Lemon Law Demand Letter — Maine

LEMON LAW DEMAND LETTER

Under the Maine Lemon Law, 10 MRSA §§ 1161-1169

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND OVERNIGHT DELIVERY, SIGNATURE REQUIRED

Date: [__/__/____]

To Manufacturer:
[________________________________]
ATTN: Customer Relations / Legal Department
[________________________________]
[________________________________]

To Selling/Servicing Dealer:
[________________________________]
ATTN: General Manager / Service Director
[________________________________]
[________________________________]

RE: MAINE LEMON LAW DEMAND — FORMAL WRITTEN NOTICE UNDER 10 MRSA § 1163(3-A)
Consumer: [________________________________]
Vehicle: [____] [________________________________] [________________________________]
VIN: [________________________________]
Purchase/Lease Date: [__/__/____]
Current Odometer: [________________________________]

Dear Sir or Madam:

This firm represents [________________________________] ("Consumer") regarding the above-referenced vehicle, which qualifies as a "lemon" under the Maine Lemon Law, 10 MRSA §§ 1161 through 1169 (short title, 10 MRSA § 1161-A). This letter constitutes the consumer's written notification of the desire for a refund or replacement required by 10 MRSA § 1163(3-A) and demands repurchase or replacement of the defective vehicle.

Maine's Lemon Law presumption requires three (3) repair attempts for the same nonconformity, only one (1) attempt where the nonconformity is a serious failure of the braking or steering systems, or a cumulative fifteen (15) business days out of service. Coverage runs until the earliest of the express-warranty term, three (3) years from original delivery, or the first 18,000 miles of operation (10 MRSA § 1163(1)). This vehicle meets or exceeds the selected threshold within the coverage period.

I. MAINE LEMON LAW — KEY STATUTORY PROVISIONS

A. Covered Vehicles (10 MRSA § 1161(3)) and Covered Consumers (§ 1161(1))

Under 10 MRSA § 1161(3), a "motor vehicle" is any motor-driven vehicle designed for the conveyance of passengers or property on the public highways that is sold or leased in this State. The statute's only vehicle exclusion is a vehicle "used primarily for commercial purposes with a gross vehicle weight of 8,500 pounds or more." There is no motorcycle exclusion and no motor-home exclusion — motorcycles and motor homes are covered.

A "consumer" (§ 1161(1)) is the purchaser (other than for resale) or the lessee, a transferee during the express-warranty term, or any other person the warranty entitles to enforce it. Leased vehicles are covered, and the lessee has the same rights as a purchaser (10 MRSA § 1168). The term "consumer" excludes only a governmental entity or a business/commercial enterprise that registers three or more motor vehicles. Maine's Lemon Law also reaches used vehicles that remain within the coverage period and express warranty.

The subject vehicle is a [____] [________________________________] [________________________________] that was [☐ purchased / ☐ leased] in Maine and falls within the statute's coverage.

B. "Nonconformity" — Substantial Impairment Standard (10 MRSA §§ 1163(2), 1164(1))

A qualifying defect or condition, or combination of defects or conditions, must substantially impair the use, safety, or value of the motor vehicle and remain uncorrected after a reasonable number of attempts (§ 1163(2)). Lack of substantial impairment is an affirmative defense under § 1164(1).

C. Coverage Period — Earliest of Warranty Term, Three Years, or 18,000 Miles (10 MRSA § 1163(1))

The manufacturer's duty to repair, replace, or refund applies where the consumer reports the nonconformity during the term of the express warranties and within the earliest of: (i) the express-warranty term, (ii) three (3) years following the date of original delivery, or (iii) the first 18,000 miles of operation. A high-mileage driver can reach the 18,000-mile cap well before three years, so timely action is essential.

• Date of original delivery: [__/__/____]
• Three-year expiration date: [__/__/____]
• Odometer / date at 18,000 miles: [________________________________]
• Express warranty expiration: [________________________________]

☐ The vehicle is within the coverage period.

D. Presumption Thresholds — Reasonable Number of Attempts (10 MRSA § 1163(3))

Under 10 MRSA § 1163(3), a rebuttable presumption arises that a reasonable number of attempts have been undertaken if any of the following occurs within the earlier of the express-warranty term, three years from delivery, or 18,000 miles:

☐ Three-Repair-Attempt Threshold (§ 1163(3)(A)):
The same nonconformity has been subject to a repair attempt three (3) or more times by the manufacturer, its agents, or authorized dealers, and the nonconformity continues to exist.

☐ Braking or Steering Failure — One-Attempt Threshold (§ 1163(3)(A-2)):
The same nonconformity has resulted in a serious failure of either the braking or steering systems and has been subject to a repair attempt one (1) or more times. (This one-attempt prong is specific to braking/steering failures; it does not apply to safety defects generally.)

☐ Fifteen-Business-Day Out-of-Service Threshold (§ 1163(3)(B)):
The vehicle has been out of service by reason of a repair attempt of any defect or condition, or combination of defects, for a cumulative total of fifteen (15) or more business days.

E. Written Notice and Final Repair Opportunity (10 MRSA § 1163(3-A))

When the manufacturer or its agents have been unable to make the repairs necessary to conform the vehicle, the consumer must notify the manufacturer or the authorized dealer in writing of the consumer's desire for a refund or replacement (§ 1163(3-A)); notice to the dealer, as the manufacturer's agent, also satisfies the requirement (§ 1163(6-A)). This notice may be given after a single repair attempt where the nonconformity is a serious failure of the braking or steering systems. For the seven (7) business days following receipt of this notice, the manufacturer has a final opportunity to correct the nonconformity, at a repair facility reasonably accessible to the consumer.

THIS LETTER CONSTITUTES THE REQUIRED WRITTEN NOTIFICATION UNDER 10 MRSA § 1163(3-A).

F. Manufacturer's Obligation — Refund or Replace (10 MRSA § 1163(2))

If the manufacturer is unable to conform the vehicle after a reasonable number of attempts, it must either replace the vehicle with a comparable motor vehicle or accept its return and refund the consumer and lienholder. The consumer may reject any offered replacement and receive instead a refund (§ 1163(2)). The refund must consist of the following, less a reasonable allowance for use (§ 1163(2)):

• § 1163(2)(A): the full purchase price (or, for a leased vehicle, the lease payments made to date), including any paid finance charges;
• § 1163(2)(B): all collateral charges, including sales tax, registration fees, and similar government charges; and
• § 1163(2)(C): reasonable costs of towing and storage of the vehicle and of procuring alternative transportation while the vehicle could not be driven.

G. Reasonable Allowance for Use — Statutory Cap (10 MRSA § 1161(4))

Maine caps the use offset by statute. The "reasonable allowance for use" may not exceed the lesser of:

1. ⅓ of the IRS standard business-mileage rate (26 U.S.C. § 162), applied to the mileage reported on the application for state-certified arbitration plus all mileage attributable to consumer use beyond 20,000 miles; or
2. 10% of the purchase price of the vehicle.

Because the offset can never exceed 10% of the purchase price, and because mileage up to 20,000 is heavily discounted, the deduction against a Maine refund is limited. (Note: this is a refund-only offset; it does not reduce a replacement remedy.)

Example: on a $35,000 vehicle, the reasonable allowance for use is capped at $3,500 (10% of price) and will often be far less under the ⅓-IRS-rate calculation.

For a leased vehicle, counsel should verify how § 1161(4)'s reference to “purchase price” applies before stating the use allowance as a fixed dollar amount.

II. VEHICLE AND PURCHASE INFORMATION

III. WARRANTY INFORMATION

The nonconformities described herein arose during the applicable warranty period and/or within three years of original delivery, placing them squarely within the Maine Lemon Law coverage period.

IV. DESCRIPTION OF NONCONFORMITIES

Primary Nonconformity

Additional Nonconformity (if applicable)

V. REPAIR HISTORY

Repair Attempt 1

Repair Attempt 2

Repair Attempt 3

(Attach additional pages for further repair attempts.)

Repair History Summary

VI. LEMON LAW QUALIFICATION ANALYSIS

This vehicle satisfies the statutory presumption under 10 MRSA § 1163(3) because:

☐ Three-Repair Threshold Met (§ 1163(3)(A)): The same nonconformity — [________________________________] — has been subject to [____] repair attempts (3+ required), and the defect continues to exist.

☐ Braking/Steering One-Attempt Threshold Met (§ 1163(3)(A-2)): The nonconformity — [________________________________] — is a serious failure of the braking or steering systems and has been subject to [____] repair attempt(s) (1+ required).

☐ Out-of-Service Threshold Met (§ 1163(3)(B)): The vehicle has been out of service for [____] business days (15+ required) for repair of nonconformities.

☐ Multiple thresholds are satisfied, strengthening the consumer's position.

VII. DEMAND FOR RELIEF

Pursuant to 10 MRSA § 1163(2), we demand the following. The consumer elects a refund and rejects any offered replacement (§ 1163(2)).

A. Primary Remedy (Consumer's Election)

☐ REFUND / REPURCHASE (10 MRSA § 1163(2)):

The manufacturer must also make the refund to the consumer and the lienholder, as their interests appear (§ 1163(2)), satisfying the outstanding loan or lease balance to: [________________________________].

☐ REPLACEMENT (10 MRSA § 1163(2)):

The manufacturer may instead provide a comparable motor vehicle, but the consumer is not obligated to accept a replacement and may demand a refund (§ 1163(2)).

B. Additional Relief

1. Attorney's Fees and Costs (10 MRSA § 1167): In a consumer's successful action to enforce any liability under the chapter, the court may award reasonable attorney's fees and costs. If a state-certified refund-or-replacement award is upheld by the court, a prevailing consumer must be awarded reasonable attorney's fees and costs under § 1169(5).

2. Enhanced ("Double") Award Through State Arbitration (10 MRSA §§ 1169(5), 1169(8)): Maine does not provide a freestanding bad-faith multiplier in court, but the state-certified arbitration process (§ 1169) supplies powerful leverage: (a) if an arbitration award of refund/replacement is upheld and the court finds the manufacturer had no reasonable basis for its appeal or that the appeal was frivolous, the court shall double the total award (§ 1169(5)); (b) if the manufacturer fails to abide by the arbitrator's decision or to file a timely appeal, a prevailing consumer who brings an enforcement action is awarded no less than two (2) times the actual award (§ 1169(8)); and (c) an upheld award may include continuing damages of up to $25 per day the vehicle was out of use after its return (§ 1169(5)).

3. Unfair Trade Practice (10 MRSA § 1166): A violation of the chapter is prima facie evidence of an unfair or deceptive trade practice, which 5 MRSA § 207 declares unlawful. A qualifying private action under 5 MRSA § 213 may seek actual damages, restitution, equitable relief, and attorney's fees. If a UTPA damages action is contemplated, § 213(1-A) separately requires a written demand identifying the claimant and reasonably describing the relied-on practice and injuries at least 30 days before filing; any shorter Lemon Law deadline does not replace that waiting period.

4. Statutory Transportation Costs (§ 1163(2)(C)): Reasonable towing and storage costs and reasonable alternative-transportation costs incurred while the vehicle could not be driven because it did not conform to an applicable express warranty are included in the refund calculation above. Any different consequential-loss theory must be independently verified before it is asserted.

VIII. FINAL REPAIR OPPORTUNITY — SEVEN BUSINESS DAYS

This letter provides [________________________________] (Manufacturer) with the final repair opportunity provided under 10 MRSA § 1163(3-A). The manufacturer has seven (7) business days from receipt of this notice to cure the nonconformity.

Please contact the undersigned within five (5) business days to schedule the final repair attempt. The vehicle will be made available at [________________________________] (dealer location) or another authorized facility.

If the nonconformity is not cured within the seven-business-day period, the consumer will proceed immediately with legal remedies.

IX. INFORMAL DISPUTE SETTLEMENT AND STATE ARBITRATION

Under 10 MRSA § 1165, if the manufacturer has established an informal dispute settlement procedure that complies with 16 C.F.R. Part 703, the refund/replacement provisions of § 1163(2) do not apply to a consumer who has not first resorted to that procedure or to state-certified arbitration. That prerequisite is satisfied 40 days after notification of the dispute (or sooner if the procedure completes). If the manufacturer has no qualifying 16 C.F.R. Part 703 procedure, the consumer may proceed without first arbitrating.

☐ Manufacturer's Informal Dispute Settlement Procedure (10 MRSA § 1165): Where the manufacturer maintains a qualifying program, the consumer must first resort to that program or to state arbitration before the statutory refund/replacement remedy applies.

☐ State-Certified Arbitration Through the Attorney General (10 MRSA § 1169): Maine operates a state-certified arbitration program administered by the Department of the Attorney General. All manufacturers must submit to it when a consumer requests within three years of delivery or the warranty term, whichever comes first (§ 1169(1)). A written finding issues within 45 days (§ 1169(2)); the arbitrator may award mechanic/engineer witness fees (§ 1169(2)); and an appeal is a trial de novo in Superior Court within 21 days (§ 1169(5)). If a refund-or-replacement award is upheld, a prevailing consumer receives fees and costs; a frivolous or baseless manufacturer appeal doubles the total award (§ 1169(5)).

☐ Direct Litigation: Subject to the § 1165 prerequisite above, the consumer may file suit in Maine Superior Court or District Court.

Our client reserves the right to elect state arbitration or litigation at the appropriate time.

Separate deadlines: A state-arbitration request must be made within three years after original delivery or the express-warranty term, whichever comes first (§ 1169(1)); an arbitration appeal must be filed within 21 days after issuance (§ 1169(5)-(6)). The chapter states no separate deadline for a direct enforcement action, so Maine's general six-year-after-accrual period applies under 14 MRSA § 752. Counsel must determine accrual and any other claim-specific deadline.

X. DOCUMENT PRESERVATION DEMAND

You are hereby directed to preserve all documents, data, and electronically stored information relating to this vehicle and the nonconformities described, including but not limited to:

• All repair orders, warranty claims, and parts orders for this VIN
• All Technical Service Bulletins (TSBs) and dealer communications related to the defect
• All customer complaints to the manufacturer regarding similar defects in the same model/year
• All engineering analyses, recalls, and investigations related to the defect
• All communications between the selling/servicing dealer and the manufacturer
• The vehicle itself — do not destroy, auction, sell, or materially alter

Failure to preserve relevant evidence may support a request for appropriate relief under the law applicable to the eventual proceeding.

XI. RESPONSE DEADLINE

Please respond in writing within fourteen (14) days of the date of this letter with:

1. Your position on whether the vehicle qualifies under Maine's Lemon Law;
2. Your offer for repurchase or replacement;
3. Arrangements for the seven-business-day final repair opportunity, if elected.

If we do not receive a satisfactory response, our client will:

☐ File suit in the appropriate Maine court (Superior Court or District Court)
☐ Request state-certified arbitration through the Maine Attorney General
☐ File a consumer complaint with the Maine Attorney General, Consumer Protection Division, 6 State House Station, Augusta, ME 04333

Respectfully submitted,

[________________________________]

By: _________________________________
[________________________________], Esq.
Maine Bar No. [________________________________]
[________________________________]
[________________________________]
Telephone: [________________________________]
Email: [________________________________]

Attorneys for [________________________________]

ENCLOSURES:
☐ Copies of all repair orders and warranty claim records
☐ Copy of purchase agreement or lease contract
☐ Copy of manufacturer's warranty booklet
☐ Vehicle registration
☐ Photographs or video of the defect / symptoms
☐ Prior correspondence with manufacturer or dealer
☐ Rental car receipts and towing invoices

cc:
[________________________________] (Consumer)
[________________________________] (Lienholder, if applicable)
Maine Attorney General, Consumer Protection Division, 6 State House Station, Augusta, ME 04333

Maine-Specific Notes

1. Three Repair Attempts (or One for Braking/Steering). Maine's presumption (§ 1163(3)) is triggered by three (3) repair attempts for the same nonconformity — lower than the four required in many states — or by a single attempt where the nonconformity is a serious failure of the braking or steering systems (§ 1163(3)(A-2)). The one-attempt prong is specific to braking/steering; it does not extend to safety defects generally.

2. Fifteen Business Days Out of Service. Maine's presumption includes a 15-business-day cumulative out-of-service threshold under § 1163(3)(B). Document each date and calculate business days carefully.

3. Report Before the Earliest of Warranty / 3 Years / 18,000 Miles. The consumer must report the nonconformity during the express-warranty term and before the earlier of three years from delivery or the first 18,000 miles of operation (§ 1163(1)). Repairs on a timely reported nonconformity may occur afterward. Act promptly.

4. Leased Vehicles Covered. Under 10 MRSA § 1168 (New Car Leases), the lessee has the same rights under the chapter as a purchaser. Upon a decision that the vehicle does not conform and its return to the lessor, the lease and all contractual obligations terminate (§ 1168(3)) and the lessee is not liable for further lease costs; the lessor releases title to the manufacturer on payment.

5. State-Certified Arbitration Through the AG. Maine's Attorney General administers a state-certified arbitration program (10 MRSA § 1169) to which all manufacturers must submit on a qualifying consumer request (§ 1169(1)); a written finding issues within 45 days (§ 1169(2)). This is a distinctive feature — many states rely on manufacturer-sponsored programs alone.

6. Doubling Remedies Tied to Arbitration. Maine has no freestanding "bad-faith" court multiplier. Its doubling remedies run through § 1169: a frivolous or baseless manufacturer appeal of an upheld arbitration award causes the court to double the total award (§ 1169(5)), and a manufacturer's failure to abide by the arbitrator's decision (or to file a timely appeal) entitles a prevailing consumer to no less than twice the actual award (§ 1169(8)). An upheld award may also include $25/day continuing damages for out-of-use days after return (§ 1169(5)).

7. Seven-Business-Day Final Cure Period. After the consumer sends the required written notice (§ 1163(3-A)), the manufacturer gets only seven (7) business days for a final repair attempt. If it fails to schedule or complete the repair within that window, the consumer may proceed to remedies.

8. Reasonable Allowance for Use — Capped at 10% of Price. Maine does not use a mileage-divisor formula. The use offset (§ 1161(4)) may not exceed the lesser of (a) ⅓ of the IRS business-mileage rate applied to the arbitration-application mileage plus mileage beyond 20,000, or (b) 10% of the purchase price. The 10%-of-price ceiling is a firm cap that protects the consumer's recovery.

9. Attorney's Fees Are Usually Discretionary Under the Lemon Law. In a successful enforcement action, the court may award reasonable attorney's fees and costs (§ 1167). If a state-certified refund-or-replacement award is upheld, fees and costs are mandatory for the prevailing consumer (§ 1169(5)). A chapter violation is also prima facie an unfair trade practice (§ 1166), supporting a qualifying UTPA action with fee shifting under 5 MRSA § 213.

Sources and References

1. 10 MRSA §§ 1161-1169 — the Maine Lemon Law (short title, § 1161-A) — https://legislature.maine.gov/statutes/10/title10ch203sec0.html
2. 10 MRSA § 1161 — Definitions (consumer (1); motor vehicle (3); reasonable allowance for use (4); state-certified arbitration (5))
3. 10 MRSA § 1163 — Rights and duties: coverage (§1163(1): earliest of warranty / 3 yr / 18,000 mi); refund/replacement (§1163(2)); presumption — 3 repairs / braking-steering 1-attempt / 15 business days (§1163(3)); final repair opportunity, 7 business days (§1163(3-A))
4. 10 MRSA § 1164 — Affirmative defense (no substantial impairment; abuse/neglect/unauthorized alteration)
5. 10 MRSA § 1165 — Conditional first resort to a compliant manufacturer procedure or state-certified arbitration; the manufacturer-procedure route is satisfied 40 days after notice or sooner on completion
6. 10 MRSA § 1166 — Violation is prima facie an unfair or deceptive trade practice (Title 5, ch. 10)
7. 10 MRSA § 1167 — Attorney's fees (court "may" award in a successful consumer action)
8. 10 MRSA § 1168 — New car leases (lessee has same rights; lease terminates on nonconforming-vehicle return)
9. 10 MRSA § 1169 — State-certified arbitration and mediation (45-day finding; frivolous-appeal double award §1169(5); failure-to-abide double actual award §1169(8))
10. 5 MRSA §§ 207, 213 — UTPA unlawfulness, private remedies, 30-day demand, and fees — https://legislature.maine.gov/statutes/5/title5sec207.html and https://legislature.maine.gov/statutes/5/title5sec213.html
11. 14 MRSA § 752 — General six-year limitations period — https://legislature.maine.gov/statutes/14/title14sec752.html
12. 16 C.F.R. Part 703 — Federal standards referenced by § 1165 — https://www.ecfr.gov/current/title-16/chapter-I/subchapter-G/part-703
13. Maine Attorney General, Consumer Protection Division: https://www.maine.gov/ag/consumer/
14. Maine AG Lemon Law Arbitration Program: (207) 626-8849

This template is for informational purposes only and does not constitute legal advice. Laws change frequently; verify current requirements with a licensed Maine attorney.