Delaware Code Title 6 Sec. 5003 – Remedies upon failure to repair
(a) If the manufacturer, its agent or its authorized dealer does not conform the automobile to any applicable express warranty by repairing or correcting any nonconformity after a reasonable number of attempts, the manufacturer shall either replace the automobile with a comparable new automobile acceptable to the consumer or repurchase the automobile from the consumer and refund to the consumer the full purchase, including all credits and allowances for any trade-in vehicle; provided, however, that the consumer shall have the unqualified right to decline a replacement automobile and to demand instead a repurchase.
Terms Used In Delaware Code Title 6 Sec. 5003
- Automobile: means any passenger motor vehicle which is leased or bought in Delaware or registered by the Division of Motor Vehicles in the Department of Transportation except the living facilities of motor homes. See Delaware Code Title 6 Sec. 5001
- Consumer: means the purchaser, other than for purposes of resale, of an automobile; a person to whom an automobile is transferred during the duration of an express warranty applicable to the automobile; or any other person entitled by the terms of the warranty to enforce the obligations of the warranty. See Delaware Code Title 6 Sec. 5001
- Dealer: means a person actively engaged in the business of buying, selling or exchanging automobiles at retail and who has an established place of business. See Delaware Code Title 6 Sec. 5001
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Lienholder: means a person with a security interest in an automobile pursuant to a lien. See Delaware Code Title 6 Sec. 5001
- Manufacturer: means a person engaged in the business of manufacturing, assembling or distributing automobiles, who will, under normal business conditions during the year, manufacture, assemble or distribute to dealers at least 10 new automobiles. See Delaware Code Title 6 Sec. 5001
- Nonconformity: means a defect or condition which substantially impairs the use, value or safety of an automobile. See Delaware Code Title 6 Sec. 5001
- warranty: means the written warranty of the manufacturer of a new automobile of its condition and fitness for use, including any terms or conditions precedent to the enforcement of obligations under that warranty. See Delaware Code Title 6 Sec. 5001
(b) In instances in which an automobile is replaced by a manufacturer under this section, said manufacturer shall accept return of the automobile and reimburse the consumer for any incidental costs, including dealer preparation fees, fees for transfer of registration, sales taxes or other charges or fees incurred by the consumer as a result of such replacement. In instances in which an automobile which was financed by the manufacturer or its subsidiary or agent is replaced under this section, said manufacturer, subsidiary or agent shall not require the consumer to enter into any refinancing agreement for a replacement automobile which would create any financial obligations upon such consumer beyond those created by the original financing agreement.
(c) In instances in which a refund is tendered under this section, the manufacturer shall accept return of the automobile from the consumer and shall reimburse the consumer for related purchase costs, including sales taxes, registration fees and dealer preparation fees, less:
(1) A reasonable allowance for the consumer’s use of the automobile, not to exceed the full purchase price of the automobile multiplied by a fraction which consists of the number of miles driven before the consumer first reported the nonconformity to the manufacturer, its agent or dealer divided by 100,000 miles; and
(2) A reasonable allowance for damage not attributable to normal wear and tear, but not to include damage resulting from a nonconformity.
(d) Refunds shall be made to the consumer, and lienholder, if any, as their interests may appear.
(e) No authorized dealer shall be held liable by the manufacturer for any refunds or automobile replacements in the absence of evidence indicating that dealership repairs have been carried out in a manner inconsistent with the manufacturer’s instructions.