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Dealers – Lemon Law Required Filings and Disclosures

Companies that sell or lease new motor vehicles to consumers have certain responsibilities under the law.  The definitions of 'consumer' and 'new motor vehicle,' according to O.C.G.A. Sections 10-1-782(5) and (15) of the Georgia Lemon Law, are as follows:

‘Consumer' means a person who purchases or leases a new motor vehicle for personal, family, or household use and not for the purpose of selling or leasing the new motor vehicle to another person, regardless of how the documents characterize the transaction.  The term shall also mean and include any entity which purchases or leases 10 or fewer new motor vehicles a year for business purposes other than limousine rental services.

‘New motor vehicle' means any self-propelled vehicle primarily designed for the transportation of persons or property over the public highways that was leased, purchased, or registered in this state by the consumer or lessor to whom the original motor vehicle title was issued without previously having been issued to any person other than a new motor vehicle dealer. The term 'new motor vehicle' does not include any vehicle on which the title and other transfer documents show a used, rather than new, vehicle.

If the motor vehicle is a motor home, this article shall apply to the self-propelled vehicle and chassis, but does not include those portions of the vehicle designated, used or maintained primarily as living quarters, office, or commercial space.  The term 'new motor vehicle' does not include motorcycles, golf carts, or trucks with a gross vehicle weight rating of more than 12,000 pounds.  The term 'new motor vehicle' does include a demonstrator model or a lease-purchase as long as it was titled new.

Lemon Law Dealer Fees

Pursuant to the Georgia Lemon Law [O.C.G.A. Section 10-1-791(a)], a fee of $3.00 shall be collected by every dealer from each consumer at the completion of the sale or lease of a new motor vehicle.

The law provides that $2.00 of each fee collected shall be submitted quarterly to: Georgia Department of Law, Box 405893, Atlanta, Georgia 30384-5893.  The quarters end on March 31, June 30, September 30 and December 31.  Fees are due no later than the 20th day of the month following the preceding quarter (April, July, October and January, respectively).  Failure to file the collected payments timely will result in exposure to potential civil penalties.

The Georgia Lemon Law Fee Submission Form (see link below) should accompany your quarterly check.  Please print the form as needed from this web site.  New forms will not be mailed each quarter.

Lemon Law Statement of Rights

Pursuant to O.C.G.A. Section 10-1-783(b), a written statement which explains the Georgia Lemon Law Act must be given by the dealer to the consumer at the time of purchase or lease of a new motor vehicle.  The Attorney General has adopted the Lemon Law Statement of Rights (see link below) as the requisite written statement to be provided.  The Lemon Law Statement of Rights must be:

  • printed in 11-point type, Arial font,
  • on the front side of a sheet of standard, letter-sized paper,
  • which is yellow in color. 

It is the dealer’s responsibility to obtain copies of this statement for dissemination.  GADA offers this form in a 2-page no-carbon-required format for sale. 

By law:

  • The consumer must sign and date the Lemon Law Statement of Rights. 
  • The dealer’s representative must print his or her name, date it and give the original Statement to the consumer. 
  • The dealer must keep a legible copy of the completed Lemon Law Statement of Rights at its primary place of business for at least 3 years.

Repair Orders

New motor vehicle dealers and authorized agents of a manufacturer are required by Georgia law (O.C.G.A. Section 10-1-783(d)) to provide a consumer a fully itemized and legible statement or repair order containing:

  • a general description of the problem reported by the consumer;
  • the date and the odometer reading when the vehicle was submitted for repair;
  • the date and odometer reading when the vehicle was made available to the consumer;
  • the results of any diagnostic test, inspection, or test drive;
  • a description of any diagnosis or problem identified by the manufacturer, its authorized agent, or the new motor vehicle dealer; and
  • an itemization of all work performed on the vehicle, including, but not limited to, parts and labor.

 

Associated Document(s):