NORTH CAROLINA Lemon Law:
N.C. Gen. Stat. §§ 20-351 to 20-351.10
Vehicles covered: Vehicles, as defined in N.C. Gen. Stat. § 20-4.01,
sold or leased in-state; excludes house trailers and vehicles over
10,000 lbs. (§ 20-351.1(3)).
Persons covered: Purchaser, lessee, transferee or any person entitled
to enforce the warranty (§ 20-351.1(1)).
Period covered: Consumer entitled to repairs for defects reported
within the first twelve months or 12,000 miles (§ 20-351.2).
Disclosure requirements: Manufacturer must provide in warranty
or owner’s manual clear and conspicuous notice of consumer’s
obligation to provide written notice before exercising lemon law
rights to refund or replacement (§ 20-351.5(a)); to establish arbitration
requirement clear and conspicuous notice of arbitration
process is required in the warranty (§ 20-351.7).
Required consumer notice: Must report the nonconformity to the
manufacturer, its agent or an authorized dealer (§ 20-351.2(a));
written direct notice to manufacturer (§ 20-351.5(a)); written
notice ten days prior to filing a civil suit (§ 20-351.7).
Repair requirements: It is presumed that a reasonable number of
attempts have been made if the same nonconformity is subjected to
four or more repairs, or the vehicle is out of service for a cumulative
total of twenty or more business days (§ 20-351.5(a)).
Manufacturer has fifteen day opportunity to cure following receipt
of consumer notice (§ 20-351.5(a)).
Affırmative defenses: The nonconformity is the result of abuse,
neglect, odometer tampering by the consumer, or unauthorized
modifications or alterations (§ 20-351.4).
Replace/refund: At the consumer’s option, the manufacturer shall
replace with a new comparable vehicle, or refund the full purchase
price less a reasonable use allowance (§ 20-351.3(a)).
Other reimbursement: Collateral charges (defined), finance
charges, and incidental and consequential damages (§ 20-
351.3(a)); attorney fees (20-351.8).
Other remedies: There is no limit on other consumer remedies
(§ 20-351.10). Injunctive relief, monetary damages (trebled for
unreasonable non-compliance) (§ 20-351.8). No cause of action
created against dealer (§ 20-351.9).
Informal dispute resolution: For remedies under this section a
consumer must use an informal dispute settlement procedure established
by the manufacturer, provided the procedure complies
with 15 U.S.C. § 2301 and provided consumer was given notice of
required procedure in warranty (§ 20-351.7).
Resale of lemon: Full disclosure required (§ 20-351.3(d)).