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damage from airborne fallout, chemicals, tree sap, salt, road
hazards, hail, windstorms, lightning, floods, and other acts of
God. In the warranties for all model years, coverage is excluded
for any vehicle which has an altered odometer reading.
In addition to the express contractual provisions of
petitioner’s written warranties, petitioner is obligated to
comply with certain implied warranty provisions mandated by
Federal and State statutes. The statutes applicable include the
Magnuson-Moss Federal Warranty Act, 15 U.S.C. secs. 2301-2312
(1994), the Clean Air Act of 1970, 42 U.S.C. secs. 7521(d),
7541(a) (1994), the FTC Act, 15 U.S.C. sec 41 (1994), and the
Uniform Commercial Code (as adopted by various States) and State
“lemon laws”. State “lemon laws” typically provide that if the
manufacturer cannot fix the defective part to conform to the
express warranty after a “reasonable number of attempts”, and the
nonconformity “substantially impairs” the vehicle’s value or use,
the manufacturer must replace the vehicle or refund the purchase
price.
Petitioner enters into written agreements with its dealers
requiring them to correct conditions covered by petitioner's
warranties. In order to obtain reimbursement from petitioner,
the agreements require the dealers to submit claims after
repairs. Petitioner reimburses the dealers for providing
warranty service, provided that the dealers performed and
recorded the services as outlined in petitioner's Warranty Policy
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Last modified: May 25, 2011