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The Texas lemon laws are covered in the Operations Code under Chapter 2301, effective from June 2003. This code is enacted to get the manufacturer to honor his warranty commitments in case of any defect to a new vehicle. Owner's obligations The owner must ensure that the vehicle is covered by the warranty extended by the manufacturer or the dealer. He should make a written complaint regarding the defect to his vehicle, giving a detailed description of the nature of the defect. Manufacturer's obligation The manufacturer must make such reasonable attempts to repairs to a new defective vehicle under warranty to get it up to the standards set up by the warranty. According to the code, it would be considered as a reasonable attempt to repair the vehicle if the vehicle is repaired by the manufacturer or his authorized dealer at lease four (4) times during the period of the warranty. Or the vehicle has been out of commission due to such repairs for at least 30 days. If even after repeated efforts the vehicle is unable to be freed of the defect, then he shall, either replace the vehicle with a new one of similar or comparable description, or refund to the owner the full price paid by him at the time of purchase of the vehicle along with all the reasonable costs that have been incurred by the buyer on these repairs. In case the said vehicle is under a lien or lease, then the manufacturer shall refund the amount to each of them in the proportion of their interests. Defenses available to the manufacturer The manufacturer can escape liability of refund or replacement, if he can prove that the vehicle's defect has arisen not because of any manufacturing fault, but out of some abuse, or neglect or unauthorized modification to the vehicle by the owner. He can also argue that the defect is not of such a nature that it will hamper in any way the normal and safe use of the vehicle by the owner. Remedies available to the owner The Code has set up a body known as the Texas Motor Vehicle Board to look into the complaints regarding the lemon laws. If the owner is dissatisfied with the order of the board, then he is free to file a civil suit against the manufacturer regarding replacement or refund of the vehicle. No provision of this Code prohibits the owner to seek a remedy under any other law for the time being in force. In case of a refund order passed by the director, then he shall name clearly in the speaking order, the person who is responsible to pay the refund or replacement costs. In the event that the vehicle is on a lease, then the director can terminate the lease and order refund to the lessor and the lessee in the proportion of their interests in the lease. Resale of the replaced vehicle The manufacturer must clearly state the reason for the replacement of the vehicle to the new buyer. Further he must also give the buyer a new warranty of at least 12 months- 12000 miles. Civil suit A petition for appeal for the final order of the Board should be filed in a district court of appropriate jurisdiction within 30 days of the date of the receipt of the final order. Additional evidence may be submitted in the appeal to the district court at the time of the appeal from the Board's order. The person who files the appeal must pursue it diligently and sincerely. Failure to do so will result in the appeal being dismissed for default. 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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