Learn about lemon laws

The Lemon Laws are a group of state consumer protection statutes that provide you with certain rights if you have purchased or leased a defective automobile or other motor vehicle covered by a manufacturer's warranty. Closely related to the Lemon Laws are two other statues: the Magnuson-Moss Act (known as the Federal Warranty Law) and the Uniform Commercial Code (known as the UCC). These consumer protection statutes also protect purchasers of lemons and can be used in conjunction with or as an alternative to the Lemon Laws.

Lemon Law Overview

Put simply, the Lemon Laws provide that if you purchase (and in many states, lease) a new or used car or other motor vehicle covered by a manufacturer's warranty that proves to be defective, and the manufacturer cannot fix it despite repeated efforts to do so (within a specified time limit that varies from state to state), or if the vehicle is out of service for a specified time period (typically 30 days) due to its defects, you are entitled to a wide range of damages, including:

Money damages
A refund of your purchase price
A new car

Additionally, almost all of the Lemon Laws (as well as the Federal Warranty Law) have a fee shifting mechanism that provides that if you win your case, the manufacturer or dealer that sold you your lemon is required to pay your attorneys' fees.

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Lemon Law Statutes

State Lemon Laws
Each of the 50 U.S. states has its own Lemon Law statute. Although the protections of each state's statute differ, the typical state Lemon Law statute provides relief to a consumer with a defective motor vehicle covered by a warranty if either:

The dealer or manufacturer cannot properly repair a particular defect in the vehicle after a reasonable number of repair attempts (usually at least three);
The vehicle cannot be used for at least 30 days due to defects in the vehicle; or
The dealer or manufacturer cannot repair a defect that is a serious safety hazard.

Generally, a defective vehicle is a vehicle with a problem or condition that substantially impairs its use, value, or safety to the consumer and does not conform to the express warranty. Typically, the period during which the Lemon Laws apply are relatively short; the defects and subsequent repair attempts (or out-of-service period) typically must occur during the first two-years or 24,000 miles that you own the vehicle. However, a number of states have even shorter time periods. Additionally, most states have notification and trigger requirements, such as requiring the consumer to give registered mail notice to the manufacturer of the defects and giving the dealer an opportunity to repair the vehicle. Additionally, many states require that Lemon Law claims be resolved through an arbitration process.

Many state Lemon Law statues also apply to leased vehicles and used vehicles purchased while under the manufacturer's original warranty. A number of state Lemon Laws also apply to vehicles other than passenger cars. Depending upon the consumer's state of residence, or the state in which the consumer purchased the vehicle, Lemon Laws may apply to:

Trucks
SUV's
Minivans
RV's
Passenger Vans
Motorcycles
Boats
Other consumer products (such as computers)

There are a number of powerful remedies available under the Lemon Laws. Typically, if the manufacturer cannot repair the vehicle, the consumer can either require the manufacturer to replace the vehicle, or he or she can force the manufacturer to take back the vehicle and refund the purchase price plus incidental damages, such as all fees, towing charges, repair costs, alternative transportation costs and other costs incurred by the consumer as a result of the defects in the vehicle. Another important remedy available under most Lemon Laws is attorneys' fees. In most states, if you prevail in a Lemon Law lawsuit, you won't have to pay any attorneys' fees-the auto manufacturer that sold you your lemon is required to pay your attorneys' fees.

The defendant auto manufacturer can assert various defenses to a Lemon Law claim. The typical statute provides that the manufacturer is not liable if it can prove that the defects in question were caused by abuse, neglect, or the unauthorized modification or alteration of a motor vehicle by anyone other than the manufacturer, its agent, or its authorized dealer. In other words, if the consumer damages his or her own vehicle, or the defects were caused by modifications or alterations performed by a third party, then the manufacturer may not be liable.

Of course, this is just a summary of the typical Lemon Law scheme; there are significant variations among the various state statutes. If you'd like to review your own state's Lemon Law, please click here. Ready to speak to one of our attorneys? You can contact us via e-mail or toll free at 1 (866) LEMON-01. If you'd like to get started right away, you can take our online "Do I Have a Lemon?" test to see if you may have a valid Lemon Law claim.

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The Magnuson Moss Act
The Magnuson-Moss Warranty Act is the federal law that governs consumer product warranties. Passed by Congress in 1975, the Act requires manufacturers and sellers of consumer products to provide consumers with detailed information about warranty coverage. In addition, it affects both the rights of consumers and the obligations of warrantors under written warranties.

Although the Act does not require an automobile manufacturer to provide purchasers with a warranty, if a warranty is provided, the Act provides many protections for the consumer. The Act makes it easier for purchasers to sue for breach of warranty by making breach of warranty a violation of federal law, and by allowing consumers to recover court costs and reasonable attorneys' fees.

The Act is often useful in a lemon situation where, for some reason, a state Lemon Law claim is unavailable or otherwise unfavorable. For example, unlike the relatively short period provided to consumers under most Lemon Laws, under Magnuson Moss, you may bring a claim for breach of warranty after the warranty period has expired as long as the problems occurred during the warranty period. Additionally, although some Lemon Laws limit their coverage to a narrow group of motor vehicles, Magnuson Moss applies to virtually all consumer products. Magnuson Moss may also apply if you purchased or leased a used vehicle without a manufacturer's warranty, or if the vehicle is covered by a service contract or other form of extended warranty.

Of course, this is just a summary of the Magnuson Moss Act; if you'd like to read the actual text of the statute, please click here. The Act is very complex, however, and you should consult an experienced attorney if you think you may have a claim. If you'd like to speak to us about your problem, you can contact us via e-mail or toll free at 1 (866) LEMON-01. If you'd like to get started right away, you can take our online "Do I Have a Lemon?" test to see if you may have a valid Lemon Law or other claim.

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The Uniform Commercial Code
The Uniform Commercial Code or UCC has been enacted in all 50 U.S. states. It is the primary source of law governing contracts dealing with the sale of products, including automobiles and other motor vehicles. The UCC provides an alternative legal avenue for consumers with lemon problems.

The UCC provides that the buyer of a product is entitled to "reject" (in other words, return) a product that fails in any respect to "conform" to the contract. Thus, if your new vehicle does not work as warranted by the manufacturer (your written warranty is part of your contract), you may have a claim under the UCC in addition to any other claims you may have.

The time period for rejecting a vehicle under the UCC is not unlimited. If you discover a defect in your vehicle within a reasonable inspection period, you may reject the vehicle. Unfortunately, because new cars are often technically complex, you may not know whether your vehicle conforms to the contract until long after you purchase the vehicle and problems start to arise. Thus, if after this inspection period you fail to reject the vehicle, you will be deemed to have accepted it and may have no claim under the UCC.

The length of the inspection period is not defined in the statute. The Courts decide how long the "reasonable inspection period" is based on the buyer's knowledge and experience, the buyer's difficulty in discovering the defect, and the buyer's opportunity to discover the defect.

Despite this limitation, the UCC provides that in certain instances where a buyer is deemed to have accepted goods (i.e. the "reasonable inspection period" has passed), a buyer may still revoke his acceptance of those goods where the non-conformity substantially impairs the value of the goods to him. Those instances include situations where it was difficult to discover the non-conformity or the buyer was assured that the non-conformity would be repaired. In other words, the court will excuse the buyer from not having rejected the goods where the buyer could not have reasonably done so, or where the manufacturer promised the buyer that the problems would be repaired.

What is a nonconformity that substantially impairs the value of the vehicle? It can either be a number of relatively minor defects whose cumulative total adds up to a substantial impairment, or a manufacturer's failure or refusal to repair the goods covered by its warranty.

Of course, this is just a summary of the UCC; if you'd like to read the actual text of the statute, please click here. The UCC is very complex, however, and you should consult an experienced attorney if you think you may have a claim. If you'd like to speak to us about your problem, you can contact us via e-mail or toll free at 1 (866) LEMON-01. If you'd like to get started right away, you can take our online "Do I Have a Lemon?" test to see if you have a valid Lemon Law or other claim.

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