When used in this chapter unless the context otherwise requires:

“Business day” means any day during which the service departments of authorized dealers of the manufacturer of the motor vehicle are normally open for business.

“Collateral charges” means those additional charges to a consumer wholly incurred as a result of the acquisition of the motor vehicle. For the purposes of this chapter, collateral charges include but are not limited to finance and interest charges, manufacturer-installed or agent-installed items, general excise tax, license and registration fees, title charges, and similar government charges.

“Consumer” means the purchaser, other than for purposes of resale, or the lessee of a motor vehicle, any person to whom the motor vehicle is transferred during the duration of the express warranty applicable to the motor vehicle, and any other person entitled to enforce the obligations of the express warranty.

“Express warranty” means any written warranty issued by the manufacturer, or any affirmation of fact or promise made by the manufacturer, excluding statements made by the dealer, in connection with the sale or lease of a motor vehicle to a consumer, which relates to the nature of the material or workmanship and affirms or promises that the motor vehicle shall conform to the affirmation, promise, or description or that the material or workmanship is free of defects or will meet a specified level of performance.

“Incidental charges” means those reasonable costs incurred by the consumer, including, but not limited to, towing charges and the costs of obtaining alternative transportation which are directly caused by the nonconformity or nonconformities which are the subject of the claim, but shall not include loss of use, loss of income, or personal injury claims.

“Lemon law rights period” means the term of the manufacturer’s express warranty, the period ending two years after the date of the original delivery of a motor vehicle to a consumer, or the first 24,000 miles of operation, whichever occurs first.

“Lessee” means any consumer who leases a motor vehicle:

(1) For one year or more pursuant to a written lease agreement which provides that the lessee is responsible for repairs to such motor vehicle; or

(2) Pursuant to a lease-purchase agreement.

“Motor vehicle”:

(1) Means a self-propelled vehicle primarily designed for the transportation of persons or property over public streets and highways which is used primarily for personal, family, or household purposes;

(2) Includes:

(A) A motorcycle as defined in § 286-2, but excluding a motor scooter;

(B) A “demonstrator”, which means a vehicle assigned by a dealer for the purpose of demonstrating qualities and characteristics common to vehicles of the same or similar model or type;

(C) An individually registered vehicle used for an individual’s business purposes as well as for personal, family, or household purposes; and

(D) A vehicle owned or leased by a sole proprietorship, corporation, or partnership which has purchased or leased no more than one vehicle per year, used for household, individual, or personal use in addition to business use; and

(3) Shall not include mopeds or motor scooters, as those terms are defined in chapter 286, or vehicles over ten thousand pounds, gross vehicle weight rating.

“Nonconformity” means a defect, malfunction, or condition that fails to conform to the motor vehicle’s applicable express warranty and that substantially impairs the use, market value, or safety of a motor vehicle, but does not include a defect, malfunction, or condition that results from an accident, abuse, neglect, modification, or alteration of the motor vehicle by persons other than the manufacturer, its agent, distributor, or authorized dealer.

“Purchase price” means the cash price appearing in the sales agreement or contract and paid for the motor vehicle, including any net allowance for a trade-in vehicle. Where the consumer is a second or subsequent purchaser and the arbitration award is for a refund of the purchase price of the motor vehicle, “purchase price” means the purchase price of the second or subsequent purchase and shall not exceed the purchase price paid by the original purchaser.

“Reasonable offset” for use means the number of miles attributable to a consumer up to the date of the third repair attempt of the same nonconformity which is the subject of the claim, the date of the first repair attempt of a nonconformity that is likely to cause death or serious bodily injury, or the date of the thirtieth cumulative business day when the vehicle is out of service by reason of repair of one or more nonconformities, whichever occurs first. The reasonable offset for use shall be equal to one per cent of the purchase price for every thousand miles of use.

“Replacement motor vehicle” means a motor vehicle which is identical or reasonably equivalent to the motor vehicle to be replaced, as the motor vehicle to be replaced existed at the time of original acquisition, including any service contract, undercoating, rustproofing, and factory-installed or dealer-installed options.

“Settlement” means an agreement for repurchase or replacement of a motor vehicle entered into between a manufacturer and a consumer that occurs after a dispute is submitted to an informal dispute resolution procedure or arbitration program or after a dispute is approved for arbitration under § 481I-4. “Settlement” does not include an agreement for a motor vehicle to be repurchased pursuant to a guaranteed repurchase or satisfaction program advertised by the manufacturer in which the vehicle was not alleged or found to have a nonconformity as defined in this section.

“Substantially impairs” means to render the motor vehicle unfit, unreliable, or unsafe for warranted or normal use, or to significantly diminish the value of the motor vehicle.