Nevada Consumer Protection Laws: Lemon Law, Refunds, Repairs and Scams

Nevada's lemon law covers new motor vehicles bought for personal, family or household use (not motor homes or off-road vehicles). The buyer must report the defect in writing to the manufacturer before the express warranty expires or within 1 year after delivery to the original buyer, whichever is earlier; the manufacturer must then make the repairs even if they happen after that period. A reasonable number of attempts is presumed if the same problem has been repaired four or more times in that period and still exists, or the vehicle has been out of service for repairs a total of 30 or more calendar days. If a defect that substantially impairs use and value cannot be fixed, the manufacturer must replace the vehicle with a comparable one or take it back and refund the full purchase price, including sales tax, license and registration fees, less a reasonable allowance for use. If the manufacturer has an informal dispute procedure that complies with federal rules, the buyer must use it first. A lawsuit must be filed within 18 months after original delivery.

Nevada's lemon law covers new vehicles only, but a separate law applies to used vehicles with 75,000 miles or more sold by dealers to retail customers. Before the sale, the dealer must inspect the engine and drivetrain and disclose in writing any defects it knows of or reasonably should have found. A dealer that has had more than three substantiated complaints filed with the Department of Motor Vehicles in a 12-month period must also give a short written warranty covering engine and drivetrain defects; its length depends on mileage (for example, 30 days or 1,000 miles for vehicles with 75,000 to 80,000 miles, down to 2 days or 100 miles for vehicles over 100,000 miles). Buyers of these vehicles may file a written complaint with the Department of Motor Vehicles.

A buyer who signs a door-to-door sale contract for goods or services of $25 or more (a sale resulting from a personal solicitation made somewhere other than the seller's place of business) may cancel by delivering or mailing written notice to the seller no later than midnight of the third business day after signing. The seller must tell the buyer orally about the right to cancel, give a receipt or contract with the cancellation statement and a notice of cancellation form, and, after a cancellation, refund all payments and return any trade-in within 10 business days. A seller may charge a cancellation penalty of no more than the lesser of 5% of the total price, $15, or the down payment.

Nevada's Deceptive Trade Practices Act (NRS 598.0903 to 598.0999) lists many deceptive trade practices, including knowingly failing to disclose a material fact in a sale or lease of goods or services and using an unconscionable practice. Any person who is a victim of consumer fraud, which includes a deceptive trade practice under NRS 598.0915 to 598.0925, may sue. If the claimant wins, the court must award any damages sustained, appropriate equitable relief, and the claimant's costs and reasonable attorney's fees.

If a vehicle repair will cost more than $50, the body shop or garage must give the customer a signed written estimate of the total charge for labor and parts (with limited exceptions). If additional charges exceed the estimate by 20% or $100, whichever is less, the shop must notify the owner and insurer, and may not do the extra work until the owner or insurer authorizes it or takes the vehicle back after paying for authorized work. Repairs must follow the most recently agreed estimate. On request, the shop must give the customer the parts it replaced, except parts that must be returned to the manufacturer under a warranty or exchange (which the customer may ask to see).

During a state of emergency or declaration of disaster proclaimed by the Governor or Legislature that has been in effect for 75 days or less, it is a deceptive trade practice to sell, rent or offer goods or services in the emergency or disaster area at a price grossly in excess of the usual price. This covers consumer goods and services, medical supplies and services, repair or reconstruction services, and other goods or services commonly used in responding to that emergency. Whether a price is grossly excessive is decided considering all circumstances, including prices in the area in the 30 days before the emergency; a price is not considered grossly excessive if it reflects increased supplier, labor or material costs, or if it is no more than 15% above the usual price for items up to $250, 10% above for items over $250 up to $750, or 5% above for items over $750 (among other safe harbors).

A business may sell a gift certificate or gift card that expires only if the expiration date (or a toll-free number to get the balance and expiration date) is printed plainly on the card in at least 10-point type, visible before purchase. Service fees must be disclosed on the card (amount, triggering event, frequency, and, for inactivity fees, the period of non-use, which must be at least 3 continuous years). Regardless of disclosure, a business may not charge service fees totaling more than $1 per month, or any service fee within the first 12 months after issuance. The rules do not apply to promotional or reward cards given without payment, certain discounted cards sold to employers or charities, cards issued by licensed gaming establishments, or multi-store cards with a printed expiration date.

Credit service (credit repair) organizations must register with the Division of Mortgage Lending, pay a fee and post security, and may not charge or receive any money before fully completing the services they agreed to perform, or claim they can remove accurate negative information or guarantee credit. Providers of debt-management services, including debt settlement, must register before serving Nevada residents. They may not charge until a compliant written agreement is signed. For plans where creditors reduce interest or fees, set-up fees are capped at $50 and monthly fees at $10 per account (no more than $50 a month), subject to adjustment. For debt settlement plans, no fee may be collected until at least one debt has been settled and the consumer has made at least one payment under that settlement.

It is unlawful to work as a contractor or bid on a job in Nevada without an active license from the State Contractors' Board, unless exempt. A general building contractor working for the owner of a single-family home must give the owner, in writing, the names and license numbers of subcontractors and material suppliers of $500 or more, a notice that they may record a lien on the home, and an informational form about contractors and liens. For residential pool or spa contracts over $1,000, the contract must be in writing with required terms, and any initial down payment may not exceed $1,000 or 10% of the contract price, whichever is less.

A data collector that owns or licenses computerized personal information must notify any Nevada resident whose unencrypted personal information was, or is reasonably believed to have been, acquired by an unauthorized person. Notice must be made in the most expedient time possible and without unreasonable delay, consistent with law enforcement needs and the steps needed to determine the scope of the breach. Notice may be written, electronic, or substitute notice (e-mail, website posting and statewide media) if costs would exceed $250,000, more than 500,000 people are affected, or contact information is lacking.

File a formal complaint with the Nevada Attorney General's Office using the online complaint form; only formally filed and signed complaints are processed. The office says complaints are reviewed within 14 to 45 business days, staff may contact you for more information, and complaints better handled elsewhere are forwarded to the appropriate agency. The Attorney General cannot give legal advice or represent you. Complaints about auto dealers, body shops and garages go to the DMV Compliance Enforcement Division. Phone: 775-684-1100 or 702-486-3420.

1) Written report: the buyer must report the defect in writing to the manufacturer before the express warranty expires or within 1 year after delivery to the original buyer, whichever comes first. 2) Arbitration: if the manufacturer has set up or designated an informal dispute settlement procedure that substantially complies with federal rules (16 C.F.R. part 703), the buyer must first submit the claim for replacement or refund through that procedure before suing. The lemon law sections do not create a state-run arbitration program or set a consumer fee. 3) Deadline to sue: a lawsuit under the lemon law must be filed within 18 months after the vehicle was originally delivered to the buyer. Time periods are paused while repairs are not reasonably available because of war, invasion, strike, fire, flood or other natural disaster.