ยง481I-2ย  Definitions.ย  When used in this
chapter unless the context otherwise requires:



"Business day" means any day during
which the service departments of authorized dealers of the manufacturer of the
motor vehicle are normally open for business.



"Collateral charges" means those
additional charges to a consumer wholly incurred as a result of the acquisition
of the motor vehicle.ย  For the purposes of this chapter, collateral charges
include but are not limited to finance and interest charges, manufacturer-installed
or agent-installed items, general excise tax, license and registration fees,
title charges, and similar government charges.



"Consumer" means the purchaser, other
than for purposes of resale, or the lessee of a motor vehicle, any person to
whom the motor vehicle is transferred during the duration of the express
warranty applicable to the motor vehicle, and any other person entitled to
enforce the obligations of the express warranty.



"Express 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 or lease of a motor vehicle to a consumer, which relates to the
nature of the material or workmanship and affirms or promises that the motor
vehicle shall conform to the affirmation, promise, or description or that the
material or workmanship is free of defects or will meet a specified level of
performance.



"Incidental charges" means those
reasonable costs incurred by the consumer, including, but not limited to,
towing charges and the costs of obtaining alternative transportation which are
directly caused by the nonconformity or nonconformities which are the subject
of the claim, but shall not include loss of use, loss of income, or personal
injury claims.



"Lemon law rights period" means the
term of the manufacturer's express warranty, the period ending two years after
the date of the original delivery of a motor vehicle to a consumer, or the
first 24,000 miles of operation, whichever occurs first.



"Lessee" means any consumer who
leases a motor vehicle:



(1)ย  For one year or more pursuant to a written lease
agreement which provides that the lessee is responsible for repairs to such
motor vehicle; or



(2)ย  Pursuant to a lease-purchase agreement.



"Motor vehicle":



(1)ย  Means a self-propelled vehicle primarily designed
for the transportation of persons or property over public streets and highways
which is used primarily for personal, family, or household purposes;



(2)ย  Includes but shall not be limited to:



(A)ย  A "demonstrator", which means a
vehicle assigned by a dealer for the purpose of demonstrating qualities and
characteristics common to vehicles of the same or similar model or type;



(B)ย  An individually registered vehicle used
for an individual's business purposes as well as for personal, family, or
household purposes; and



(C)ย  A vehicle owned or leased by a sole
proprietorship, corporation, or partnership which has purchased or leased no
more than one vehicle per year, used for household, individual, or personal use
in addition to business use; and



(3)ย  Shall not include mopeds, motorcycles, or motor
scooters, as those terms are defined in chapter 286, or vehicles over 10,000
pounds, gross vehicle weight rating.



"Nonconformity" means a defect,
malfunction, or condition that fails to conform to the motor vehicle's
applicable express warranty and that substantially impairs the use, market
value, or safety of a motor vehicle, but does not include a defect, malfunction,
or condition that results from an accident, abuse, neglect, modification, or
alteration of the motor vehicle by persons other than the manufacturer, its
agent, distributor, or authorized dealer.



"Purchase price" means the cash price
appearing in the sales agreement or contract and paid for the motor vehicle,
including any net allowance for a trade-in vehicle.ย  Where the consumer is a
second or subsequent purchaser and the arbitration award is for a refund of the
purchase price of the motor vehicle, "purchase price" means the
purchase price of the second or subsequent purchase and shall not exceed the
purchase price paid by the original purchaser.



"Reasonable offset" for use means the
number of miles attributable to a consumer up to the date of the third repair
attempt of the same nonconformity which is the subject of the claim, the date
of the first repair attempt of a nonconformity that is likely to cause death or
serious bodily injury, or the date of the thirtieth cumulative business day
when the vehicle is out of service by reason of repair of one or more
nonconformities, whichever occurs first.ย  The reasonable offset for use shall
be equal to one per cent of the purchase price for every thousand miles of use.



"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
original acquisition, including any service contract, undercoating,
rustproofing, and factory-installed or dealer-installed options.



"Settlement" means an agreement for
repurchase or replacement of a motor vehicle entered into between a
manufacturer and a consumer that occurs after a dispute is submitted to an
informal dispute resolution procedure or arbitration program or after a dispute
is approved for arbitration under section 481I-4.ย  "Settlement" does
not include an agreement for a motor vehicle to be repurchased pursuant to a
guaranteed repurchase or satisfaction program advertised by the manufacturer in
which the vehicle was not alleged or found to have a nonconformity as defined
in this section.



"Substantially impairs" means to
render the motor vehicle unfit, unreliable, or unsafe for warranted or normal
use, or to significantly diminish the value of the motor vehicle. [L 1992, c
314, pt of ยง1; am L 1998, c 197, ยงยง1, 2; am L 2000, c 44, ยง1; am L 2008, c 19,
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