Pub. 58 2017-2018 Issue 3

26 remedies are preferable to the federal remedies 54 in terms of time, cost, and availability. The manufacturer’s warranty is a part of the purchase price paid by the retail customer and is written and defined by the manufacturer. The typical fac- tory new vehicle limited warranty is restricted to a number of years or a number of miles, or both, whichever is reached earlier. As an example, the Volkswagen Atlas has a New Vehicle Limited Warranty period of 6 years or 72,000 miles. 55 The Atlas warranty states that: This limited warranty will be hon- ored by any authorized Volkswagen dealer in the United States, including its territories. . .Repairs under this limited warranty are free of charge. Your authorizedVolkswagen dealer will repair the defective part or replace it with a new or remanufac- tured genuine Volkswagen part. Emergency repairs: Emergency repairs performed by a non-Volk- swagen service facility will be reim- bursed if the repair work was needed and correctly performed; if it would have been covered by this limited warranty if presented to an autho- rized Volkswagen dealer for repair; and, if it was impossible or unreason- able under the circumstances to tow or drive your Volkswagen vehicle to the nearest authorized Volkswagen dealer. The maximum reimburse- ment allowable is an amount equal to the cost if your authorized Volk- swagen dealer had completed the repair(s). Reimbursement will be considered when you submit the following items to your authorized Volkswagen dealer: • A statement explaining the cir- cumstances that prevented you from getting to an authorized Volkswagen dealer, • Repair order(s) and • Part(s) removed from your Volk- swagen vehicle. 56 (Emphasis added.) Chevrolet informs its new owners that: GM requests that the vehicle be returned to the selling dealer for all warranty repairs . If a situation or event occurs where you are signifi- cantly inconvenienced, an authorized GM dealer can make the warranty repairs. If you are unable to return to the selling dealer, contact a GM dealer in the United States, Canada, or Mexico for warranty service. 57 (Emphasis added.) Ford states that “warranty repairs to your vehicle must be performed by an authorized dealer ... If you are away from home when your vehicle needs service, contact the Ford Customer Relationship Center or use the online resources listed below to find the near- est authorized dealer.” 58 (Emphasis added.) The PACCAR Engine Limited War- ranty Agreement alerts the customer that “before expiration of the applicable warranty, you [buyer] must notify an AuthorizedDealer of anyWarrantable Failures and make the Engine available for Engine repair by such Authorized Dealer. You are responsible for deliv- ery of the Engine to the Authorized Dealer. ” 59 (Emphasis added.) The above typical manufacturer war- ranty examples show that manufactur- ers recognize that the manufacturer’s warranty is an obligation that is a part of the customer’s “benefit of the bargain” and is exercised through their franchised dealers. The manufacturer as the maker and warrantor of the product is responsible for their product and the exercise of this responsibility is through the franchised dealer. Senator Brown, the sponsor of the bill imposing specific warranty perfor- mance obligations on a manufacturer and distributor, explained that the new “lemon law” statute “authorizes the Motor Vehicle Commission to cause manufacturers and distributors to perform the obligations imposed by this section.” 60 (Emphasis added.) The House Bill Analysis describes the new § 6.07 or “Warranty Perfor- mance Obligations” a/k/a the “lemon law,” as “guarantee[ing] manufacturer compliance with express warranty provisions.” 61 The Legislature’s passage of the “lemon law” in 1983 states that “the Commission shall cause manufac- turers and distributors to perform the obligations imposed by this sec- tion.” 62 This language is carried forward in today’s statute: “The board shall cause a manufacturer, converter, or distributor to perform an obligation imposed by this subchapter.” 63 (Em- phasis added.) The Legislature gives the Board the authority to order the manufacturer or distributor to comply with their wa r rant y, which is through the manufacturer’s or distributor’s li- censed dealer. The obligations imposed by the “lem- on law” require that if a consumer files a complaint with the agency after notice and a reasonable number of attempts to conform the vehicle are undertaken and the vehicle still does not conform to the manufacturer’s warranty or the vehicle is not capable of conforming to the warranty, the Board may order reimbursement for costs, replacement, or a refund. 64 The statute also states that if after a reasonable number of attempts to conform a vehicle to a warranty are not successful and if a manufacturer or distributor provides the owner with a comparable vehicle while the vehicle “is being repaired by a franchised dealer,” the time period is stayed. 65 The intent throughout the “lemon law” is a recognition that the manu- facturer’s warranty is an obligation of the warrantor. Performing that obligation is through the franchised dealer. In a new motor vehicle, if the  TEXAS FRANCHISE LAWS — CONTINUED FROM PAGE 24