Alaska Statutes Sec. 45.27.190 - Replacement or Refund

(a) If, during the term of a warranty or within one year after the date of the delivery of the product to the ultimate purchaser, whichever period of time terminates first, the manufacturer or authorized dealer is unable to conform a product to an applicable warranty after a reasonable number of attempts, the manufacturer shall accept the return of the nonconforming product, and, at the ultimate purchaser's option, shall replace the nonconforming product with a new comparable product or refund the full purchase price to the owner after deducting a reasonable amount of money for the ultimate purchaser's use of the product from the date the product was delivered to the ultimate purchaser.

(b) The reasonable amount of money deducted under (a) of this section may not exceed an amount that is equal to the sum of

(1) the amount of money that reflects the depreciation in value of the product for the period during which the product was available for use by the ultimate purchaser, as calculated by a straight line depreciation method over seven years; and

(2) an amount of money that is equal to the depreciation in value of the product that was caused by

(A) neglect or abuse by the ultimate purchaser; or

(B) body damage that was not caused by the nonconformity.

(c) The manufacturer shall make the refund required by this section

(1) to the lienholder of record for the product, if any, to the extent of the lienholder's interest, and, if there is a balance after satisfying the lienholder's interest, to the ultimate purchaser; or

(2) entirely to the ultimate purchaser, if there is no lienholder of record for the product.

(d) In this section,

(1) "costs" include original registration fees, transportation fees, authorized dealer's preparation fees, and the cost of options installed by the authorized dealer;

(2) "full purchase price" means the total price paid for a product by the ultimate purchaser, including any costs added to the retail price.

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Last modified: November 15, 2016