Lemon Laws

AuthorJeffrey Wilson
Pages83-87

Page 83

Background

A "lemon law" is a consumer protection statute intended to provide a specific remedy for defects in the quality or function of motor vehicles. The term describes a defective vehicle as a "lemon." There is one main federal law covering such purchases, but it is state law that covers the vast majority of complaints. Although state laws vary in types of vehicles covered, they generally include all new vehicles and (with more limited application) used vehicles, trucks, motorcycles, and non-living areas of motor homes.

To qualify for protection under most state lemon laws, a purchaser must prove that (1) during the purchased car's warranty period, the purchaser reported a malfunction or defect to the manufacturer or authorized representative (e.g., the dealership); (2) the defect or malfunction was serious and substantially impaired the car's usefulness, functionality, and value; and (3) the manufacturer or dealer was unable to correct the defect/malfunction after a specified number of attempts (usually three or four) within a specified period of time.

Magnuson-Moss Warranty Act

The federal Magnuson-Moss Warranty Act protects buyers of products that cost more than $25 and come with express written warranties. It covers all products that malfunction or do not perform as they should. The Act's purview includes vehicles, guaranteeing that certain minimum warranties are met and that the provisions of the vehicle warranties are disclosed prior to purchase. Under the Act, which includes vehicles that are "lemons," purchasers must be given the choice of either a refund or a replacement if the products are defective. State laws further modify this protection by providing conditions under which a manufacturer has the opportunity to repair the defect before being required to refund or replace it.

State Lemon Laws

State laws differ greatly in the scope of covered "vehicles," but most allow only three or four unsuccessful attempts to repair the product (unless the defect could cause death or serious injury). Clearly, the intent of the various provisions is to limit the number of days a purchaser is deprived of use of the purchased product, and the number of times it must be returned for repair of the same defect.

In the interest of fairness, many states allow an off-set for a consumer's use of a vehicle prior to making a lemon law claim, either by number of miles used or length of time the vehicle performed without defect. Finally, some states do permit the recovery of reasonable attorney's fees if the filing of a lemon law action is necessary.

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ALABAMA: Covers vehicles for 12,000 miles or one year. Excludes motor homes or vehicles weighing more than 10,000 lbs. Must have been three repair attempts or 30 calendar days out of service.

ALASKA: Covers vehicles for their express warranty period or one year, whichever occurs first. Excludes tractors, farm vehicles, motorcycles, and off-road vehicles. Must have been three repair attempts or 30 calendar days out of service.

ARIZONA: Covers vehicles for their express warranty period or two years or 24,000 miles, whichever occurs first. Vehicles under 10,000 lbs. as well as self-propelled vehicles and a chassis of a motor home are all covered under the statute. Must have been four repair attempts or 30 calendar days out of service.

ARKANSAS: Covers vehicles two years or 24,000 miles, whichever occurs last. Covers leased as well as purchased vehicles. Excludes the living facilities of a mobile home or vehicles over 10,000 lbs. Excludes motorcycles and mopeds. Must have been one repair attempt for a defect that may cause death or serious injury; otherwise, three repair attempts or 30 calendar days out of service.

CALIFORNIA: Covers vehicles (including a dealer-owned vehicle used as a "demonstrator") for 18 months or 18,000...

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