AK Lemon Law Statutes

Alaska Lemon Law Qualifications

Vehicles Covered

The Alaska lemon law covers motor vehicles that are (1) normally used for personal, family, or household purposes, and (2) required to be registered in Alaska.

The lemon law does not cover tractors, farm vehicle s and vehicles designed primarily for off-road use. Guidance from the Attorney General's Office indicates the lemon law does not cover used vehicles.

Consumers Covered

The lemon law covers the purchaser of a new motor vehicle, other than for resale, and a person to whom ownership of the motor vehicle is transferred. The lemon law does not cover a lessee.

Problems Covered

The lemon law covers any nonconformity , which is defined as a defect or condition in a motor vehicle caused by a manufacturer, distributor , dealer, or repairing agent that substantially impairs the use or market value of a motor vehicle. The nonconformity must also cause the vehicle to not conform to an applicable manufacturer written warranty.

"Substantially impairs the use" mean a nonconformity that prevents a motor vehicle from being operated or makes the vehicle unsafe to operate. "Substantially impairs the market value"means a nonconformity that substantially decreases the dollar value of a vehicle to the owner when compared to the dollar value of a similar vehicle that does not have the nonconformity.

The lemon law does not apply if the manufacturer or distributor can show that the alleged nonconformity is the result of:

  • Alteration of the vehicle by the owner or a person other than a dealer or repairing agent that is not authorized by the manufacturer or distributor; or
  • Abuse or neglect by the owner or a person other tha n the dealer or repairing agent.

Reasonable Number Of Repair Attempts

The Alaska lemon law establishes a presumption that a reasonable number of repair attempts have been made to conform a vehicle under an applicable manufacturer's express written warranty if, during the term of the express warranty or the one-year period after delivery of the motor vehicle to the original owner, whichever period ends first, either of the following occurs:

  • The same nonconformity has been subject to repair three or more times by the manufacturer, distributor, dealer or repairing agent but the nonconformity continues to exist; or
  • The vehicle is out of service for repair for a total of 20 or more business days during the express warranty term or the one-year period after delivery to the original owner, whichever period ends first.

Any period that repairs are not performed for reasons that are beyond the control of the manufacturer, distributor, or dealer, or repairing agent is excluded from the 20-day time period.

Alaska Arbitration Requirements

If a manufacturer or distributor has established an informal dispute settlement procedure that substantially complies with the requirements of 16 C.F.R. 702, as that section may be amended, or if the manufacturer or distributor, after receipt of notice required by AS 45.45.210, offers in writing to participate in an arbitration or mediation process with the owner and the arbitration or mediation decision is binding on the manufacturer or distributor but no on the owner, and if the informal dispute settlement or arbitration or mediation process is approved by the attorney general, the provisions of AS 45.45.205 concerning refund or replacement or AS 45.45.250 concerning shipping costs do not apply to an owner who has not first resorted to the informal dispute settlement procedure or arbitration or mediation process.

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