Lemon Law Demand Letter - North Carolina

NORTH CAROLINA LEMON LAW DEMAND

WRITTEN NONCONFORMITY NOTICE AND NOTICE OF INTENT TO SUE

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED

Date: [DATE]

TO: [MANUFACTURER'S FULL LEGAL NAME]

ATTN: Customer Relations / Legal Department / Lemon Law Administrator

[NOTICE ADDRESS IN WARRANTY OR OWNER'S MANUAL]

[CITY, STATE ZIP]

COPY TO: [AUTHORIZED DEALER NAME AND ADDRESS]

Consumer: [________________________________]

Vehicle: [YEAR / MAKE / MODEL / TRIM]

VIN: [________________________________]

Original-delivery date: [DATE]

Current odometer: [________] miles

Same-nonconformity presentations: [________]

Business days out of service or awaiting repair: [________]

Dear Sir or Madam:

This firm represents [CONSUMER] concerning the above Vehicle. This letter directly notifies [MANUFACTURER] in writing of the continuing nonconformity under N.C. Gen. Stat. § 20-351.5(a), allows a reasonable correction period not exceeding 15 calendar days, and gives notice of intent to sue at least ten days before filing under § 20-351.7.

The continuing condition is [DESCRIBE PRECISELY]. It substantially impairs the Vehicle's value to the Consumer. The Consumer elects [A COMPARABLE NEW MOTOR VEHICLE / THE APPLICABLE STATUTORY REFUND] under § 20-351.3 if the Manufacturer remains unable to conform the Vehicle after a reasonable number of attempts.

1. COVERED CONSUMER AND VEHICLE

The Consumer is the [NON-RESALE PURCHASER / LESSEE FROM A QUALIFYING COMMERCIAL LENDER, LESSOR, MANUFACTURER, OR DEALER / PERSON ENTITLED TO ENFORCE THE EXPRESS WARRANTY]. N.C. Gen. Stat. § 20-351.1(1).

The Vehicle was sold or leased in North Carolina, weighs 10,000 pounds or less, and is not a house trailer. It is new because [NO CERTIFICATE OF ORIGIN HAD PREVIOUSLY BEEN SUPPLIED TO A CONSUMER / THE MANUFACTURER, AGENT, OR AUTHORIZED DEALER STATED IN WRITING THAT IT WAS SOLD AS NEW]. §§ 20-351.1(3)-(4).

2. REPORTING AND REMEDY PERIODS

Express warranties must remain in effect for at least one year or 12,000 miles. The Manufacturer's repair duty applies when the Consumer reports the nonconformity during the longer of one year after original delivery or the applicable express-warranty term, even if the necessary repair occurs later. N.C. Gen. Stat. § 20-351.2.

The defect or condition supporting refund or replacement must occur no later than the earlier of 24 months or 24,000 miles after original delivery. § 20-351.3(a)-(b).

3. NONCONFORMITY AND REPAIR HISTORY

• Condition or series of conditions: [DETAILS]
• How it substantially impairs value to this Consumer: [DETAILS]
• Current symptoms: [DETAILS]
• Evidence: [REPAIR ORDERS / PHOTOGRAPHS / RECORDINGS / DIAGNOSTICS / EXPERT MATERIAL]

The nonconformity did not result from abuse, neglect, odometer tampering, or unauthorized modification or alteration by the Consumer. § 20-351.4.

4. REASONABLE-NUMBER PRESUMPTION AND FINAL OPPORTUNITY

Select each supported route under N.C. Gen. Stat. § 20-351.5(a):

• ☐ Four presentations. The same nonconformity was presented for repair to the Manufacturer, its agent, or its authorized dealer four or more times and continues to exist.
• ☐ Twenty business days. During a 12-month warranty period, the Vehicle was out of service to the Consumer during or while awaiting repair of one or more nonconformities for at least 20 cumulative business days.
• ☐ Proof outside the presumption. The following facts independently prove substantial impairment and a reasonable number of attempts: [DETAILS]. See § 20-351.5(b).

The presumption requires direct written notice to the Manufacturer and a reasonable correction period not exceeding 15 calendar days, unless the Manufacturer omitted the required notice disclosure and address from the warranty or owner's manual. This letter supplies that direct notice. The Article does not define “business day”; calculate the 20-day threshold only after counsel verifies the governing counting rule.

Please identify a reasonably accessible authorized repair facility and arrange the final correction opportunity promptly. Contact [NAME / PHONE / EMAIL] by [DATE]. The requested response date does not shorten or extend any statutory period.

5. CONSUMER'S REMEDY ELECTION

After a reasonable number of unsuccessful attempts, the Consumer—not the Manufacturer—chooses replacement with a comparable new motor vehicle or return and refund. N.C. Gen. Stat. § 20-351.3(a)-(b).

Option A — comparable new motor vehicle

☐ The Consumer elects replacement with [IDENTIFY COMPARABLE NEW VEHICLE].

Option B — purchaser refund

☐ The Consumer is a purchaser or warranty-enforcing person and elects the following § 20-351.3(a) refund:

Option C — lessee refund

☐ The Consumer is a lessee and elects the § 20-351.3(b) refund and lease termination:

• To the Consumer: all sums paid under the lease; all sums paid to enter the lease, including capitalized-cost reduction and governmental charges; and incidental and monetary consequential damages.
• To the lessor: the actual vehicle purchase cost, plus 5%, less 85% of the amount the Consumer paid to the lessor under the lease.
• The written lease must terminate without penalty, and the lessor must transfer title as necessary.

Use allowance and allocation

The use allowance under § 20-351.3(c) is:

Miles used through the earlier of the third same-nonconformity repair attempt or twentieth cumulative business day out of service × purchase price or lessor's actual lease price ÷ 120,000

Any refund must be paid to the Consumer, lessor, and lienholders as their interests appear.

6. INFORMAL PROCEDURE AND CIVIL REMEDIES

The Manufacturer may require an informal settlement procedure before litigation only if the procedure substantially complies in design and operation with the Magnuson-Moss Warranty Act and its regulations and the requirement is stated clearly and conspicuously in the written warranty and warranty instructions. N.C. Gen. Stat. § 20-351.7.

• ☐ Provide the qualifying procedure, disclosures, rules, and submission instructions immediately; the Consumer will complete it if legally required.
• ☐ No qualifying, clearly disclosed mandatory procedure applies.
• ☐ The Consumer completed the procedure on [DATE]; the submission and result are enclosed.

Section 20-351.8 allows equitable relief and monetary damages, including all § 20-351.3 refund items. Monetary damages must be trebled if the factfinder finds that the Manufacturer unreasonably refused to comply with § 20-351.2 or § 20-351.3.

Attorney fees are not automatic. Under § 20-351.8(3), a court may award reasonable fees to a prevailing party only upon the specified finding that the Manufacturer unreasonably failed or refused to fully resolve the matter or that the party bringing the action knew or should have known it was frivolous and malicious.

7. DEMAND AND PRESERVATION REQUEST

The Consumer demands that the Manufacturer:

1. Confirm receipt of this direct written notice and notice of intent to sue;
2. Arrange the final reasonable correction opportunity within the statutory maximum;
3. If unable to conform the Vehicle after a reasonable number of attempts, provide the Consumer's elected remedy and a complete written calculation;
4. Identify any qualifying mandatory informal procedure and provide its governing materials; and
5. Preserve the Vehicle and relevant warranty, repair, technical, communications, and electronically stored records while this dispute is pending.

Please respond by [DATE]. The Consumer will not file the statutory action until at least ten days after the Manufacturer receives notice of intent to sue. Sending this letter does not extend any filing deadline.

Respectfully submitted,

[ATTORNEY NAME], N.C. State Bar No. [NUMBER]

[FIRM]

[ADDRESS]

[PHONE]

[EMAIL]

Attorney for [CONSUMER]

8. ENCLOSURES

• ☐ Purchase or lease, certificate-of-origin, original-delivery, title, and weight records
• ☐ Express warranties, owner's manual, and notice and informal-procedure disclosures
• ☐ Complete repair orders and business-day calculation
• ☐ Earlier written notices and delivery proof
• ☐ Evidence of continuing nonconformity and substantial impairment of value
• ☐ Refund components, lease or lien interests, and use-allowance calculation
• ☐ Informal-procedure record, if any

9. SOURCES AND REFERENCES

• North Carolina General Assembly — G.S. 20-351.1
• North Carolina General Assembly — G.S. 20-351.2
• North Carolina General Assembly — G.S. 20-351.3
• North Carolina General Assembly — G.S. 20-351.4
• North Carolina General Assembly — G.S. 20-351.5
• North Carolina General Assembly — G.S. 20-351.7
• North Carolina General Assembly — G.S. 20-351.8
• North Carolina General Assembly — G.S. 20-351.9
• North Carolina General Assembly — G.S. 20-351.10