Bill Parrot v. Daimlerchrysler Corporation ( 2006 )


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  •                     SUPREME COURT OF ARIZONA
    En Banc
    BILL PARROT,                      )    Arizona Supreme Court
    )    No. CV-05-0104-PR
    Plaintiff-Appellant, )
    )    Court of Appeals
    v.               )    Division One
    )    No. 1 CA-CV 04-0121
    DAIMLERCHRYSLER CORPORATION,      )
    )    Maricopa County
    Defendant-Appellee. )    Superior Court
    )    No. CV02-008392
    )
    __________________________________)    O P I N I O N
    Appeal from the Superior Court in Maricopa County
    The Honorable Jonathan H. Schwartz, Judge
    AFFIRMED
    Opinion of the Court of Appeals, Division One
    
    210 Ariz. 143
    , 
    108 P.3d 922
    (App. 2005)
    VACATED
    ________________________________________________________________
    KROHN & MOSS, LTD.                                           Phoenix
    By   Marshall Meyers
    Ian Pryor
    Attorneys for Bill Parrot
    BOWMAN AND BROOKE LLP                                    Phoenix
    By   Negatu Molla
    Jennifer L. Haman
    Attorneys for DaimlerChrysler Corporation
    ________________________________________________________________
    R Y A N, Justice
    ¶1        In this case, we must determine whether an automobile
    lessee can maintain an action under the Magnuson-Moss Warranty
    Act (“Warranty Act” or “Act”), 15 U.S.C. §§ 2301-2312 (2000),
    and whether the lessee has a right to pursue remedies under the
    Arizona Motor Vehicle Warranties Act (“Lemon Law”), Ariz. Rev.
    Stat. (“A.R.S.”) §§ 44-1261 to -1267 (2003 & Supp. 2005).                             We
    hold   that,    under    the    circumstances          of    this     case,    a   lessee
    neither can sue under the Warranty Act nor have remedies under
    the Lemon Law.
    I
    ¶2            Bill Parrot leased a 2000 Jeep Cherokee from Pitre
    Chrysler Plymouth Jeep Eagle (“Pitre”) in Scottsdale, Arizona.
    The    Jeep    came    with    “Chrysler’s          standard    limited       warranty.”
    Simultaneously        with    executing       its    lease     with    Parrot,     Pitre
    assigned the lease to the lender, Chrysler Financial Company,
    L.L.C.    Pitre apparently retained title to the vehicle.1
    ¶3            Parrot alleges that while he possessed the vehicle, he
    had to bring it to various dealerships at least thirteen times
    for repairs including: at least eleven times for suspension/axle
    defects; four times for alignment defects; three times for a
    windshield leak; three times for brake defects; and once for an
    exhaust system defect.
    ¶4            Dissatisfied with the repair work done on the Jeep,
    1
    At oral argument, Parrot claimed for the first time that
    Pitre sold the Jeep to Chrysler Financial. However, nothing in
    the record establishes that any such sale occurred.
    - 2 -
    Parrot     filed         suit     in         superior              court       alleging          that
    DaimlerChrysler had breached its written warranty and seeking
    remedies under the Warranty Act and the Lemon Law.                                   The parties
    filed    cross     motions      for    summary          judgment.           The   trial         court
    granted DaimlerChrysler’s motion for summary judgment.
    ¶5           Parrot      appealed.               The    court       of     appeals      reversed,
    concluding      that    Parrot     was       a    consumer          subject     to     protection
    under    both     the   Warranty       Act       and     the       Lemon   Law.        Parrot      v.
    DaimlerChrysler Corp., 
    210 Ariz. 143
    , 150-51, ¶¶ 30, 33, 39, 
    108 P.3d 922
    , 929-30 (App. 2005).
    ¶6           We     granted      DaimlerChrysler’s                   petition        for    review
    because the applicability of the Warranty Act and the Lemon Law
    to lessees is an issue of first impression for this Court.                                         We
    have jurisdiction under Article 6, Section 5(3), of the Arizona
    Constitution and A.R.S. § 12-120.24 (2003).
    II
    ¶7           This       matter    concerns              the        interpretation          of     the
    Warranty Act and the Lemon Law.                        Statutory interpretation is an
    issue of law and is decided de novo.                          Canon Sch. Dist. No. 50 v.
    W.E.S.    Constr.       Co.,    
    177 Ariz. 526
    ,    529,      
    869 P.2d 500
    ,      503
    (1994).         “We     interpret        statutes             to    give       effect      to     the
    legislature’s intent.            When a statute is clear and unambiguous,
    we apply its plain language” to find the legislature’s intent
    and do “not engage in other means of statutory interpretation.”
    - 3 -
    Kent K. v. Bobby M., 
    210 Ariz. 279
    , 283, ¶ 14, 
    110 P.3d 1013
    ,
    1017 (2005) (citing Aros v. Beneficial Ariz., Inc., 
    194 Ariz. 62
    , 66, 
    977 P.2d 784
    , 788 (1999)).                     A statute is clear and
    unambiguous when it admits of only one meaning.                          Millett v.
    Frohmiller, 
    66 Ariz. 339
    , 345, 
    188 P.2d 457
    , 461 (1948).
    ¶8           We first examine the Warranty Act and then turn to
    Arizona’s    Lemon     Law.     Under     neither       is    Parrot   entitled    to
    relief.
    III
    A
    ¶9           In response to complaints “from irate owners of motor
    vehicles complaining that automobile manufacturers and dealers
    were not performing in accordance with the warranties on their
    automobiles,” Motor Vehicle Mfrs. Ass’n of U.S. v. Abrams, 
    899 F.2d 1315
    , 1317 (2d Cir. 1990) (quoting H.R. Rep. No. 93-1107
    (1974), as reprinted in 1974 U.S.C.C.A.N. 7702, 7708), Congress
    enacted the Warranty Act in 1975.                The purpose of the Warranty
    Act is “to prevent warranty deception.”                      Milton R. Schroeder,
    Private Actions under the Magnuson-Moss Warranty Act, 
    66 Cal. L
    .
    Rev. 1, 9 (1978) (“Schroeder”).                To further that purpose, the
    Act   requires        conspicuous    disclosure          of     the     “terms    and
    conditions”    of     warranties    “in       simple   and    readily    understood
    language.”       15    U.S.C.   §   2302(a).           And,    “[t]o   enforce    its
    - 4 -
    requirements, the Act permits ‘a consumer who is damaged by the
    failure    of    a     supplier,      warrantor,      or    service    contractor        to
    comply    with       any    obligation       under   this    chapter,      or    under    a
    written warranty, implied warranty, or service contract’ to sue
    warrantors       for       damages    and    other    relief      in   any      court    of
    competent jurisdiction.”              DiCintio v. DaimlerChrysler Corp., 
    768 N.E.2d 1121
    , 1123 (N.Y. 2002) (quoting 15 U.S.C. § 2310(d)(1)).
    To bring a cause of action under the Warranty Act, a person must
    be a consumer of a consumer product and have a written warranty,
    implied    warranty,         or   service      contract,     as    those     terms      are
    defined by the Warranty Act.2
    ¶10            The Warranty Act defines “consumer product” as “any
    tangible personal property which is distributed in commerce and
    which     is    normally       used    for     personal,     family     or      household
    purposes.”       15 U.S.C. § 2301(1).                The parties agree that the
    Jeep is a consumer product.                 Therefore, the dispositive issue is
    whether Parrot is a consumer as defined by the Act.
    ¶11            The Act creates three categories of consumers.                         
    Id. § 2301(3). The
    first category includes “a buyer . . . of any
    consumer product,” other than for purposes of resale.                           
    Id. The second encompasses
    “any person to whom [a consumer product] is
    2
    Although the Warranty Act also refers to implied warranties
    and service contracts, because the issue before this Court is
    whether Parrot has the right to enforce a written warranty, we
    limit our analysis to written warranties.
    - 5 -
    transferred during the duration of . . . [a] written warranty.”
    
    Id. The third category
        includes   “any   other   person     who   is
    entitled by the terms of such warranty . . . or under applicable
    State law to enforce against the warrantor . . . the obligations
    of the warranty.”         
    Id. ¶12 Each category
    requires a qualifying sale - a sale in
    which a person buys a consumer product for purposes other than
    resale.       The first category necessarily involves a qualifying
    sale    by    its   own    terms,   requiring    that    a    consumer    be    a
    “buyer . . . of any consumer product.”                
    Id. (emphasis added). The
    necessity of a qualifying sale for categories two and three
    consumers arises from the Warranty Act’s definition of “written
    warranty.”      
    DiCintio, 768 N.E.2d at 1124
    .
    ¶13           The Warranty Act defines “written warranty” as:
    (A) any written affirmation of fact or written promise
    made in connection with the sale of a consumer product
    by a supplier to a buyer which relates to the nature
    of the material or workmanship and affirms or promises
    that such material or workmanship is defect free or
    will meet a specified level of performance over a
    specified period of time, or
    (B) any undertaking in writing in connection with the
    sale by a supplier of a consumer product to refund,
    repair, replace, or take other remedial action with
    respect to such product in the event that such product
    fails to meet the specifications set forth in the
    undertaking,
    which written affirmation, promise, or undertaking
    becomes part of the basis of the bargain between a
    supplier and a buyer for purposes other than resale of
    such product.
    - 6 -
    15 U.S.C. § 2301(6) (emphasis added).
    ¶14            Subsections (A) and (B) each expressly require a sale
    of a consumer product by a supplier.                      
    Id. In addition, both
    subsections are modified by the qualifying phrase at the end of
    15    U.S.C.    §   2301(6).       That      qualifying      phrase     calls   for   the
    underlying      sale   to    be    to   a    buyer    “for      purposes    other     than
    resale” and for the written affirmation, promise, or undertaking
    to be part of the basis of the bargain.                 
    Id. ¶15 Consequently, the
    existence of a written warranty, as
    defined by the Warranty Act, is a requirement for both category
    two and category three “consumer” status.                      A person cannot be a
    category two consumer unless some person purchased the vehicle
    for purposes other than resale and the written warranty was
    “part of the basis of the bargain between a supplier and a
    buyer.”    
    Id. ¶16 Similarly, a
      person      cannot     be      a   category      three
    consumer unless a qualifying sale has occurred.                            The category
    three    definition     of     “consumer”       has   two      parts.       Both    parts
    require that a qualifying sale occur - that a person purchased
    the vehicle for purposes other than resale and that the warranty
    was “part of the basis of the bargain between a supplier and a
    buyer.”    
    Id. ¶17 The first
    part states that, in addition to meeting the
    - 7 -
    foregoing requirements, a consumer must be a person “entitled by
    the    terms    of    such   warranty    .   .   .   to   enforce      against   the
    warrantor . . . the obligations of the warranty.”                      15 U.S.C. §
    2301(3) (emphasis added).             The use of the word “such” to modify
    “warranty” logically refers to the previous use of “warranty” in
    the statute.         The previous use of “warranty” occurs in category
    two when it defines a consumer as a person to whom the product
    is    “transferred      during   the    duration     of   .   .   .    [a]   written
    warranty.”       
    Id. Thus, the first
    part of the definition of a
    category three consumer means any person entitled by the terms
    of a written warranty to enforce the obligations of the warranty
    against the warrantor.           As discussed above, the term “written
    warranty,”      as     defined   in    the   Warranty     Act,    is   a     “written
    affirmation, promise, or undertaking [that] becomes part of the
    basis of the bargain between a supplier and a buyer for purposes
    other than resale of such product.”                  
    Id. § 2301(6) (emphasis
    added).    Accordingly, to be a category three consumer under the
    first part of the definition, a qualifying sale as defined by
    the Warranty Act must have occurred.
    ¶18            The second part of category three defines a consumer
    as “any other person who is entitled . . . under applicable
    State law to enforce against the warrantor . . . the obligations
    of the warranty.”            
    Id. § 2301(3) (emphasis
    added).                 In this
    second part, the phrase “the warranty” should not be interpreted
    - 8 -
    in     the   generic     sense       as    meaning          any      warranty.             Such    an
    interpretation would be inconsistent with the statutory scheme
    as a whole.
    ¶19           We    presume     that       Congress         uses        terms     consistently.
    See,    e.g.,       United    Sav.     Ass’n         v.    Timbers        of    Inwood          Forest
    Assocs.,      
    484 U.S. 365
    ,        371    (1988)         (noting        that        statutory
    interpretation is “a holistic endeavor”).                            Other than references
    to an implied warranty,3 every other use of the term “warranty”
    in 15 U.S.C. § 2301(3) is either a direct reference to “written
    warranty”      or    a   short-hand         reference           to    “written         warranty.”
    Thus,    a    consistent      reading           of   the        second     part       of    section
    2301(3)’s      definition       of    a     category            three     consumer         requires
    interpreting “warranty” as a written warranty as defined by the
    Warranty Act.
    ¶20           We    therefore     conclude           that       to   be   a     category        three
    consumer, a written warranty as defined by the Warranty Act must
    exist.       Because a written warranty requires a qualifying sale,
    to    meet   the     requirements         under      this       category        there       must    be
    evidence of such a sale.
    B
    ¶21           Parrot     claims      that       he    is    a     category       two       or   three
    3
    The Act defines “implied warranty” as “an implied warranty
    arising under State law . . . in connection with the sale by a
    supplier of a consumer product.” 15 U.S.C. § 2301(7). As noted
    in footnote 2, the issue of an implied warranty is not presented
    in this case.
    - 9 -
    consumer with a written warranty governed by the Warranty Act.
    He    is   neither    because    no    qualifying    sale    –    a   purchase   for
    purposes other than resale – has occurred.
    ¶22          Parrot conceded at oral argument that Pitre purchased
    the Jeep from DaimlerChrysler for the purpose of resale.                         The
    only identifiable sale in the record before this Court is to the
    lessor, Pitre, whose ultimate goal is to resell the vehicle.
    Consequently, the only sale here was for purposes of resale.
    ¶23          Even     though    the    language     defining      a   category   two
    consumer
    appears to reach beyond sales of consumer products to
    include transactions in which a merchant leases goods
    to consumers or in which the consumer is only a
    bailee, such a reading is erroneous. The definition[]
    of [a] written . . . warrant[y] still require[s] a
    sale between a supplier and a buyer.        Thus, this
    portion of the definition of “consumer” must be viewed
    as referring to transferees after an initial sale of
    the product. There must be an initial buyer who buys
    “for purposes other than resale” of the product.
    Schroeder     at     11   (second     emphasis    added)    (footnote    omitted).
    Parrot concedes that there is no such sale here.
    ¶24          Thus, we hold that because the only sale in this case
    was   for   purposes      of   resale,    Parrot    does    not   have   a   written
    warranty governed by the Warranty Act.
    C
    ¶25          Parrot relies on several recent cases to support his
    claim that he is either a category two or three consumer.                     We do
    not find these cases persuasive.                 For example, in Cohen v. AM
    - 10 -
    General Corp., the court concluded that “the                      purpose       of the
    transaction . . . was not for resale, but for the lease of the
    vehicle.”      
    264 F. Supp. 2d 616
    , 619 (N.D. Ill. 2003).                The court
    based its conclusion on the following factors:                       the leasing
    company would not have purchased the vehicle but for the fact
    that the car dealer had entered into a leasing agreement with
    the plaintiff; the leasing company did not “intend[] to add the
    vehicle   to    its   inventory    or   advertise     it    for   sale     to    other
    parties”; and it profited through the lease agreement.                      
    Id. In Peterson v.
    Volkswagen of America, Inc., the court concluded
    that when a lessor purchased a vehicle for purposes of leasing
    the vehicle instead of reselling it, the lessee came within the
    purview of the Act as a category three consumer.                   
    697 N.W.2d 61
    ,
    71-73, ¶¶ 33-37, 41-42 (Wis. 2005).
    ¶26         But   here,   Parrot    conceded    that       Pitre,    the    dealer-
    lessor, had purchased the Jeep for resale.                 Thus, both Cohen and
    Peterson, in which the purpose of the purchase of the motor
    vehicle was found to be for leasing, are inapposite.
    ¶27         Parrot also relies heavily on opinions that have held
    that interpreting the Warranty Act as not applying to leases “is
    inconsistent      with   the   purposes    of   the    [Warranty]        Act     –   to
    protect the ultimate user of the product.”                 Szubski v. Mercedes-
    Benz, U.S.A., L.L.C., 
    796 N.E.2d 81
    , 88, ¶ 28 (Ct. Com. Pl. Ohio
    2003); see also 
    Cohen, 264 F. Supp. 2d at 621
    (holding that
    - 11 -
    “[t]his reading . . . best serves Congress’ goal of ‘better
    protecting consumers’”) (citation omitted); Mesa v. BMW of N.
    Am., LLC, 
    904 So. 2d 450
    , 458 (Fla. Dist. Ct. App. 2005) (same).
    Although          this    interpretation        of       the     Act    has    a      certain
    attraction, it does not comport with the plain language of the
    Act.     As discussed above, a person must be a consumer as defined
    under     the       Warranty       Act,   which      requires      that       there    be      a
    qualifying sale.            See 15 U.S.C. § 2301(3), (6).                 In the absence
    of such a sale, Parrot simply does not qualify as a consumer
    under the Act.
    ¶28               Finally, a few courts, including our court of appeals,
    have    concluded         that     if   state   law      permits       enforcement        of   a
    written warranty, then the Warranty Act governs that warranty
    even     if       the    written    warranty      does    not     otherwise        meet     the
    requirements of the Warranty Act.                    See, e.g., Voelker v. Porsche
    Cars N. Am., Inc., 
    353 F.3d 516
    , 525 (7th Cir. 2003); 
    Parrot, 210 Ariz. at 148-49
    , ¶¶ 
    21-27, 108 P.3d at 927-28
    ; Mesa, 
    904 So. 2d
    at 457; Dekelaita v. Nissan Motor Corp., 
    799 N.E.2d 367
    , 372
    (Ill. App. Ct. 2003).
    ¶29               We find the reasoning of these courts flawed in two
    respects.           First, they rely upon an incorrect reading of 15
    U.S.C.        §    2301(6).         Second,     they      rely     upon    the      mistaken
    assumption that the use of the term “the warranty” in the second
    part of category three’s definition of “consumer” means that the
    - 12 -
    Warranty Act governs any warranty enforceable under state law.
    ¶30         For instance, in Parrot, the court mistakenly limited
    the qualifying phrase “which written affirmation, promise, or
    undertaking becomes part of the basis of the bargain between a
    supplier and a buyer for purposes other than resale of such
    product” to subsection (B) of 15 U.S.C. § 2301(6).                      
    See 210 Ariz. at 147
    , ¶ 
    15, 108 P.3d at 926.4
                  Instead, as set forth in
    paragraphs 13 and 14, above, the qualifying phrase applies to
    both subsection (A) and (B) of § 2301(6).              See also 16 C.F.R. §
    700.11(b) (“A written warranty must be ‘part of the basis of the
    bargain.’    This means that it must be conveyed at the time of
    sale of the consumer product . . . .”).
    4
    Specifically, the court quoted the definition of a warranty
    in the following manner:
    any written affirmation of fact or written promise
    made in connection with the sale of a consumer product
    by a supplier to a buyer which relates to the nature
    of the material or workmanship and affirms or promises
    that such material or workmanship is defect free or
    will meet a specified level of performance over a
    specified period of time, or
    any undertaking in writing in connection with the sale
    by a supplier of a consumer product to refund, repair,
    replace, or take other remedial action with respect to
    such product in the event that such product fails to
    meet the specifications set forth in the undertaking,
    which written affirmation, promise, or undertaking
    becomes part of the basis of the bargain between a
    supplier and a buyer for purposes other than resale of
    such product.
    
    Parrot, 210 Ariz. at 147
    ,   ¶   
    15, 108 P.3d at 926
      (emphasis
    added).
    - 13 -
    ¶31         This error led the court to conclude that, to be a
    category    two     consumer,     one     need        only   have     a    “written
    warranty . . . ‘made in connection with the sale’ of a consumer
    product by ‘a supplier’ to ‘a buyer.’”                   
    Parrot, 210 Ariz. at 147
    , ¶ 
    15, 108 P.3d at 926
    (citations omitted).                     Likewise, the
    court’s    conclusion   that    Parrot     is    a    category    three    consumer
    rests in part on its mistaken reading of 15 U.S.C. § 2301(6).
    See 
    id. at 148, ¶¶
    21-22, 108 P.3d at 927
    .
    ¶32         In Dekelaita, the court concluded that the lessee was
    a category three consumer because the lessee was entitled to
    enforce the warranty under state 
    law. 799 N.E.2d at 372
    .        This
    conclusion rested on the premise that “the third [category] does
    not   exclusively    require     that    the    warranty     meet[]       the   Act’s
    definition if in fact it is enforceable under state law.”                        
    Id. at 374. ¶33
            But   Dekelaita     comes    to    this    conclusion     without     any
    discussion of the statute or reference to “warranty” as used in
    the definition of a category three consumer.                     See 
    id. at 372. Instead,
    the court simply assumed that a category three consumer
    may obtain remedies under the Warranty Act if a warranty is
    enforceable under state law.            See 
    id. But this is
    an incorrect
    reading of the reference to warranty in the definition of a
    category three consumer.        Under 15 U.S.C. § 2301(6), for the Act
    to apply, a purchase for purposes other than resale is required.
    - 14 -
    Dekelaita simply does not address these requirements.
    ¶34          The    court      in    Dekelaita         nevertheless        went        on     to
    conclude that a written warranty, as defined by the Warranty
    Act, existed in that case.               See 
    id. at 372-74. This
    conclusion,
    however, relies upon the same mistaken reading of 15 U.S.C. §
    2301(6) as was made in Parrot.                       See 
    Dekelaita, 799 N.E.2d at 370
    .
    ¶35          Because     the        court       in    Dekelaita      relied       on        this
    misreading    of    15   U.S.C.      §    2301(6),      it   ignored       the    issue      of
    whether the sale was for purposes other than resale and whether
    the    written     warranty    was       part    of    the   basis    of    the    bargain
    between the supplier and the buyer.5                    
    See 799 N.E.2d at 372-74
    .
    Dekelaita’s holding that all that is necessary to be a category
    three consumer is to have some warranty that is enforceable
    under state law is based upon a mistaken premise.
    ¶36          In Voelker, the court depended upon the holding in
    Dekelaita to conclude that because the lessee could enforce the
    5
    The court in Dekelaita does note that the question of
    whether the car was purchased for resale was important in the
    DiCintio 
    opinion. 799 N.E.2d at 375
    .       But it dismisses
    DiCintio’s reasoning by stating “[t]he problem with that
    reasoning is that most automobile purchasers buy a car with the
    ultimate goal of resale . . . .       Under the DiCintio court’s
    reasoning, few buyers could ever enforce the Act.” 
    Id. (citing Cohen, 264
    F. Supp. 2d at 620).      Because Parrot has conceded
    that the purchase by Pitre – the only purchase in the record in
    this case – was for purposes of resale, we need not today decide
    whether other purchasers qualify under the terms of the Act.
    - 15 -
    warranty    under    state    law,    the     lessee      was    a     category    three
    
    consumer. 353 F.3d at 524
    (citing 
    Dekelaita, 799 N.E.2d at 372
    ).   Because we do not find Dekelaita persuasive precedent for
    this proposition, we decline to follow Voelker.
    ¶37         We    therefore    hold    that     because        Pitre    purchased    the
    vehicle for purposes of resale, and there is no other qualifying
    sale on the record before us, Parrot does not qualify as a
    consumer    under    the    Warranty     Act.        As    a    result,    he     cannot
    maintain an action against DaimlerChrysler under the Warranty
    Act.6
    IV
    ¶38         The    Warranty    Act    “apparently         was    not    successful    in
    resolving        consumer     problems        with        chronically       defective
    automobiles.”       
    Abrams, 899 F.2d at 1317
    .              As a result, a number
    of states enacted so-called lemon laws.                         Id.; see also Joan
    Vogel, Squeezing Consumers: Lemon Laws, Consumer Warranties, and
    a Proposal for Reform, 1985 Ariz. St. L.J. 589, 592 (“Due to the
    inadequacy of the UCC and the Magnuson-Moss Warranty Act, thirty
    seven states have now passed lemon laws to deal with automobile
    warranty disputes.”).         Arizona enacted its version of a lemon
    law in 1984.       See 1984 Ariz. Sess. Laws, ch. 265, § 1 (codified
    as amended at A.R.S. §§ 44-1261 to -1265).
    6
    This does not mean Parrot has no remedies. DaimlerChrysler
    acknowledged that Parrot “retains any common law” or other
    possible remedies.
    - 16 -
    ¶39         The Lemon Law definition of “consumer” parallels the
    definition in the Warranty Act:
    “Consumer” means the purchaser, other than for
    purposes of resale, of a motor vehicle, any person to
    whom the motor vehicle is transferred during the
    duration of an express warranty applicable to the
    motor vehicle or any other person entitled by the
    terms of the warranty to enforce the obligations of
    the warranty.
    A.R.S. § 44-1261(A)(1).          An important difference between the
    Lemon Law and the Warranty Act is that the Lemon Law does not
    define the term “warranty.”            Accordingly, the requirement that
    there be a sale for purposes other than resale does not apply to
    warranties under the Lemon Law.             Thus, although Parrot would not
    qualify as a category one consumer under the Lemon Law because
    he did not purchase the Jeep, he may qualify as a category two
    or three consumer under A.R.S. § 44-1261(A)(1).                   However, we
    need not decide whether Parrot would qualify as a category two
    or three consumer because of the limited remedies afforded by
    the Lemon Law.
    ¶40         The     Lemon   Law’s   remedies      for     the   failure     of     a
    manufacturer “or its authorized dealers” to correct or repair
    “any    defect    or   condition    which      substantially      impairs        the
    use . . . of the motor vehicle,” are replacing the vehicle “or
    accept[ing] return of the motor vehicle from the consumer and
    refund[ing] to the consumer the full purchase price, including
    all    collateral    charges,   less    a    reasonable    allowance   for       the
    - 17 -
    consumer’s use of the vehicle.”                A.R.S. § 44-1263(A).
    ¶41           Both remedies assume that the consumer has the right
    to transfer title to the vehicle back to the manufacturer.                        Only
    the owner of the vehicle or holder of title can transfer title.
    See A.R.S. § 28-2058 (2004).                This record, however, establishes
    that   Pitre      is   the   owner    and   title    holder;      at    oral   argument
    Parrot conceded that he did not have title in the vehicle.                           A
    person who neither owns a vehicle nor has title to it cannot
    return the vehicle to the manufacturer, nor is he entitled to
    have   the    defective      vehicle     replaced     by    another.       Therefore,
    under the Lemon Law, Parrot has no remedy.
    ¶42           That     the   statute’s         remedies     are    inapplicable      to
    lessees      is   implicit    in      A.R.S.    §   44-1263(A),        which   provides
    express      protection      of   a   “lienholder,”        requiring      that   “[t]he
    manufacturer shall make refunds to the consumer and lienholder,
    if any, as their interests appear,” without providing protection
    for lessors.
    ¶43           Our conclusion is bolstered by a 1992 amendment to the
    section of Arizona’s version of the Uniform Commercial Code7
    pertaining to leases.             See 1992 Ariz. Sess. Laws, ch. 226, § 4
    (codified as amended at A.R.S. §§ 47-2A101 to -2A532 (2005)).
    In the section governing revocation of acceptance of a lease,
    lessors and lessees may agree to be bound by the Lemon Law and
    7
    A.R.S. §§ 47-1101 to -10102 (2005).
    - 18 -
    not by the Uniform Commercial Code:
    The lessee and lessor may, by a conspicuous writing
    contained in the lease or elsewhere, provide that the
    provisions of this section will not apply to a new
    motor vehicle which is otherwise subject to the
    provisions of title 44, chapter 9, article 5 [the
    Lemon Law]. . . .    When the parties have so agreed,
    then for the purposes of title 44, chapter 9, article
    5, the lessee shall be deemed the consumer of the
    motor vehicle, with the lessor having all the rights
    of a lienholder in such motor vehicle.
    A.R.S. § 47-2A517(F).          Subsection F recognizes that although
    leases may be “otherwise subject” to the Lemon Law, the remedies
    provided    in   section    44-1263(A)    are,      as   a   practical   matter,
    simply not available to the lessee.                  As the latter part of
    subsection F makes clear, for such remedies to be available, the
    lessee and lessor have to be made the functional equivalents of
    a consumer and a lienholder.           There is no “conspicuous writing”
    evidencing such an agreement in this case.
    ¶44         Furthermore, a proponent of the amendment noted that
    “unlike a buyer, a lessee normally does not have the right to
    sell   or   otherwise      alienate    title   to    the     leased   goods,   an
    important reason why it may often be inappropriate to allow the
    lessee the remedies available under the lemon law.”                   State Bar
    of Ariz., Corp., Banking and Commercial Loan Section, Comm. on
    U.C.C. Article 2A, Report of the Comm. on Article 2A (Oct. 1,
    1991) (on file with Ariz. Legislative Council) (related to H.B.
    2421, Fortieth Legislature, Second Regular Sess.)                 Accordingly,
    - 19 -
    unless the lessor and lessee have expressly provided in writing
    to    permit       the   lessee   “to   ‘sell’    the    vehicle    back   to    the
    manufacturer or other responsible party or to exercise other
    remedies under the lemon law,” a lessee has no remedy under the
    Lemon Law.         Because Parrot and Pitre did not expressly provide
    for   such     a    contingency,    Parrot’s     claim   under     the   Lemon   Law
    fails.
    V
    ¶45            For the foregoing reasons, we vacate the decision of
    the court of appeals and affirm the summary judgment entered by
    the superior court.
    __________________________________
    Michael D. Ryan, Justice
    CONCURRING:
    _________________________________________
    Ruth V. McGregor, Chief Justice
    _________________________________________
    Rebecca White Berch, Vice Chief Justice
    _________________________________________
    Andrew D. Hurwitz, Justice
    _________________________________________
    W. Scott Bales, Justice
    - 20 -