The
Florida Lemon Law:
681.10 Short title.
This chapter shall be known and may be cited as the "Motor
Vehicle Warranty Enforcement Act."
681.101
Legislative intent.
The Legislature recognizes that a motor vehicle is a major
consumer purchase and that a defective motor vehicle undoubtedly
creates a hardship for the consumer. The Legislature further
recognizes that a duly franchised motor vehicle dealer is
an authorized service agent of the manufacturer. It is the
intent
of the Legislature that a good faith motor vehicle warranty
complaint by a consumer be resolved by the manufacturer within
a specified period of time; however, it is not the intent
of the Legislature that a consumer establish the presumption
of
a reasonable number of attempts as to each manufacturer that
provides a warranty directly to the consumer. It is further
the intent of the Legislature to provide the statutory procedures
whereby a consumer may receive a replacement motor vehicle,
or a full refund, for a motor vehicle which cannot be brought
into conformity with the warranty provided for in this chapter.
However, nothing in this chapter shall in any way limit or
expand the rights or remedies which are otherwise available
to a consumer under any other law.
681.102
Definitions.
As used in this chapter, the term:
(1) "Authorized service agent" means any person,
including a franchised motor vehicle dealer, who is authorized
by the manufacturer to service motor
vehicles. In the case of a recreational vehicle when there are two or more manufacturers,
an authorized service agent for any individual manufacturer is any person, including
a franchised motor vehicle dealer, who is authorized to service the items warranted
by that manufacturer. The term does not include a rental car company authorized
to repair rental vehicles.
(2) "Board" means the Florida New Motor Vehicle Arbitration Board.
(3) "Collateral charges" means those additional charges to a consumer
wholly incurred as a result of the acquisition of the motor vehicle. For the
purposes of this chapter, collateral charges include, but are not limited to,
manufacturer-installed or agent-installed items or service charges, earned finance
charges, sales taxes, and title charges.
(4) "Consumer" means the purchaser, other than for purposes of resale,
or the lessee, of a motor vehicle primarily used for personal, family, or household
purposes; any person to whom such motor vehicle is transferred for the same purposes
during the duration of the Lemon Law rights period; and any other person entitled
by the terms of the warranty to enforce the obligations of the warranty.
(5) "Days" means calendar days.
(6) "Department" means the Department of Legal Affairs.
(7) "Division" means the Division of Consumer Services of the Department
of Agriculture and Consumer Services.
(8) "Incidental charges" means those reasonable costs to the consumer
which are directly caused by the nonconformity of the motor vehicle.
(9) "Lease price" means the aggregate of the capitalized cost, as defined
in s. 521.003(2), and each of the following items to the extent not included
in the capitalized cost:
(a) Lessor's earned rent charges through the date of repurchase.
(b) Collateral charges, if applicable.
(c) Any fee paid to another to obtain the lease.
(d) Any insurance or other costs expended by the lessor for the benefit of
the lessee.
(e) An amount equal to state and local sales taxes, not otherwise included
as collateral charges, paid by the lessor when the vehicle was initially
purchased.
(10) "Lemon Law rights period" means the period ending 24 months after
the date of the original delivery of a motor vehicle to a consumer.
(11) "Lessee" means any consumer who leases a motor vehicle for 1 year
or more pursuant to a written lease agreement which provides that the lessee
is responsible for repairs to such motor vehicle or any consumer who leases a
motor vehicle pursuant to a lease-purchase agreement.
(12) "Lessee cost" means the aggregate deposit and rental payments
previously paid to the lessor for the leased vehicle but excludes debt from any
other transaction.
(13) "Lessor" means a person who holds title to a motor vehicle that
is leased to a lessee under a written lease agreement or who holds the lessor's
rights under such agreement.
(14) "Manufacturer" means any person, whether a resident or nonresident
of this state, who manufactures or assembles motor vehicles, or who manufactures
or assembles chassis for recreational vehicles, or who manufactures or installs
on previously assembled truck or recreational vehicle chassis special bodies
or equipment which, when installed, forms an integral part of the motor vehicle,
a distributor as defined in s. 320.60(5), or an importer as defined in s. 320.60(7).
A dealer as defined in s. 320.60(11)(a) shall not be deemed to be a manufacturer,
distributor, or importer as provided in this section.
(15) "Motor vehicle" means a new vehicle, propelled by power other
than muscular power, which is sold in this state to transport persons or property,
and includes a recreational vehicle or a vehicle used as a demonstrator or leased
vehicle if a manufacturer's warranty was issued as a condition of sale, or the
lessee is responsible for repairs, but does not include vehicles run only upon
tracks, off-road vehicles, trucks over 10,000 pounds gross vehicle weight, motorcycles,
mopeds, or the living facilities of recreational vehicles. "Living facilities
of recreational vehicles" are those portions designed, used, or maintained
primarily as living quarters and include, but are not limited to, the flooring,
plumbing system and fixtures, roof air conditioner, furnace, generator, electrical
systems other than automotive circuits, the side entrance door, exterior compartments,
and windows other than the windshield and driver and front passenger windows.
(16) "Nonconformity" means a defect or condition that substantially
impairs the use, value, or safety of a motor vehicle, but does not include a
defect or condition that results from an accident, abuse, neglect, modification,
or alteration of the motor vehicle by persons other than the manufacturer or
its authorized service agent.
(17) "Procedure" means an informal dispute-settlement procedure established
by a manufacturer to mediate and arbitrate motor vehicle warranty disputes.
(18) "Program" means the mediation and arbitration pilot program for
recreational vehicles established in this chapter.
(19) "Purchase price" means the cash price as defined in s. 520.31(1),
inclusive of any allowance for a trade-in vehicle, but excludes debt from any
other transaction. "Any allowance for a trade-in vehicle" means the
net trade-in allowance as reflected in the purchase contract or lease agreement
if acceptable to the consumer and manufacturer. If such amount is not acceptable
to the consumer and manufacturer, then the trade-in allowance shall be an amount
equal to 100 percent of the retail price of the trade-in vehicle as reflected
in the NADA Official Used Car Guide (Southeastern Edition) or NADA Recreation
Vehicle Appraisal Guide, whichever is applicable, in effect at the time of the
trade-in. The manufacturer shall be responsible for providing the applicable
NADA book.
(20) "Reasonable offset for use" means the number of miles attributable
to a consumer up to the date of a settlement agreement or arbitration hearing,
whichever occurs first, multiplied by the purchase price of the vehicle and divided
by 120,000, except in the case of a recreational vehicle, in which event it shall
be divided by 60,000.
(21) "Recreational vehicle" means a motor vehicle primarily designed
to provide temporary living quarters for recreational, camping, or travel use,
but does not include a van conversion.
(22) "Replacement motor vehicle" means a motor vehicle which is identical
or reasonably equivalent to the motor vehicle to be replaced, as the motor vehicle
to be replaced existed at the time of acquisition. "Reasonably equivalent
to the motor vehicle to be replaced" means the manufacturer's suggested
retail price of the replacement vehicle shall not exceed 105 percent of the manufacturer's
suggested retail price of the motor vehicle to be replaced. In the case of a
recreational vehicle, "reasonably equivalent to the motor vehicle to be
replaced" means the retail price of the replacement vehicle shall not exceed
105 percent of the purchase price of the recreational vehicle to be replaced.
(23) "Warranty" means any written warranty issued by the manufacturer,
or any affirmation of fact or promise made by the manufacturer, excluding
statements made by the dealer, in connection with the sale of a motor vehicle
to a consumer
which relates to the nature of the material or workmanship and affirms or
promises that such material or workmanship is free of defects or will meet
a specified
level of performance.
681.103
Duty of manufacturer to conform a motor vehicle to the warranty.
(1) If a motor vehicle does not conform to the warranty and the consumer
first reports the problem to the manufacturer or its authorized service
agent during
the Lemon Law rights period, the manufacturer or its authorized service
agent shall make such repairs as are necessary to conform the vehicle to
the warranty,
irrespective of whether such repairs are made after the expiration of the
Lemon Law rights period. Such repairs shall be at no cost to the consumer
if made
during the term of the manufacturer's written express warranty. Nothing
in this paragraph
shall be construed to grant an extension of the Lemon Law rights period
or to expand the time within which a consumer must file a claim under this
chapter.
(2) Each manufacturer shall provide to its consumers conspicuous notice
of the address and phone number for its zone, district, or regional office
for
this
state in the written warranty or owner's manual. By January 1 of each year,
each manufacturer shall forward to the Department of Legal Affairs a copy
of the owner's
manual and any written warranty for each make and model of motor vehicle
that it sells in this state.
(3) At the time of acquisition, the manufacturer shall inform the consumer
clearly and conspicuously in writing how and where to file a claim with
a certified procedure
if such procedure has been established by the manufacturer pursuant to
s. 681.108. The manufacturer shall provide to the dealer and, at the time
of
acquisition,
the dealer shall provide to the consumer a written statement that explains
the consumer's rights under this chapter. The written statement shall be
prepared by the Department of Legal Affairs and shall contain a toll-free
number for
the
division that the consumer can contact to obtain information regarding
the consumer's rights and obligations under this chapter or to commence
arbitration.
If the
manufacturer obtains a signed receipt for timely delivery of sufficient
quantities of this written statement to meet the dealer's vehicle sales
requirements,
it shall constitute prima facie evidence of compliance with this subsection
by the
manufacturer. The consumer's signed acknowledgment of receipt of materials
required under this subsection shall constitute prima facie evidence of
compliance by
the manufacturer and dealer. The form of the acknowledgments shall be approved
by the Department of Legal Affairs, and the dealer shall maintain the consumer's
signed acknowledgment for 3 years.
(4) A manufacturer, through its authorized service agent, shall provide
to the consumer, each time the consumer's motor vehicle is returned after
being
examined
or repaired under the warranty, a fully itemized, legible statement or
repair order indicating any test drive performed and the approximate length
of the
test drive, any diagnosis made, and all work performed on the motor vehicle
including,
but not limited to, a general description of the problem reported by the
consumer or an identification of the defect or condition, parts and labor,
the date
and the odometer reading when the motor vehicle was submitted for examination
or
repair, and the date when the repair or examination was completed.
681.104
Nonconformity of motor vehicles.
(1)
(a) After three attempts have been made to repair the same nonconformity,
the consumer shall give written notification, by registered or express
mail to
the manufacturer, of the need to repair the nonconformity to allow the
manufacturer a final attempt to cure the nonconformity. The manufacturer
shall have 10
days, commencing upon receipt of such notification, to respond and give
the consumer
the opportunity to have the motor vehicle repaired at a reasonably accessible
repair facility within a reasonable time after the consumer's receipt
of the response. The manufacturer shall have 10 days, except in the case
of
a recreational
vehicle, in which event the manufacturer shall have 45 days, commencing
upon the delivery of the motor vehicle to the designated repair facility
by the
consumer,
to conform the motor vehicle to the warranty. If the manufacturer fails
to respond to the consumer and give the consumer the opportunity to have
the
motor vehicle
repaired at a reasonably accessible repair facility or perform the repairs
within the time periods prescribed in this subsection, the requirement
that the manufacturer
be given a final attempt to cure the nonconformity does not apply.
(b) If the motor vehicle is out of service by reason of repair of one
or more nonconformities by the manufacturer or its authorized service
agent
for a cumulative
total of 15 or more days, exclusive of downtime for routine maintenance
prescribed by the owner's manual, the consumer shall so notify the manufacturer
in writing
by registered or express mail to give the manufacturer or its authorized
service agent an opportunity to inspect or repair the vehicle.
(2)
(a) If the manufacturer, or its authorized service agent, cannot conform
the motor vehicle to the warranty by repairing or correcting any nonconformity
after a reasonable number of attempts, the manufacturer, within 40 days,
shall
repurchase
the motor vehicle and refund the full purchase price to the consumer,
less a reasonable offset for use, or, in consideration of its receipt
of payment
from
the consumer of a reasonable offset for use, replace the motor vehicle
with a replacement motor vehicle acceptable to the consumer. The refund
or replacement
must include all reasonably incurred collateral and incidental charges.
However, the consumer has an unconditional right to choose a refund rather
than a
replacement motor vehicle. Upon receipt of such refund or replacement,
the consumer, lien
holder, or lessor shall furnish to the manufacturer clear title to and
possession of the motor vehicle.
(b) Refunds shall be made to the consumer and lien holder of record,
if any, as their interests may appear. If applicable, refunds shall be
made
to the
lessor and lessee as follows: The lessee shall receive the lessee cost
and the lessor
shall receive the lease price less the lessee cost. A penalty for early
lease termination may not be assessed against a lessee who receives a
replacement motor vehicle or refund under this chapter. The Department
of Revenue shall
refund
to the manufacturer any sales tax which the manufacturer refunded to
the consumer, lien holder, or lessor under this section, if the manufacturer
provides to
the department a written request for a refund and evidence that the sales
tax was
paid when the vehicle was purchased and that the manufacturer refunded
the
sales tax to the consumer, lien holder, or lessor.
(3) It is presumed that a reasonable number of attempts have been undertaken
to conform a motor vehicle to the warranty if, during the Lemon Law rights
period, either:
(a) The same nonconformity has been subject to repair at least three
times by the manufacturer or its authorized service agent, plus a final
attempt
by the
manufacturer to repair the motor vehicle if undertaken as provided for
in paragraph (1)(a), and such nonconformity continues to exist; or
(b) The motor vehicle has been out of service by reason of repair of
one or more nonconformities by the manufacturer, or its authorized service
agent, for a cumulative
total of 30 or more days, 60 or more days in the case of a recreational
vehicle, exclusive of downtime for routine maintenance prescribed by
the
owner's manual.
The manufacturer or its authorized service agent must have had at least
one opportunity to inspect or repair the vehicle following receipt of
the notification
as provided
in paragraph (1)(b). The 30-day period, or 60-day period in the case
of a recreational
vehicle, may be extended by any period of time during which repair services
are not available to the consumer because of war, invasion, strike, fire,
flood, or natural disaster.
(4) It is an affirmative defense to any claim under this chapter that:
(a) The alleged nonconformity does not substantially impair the use,
value, or safety of the motor vehicle;
(b) The nonconformity is the result of an accident, abuse, neglect, or
unauthorized modifications or alterations of the motor vehicle by persons
other than the
manufacturer or its authorized service agent; or
(c) The claim by the consumer was not filed in good faith.
Any other affirmative defense allowed by law may be raised against the
claim.
681.106
Bad faith claims.
Any claim by a consumer which is found by the court to
have been filed in bad faith or solely for the purpose
of harassment, or in complete
absence of a
justiciable issue of either law or fact raised by the consumer, shall
result in the consumer
being liable for all costs and reasonable attorney's fees incurred
by the manufacturer, or its agent, as a direct result of
the bad faith claim.
681.108
Dispute-settlement procedures.
(1) If a manufacturer has established a procedure, which
the division has certified as substantially complying with
the provisions of 16
C.F.R. part
703, in effect
October 1, 1983, and with the provisions of this chapter and the
rules adopted under this chapter, and has informed the
consumer how and where
to file a
claim with such procedure pursuant to s. 681.103(3), the provisions
of s. 681.104(2)
apply to the consumer only if the consumer has first resorted to
such procedure. The decision makers for a certified procedure
shall, in
rendering decisions,
take into account all legal and equitable factors germane to a fair
and just decision, including, but not limited to, the warranty; the
rights
and remedies
conferred under 16 C.F.R. part 703, in effect October 1, 1983; the
provisions of this chapter; and any other equitable considerations
appropriate under
the circumstances. Decision makers and staff of a procedure shall
be trained in
the provisions of this chapter and in 16 C.F.R. part 703, in effect
October 1, 1983.
In an action brought by a consumer concerning an alleged nonconformity,
the decision that results from a certified procedure is admissible
in evidence.
(2) A manufacturer may apply to the division for certification of
its procedure. After receipt and evaluation of the application, the
division
shall certify
the procedure or notify the manufacturer of any deficiencies in the
application or
the procedure.
(3) A certified procedure or a procedure of an applicant seeking
certification shall submit to the division a copy of each settlement
approved by
the procedure or decision made by a decision maker within 30 days
after the
settlement
is reached or the decision is rendered. The decision or settlement
must contain at a minimum
the:
1. Name and address of the consumer;
2. Name of the manufacturer and address of the dealership from which
the motor vehicle was purchased;
3. Date the claim was received and the location of the procedure
office that handled the claim;
4. Relief requested by the consumer;
5. Name of each decision maker rendering the decision or person approving
the settlement;
6. Statement of the terms of the settlement or decision;
7. Date of the settlement or decision; and
8. Statement of whether the decision was accepted or rejected by
the consumer.
(4) Any manufacturer establishing or applying to establish a certified
procedure must file with the division a copy of the annual audit
required under the
provisions of 16 C.F.R. part 703, in effect October 1, 1983, together
with any additional
information required for purposes of certification, including the
number of refunds and replacements made in this state pursuant to
the provisions
of this
chapter
by the manufacturer during the period audited.
(5) The division shall review each certified procedure at least annually,
prepare an annual report evaluating the operation of certified procedures
established
by motor vehicle manufacturers and procedures of applicants seeking
certification, and, for a period not to exceed 1 year, shall grant
certification to,
or renew certification for, those manufacturers whose procedures
substantially comply
with the provisions of 16 C.F.R. part 703, in effect October 1, 1983,
and
with the provisions of this chapter and rules adopted under this
chapter. If certification
is revoked or denied, the division shall state the reasons for such
action. The reports and records of actions taken with respect to
certification shall be public
records.
(6) A manufacturer whose certification is denied or revoked is entitled
to a hearing pursuant to chapter 120.
(7) If federal preemption of state authority to regulate procedures
occurs, the provisions of subsection (1) concerning prior resort
do not apply.
(8) The division shall adopt rules to implement this section.
681.109
Florida New Motor Vehicle Arbitration Board.
Dispute eligibility.
(1) If a manufacturer has a certified procedure, a consumer claim
arising during the Lemon Law rights period must be filed with the
certified
procedure no later
than 60 days after the expiration of the Lemon Law rights period.
If a decision is not rendered by the certified procedure within
40 days
of filing,
the
consumer may apply to the division to have the dispute removed
to the board for arbitration.
(2) If a manufacturer has a certified procedure, a consumer claim
arising during the Lemon Law rights period must be filed with the
certified
procedure no later
than 60 days after the expiration of the Lemon Law rights period.
If a consumer is not satisfied with the decision or the manufacturer's
compliance therewith,
the consumer may apply to the division to have the dispute submitted
to
the board for arbitration. A manufacturer may not seek review of
a
decision made
under
its procedure.
(3) If a manufacturer has no certified procedure or if a certified
procedure does not have jurisdiction to resolve the dispute, a
consumer may apply
directly to the division to have the dispute submitted to the board
for arbitration.
(4) A consumer must request arbitration before the board with respect
to a claim arising during the Lemon Law rights period no later
than 60 days
after
the expiration
of the Lemon Law rights period, or within 30 days after the final
action of a certified procedure, whichever date occurs later.
(5) The division shall screen all requests for arbitration before
the board to determine eligibility. The consumer's request for
arbitration before
the board
shall be made on a form prescribed by the department. The division
shall forward to the board all disputes that the division determines
are potentially
entitled
to relief under this chapter.
(6) The division may reject a dispute that it determines to be
fraudulent or outside the scope of the board's authority. Any dispute
deemed
by the division
to be ineligible for arbitration by the board due to insufficient
evidence may be reconsidered upon the submission of new information
regarding
the dispute. Following a second review, the division may reject
a dispute if
the evidence
is clearly insufficient to qualify for relief. Any dispute rejected
by the division
shall be forwarded to the department and a copy shall be sent by
registered mail to the consumer and the manufacturer, containing
a brief explanation
as to the
reason for rejection.
(7) If the division rejects a dispute, the consumer may file a
lawsuit to enforce the remedies provided under this chapter. In
any civil
action arising
under
this chapter and relating to a matter considered by the division,
any determination made to reject a dispute is admissible in evidence.
(8) The department shall have the authority to adopt reasonable
rules to carry out the provisions of this section.
681.1095
Florida New Motor Vehicle Arbitration Board.
Creation and function.
(1) There is established within the Department of Legal Affairs,
the Florida New Motor Vehicle Arbitration Board, consisting of
members appointed by
the Attorney General for an initial term of 1 year. Board members
may
be reappointed
for additional
terms of 2 years. Each board member is accountable to the Attorney
General for the performance of the member's duties and is exempt
from civil liability
for
any act or omission which occurs while acting in the member's
official capacity. The Department of Legal Affairs shall defend
a member
in any action against
the member or the board which arises from any such act or omission.
The Attorney General may establish as many regions of the board
as necessary
to carry
out the provisions of this chapter.
(2) The boards shall hear cases in various locations throughout
the state so any consumer whose dispute is approved for arbitration
by
the division
may
attend an arbitration hearing at a reasonably convenient location
and present a dispute
orally. Hearings shall be conducted by panels of three board
members assigned by the department. A majority vote of the three-member
board panel shall
be required to render a decision. Arbitration proceedings under
this section shall
be open
to the public on reasonable and nondiscriminatory terms.
(3) Each region of the board shall consist of up to eight members.
The members of the board shall construe and apply the provisions
of this
chapter, and
rules adopted thereunder, in making their decisions. An administrator
and a secretary
shall be assigned to each board by the Department of Legal Affairs.
At least one member of each board must be a person with expertise
in motor
vehicle
mechanics. A member must not be employed by a manufacturer or
a franchised motor vehicle
dealer or be a staff member, a decision maker, or a consultant
for a procedure. Board members shall be trained in the application
of
this chapter and any
rules adopted under this chapter, shall be reimbursed for travel
expenses pursuant
to s. 112.061, and shall be compensated at a rate or wage prescribed
by the Attorney General.
(4) Before filing a civil action on a matter subject to s. 681.104,
the consumer must first submit the dispute to the division, and
to the board
if such dispute
is deemed eligible for arbitration.
(5) Manufacturers shall submit to arbitration conducted by the
board if such arbitration is requested by a consumer and the
dispute is
deemed eligible
for arbitration by the division pursuant to s. 681.109.
(6) The board shall hear the dispute within 40 days and render
a decision within 60 days after the date the request for arbitration
is approved.
The board may
continue the hearing on its own motion or upon the request of
a party
for good cause shown. A request for continuance by the consumer
constitutes waiver of
the time periods set forth in this subsection. The Department
of Legal Affairs, at the board's request, may investigate disputes,
and may
issue subpoenas
for the attendance of witnesses and for the production of records,
documents, and
other evidence before the board. The failure of the board to
hear
a dispute or render a decision within the prescribed periods
does not
invalidate
the decision.
(7) At all arbitration proceedings, the parties may present oral
and written testimony, present witnesses and evidence relevant
to the dispute,
cross-examine
witnesses, and be represented by counsel. The board may administer
oaths or affirmations to witnesses and inspect the vehicle if
requested by
a party or
if the board
deems such inspection appropriate.
(8) The board shall grant relief, if a reasonable number of attempts
have been undertaken to correct a nonconformity or nonconformities.
(9) The decision of the board shall be sent by registered mail
to the consumer and the manufacturer, and shall contain written
findings
of
fact and rationale
for the decision. If the decision is in favor of the consumer,
the manufacturer must, within 40 days after receipt of the decision,
comply with the terms
of the decision. Compliance occurs on the date the consumer receives
delivery of an acceptable replacement motor vehicle or the refund
specified in the
arbitration
award. In any civil action arising under this chapter and relating
to a dispute arbitrated before the board, any decision by the
board is admissible
in evidence.
(10) A decision is final unless appealed by either party. A petition
to the circuit court to appeal a decision must be made within
30 days after
receipt
of the decision.
The petition shall be filed in the county where the consumer
resides, or where the motor vehicle was acquired, or where the
arbitration
hearing was conducted.
Within 7 days after the petition has been filed, the appealing
party must
send a copy of the petition to the department. If the department
does not receive
notice of such petition within 40 days after the manufacturer's
receipt of a decision in favor of the consumer, and the manufacturer
has
neither complied
with, nor has petitioned to appeal such decision, the department
may apply to
the circuit court to seek imposition of a fine up to $1,000 per
day against the manufacturer until the amount stands at twice
the purchase
price
of the motor
vehicle, unless the manufacturer provides clear and convincing
evidence that the delay or failure was beyond its control or
was acceptable
to the consumer
as evidenced by a written statement signed by the consumer. If
the manufacturer fails to provide such evidence or fails to pay
the fine,
the department
shall initiate proceedings against the manufacturer for failure
to pay such fine.
The proceeds from the fine herein imposed shall be placed in
the Motor Vehicle Warranty
Trust Fund in the department for implementation and enforcement
of this chapter. If the manufacturer fails to comply with the
provisions of this
subsection,
the court shall affirm the award upon application by the consumer.
(11) All provisions in this section and s. 681.109 pertaining
to compulsory arbitration before the board, the dispute eligibility
screening by
the division, the proceedings
and decisions of the board, and any appeals thereof, are exempt
from the provisions of chapter 120.
(12) An appeal of a decision by the board to the circuit court
by a consumer or a manufacturer shall be by trial de novo. In
a written
petition to
appeal a decision by the board, the appealing party must state
the action requested
and the grounds relied upon for appeal. Within 30 days of final
disposition of the appeal, the appealing party shall furnish
the department with
notice of such
disposition and, upon request, shall furnish the department with
a
copy of the order or judgment of the court.
(13) If a decision of the board in favor of the consumer is upheld
by the court, recovery by the consumer shall include the pecuniary
value
of the
award, attorney's
fees incurred in obtaining confirmation of the award, and all
costs and continuing damages in the amount of $25 per day for
each day
beyond the
40-day period
following the manufacturer's receipt of the board's decision.
If a court determines that
the manufacturer acted in bad faith in bringing the appeal or
brought the appeal solely for the purpose of harassment or in
complete
absence of a
justiciable issue of law or fact, the court shall double, and
may triple, the amount
of
the total award.
(14) When a judgment affirms a decision by the board in favor
of a consumer, appellate review may be conditioned upon payment
by
the manufacturer
of the consumer's attorney's fees and giving security for costs
and expenses
resulting
from the
review period.
(15) The department shall maintain records of each dispute submitted
to the board, and the program, including an index of motor vehicles
by year,
make,
and model,
and shall compile aggregate annual statistics for all disputes
submitted to, and decided by, the board, as well as annual statistics
for each
manufacturer that include, but are not limited to, the value,
if applicable, and the
number and percent of:
(a) Replacement motor vehicle requests;
(b) Purchase price refund requests;
(c) Replacement motor vehicles obtained in prehearing settlements;
(d) Purchase price refunds obtained in prehearing settlements;
(e) Replacement motor vehicles awarded in arbitration;
(f) Purchase price refunds awarded in arbitration;
(g) Board decisions neither complied with in 40 days nor petitioned
for appeal within 30 days;
(h) Board decisions appealed;
(i) Appeals affirmed by the court; and
(j) Appeals found by the court to be brought in bad faith or
solely for the purpose of harassment.
The statistics compiled under this subsection are public information.
(16) When requested by the department, a manufacturer must verify
the settlement terms for disputes that are approved for arbitration
but
are not decided
by the board.
681.1096
Pilot RV Mediation and Arbitration Program.
Creation and qualifications.
(1) This section and s. 681.1097 shall apply to disputes
determined eligible under this chapter involving recreational
vehicles acquired
on or after
October 1, 1997, and shall remain in effect until September
30, 2001, at which time
recreational vehicle disputes shall be subject to the provisions
of ss. 681.109 and 681.1095.
The Attorney General shall report annually to the President
of the Senate, the Speaker of the House of Representatives,
the
Minority Leader of each
house of
the Legislature, and appropriate legislative committees regarding
the efficiency and cost-effectiveness of the pilot program.
(2) Each manufacturer of a recreational vehicle involved in
a dispute that is determined eligible under this chapter, including
chassis
and component
manufacturers
which separately warrant the chassis and components and which
otherwise meet the definition of manufacturer set forth in
s.
681.102(14),
shall participate
in a mediation and arbitration program that is deemed qualified
by the department.
(3) In order to be deemed qualified by the department, the
mediation and arbitration program must, at a minimum, meet
the following
requirements:
(a) The program must be administered by an administrator and
staff that is sufficiently insulated from the manufacturer
to ensure
impartial mediation
and arbitration
services.
(b) Program administration fees must be paid by the manufacturer
and no such fees shall be charged to a consumer.
(c) The program must be adequately staffed at a level sufficient
to ensure the provision of fair and expeditious dispute resolution
services.
(d) Program mediators and arbitrators must be sufficiently
insulated from a manufacturer to ensure the provision of impartial
mediation
and arbitration
of disputes.
(e) Program mediators and arbitrators shall not be employed
by a manufacturer or a motor vehicle dealer.
(f) Program mediators must complete a Florida Supreme Court
certified circuit or county mediation training program, or
other mediation
training program
approved by the department, in addition to a minimum of one-half
day of training on
this chapter conducted by the department.
(g) Program mediators must comply with the Model Standards
of Conduct for Mediators issued by the American Arbitration
Association,
the
Dispute Resolution
Section
of the American Bar Association, and the Society of Professionals
in Dispute Resolution.
(h) Program arbitrators must complete a Florida Supreme Court
certified circuit or county arbitration program, or other arbitration
training
program approved
by the department, in addition to a minimum of 1 day of training
in the application of this chapter and any rules adopted thereunder
conducted
by the department.
(i) Program arbitrators must comply with the Code of Ethics
for Arbitrators in Commercial Disputes published by the American
Arbitration Association
and the
American Bar Association in 1977 and as amended.
(j) Program arbitrators must construe and apply the provisions
of this chapter and rules adopted thereunder in making decisions.
(k) The program must complete all mediation and arbitration
of an eligible consumer claim within 70 days of the program
administrator's
receipt
of the claim from
the department. Failure of the program to complete all proceedings
within the prescribed period will not invalidate any settlement
agreement
or
arbitration decision.
(l) Mediation conferences and arbitration proceedings must
be held at reasonably convenient locations within the state
so as
to enable
a consumer
to attend
and present a dispute orally.
(4) The department shall monitor the program for compliance
with this chapter. If the program is determined not qualified
or if
qualification is revoked,
then the involved manufacturer shall be required to submit
to arbitration conducted by the board if such arbitration is
requested
by a consumer
and the dispute
is
deemed eligible for arbitration by the division pursuant to
s. 681.109.
(5) If a program is determined not qualified or if qualification
is revoked, the involved manufacturer shall be notified by
the department of any
deficiencies in the program and informed that it is entitled
to a hearing
pursuant to
chapter 120.
(6) The program administrator, mediators, and arbitrators are
exempt from civil liability arising from any act or omission
in connection
with any
mediation or arbitration conducted under this chapter.
(7) The program administrator shall maintain records of each
dispute submitted to the program, including the recordings
of arbitration
hearings. All records
maintained by the program under this chapter shall be public
records and shall be available for inspection by the department
upon reasonable
notice.
The records
for disputes closed as of September 30 of each year shall be
turned over to the department by the program administrator
by no later
than October
30 of
the same
year, unless a later date is specified by the department.
(8) The department shall have the authority to adopt reasonable
rules to carry out the provisions of this section.
681.1097
RV Pilot Mediation and Arbitration Program.
Dispute eligibility and program function.
(1) Before filing a civil action on a matter subject to s.
681.104, a consumer who acquires a recreational vehicle must
first submit
the dispute
to the
department, and to the program if the dispute is deemed eligible.
Such consumer is not
required to resort to a procedure certified pursuant to s.
681.108, notwithstanding that
one of the manufacturers of the recreational vehicle has
such a procedure. Such consumer is not required to resort
to arbitration
conducted
by the board, except
as provided in s. 681.1096(4) and in this section.
(2) A consumer acquiring a recreational vehicle must apply
to participate in this program with respect to a claim arising
during
the Lemon
Law rights period
by filing the application in subsection (3) with the department
no later than 60 days after the expiration of the Lemon Law
rights period.
(3) The consumer's application for participation in the program
must be on a form prescribed or approved by the department.
The department
shall
screen
all
applications to participate in the program to determine eligibility.
The department shall forward to the program administrator
all applications the department
determines are potentially entitled to relief under this
chapter.
(a) If the department determines the application lacks sufficient
information from which a determination of eligibility can
be made, the department
shall request additional information from the consumer and,
upon review of such
additional information, shall determine whether the application
is eligible or reject
the
application as incomplete.
(b) The department shall reject any application it determines
to be fraudulent or outside the scope of this chapter.
(c) The consumer and the manufacturer shall be notified in
writing by the department if an application is rejected.
Such notification
of rejection
shall include
a brief explanation as to the reason for the rejection.
(d) If the department rejects a dispute, the consumer may
file a lawsuit to enforce the remedies provided under this
chapter.
In any
civil action
arising
under this
chapter and relating to the matter considered by the department,
any determination made to reject a dispute is admissible
in evidence.
(4) Mediation shall be mandatory for both the consumer and
manufacturer, unless the dispute is settled prior to the
scheduled mediation
conference. The mediation
conference shall be confidential and inadmissible in any
subsequent adversarial proceedings. Participation shall be
limited to
the parties directly involved
in the dispute and their attorneys, if any. All manufacturers
shall be represented by persons with settlement authority.
(a) Upon receipt of an eligible application from the department,
the program administrator shall notify the consumer and all
involved manufacturers
in writing that an eligible application has been received.
Such notification shall include
a statement that a mediation conference will be scheduled,
shall identify the assigned mediator, and provide information
regarding
the program's
procedures.
The program administrator shall provide all involved manufacturers
with a copy
of the completed application.
(b) The mediator shall be selected and assigned by the program
administrator. The parties may factually object to a mediator
based upon the mediator's
past or present relationship with a party or a party's attorney,
direct or indirect,
whether financial, professional, social, or of any other
kind. The program administrator shall consider any such objection,
determine its validity,
and notify the parties
of any determination. If the objection is determined valid,
the program
administrator shall assign another mediator to the case.
(c) At the mediation conference, the mediator shall assist
the parties' efforts to reach a mutually acceptable settlement
of
their dispute;
however, the
mediator shall not impose any settlement upon the parties.
(d) Upon conclusion of the mediation conference, the mediator
shall notify the program administrator that the case has
settled or remains
at an
impasse. The
program administrator shall notify the department in writing
of the outcome of the mediation.
(e) If the mediation conference ends in an impasse, it shall
proceed to arbitration pursuant to subsection (5). The program
administrator
shall
immediately notify
the parties in writing that the dispute will proceed to arbitration
and shall identify the assigned arbitrator.
(f) If the parties enter into a settlement at any time after
the dispute has been submitted to the program, such settlement
must
be reduced
to writing, signed by the consumer and all involved manufacturers,
and filed
with the
program
administrator.
The program administrator shall send a copy to the department.
All settlements must contain, at a minimum, the following
information:
1. Name and address of the consumer.
2. Name and address of each involved manufacturer.
3. Year, make, model, and vehicle identification number of
the subject recreational vehicle.
4. Name and address of the dealership from which the recreational
vehicle was acquired.
5. Date the claim was received by the program administrator.
6. Name of the mediator and/or arbitrator, if any.
7. Statement of the terms of the agreement, including, but
not limited to: whether the vehicle is to be reacquired by
a manufacturer
and
the identity of the manufacturer
that will reacquire the vehicle; the amount of any moneys
to be paid by the
consumer and/or a manufacturer; the year, make, and model
of any replacement motor vehicle
or motor vehicle accepted by the consumer as a trade-assist;
and a time certain for performance not to exceed 40 days
from the date
the
settlement
agreement
is signed by the parties.
(g) If a manufacturer fails to perform within the time required
in any settlement agreement, the consumer must notify the
program administrator
of such failure
in writing within 10 days of the required performance date.
Within 10
days of receipt of such notice, the program administrator
shall notify the department
of the manufacturer's failure in compliance and shall schedule
the matter for an arbitration hearing pursuant to subsection
(5).
(5) If the mediation ends in an impasse, or if a manufacturer
fails to comply with the settlement entered into between
the parties,
the program
administrator
shall schedule the dispute for an arbitration hearing. Arbitration
proceedings shall be open to the public on reasonable and
nondiscriminatory terms.
(a) The arbitration hearing shall be conducted by a single
arbitrator assigned by the program administrator. The arbitrator
shall not
be the same person
as the mediator who conducted the prior mediation conference
in the dispute. The
parties may factually object to an arbitrator based on the
arbitrator's past or present relationship with a party or
a party's attorney,
direct or indirect,
whether financial, professional, social, or of any other
kind. The program administrator shall consider any such objection,
determine its validity,
and notify the parties
of any determination. If the objection is determined valid,
the program
administrator shall assign another arbitrator to the case.
(b) The arbitrator may issue subpoenas for the attendance
of witnesses and for the production of records, documents,
and
other evidence.
Subpoenas so
issued
shall be served and, upon application to the court by a party
to the arbitration, enforced in the manner provided by law
for the
service and enforcement
of subpoenas in civil actions. Fees for attendance as a witness
shall be the
same as for
a witness in the circuit court.
(c) At all program arbitration proceedings, the parties may
present oral and written testimony, present witnesses and
evidence relevant
to the
dispute, cross-examine witnesses, and be represented by counsel.
The arbitrator
shall record the arbitration
hearing and shall have the power to administer oaths. The
arbitrator may inspect
the vehicle if requested by a party or if the arbitrator
considers such inspection appropriate.
(d) The program arbitrator may continue a hearing on his
or her own motion or upon the request of a party for good
cause
shown.
A request
for continuance
by
the consumer constitutes a waiver of the time period set
forth in s. 681.1096(3)(k) for completion of all proceedings
under
the program.
(e) Where the arbitration is the result of a manufacturer's
failure to perform in accordance with a mediation agreement,
any relief
to the consumer
granted
by the arbitration will be no less than the relief agreed
to by the manufacturer in the settlement agreement.
(f) The arbitrator shall grant relief if a reasonable number
of attempts have been undertaken to correct a nonconformity
or nonconformities.
(g) The program arbitrator shall render a decision within
10 days of the closing of the hearing. The decision shall
be in
writing
on a form
prescribed
or approved
by the department. The program administrator shall send a
copy of the decision to the consumer and each involved manufacturer
by registered
mail. The
program administrator shall also send a copy of the decision
to the department within
5 days of mailing to the parties.
(h) A manufacturer shall comply with an arbitration decision
within 40 days of the date the manufacturer receives the
written decision.
Compliance
occurs
on
the date the consumer receives delivery of an acceptable
replacement motor vehicle or the refund specified in the
arbitration award.
If a manufacturer
fails to
comply within the time required, the consumer must notify
the program administrator in writing within 10 days. The
program
administrator
shall notify the department
of a manufacturer's failure to comply. The department shall
have the authority to enforce compliance with arbitration
decisions under this
section in
the same manner as is provided for enforcement of compliance
with board decisions
under
s. 681.1095(10). In any civil action arising under this chapter
and relating to a dispute arbitrated pursuant to this section,
the decision
of the
arbitrator is admissible in evidence.
(6) Except as otherwise provided, all provisions in this
section pertaining to mandatory mediation and arbitration,
eligibility
screening, mediation
proceedings, arbitration hearings and decisions, and any
appeals thereof are exempt from
the
provisions of chapter 120.
(7) Either party may make application to the circuit court
for the county in which one of the parties resides or has
a place
of business
or, if
neither party resides or has a place of business in this
state, the county where
the
arbitration
hearing was held, for an order confirming, vacating, modifying,
or correcting any award, in accordance with the provisions
of this section
and ss.
682.12, 682.13, 682.14, 682.15, and 682.17. Such application
must be filed within
30 days of the moving party's receipt of the written decision
or the decision becomes final. Upon filing such application,
the moving
party
shall mail
a
copy to the
department and, upon entry of any judgment or decree, shall
mail a copy of such judgment or decree to the department.
A review
of such
application
by
the circuit
court shall be confined to the record of the proceedings
before the program arbitrator. The court shall conduct a
de novo review
of the
questions
of law raised in the
application. In addition to the grounds set forth in ss.
682.13 and 682.14, the court shall consider questions of
fact raised
in the
application. In reviewing questions of fact, the court shall
uphold the award unless
it
determines that
the factual findings of the arbitrator are not supported
by substantial evidence in the record and that the substantial
rights of the
moving party have been
prejudiced.
If the arbitrator fails to state findings or reasons for
the
stated award,
or the findings or reasons are inadequate, the court shall
search the record to
determine whether a basis exists to uphold the award. The
court shall expedite consideration of any application filed
under
this section
on the calendar.
(a) If a decision of a program arbitrator in favor of a consumer
is confirmed by the court, recovery by the consumer shall
include the
pecuniary value
of the award, attorney's fees incurred in obtaining confirmation
of the award, and all
costs and continuing damages in the amount of $25 per day
for each day beyond the 40-day period following a manufacturer's
receipt
of the arbitrator's
decision.
If a court determines the manufacturer acted in bad faith
in
bringing the appeal or brought the appeal solely for the
purpose of harassment,
or in
complete
absence of a justiciable issue of law or fact, the court
shall double, and
may triple,
the amount of the total award.
(b) An appeal of a judgment or order by the court confirming,
denying confirmation, modifying or correcting, or vacating
the award may
be taken in the manner
and to the same extent as from orders or judgments in a civil
action.
(8) The department shall have the authority to adopt reasonable
rules to carry out the provisions of this section.
681.110
Compliance and disciplinary actions.
The Department of Legal Affairs may enforce and ensure
compliance with the provisions of this chapter and rules
adopted thereunder,
may issue
subpoenas
requiring the
attendance of witnesses and production of evidence, and
may seek relief in the circuit court to compel compliance
with
such subpoenas.
The
Department of Legal
Affairs may impose a civil penalty against a manufacturer
not to exceed $1,000
for each count or separate offense. The proceeds from the
fine imposed herein shall be placed in the Motor Vehicle
Warranty
Trust Fund in
the Department
of Legal Affairs for implementation and enforcement of
this chapter.
681.111
Unfair or deceptive trade practice.
A violation by a manufacturer of this chapter is an unfair
or deceptive trade practice as defined in part II of
chapter 501.
681.112
Consumer remedies.
(1) A consumer may file an action to recover damages
caused by a violation of this chapter. The court shall
award a
consumer who prevails
in such
action the
amount of any pecuniary loss, litigation costs, reasonable
attorney's
fees, and appropriate equitable relief.
(2) An action brought under this chapter must be commenced
within 1 year after the expiration of the Lemon Law
rights period, or,
if a
consumer
resorts to
an informal dispute-settlement procedure or submits
a dispute to the division or
board, within 1 year after the final action of the
procedure, division, or board.
(3) This chapter does not prohibit a consumer from
pursuing other rights or remedies under any other law.
681.113
Dealer liability.
Except as provided in ss. 681.103(3) and 681.114(2),
nothing in this chapter imposes any liability on
a dealer as defined
in s.
320.60(11)(a)
or creates
a cause of action by a consumer against a dealer,
except for written express warranties
made by the dealer apart from the manufacturer's
warranties. A dealer may not be made a party defendant
in any action
involving or relating
to this
chapter,
except as provided in this section. The manufacturer
shall not charge back or require reimbursement by
the dealer
for any costs,
including,
but not
limited to, any refunds or vehicle replacements,
incurred by the
manufacturer arising
out of this chapter, in the absence of evidence that
the related repairs had been carried out by the dealer
in a
manner substantially
inconsistent
with
the
manufacturer's published instructions.
681.114
Resale of returned vehicles.
(1) A manufacturer who accepts the return of a motor
vehicle by reason of a settlement, determination,
or decision pursuant
to
this chapter
shall notify
the department
and report the vehicle identification number of
that motor vehicle within 10
days after such acceptance, transfer, or disposal
of the vehicle, whichever occurs later.
(2) A person shall not knowingly lease, sell at
wholesale or retail, or transfer a title to a motor
vehicle
returned by
reason of a
settlement, determination,
or decision pursuant to this chapter or similar
statute of another state unless the nature of the
nonconformity
is clearly
and conspicuously
disclosed
to the
prospective transferee, lessee, or buyer, and the
manufacturer warrants to correct such nonconformity
for a term of
1 year or 12,000 miles,
whichever occurs first.
The Department of Legal Affairs shall prescribe
by rule the form, content, and procedure pertaining
to such disclosure
statement.
(3) As used in this section, the term "settlement" means
an agreement entered into between a manufacturer and consumer
that occurs after a dispute
is submitted to a procedure or program or is approved
for arbitration before the board.
681.115
Certain agreements void.
Any agreement entered into by a consumer that waives,
limits, or disclaims the rights set forth in
this chapter is void
as contrary
to public
policy. The rights
set forth in this chapter shall extend to a subsequent
transferee of such motor vehicle. 681.116
Preemption.
This chapter preempts any similar county or municipal
ordinance regarding consumer warranty rights
resulting from the acquisition
of a motor
vehicle in this state. 681.117
Fee.
(1) A $2 fee shall be collected by a motor vehicle
dealer, or by a person engaged in the business
of leasing motor
vehicles, from
the
consumer
at the consummation
of the sale of a motor vehicle or at the time
of entry into a
lease agreement for a motor vehicle. Such fees
shall be remitted to the
county tax collector
or private tag agency acting as agent for the
Department of Revenue. All fees, less the cost of administration,
shall be
transferred
monthly to
the Department
of Legal Affairs for deposit into the Motor Vehicle
Warranty Trust Fund. The Department of Legal
Affairs
shall distribute
monthly
an amount not
exceeding one-fourth of the fees received to
the Division of Consumer Services of the
Department of Agriculture and Consumer Services
to carry out the provisions of ss. 681.108
and 681.109. The Department of Legal Affairs
shall contract with the Division of Consumer Services
for payment of
services performed
by
the division
pursuant to ss. 681.108 and 681.109.
(2) The Department of Revenue shall administer,
collect, and enforce the fee authorized under
this section
pursuant to the
provisions
of chapter 212. The
fee shall not be included in the computation
of estimated taxes pursuant to s. 212.11(1)(a),
nor
shall the
dealer's credit
provided under
s. 212.12 apply
to
the fee. The provisions of chapter 212 regarding
the authority to audit and make assessments,
the keeping
of books and
records, and
interest
and
penalties
on
delinquent fees apply to the fee imposed by this
section.
681.118
Rulemaking authority.
The Department of Legal Affairs shall adopt
rules pursuant to ss. 120.536(1) and 120.54
to implement
the provisions
of this
chapter.
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