividing that amount by 100,000.

If the decision is not in your favor, you can appeal. First, you have to reject the decision by certified mail with a return receipt requested within 30 days of the date you received the decision. If you do so, you have an additional 40 days to request a trial. If the decision is in your favor, the manufacturer may file an appeal with the court.

As with other types of Lemon Law claims, organization is key to presenting a convincing case. Keep spotless records of every malfunction and problem you have had with your business vehicle since you bought it. Save all of the paperwork that you received every time you brought your business vehicle to be serviced. Catalog the days the vehicle spent in the shop and out of your possession. Remember, the more organized your evidence is, the more likely it is that your attorney can win your case.