South Dakota Lemon Law Statutes
South Dakota State Statutes
Title 32, Chapter 6D
Manufacturer's Warranty
32-6D-1 Definitions.
Terms used in this chapter mean:
(1) "Consumer," the purchaser, other than for purposes of resale, of
a new or previously untitled motor vehicle used in substantial part for personal,
family, or household purposes, and any other person entitled by the terms of such
warranty to enforce the obligations of the warranty;
(2) "Express warranty," a written warranty, so labeled, issued by
the manufacturer of a new motor vehicle, including any terms or conditions precedent to
the enforcement of obligations under that warranty;
(3) "Lemon law rights period," the period ending one year after the
date of the original delivery of a motor vehicle to a consumer or the first twelve
thousand miles of operation, whichever first occurs;
(4) "Manufacturer," the person, firm, or corporation engaged in the
business of manufacturing, importing, or distributing motor vehicles to be made
available to a motor vehicle dealer for retail sale;
(5) "Motor vehicle," every vehicle intended primarily for use and
operation on the public highways which is self-propelled. The term does not apply to any
motor home or to any motor vehicle having a manufacturer's gross vehicle weight rating
of ten thousand pounds or more;
(6) "Motor vehicle dealer" or "authorized dealer," any
person operating under a dealer agreement from a manufacturer and licensed pursuant to
chapter 32-6B;
(7) "Nonconforming condition," any condition of a motor vehicle
which is not in conformity with the terms of any express warranty issued by the
manufacturer to a consumer and which significantly impairs the use, value, or safety of
the motor vehicle and occurs or arises solely in the course of the ordinary use of the
motor vehicle, and which does not arise or occur as a result of abuse, neglect,
modification, or alteration of the motor vehicle not authorized by the manufacturer, nor
from any accident or other damage to the motor vehicle which occurs or arises after the
motor vehicle was delivered by an authorized dealer to the consumer;
(8) "Notice of a nonconforming condition," a written statement
delivered to the manufacturer and which describes the motor vehicle, the nonconforming
condition, and all previous attempts to correct such nonconforming condition by
identifying the person who made the attempt and the time the attempt was made.
32-6D-2 Notice of nonconforming condition.
Timeliness -- Obligation to repair.
If a new motor vehicle does not conform to any applicable express warranty and the
consumer delivers the motor vehicle to the manufacturer or its authorized dealer and gives
notice of the nonconforming condition during the lemon law rights period, the manufacturer
of the motor vehicle shall make the necessary repairs to the motor vehicle to remedy any
such nonconforming condition. The repairs are required even after the expiration of the
lemon law rights period if notice of the nonconforming condition was first given during
the lemon law rights period. However, the manufacturer's obligation to repair the
nonconforming condition does not extend beyond the period of twenty-four months following
delivery of the vehicle or twenty-four thousand miles, whichever occurs first.
32-6D-3 Replacement of un-repairable vehicle -- Refund.
If, after reasonable attempts, the manufacturer or its authorized dealer is unable to
conform the motor vehicle to any express warranty by repairing or correcting a
nonconforming condition of the motor vehicle which first occurred during the lemon law
rights period, the manufacturer shall, at the option of the consumer, replace the motor
vehicle with a comparable new motor vehicle or shall accept return of the vehicle from the
consumer and refund to the consumer the following:
(1) The full contract price including charges for undercoating, dealer
preparation, and transportation charges, and installed options, plus the nonrefundable
portions of extended warranties and service contracts;
(2) All collateral charges, including excise tax, license, and registration
fees and similar government charges;
(3) All finance charges incurred by the consumer after he first reported the
nonconformity to the manufacturer or its authorized dealer; and
(4) Any incidental damages which shall include the reasonable cost of
alternative transportation during the period that the consumer is without the use of the
motor vehicle because of the nonconforming condition.
32-6D-4 Allowance for use of vehicle offset against monetary recovery.
Refunds shall be made to the consumer and any lien holders, as their interests may
appear. There shall be offset against any monetary recovery of the consumer 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 before his first report of the
nonconformity to the manufacturer or authorized dealer and shall be calculated by
multiplying the full purchase price of the motor vehicle by a fraction having as its
denominator one hundred thousand and having as its numerator the number of miles that the
vehicle traveled before the first report of nonconformity.
32-6D-5 Reasonable attempts to correct nonconforming condition.
It is presumed that reasonable attempts to correct a nonconforming condition have been
allowed by the consumer if, during the period of twenty-four months following delivery of
the vehicle or twenty-four thousand miles, whichever first occurs, either of the following
events occurred:
(1) The same nonconforming condition was subject to repair attempts four or
more times by the manufacturer, or its authorized dealers, at least one of which
occurred during the lemon law rights period, plus a final attempt by the manufacturer,
and the same nonconforming condition continues to exist; or
(2) The motor vehicle was out of service and in the custody of the
manufacturer or an authorized dealer due to repair attempts including the final repair
attempt, one of which occurred during the lemon law rights period, for a cumulative
total of thirty calendar days, unless the repair could not be performed because of
conditions beyond the control of the manufacturer or authorized dealers, such as war,
invasion, strike, fire, flood, or other natural disaster.
32-6D-6 Civil action against manufacturer.
A consumer sustaining damages as a proximate consequence of the failure by a
manufacturer to perform its obligations imposed under this chapter may bring a civil
action against the manufacturer to enforce the provisions of this chapter. Prior to the
commencement of any such proceeding a consumer shall give notice of a nonconforming
condition by certified mail to the manufacturer and demand correction or repair of the
nonconforming condition. If at the time the notice of a nonconforming condition is given
to the manufacturer, a presumption has arisen that reasonable attempts to correct a
nonconforming condition have been allowed, the manufacturer shall be given a final
opportunity to cure the nonconforming condition. The manufacturer shall within seven
calendar days of receiving the written notice of nonconforming condition notify the
consumer of a reasonably accessible repair facility. After delivery of the new vehicle to
the authorized repair facility by the consumer, the manufacturer shall attempt to correct
the nonconforming condition and conform the vehicle to the express warranty within a
period not to exceed fourteen calendar days. If a manufacturer has established an informal
dispute settlement procedure conducted within the state which is in compliance with
federal rules and regulations, a consumer shall first exhaust any remedy afforded to the
consumer under the informal dispute procedure of the manufacturer before a cause of action
may be instituted under the provisions of this chapter.
32-6D-7 Affirmative defenses to claim against manufacturer.
It is an affirmative defense to any claim against the manufacturer under this chapter
that:
(1) An alleged nonconforming condition does not significantly impair the use,
market value, or safety of the motor vehicle; or
(2) A nonconforming condition is a result of abuse, neglect, or any
modification or alteration of a motor vehicle by a consumer that is not authorized by
the manufacturer.
32-6D-8 Attorney fees.
If the manufacturer has breached its obligations imposed under this chapter, the
consumer may recover, in addition to the remedy provided under 32-6D-2 to 32-6D-5,
inclusive, an additional award for reasonable attorney fees.
32-6D-9 Resale of returned vehicle.
If a motor vehicle has been returned to the manufacturer under the provisions of this
chapter or a similar statute of another state, whether as the result of a legal action or
as the result of an informal dispute settlement proceeding, it may not be resold in this
state unless:
(1) The manufacturer discloses in writing to the subsequent purchaser the fact
that the motor vehicle was returned under the provisions of this chapter and the nature
of the nonconformity to the vehicle warranty; and
(2) The manufacturer returns the title of the motor vehicle to the Department
of Revenue advising of the return of the motor vehicle under provisions of this chapter
with an application for title in the name of the manufacturer. The department shall
brand the title issued to the manufacturer and all subsequent titles to the motor
vehicle with the following statement: "This vehicle was returned to the
manufacturer because it did not conform to its warranty."
32-6D-10 Liability of dealer.
Nothing in this chapter imposes any liability upon a motor vehicle dealer or authorized
dealer or creates a cause of action by a consumer against a motor vehicle dealer or
authorized dealer. No manufacturer may charge back or require reimbursement by a motor
vehicle dealer or authorized dealer for any costs, including any refunds or vehicle
replacements, incurred by the manufacturer arising out of this chapter.
32-6D-11 Time limit for action.
Any action brought under this chapter against the manufacturer shall be commenced
within three years following the date of original delivery of the motor vehicle to the
consumer.
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