LEMON LAW DEMAND LETTER
STATE OF NORTH CAROLINA
SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
OVERNIGHT DELIVERY - SIGNATURE REQUIRED
AND FIRST-CLASS MAIL
[DATE]
[MANUFACTURER NAME]
ATTN: Customer Relations / Legal Department
[MANUFACTURER ADDRESS]
[CITY, STATE ZIP]
[DEALER NAME]
ATTN: General Manager / Service Manager
[DEALER ADDRESS]
[CITY, STATE ZIP]
Re: NORTH CAROLINA LEMON LAW DEMAND - STATUTORY NOTICE
Consumer/Owner: [CONSUMER FULL NAME]
Vehicle: [YEAR] [MAKE] [MODEL] [TRIM LEVEL]
VIN: [VEHICLE IDENTIFICATION NUMBER]
Purchase/Lease Date: [DATE]
Current Mileage: [MILEAGE]
Dear Sir or Madam:
This law firm represents [CONSUMER FULL NAME] ("Consumer" or "Client") in connection with the purchase/lease of the above-referenced vehicle, which qualifies as a "lemon" under the North Carolina Motor Vehicle Warranties Act, N.C. Gen. Stat. Section 20-351 et seq., and the federal Magnuson-Moss Warranty Act, 15 U.S.C. Section 2301 et seq. This letter constitutes formal notice of our Client's claim and demand for repurchase or replacement of the defective vehicle.
I. NORTH CAROLINA LEMON LAW FRAMEWORK
A. Statutory Authority
This demand is made pursuant to the North Carolina Motor Vehicle Warranties Act, N.C. Gen. Stat. Section 20-351 et seq., commonly known as the North Carolina Lemon Law, which provides protection to consumers who purchase or lease new motor vehicles that fail to conform to express warranties.
B. Covered Vehicles
Under N.C. Gen. Stat. Section 20-351(1), a "motor vehicle" means:
- A new motor vehicle that is sold or leased in North Carolina
- A passenger vehicle including passenger cars, pickup trucks, motorcycles, and vans
- Excludes: House trailers, motor homes, and vehicles with a gross vehicle weight rating over 10,000 pounds
The vehicle that is the subject of this demand is a [YEAR] [MAKE] [MODEL] that was purchased/leased new and is covered under North Carolina's Lemon Law.
C. Coverage Period
North Carolina's Lemon Law applies during:
- The Lemon Law Rights Period: 24 months or 24,000 miles following the date of original delivery, whichever comes first. N.C. Gen. Stat. Section 20-351.5(a).
D. Presumption of Nonconformity
Under N.C. Gen. Stat. Section 20-351.5(b), there is a rebuttable presumption that a reasonable number of attempts have been made if:
-
Same Nonconformity: The same nonconformity has been subject to repair four (4) or more times without success; OR
-
Days Out of Service: The vehicle has been out of service by reason of repair for 20 or more business days (need not be consecutive); OR
-
Safety Defect: A condition likely to cause death or serious bodily injury if the vehicle is driven exists after two (2) or more repair attempts.
E. Manufacturer Notice Requirement
Under N.C. Gen. Stat. Section 20-351.6, the consumer must provide written notification to the manufacturer of the need for repair. The manufacturer has fifteen (15) days from receipt of the notice to make a final attempt to cure the nonconformity.
THIS LETTER CONSTITUTES THE REQUIRED WRITTEN NOTIFICATION.
II. VEHICLE INFORMATION
| Item | Details |
|---|---|
| Owner/Lessee | [CONSUMER FULL NAME] |
| Co-Owner/Co-Lessee | [IF APPLICABLE] |
| Year/Make/Model | [YEAR] [MAKE] [MODEL] |
| Trim Level/Package | [TRIM] |
| Vehicle Identification Number | [VIN] |
| Purchase/Lease Date | [DATE] |
| Delivering Dealer | [DEALER NAME AND LOCATION] |
| Purchase Price / Cap Cost | $[AMOUNT] |
| Current Odometer Reading | [MILEAGE] |
| Mileage at First Repair Attempt | [MILEAGE] |
| Type of Transaction | [ ] Purchase [ ] Lease |
III. WARRANTY INFORMATION
A. Manufacturer's Warranty
| Warranty Type | Duration | Status |
|---|---|---|
| Basic/Bumper-to-Bumper | [YEARS]/[MILES] | [ ] Active [ ] Expired |
| Powertrain | [YEARS]/[MILES] | [ ] Active [ ] Expired |
The defects complained of arose during the applicable warranty period and remain unresolved.
IV. DEFECT DESCRIPTION
A. Nature of Defect(s)
The vehicle suffers from one or more nonconformities that substantially impair its use, market value, or safety as required under N.C. Gen. Stat. Section 20-351.3:
PRIMARY DEFECT:
- Description: [DETAILED DESCRIPTION OF DEFECT]
- First Occurrence: [DATE AND MILEAGE]
- Symptoms: [HOW DEFECT MANIFESTS]
- Safety Impact: [ ] Yes [ ] No - [IF YES, DESCRIBE]
- Use Impairment: [HOW DEFECT AFFECTS VEHICLE USE]
- Value Impairment: [HOW DEFECT AFFECTS VEHICLE VALUE]
ADDITIONAL DEFECT(S):
[REPEAT FORMAT FOR EACH ADDITIONAL DEFECT]
V. REPAIR HISTORY
Repair Attempt #1
| Item | Details |
|---|---|
| Date In | [DATE] |
| Date Out | [DATE] |
| Business Days Out of Service | [NUMBER] |
| Mileage | [MILEAGE] |
| Dealer/Facility | [NAME AND LOCATION] |
| Repair Order Number | [NUMBER] |
| Complaint Presented | [WHAT CONSUMER REPORTED] |
| Work Performed | [WHAT DEALER DID] |
| Result | [ ] Defect persisted [ ] Defect returned |
Repair Attempt #2
| Item | Details |
|---|---|
| Date In | [DATE] |
| Date Out | [DATE] |
| Business Days Out of Service | [NUMBER] |
| Mileage | [MILEAGE] |
| Dealer/Facility | [NAME AND LOCATION] |
| Repair Order Number | [NUMBER] |
| Complaint Presented | [WHAT CONSUMER REPORTED] |
| Work Performed | [WHAT DEALER DID] |
| Result | [ ] Defect persisted [ ] Defect returned |
Repair Attempt #3
| Item | Details |
|---|---|
| Date In | [DATE] |
| Date Out | [DATE] |
| Business Days Out of Service | [NUMBER] |
| Mileage | [MILEAGE] |
| Dealer/Facility | [NAME AND LOCATION] |
| Repair Order Number | [NUMBER] |
| Complaint Presented | [WHAT CONSUMER REPORTED] |
| Work Performed | [WHAT DEALER DID] |
| Result | [ ] Defect persisted [ ] Defect returned |
Repair Attempt #4
| Item | Details |
|---|---|
| Date In | [DATE] |
| Date Out | [DATE] |
| Business Days Out of Service | [NUMBER] |
| Mileage | [MILEAGE] |
| Dealer/Facility | [NAME AND LOCATION] |
| Repair Order Number | [NUMBER] |
| Complaint Presented | [WHAT CONSUMER REPORTED] |
| Work Performed | [WHAT DEALER DID] |
| Result | [ ] Defect persisted [ ] Defect returned |
[ADD ADDITIONAL REPAIR ATTEMPTS AS NEEDED]
Summary of Repair Attempts
| Defect | Number of Repair Attempts | Total Business Days Out of Service |
|---|---|---|
| [PRIMARY DEFECT] | [NUMBER] | [DAYS] |
| TOTAL | [NUMBER] | [DAYS] |
VI. LEMON LAW QUALIFICATION
A. North Carolina Lemon Law Presumption Met
Our Client's vehicle qualifies as a lemon under North Carolina law because:
[ ] Repair Attempt Threshold Met:
The same nonconformity has been subject to repair [NUMBER] times, exceeding the 4-repair threshold under N.C. Gen. Stat. Section 20-351.5(b)(1).
[ ] Days Out of Service Threshold Met:
The vehicle has been out of service for repair for [NUMBER] business days, exceeding the 20-day threshold under N.C. Gen. Stat. Section 20-351.5(b)(2).
[ ] Safety Defect Threshold Met:
A condition likely to cause death or serious bodily injury exists after [NUMBER] repair attempts, exceeding the 2-repair threshold under N.C. Gen. Stat. Section 20-351.5(b)(3).
B. Magnuson-Moss Warranty Act
In addition to state law claims, our Client has claims under the federal Magnuson-Moss Warranty Act, 15 U.S.C. Section 2301 et seq., which provides for attorney's fees to prevailing consumers.
VII. ARBITRATION NOTICE
Under N.C. Gen. Stat. Section 20-351.7, if [MANUFACTURER] sponsors an informal dispute settlement procedure that complies with FTC regulations (16 C.F.R. Part 703), the consumer may be required to first submit the dispute to that procedure before bringing a civil action.
[ ] [MANUFACTURER] has an informal dispute settlement procedure. Our Client will participate in the process but is not bound by the decision and reserves all rights to reject the decision and proceed to court.
[ ] [MANUFACTURER] does not have a complying informal dispute settlement procedure, and therefore the consumer may proceed directly to court.
VIII. DEMAND FOR RELIEF
Pursuant to N.C. Gen. Stat. Section 20-351.3, we hereby demand:
A. Primary Relief (Choose One)
[ ] REPURCHASE/REFUND
Under N.C. Gen. Stat. Section 20-351.3(a), the manufacturer must refund:
| Item | Amount |
|---|---|
| Full Contract Price | $[AMOUNT] |
| Plus: All Collateral Charges (taxes, fees, finance charges) | $[AMOUNT] |
| Plus: Incidental Damages (rental, towing, etc.) | $[AMOUNT] |
| Subtotal | $[AMOUNT] |
| Less: Reasonable Allowance for Use (see below) | ($[AMOUNT]) |
| TOTAL REFUND DUE | $[AMOUNT] |
The reasonable allowance for use is calculated by multiplying the total contract price by a fraction having as its denominator 100,000 and the number of miles attributable to use by the consumer prior to the first report of nonconformity as its numerator. N.C. Gen. Stat. Section 20-351.3(a).
[ ] REPLACEMENT
Under N.C. Gen. Stat. Section 20-351.3(b), the manufacturer must provide a comparable replacement motor vehicle acceptable to the consumer.
B. Additional Relief
-
Attorney's Fees and Costs: Under N.C. Gen. Stat. Section 20-351.8, a prevailing consumer may recover reasonable attorney's fees and costs.
-
Civil Penalty: Under N.C. Gen. Stat. Section 20-351.8, a consumer may recover a civil penalty of up to $2,000 for manufacturer bad faith violations.
-
Loan/Lease Payoff: The manufacturer must pay off any outstanding balance to the lienholder.
-
Incidental Damages: All incidental damages including rental car expenses, towing charges, and other costs incurred as a result of the nonconformity.
IX. FINAL REPAIR OPPORTUNITY
This letter provides [MANUFACTURER] with the final repair opportunity required under N.C. Gen. Stat. Section 20-351.6. The manufacturer has fifteen (15) 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. If the defect is not cured within the 15-day period, our Client will proceed with arbitration (if applicable) and/or litigation.
X. DOCUMENT PRESERVATION
You are hereby directed to preserve all documents and records relating to this vehicle, including:
- All repair orders and warranty claims
- All technical service bulletins related to the defect
- All customer complaints regarding similar defects
- All communications between dealer and manufacturer
- All engineering documents and analyses
- The vehicle itself (do not destroy, sell, or alter)
XI. RESPONSE DEADLINE
Please respond to this demand in writing within fifteen (15) days of the date of this letter with:
- Your position on whether the vehicle qualifies as a lemon
- Your offer for repurchase or replacement
- Scheduling of the final repair opportunity, if desired
If we do not receive a satisfactory response, our Client will:
[ ] Submit this matter to the manufacturer's dispute resolution program
[ ] File suit in the appropriate North Carolina court
[ ] Report this matter to the North Carolina Attorney General
XII. CONCLUSION
Our Client has provided [MANUFACTURER] with ample opportunity to repair this vehicle. The vehicle continues to suffer from substantial defects that impair its use, value, and safety. Our Client is entitled to a refund or replacement under North Carolina law.
We urge you to resolve this matter promptly and avoid unnecessary litigation.
Respectfully submitted,
[LAW FIRM NAME]
By: _________________________________
[ATTORNEY NAME]
[BAR NUMBER]
[ADDRESS]
[CITY, STATE ZIP]
[TELEPHONE]
[EMAIL]
Attorneys for [CONSUMER FULL NAME]
ENCLOSURES:
[ ] Copies of all repair orders
[ ] Copy of purchase/lease agreement
[ ] Copy of warranty booklet
[ ] Vehicle registration
[ ] Photographs/videos of defect
[ ] Prior correspondence with manufacturer
cc: [CONSUMER NAME]
[LIENHOLDER, if applicable]
North Carolina Attorney General - Consumer Protection Division
NORTH CAROLINA LEMON LAW QUICK REFERENCE
| Element | North Carolina Requirement |
|---|---|
| Statute | N.C. Gen. Stat. Section 20-351 et seq. |
| Coverage | New motor vehicles only |
| Excludes | House trailers, motor homes, vehicles over 10,000 lbs GVWR |
| Coverage Period | 24 months or 24,000 miles, whichever first |
| Repair Attempts Required | 4 for same defect |
| Days Out of Service | 20 business days |
| Safety Defect Repairs | 2 repair attempts |
| Notice Required | Written notice to manufacturer; 15-day final repair opportunity |
| Arbitration Required | If manufacturer has complying program |
| Mileage Offset | (Total Contract Price) x (Miles at First Repair / 100,000) |
| Civil Penalty | Up to $2,000 for bad faith |
| Attorney's Fees | Yes, to prevailing consumer |
| Statute of Limitations | 4 years (UCC); within 24 months recommended |
PRACTICE NOTES FOR NORTH CAROLINA
-
Business Days Calculation: North Carolina uses business days (not calendar days) for the out-of-service calculation. Ensure accurate counting.
-
Safety Defect Exception: For defects likely to cause death or serious bodily injury, only 2 repair attempts are required instead of 4.
-
Written Notice Requirement: The statute requires written notice to the manufacturer before invoking remedies. This letter satisfies that requirement.
-
Arbitration: While manufacturers may have arbitration programs, consumers are not bound by the decision and may reject it and proceed to court.
-
Civil Penalty: North Carolina allows a civil penalty of up to $2,000 for manufacturer bad faith, which can be alleged if the manufacturer refuses to comply with clear lemon law obligations.
-
Include Motorcycles: Unlike some states, North Carolina's lemon law covers motorcycles.
-
Document All Repairs: Obtain and preserve copies of all repair orders with detailed descriptions of complaints and work performed.
This template is for informational purposes only and does not constitute legal advice. Consult a licensed North Carolina attorney before use.