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The Lemon law in the state of Alaska is contained in the Alaska Motor Vehicle Warranties Act. Sections 300 to 360 of the Act deal with the lemon law issues.

Manufacturer’s duties

The manufacturer should undertake immediate repairs of the new motor vehicle that develops a defect within the warranty period. This defect has to be notified to the manufacturer by the owner at the earliest.

It is mandatory for the manufacturer to set up well equipped dealerships in the State. These dealerships have to be supplied with adequate spare parts so that repairs can be conducted promptly.

If in case even after repeated attempts the manufacturer is unable to rectify the defect, then the manufacturer has to either replace the vehicle with a new comparable one, or repurchase the vehicle and refund the purchase price to the owner. All this should be done at the owner’s option.

If the owner chooses a refund form the manufacturer, he is entitled to get, in addition to the purchase price, all other incidental expenses that he incurred on the vehicle on account of the defect.

It shall be considered a reasonable attempt by the manufacturer to repair the vehicle, if he has tried it at least three or more times, or has kept the vehicle un-operational for repairs at least for 30 days during the warranty period.

Defenses available to the manufacturer

The manufacturer can escape liability, if he proves that the defect has been caused due to some misuse by the owner. He can even argue that the defect does not hamper the regular or safe use of the vehicle. If the vehicle is repaired at any other unauthorized place, then this act releases the manufacturer of his warranty liability.

Dispute settlement mechanism

If the manufacturer has set up a duly recognized informal arbitration mechanism, then the owner has to approach this mechanism first. The award so passed by this mechanism is binding on the manufacturer but not the owner.

In case the manufacturer fails to abide by the award, then he will be presumed guilty of unfair trade practices.

The US federal law governing lemons is officially called The Magnuson-Moss Warranty Act, however, most American states each have their own lemon law.


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