Lemon Laws

views updated May 21 2018

5. Lemon Laws

Everyone has heard of someone who has bought a new car that was a “lemon.” The car had either one major defect that could not be repaired or numerous minor defects that were always in need of repair.

Prior to the 1970s, when consumer advocacy hit its peak and numerous laws were enacted to protect the buyers of lemons, the only recourse the purchaser had was his or her warranty. As long as the manufacturer and dealer exercised their best efforts to fix the car while it was under warranty, the owner was stuck with the lemon. After the warranty period expired, the owner paid for the repairs.

“Lemon laws,” or new car warranty laws, were enacted to place limits on what the consumer must endure should he or she purchase a lemon. Under the terms of the lemon laws, if the car cannot be fixed, the consumer must be compensated, either with a new car or with a cash refund. States are split among those that leave the decision of the specific remedy up to the consumer, manufacturer, or seller. All states now have lemon laws. In many states, the consumer has at least one year from the date of purchase to make a claim under the law. Most states allow the consumer two years or 24,000 miles, whichever comes first, to make a claim.

Table 5: Lemon Laws
State	Code Section	Title of Act	Definition of Defects	Time Limit for Manufacturer Repair	Remedies
ALABAMA	8-20 A-1, et seq.	Motor Vehicle Lemon Law Rights	Nonconformity to any applicable express warranties	24 months following delivery of vehicle or 24,000 miles, whichever comes first	Consumer’s option: replace with comparable new car or accept return of car and refund consumer full contract price and nonrefundable portions of extended warranties and services, all collateral charges, all finance charges incurred after first reported nonconformity and incidental damages; all this minus allowance for consumer’s use of nonconforming vehicle
ALASKA	45.45.300, et seq.	Motor Vehicle Warranties	Nonconformity to applicable express warranties	Term of express warranty or within 1 year from date of delivery to original owner, whichever is first	Replacement of vehicle with new, comparable one or refund full purchase price less a reasonable allowance for use of motor vehicle
ARIZONA	44-1261, et seq.	Motor Vehicle Warranties	Nonconformity to applicable express warranties of any defect/condition which substantially impairs use and value of motor vehicle	Time period of express warranty or the period of 2 yrs. or 24,000 miles, whichever is earlier	Replacement with new motor vehicle or refund to consumer of full purchase price including all collateral charges, less a reasonable allowance for consumer’s use of vehicle; maximum liability of seller is purchase price
ARKANSAS	4-90-401, et seq.	New Motor Vehicle Quality Assurance Act	Nonconformity to applicable manufacturer’s express warranty or implied warranty of any defect/condition that substantially impairs use, value, or safety of motor vehicle	24 months following delivery of vehicle or 24,000 miles, whichever comes later	Consumer’s option: replace with new motor vehicle acceptable to consumer or repurchase motor vehicle and return full purchase plus collateral and reasonably incurred incidental charges; less reasonable offset for use and physical damage
CALIFORNIA	Civ. §1793.22	Tanner Consumer Protection Act	Nonconformity to applicable express warranties which substantially impairs the use, value, or safety of motor vehicle	18 months from date of delivery to buyer or 18,000 miles, whichever occurs first	Replace the goods or reimburse buyer in an amount equal to the purchase price paid by the buyer, less the amount directly attributable to the use by the buyer prior to the discovery of the nonconformity

State	Code Section	Title of Act	Definition of Defects	Time Limit for Manufacturer Repair	Remedies
COLORADO	42-10-101, et seq.	Motor Vehicle Warranties	Nonconformity to express warranties which substantially impairs use and market value of motor vehicle	Warranty period or within 1 year following date of original delivery of vehicle to consumer, whichever is the earlier date	Manufacturer’s option: replace with comparable vehicle or accept return of vehicle from consumer and refund full purchase price, including sales tax, fees and similar governmental charges, less a reasonable allowance for consumer’s use
CONNECTICUT	42-179	New Automobile Warranties	Nonconformity to applicable express warranties which substantially impairs the use, safety, or value of motor vehicle	Repair defects covered by written warranties within 2 years following original delivery or first 24,000 miles, whichever is first	Replace vehicle with new vehicle acceptable to consumer or refund (upon accepting return of vehicle) the (1) full contract price including but not limited to charges for undercoating, dealer prep, transportation, and installed options; (2) all collateral charges, including but not limited to sales tax, license and regulation fees, and similar government charges; (3) all finance charges after he first reports conformity and during any subsequent period vehicle is out of service due to repair; (4) all incidental damages, less a reasonable allowance for consumer’s use
DELAWARE	Tit. 6 §5001, et seq.	Automobile Warranties	Nonconformity to any applicable express warranty which substantially impairs the use, value, or safety of motor vehicle	Term of warranty or during period of 1 year following date of original delivery to consumer, whichever is earlier	Consumer’s option: replace with comparable new automobile acceptable to consumer or repurchase and refund full purchase, including all credits and allowances for any trade-in vehicle
DISTRICT OF COLUMBIA	50-501, et seq.	Automobile Consumer Protection Act of 1984	Nonconformity to all warranties which results in significant impairment of vehicle	First 18,000 miles of operation or during period of 2 years following date of delivery to original purchaser, whichever is earlier	Consumer’s option: replace with comparable vehicle or accept return and refund full purchase price, including all sales tax, license fees, registration fees, and any similar governmental charges; less reasonable allowance for use

State	Code Section	Title of Act	Definition of Defects	Time Limit for Manufacturer Repair	Remedies
FLORIDA	681.10, et seq.	Motor Vehicle Warranty Enforcement Act	Nonconformity to warranties which significantly impair the use, value, or safety of motor vehicle	24 months	Consumer’s unconditional option: Replace with vehicle acceptable to consumer or repurchase vehicle and refund to consumer full purchase price, including all reasonably incurred collateral and incidental charges, less reasonable offset for use
GEORGIA	10-1-780, et seq.	Motor Vehicle Warranty Rights Act	Nonconformity to applicable express warranties which significantly impair the use, value, or safety of motor vehicle	Within 12 months following purchase of vehicle or 12,000 miles following purchase of vehicle, whichever occurs first	Consumer’s option: replace with identical or reasonably equivalent vehicle including payment of all collateral charges which consumer/ lessor will incur a second time, less reasonable offset for use or repurchase and refund purchase price plus all collateral charges and incidental costs, less reasonable offset for use
HAWAII	481I-1, et seq.	Motor Vehicle Express Warranty Enforcement (Lemon Law)	Nonconformity to all applicable express warranties that substantially impairs the use and market value of vehicle	Express warranty period, 2 years after original delivery or first 24,000 miles, whichever occurs first	Replace with comparable vehicle or accept return and refund the full purchase price including all collateral charges, excluding interest, and less a reasonable allowance for consumer’s use of vehicle
IDAHO	48-901, et seq.	Not specified	Nonconformity to applicable express warranties which significantly impairs use, value, or safety of vehicle	2 year period following date of original delivery of vehicle to buyer or first 24,000 miles or period of express warranty, whichever is earlier	Consumer’s option: replace with comparable new vehicle or accept return and refund full purchase price including all collateral charges, less a reasonable allowance for buyer’s use of vehicle
ILLINOIS	815 ILCS 380/1, et seq.	New Vehicle Buyer Protection Act	Nonconformity to applicable express warranties which significantly impair the use, value, or safety of motor vehicle	Within statutory warranty period: the period of one year or 12,000 miles, whichever occurs first after date of delivery of a new vehicle to consumer	Replace with new vehicle of like model line, if available, or otherwise a comparable motor vehicle or accept return and refund consumer full purchase price of new vehicle, including all collateral charges, less a reasonable allowance for consumer use of vehicle

State	Code Section	Title of Act	Definition of Defects	Time Limit for Manufacturer Repair	Remedies
INDIANA	24-5-13-1, et seq.	Indiana Motor Vehicle Protection Act of 1988	Nonconformity to applicable express warranties which significantly impairs the use, market value or safety of motor vehicle or renders vehicle nonconforming to terms of applicable manufacturer’s warranty	If reported within term of protection: 18 months after date of delivery to buyer or 18,000 miles whichever occurs first	Consumer’s option: Replace with vehicle of comparable value, including reimbursement to buyer of any fees of transferring registration or sales tax incurred as result of replacement or refund full contract price of vehicle, including all credits and allowances for any trade-in vehicle and less reasonable allowance for use.
IOWA	322G.1, et seq.	Defective Motor Vehicles (Lemon Law)	Nonconformity to all applicable express warranties	Term of manufacturer’s written warranty or during period of 2 years following date of original delivery of a motor vehicle to consumer or first 24,000 miles, whichever is first	Replace with identical or reasonably equivalent vehicle, including collateral and incidental charges less reasonable offset for use, or refund full purchase or lease price including all collateral and reasonably incurred incidental charges, less a reasonable offset for consumer’s use
KANSAS	50-645, et seq.	Lemon Law	Nonconformity to applicable warranties which significantly impairs the use or value of motor vehicle	1 year from date of original delivery of vehicle to consumer or term of any warranties, whichever is earlier	Replace with comparable vehicle under warranty or accept return and refund full purchase price including all collateral charges, less a reasonable allowance for consumer’s use
KENTUCKY	367.840, et seq.	Defective Cars	Nonconformity to applicable express warranties which significantly impairs the use, value, or safety of the motor vehicle	First 12 months following date of delivery or first 12,000 miles, whichever is first	Consumer’s option: replace vehicle with comparable motor vehicle or accept return and refund full purchase price including amount paid for vehicle, finance charge, all sales tax, license fee, registration fee, any similar governmental charges, plus all collateral charges, less reasonable offset for use
LOUISIANA	51:1941, et seq.	Louisiana Lemon Law	Nonconformity to applicable express warranties	Term of warranty or during period of 1 year following date of original delivery, whichever is earlier	Manufacturer’s option: Replace with comparable new motor vehicle or accept return and refund full purchase price plus any amounts paid by the consumer at the time of sale and all collateral costs, less a reasonable allowance for use

State	Code Section	Title of Act	Definition of Defects	Time Limit for Manufacturer Repair	Remedies
MAINE	10-1161, et seq.	Maine Lemon Law	Nonconformity to all express warranties which significantly impairs use, safety, or value of vehicle	Term of express warranties within a period of 3 years following date of original delivery to consumer, or during first 18,000 miles, whichever is earlier date	Buyer’s option: replace with comparable new vehicle or accept return of vehicle and refund full purchase price (or in case of lease, payments made so far) including any paid financing charges, all collateral charges, and incidentals, less reasonable allowance for use
MARYLAND	Com. Law §§14-1501, et seq.	Automotive Warranty Enforcement Act	Nonconformity to all applicable express warranties which significantly affects use or market value of vehicle	Warranty period equal to or greater than first 15,000 miles or first 15 months following date of original delivery of vehicle to consumer	Consumer’s option: replace with comparable motor vehicle acceptable to customer or accept return and refund full purchase price including all excise tax license fees, registration fees, and any similar governmental charges, less reasonable allowance for consumer’s use (not to exceed 15% of purchase price) and for damage not attributable to normal wear
MASSACHUSETTS	Ch. 90§7N½	Not specified	Nonconformity to applicable express warranties or implied warranty which significantly affects use, market value, or safety of vehicle	Term of protection: one year or 15,000 miles of use from date of original delivery	Manufacturer’s option: replace with vehicle acceptable to consumer or accept return and refund full contract price including all credits and allowances for any trade-in vehicle, less a reasonable allowance for use

State	Code Section	Title of Act	Definition of Defects	Time Limit for Manufacturer Repair	Remedies
MICHIGAN	257.1401, et. seq.	Warranties on New Motor Vehicles Act	Nonconformity to manufacturer’s express warranties that significantly affects use or value of vehicle	Term of manufacturer’s express warranty or 1 year from date of delivery of new motor vehicle to original consumer, whichever is earlier	Manufacturer’s option: replace with a comparable replacement vehicle currently in production and acceptable to consumer or accept return of vehicle and refund full purchase price including cost of any options or other modifications installed or made by or for the manufacturer, less a reasonable allowance for consumer’s use of vehicle, not to exceed 10¢ per mile driven at time of initial report of same defect or conditions or 10% of purchase price, whichever is less, and less an amount equal to any appraised damage that is not attributable to normal wear and tear; consumer has right to demand refund
MINNESOTA	325F.665	Not specified	Nonconformity to all applicable express warranties which significantly affects the use or market value of vehicle	During term of applicable express warranty or during period of 2 years following date of original delivery of vehicle to consumer, whichever is earlier	Buyer’s option: Replace with comparable vehicle or accept return and refund to consumer full purchase price including cost of any options or other modifications made/installed/ arranged by manufacturer (or agents or dealer) within 30 days of original delivery, and all other charges, less a reasonable allowance for consumer use of vehicle
MISSISSIPPI	63-17-151, et seq.	Motor Vehicle Warranty Enforcement Act	Nonconformity to all applicable express warranties which significantly affects the use, market value, or safety of vehicle	Term of express warranties or during period of 1 year following date of original delivery of motor vehicle to consumer, whichever period expires earlier	Consumer’s option: replace with comparable vehicle acceptable to consumer or accept return and refund full purchase price, including all reasonably incurred collateral charges, less a reasonable allowance for consumer’s use
MISSOURI	407.560, et seq.	New Motor Vehicle Warranties, Nonconformity (Lemon Law)	Nonconformity to all applicable express warranties which significantly affects the use, market value, or safety of vehicle	Term of express warranties or during 1 year following date of original delivery to consumer, whichever expires earlier	Manufacturer’s option: replace with comparable new vehicle acceptable to consumer or take title from consumer and refund full purchase price, including all reasonably incurred collateral charges, less reasonable allowance for use

State	Code Section	Title of Act	Definition of Defects	Time Limit for Manufacturer Repair	Remedies
MONTANA	61-4-501, et seq.	Not specified	Nonconformity to all applicable express warranties which significantly affects the use, market value, or safety of vehicle	Warranty period within 2 years after date of original delivery to consumer or during first 18,000 miles of operation, whichever is earlier; however, if consumer notifies manufacturer in writing of nonconformity within warranty, manufacturer must fix regardless of expiration of warranty	Manufacturer’s option: replace with new vehicle of same model and style and of equal value unless for reasons of lack of availability such replacement is impossible, in which case it shall be replaced with vehicle of comparable market value or accept return and refund full purchase price plus reasonable collateral and incidental damages, less a reasonable allowance for consumer’s use of vehicle
NEBRASKA	60-2701, et seq.	Not specified	Nonconformity to all applicable express warranties which significantly affects the use or market value of vehicle	Term of such express warranties or during period of 1 year following date of original delivery of new vehicle to consumer, whichever is earlier	Replace with comparable vehicle or accept return and refund full purchase price including all sales tax, license fees, registration fees, and any similar government charges, less a reasonable allowance for consumer’s use
NEVADA	597.600, et seq.	Not specified	Nonconformity to all applicable express warranties which significantly affects the use or market value of vehicle	Before expiration of manufacturer’s express warranties or no later than 1 year after date of delivery to original buyer, whichever is earlier	Replace with comparable vehicle of same model having same features; if vehicle cannot be delivered within reasonable time, then a comparable vehicle substantially similar to replaced vehicle or accept return and refund full purchase price including all sales tax, license fees, registration fees, and other similar governmental charges, less a reasonable allowance for consumer’s use

State	Code Section	Title of Act	Definition of Defects	Time Limit for Manufacturer Repair	Remedies
NEW HAMPSHIRE	357-D:1, et seq.	Not specified	Nonconformity to all applicable express warranties or implied warranties which significantly affects the use or market value of vehicle	Term of express/ implied warranty or within 1 year following date of original delivery, whichever is earlier	Within 30 days after an order by the New Hampshire new motor vehicle arbitration board, the manufacturer shall at consumer’s option replace the motor vehicle with a new motor vehicle or accept return and refund full purchase price and all credits and allowances for trade-in/down payment, license fees, finance charges, credit charges, registration fees and other similar charges and incidental and consequential damages less a reasonable allowance for use.
NEW JERSEY	56:12-29, et seq.	Not specified	Nonconformity to express warranties which significantly affects the use, market value, or safety of vehicle	Term of warranty or during period of 1 year following date of original delivery to consumer, or 12,000 miles of operation, whichever is earlier	Option of consumer: accept return and refund full purchase price including any stated credit/allowance for consumer’s used motor vehicle, cost of any options/ other modifications arranged, installed/ made by manufacturer within 30 days after date of original delivery and sales tax, license and registration fees, finance charges and other incidental fees less a reasonable allowance for use
NEW MEXICO	57-16A-1, et seq.	Motor Vehicle Quality Assurance Act	Nonconformity to all applicable express warranties which significantly affects the use or market value of vehicle	Term of express warranties or 1 year following date of original delivery, whichever is earlier	Replace with comparable vehicle or accept return and refund full purchase price including all collateral charges, less a reasonable allowance for consumer’s use of vehicle

State	Code Section	Title of Act	Definition of Defects	Time Limit for Manufacturer Repair	Remedies
NEW YORK	Gen. Bus. §198-a	New Car Lemon Law	Nonconformity to all express warranties	First 18,000 miles or during period of 2 years following date of original delivery, whichever is earlier reporting of nonconformity by consumers	Consumer’s option: replace vehicle with comparable motor vehicle or accept return and refund full purchase price, or if applicable, the lease price and any trade-in allowance plus fees and charges less reasonable allowance for consumer’s use in excess of first 12,000 miles pursuant to mileage deduction formula and a reasonable allowance for any damage not attributable to normal wear and improvements; vehicle must be sold and registered in New York
NORTH CAROLINA	20-351, et seq.	New Motor Vehicles Warranties Act	Nonconformity to all applicable express warranties which significantly affects the value of vehicle	For period of 1 year or term of express warranties, whichever is greater, following date of original delivery of vehicle to consumer; express warranties for a new motor vehicle shall remain in effect at least 1 year or 12,000 miles; can occur no later than 24 months or 24,000 miles following original delivery	Consumer’s option: replace with comparable new vehicle or accept return and refund full contract price, all collateral charges, all finance charges incurred since reporting nonconformity, and any incidental damages and monetary consequential damages, less reasonable allowance for consumer’s use
NORTH DAKOTA	51-07-16, et seq.	Not specified	Nonconformity to all applicable express warranties which significantly affects the use or market value of vehicle	Term of express warranties or during period of 1 year following date of original delivery to consumer, whichever is earlier	Replace with comparable vehicle or accept return and refund full purchase price, including all collateral charges, less reasonable allowance for consumer’s use
OHIO	1345.71, et seq.	Nonconforming New Motor Vehicles Law	Nonconformity to express warranty of the manufacturer or distributor which substantially impairs the use, value, or safety of a motor vehicle	1 year following date of original delivery or during first 18,000 miles, whichever is earlier	Consumer’s option: replace with new vehicle acceptable to consumer or accept return of vehicle from consumer and refund full purchase price, all collateral charges, all finance charges, and all incidental damages

State	Code Section	Title of Act	Definition of Defects	Time Limit for Manufacturer Repair	Remedies
OKLAHOMA	15 §901	Not specified	Nonconformity to any applicable express warranties which significantly affects the use or market value of vehicle	Term of express warranties or during 1 year following date of original delivery to consumer, whichever is earlier	Replace with new vehicle or accept return and refund full purchase price including all taxes, license, registration fees, and all similar governmental fees, excluding interest, less a reasonable allowance for consumer’s use
OREGON	646.315, et seq.	Not specified	Nonconformity to applicable manufacturer’s express warranties which significantly affects the use or market value of vehicle	During period of 1 year following date of original delivery of motor vehicle to consumer or during period ending on date on which mileage reaches 12,000 miles, whichever is earlier	Replace with new motor vehicle or accept return and refund full purchase/lease price paid, including taxes, license and registration fees, and any similar collateral charges, excluding interest, less a reasonable allowance for consumer’s use of vehicle
PENNSYLVANIA	Tit. 73 §§1951, et seq.	Automobile Lemon Law	Nonconformity to warranties which significantly affects the use, market value, or safety of vehicle	1 year following date of actual delivery to consumer, within first 12,000 miles of use or during time of the warranty, whichever may first occur	Purchaser’s option: replace with comparable vehicle of equal value or accept return and refund full purchase price, including all collateral charges, less a reasonable allowance for purchaser’s use not exceeding 10¢ per mile or 10% of purchase price, whichever is less
RHODE ISLAND	31-5.2-1, et seq.	Not specified	Nonconformity to applicable express warranties or implied warranties that substantially impairs use, value, or safety	Term of protection equals 1 year or 15,000 miles from date of original delivery, whichever comes first	Consumer’s option: replace with comparable new vehicle in good working condition or accept return and refund full contract price of vehicle including all credits and allowances for any trade-in vehicle, less a reasonable allowance for use
SOUTH CAROLINA	56-28-10, et seq.	Not specified	Nonconformity to all applicable express warranties which significantly affects the use, safety, or market value of vehicle	Within 1 year of purchase or first 12,000 miles of operation, whichever occurs first and if it is reported during terms of express warranty	Manufacturer’s option: replace with comparable vehicle or accept return and refund full purchase price as delivered including applicable finance charges, sales taxes, license fees, registration fees, and any other similar governmental charges, less a reasonable allowance for consumer’s use of vehicle

State	Code Section	Title of Act	Definition of Defects	Time Limit for Manufacturer Repair	Remedies
SOUTH DAKOTA	32-6D-1, et seq.	Not specified	Nonconformity to any express warranty which significantly impairs the use, value, or safety of vehicle	Reported within lemon law rights pd.—one year after date of original delivery of vehicle or first 12,000 miles whichever occurs earlier; however, obligation to repair does not extend beyond period of two years following delivery or 24,000 miles whichever occurs first	Consumer’s option: replace with comparable vehicle or accept return and refund full contract price including all incidental charges and fees
TENNESSEE	55-24-201, et seq.	Not specified	Nonconformity to all applicable express warranties	Term of applicable warranties or 1 year following date of original delivery of vehicle to consumer, whichever comes first	Replace with comparable vehicle or accept return and refund full purchase price (cost paid by consumer including all collateral charges, less a reasonable allowance for use)
TEXAS	Occ. Code §2301.601, et seq.	Not specified	Nonconformity to all applicable express warranties which significantly affects the use or market value of vehicle	Term of such express warranties within one year of purchase or first 12,000 miles whichever occurs first	Replace with comparable motor vehicle or accept return and refund full purchase price less a reasonable allowance for owner’s use and any other allowances or refunds payable to owner
UTAH	13-20-1, et seq.	New Motor Vehicles Warranties Act	Nonconformity to all applicable express warranties which significantly affects the use, safety, or market value of vehicle	Term of express warranties or 1 year following date of original delivery of vehicle to consumer, whichever is earlier	Replace with comparable new vehicle or accept return and refund full purchase price, including all collateral charges, less a reasonable allowance for consumer’s use

State	Code Section	Title of Act	Definition of Defects	Time Limit for Manufacturer Repair	Remedies
VERMONT	Tit. 9 §4171, et seq.	Not specified	Nonconformity to applicable manufacturer’s express warranties which significantly affects the use, safety, or market value of vehicle	Term of warranty	Consumer’s option: replace with new vehicle from same manufacturer of comparable worth to the same make and model with all the options and accessories and with appropriate adjustments being allowed for any model year differences or accept return and refund full purchase price as indicated in purchase contract and all credits and allowances for any trade-in or down payment, licensing fees, finance charges, credit charges, registration fees and any similar charges, and incidental and consequential damages, less reasonable allowance for use
VIRGINIA	59.1-207.9, et seq.	Virginia Motor Vehicle Warranty Enforcement Act	Nonconformity to all warranties which significantly affects the use, safety, or market value of vehicle	Manufacturer’s warranty period or lemon law rights period ending 18 months after date of original delivery to consumer of new motor vehicle	Replace with comparable vehicle acceptable to consumer or accept return and refund full purchase price, including all collateral charges, and incidental damages, less a reasonable allowance for consumer’s use of vehicle up to first notice of nonconformity given
WASHINGTON	19.118.005, et seq.	Not specified	Nonconformity to the Warranty which significantly affects the use, value, or safety of the vehicle	Term of the warranty period (period ending 2 years after date of original delivery or first 24,000 miles, whichever is first) or period of coverage of applicable manufacturer’s written warranty, whichever is less	Consumer’s option: replace with identical or reasonably equivalent vehicle including any service contract, undercoating, rustproofing, and factory or dealer installed options. Manufacturer responsible for sales tax, license and registration fees. Compensation for reasonable offset for use to be paid by consumer to manufacturer; or repurchase vehicle, manufacturer shall refund to consumer the purchase price, all collateral charges and incidental costs, less a reasonable offset for use

State	Code Section	Title of Act	Definition of Defects	Time Limit for Manufacturer Repair	Remedies
WEST VIRGINIA	46A-6A-1, et seq.	Not specified	Nonconformity to all applicable express warranties which significantly affects the use or market value of vehicle	Term of express warranties or during 1 year following date of original delivery of vehicle to consumer, whichever is later date	Repair or replace with comparable new vehicle which does conform to the warranties
WISCONSIN	218.0171	Not specified	Nonconformity to applicable express warranties which significantly affects the use, safety, or market value of vehicle	Term of warranty or 1 year after first delivery of motor vehicle to consumer, whichever is sooner	Consumer’s option: accept return and replace with comparable new vehicle and refund any collateral costs or accept return and refund full purchase price plus any sales tax, finance charge, amount paid by the consumer at point of sale, and collateral costs, less a reasonable allowance for use
WYOMING	40-17-101	Not specified	Nonconformity to applicable express warranties which significantly affects the use or market value of vehicle	1 year following original delivery of vehicle to consumer; if reports within 1 year, the repairs shall be made even if the 1 year period has expired	Replace with new or comparable vehicle of same type and similarly equipped or accept return and refund full purchase price including all collateral charges less a reasonable allowance for consumer’s use

National Survey of State Laws

Lemon Laws

views updated May 23 2018

Lemon Laws

Sections within this essay:

Background
Magnuson-Moss Warranty Act
State Lemon Laws
Consumer Federation of America

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.

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 miles, whichever occurs first. Excludes the living facilities of a mobile home, motorcycles, off-road vehicles. Must have been two repair attempts for a defect that may cause death or serious injury; otherwise, four repair attempts or 30 calendar days out of service.

COLORADO: Covers vehicles sold within the state and used to carry not more than ten persons for the express warranty period or one year, whichever occurs first. Excludes motor homes and motorcycles. Must have been four repair attempts or 30 business days out of service.

CONNECTICUT: Covers sold and leased vehicles for two years or 18,000 miles, whichever occurs first. Excludes agricultural tractors. Must have been four repair attempts (two if involving serious hazard) or 30 calendar days out of service.

DELAWARE: Covers purchased, leased, or registered vehicles for their express warranty period or one year, whichever occurs first. Excludes motorcycles, and living facilities of motor homes. Must have been four repair attempts or 30 business days out of service.

DISTRICT OF COLUMBIA: Covers sold or registered vehicles for two years or 18,000 miles, whichever occurs first. Excludes buses, motorcycles, motor homes and recreation vehicles. Must have been four repair attempts or 30 days out of service.

FLORIDA: Covers vehicles leased, sold, or transferred in the state for 18 months or 24,000 miles, whichever occurs first. Excludes mopeds, motorcycles, living quarters of recreation vehicles, and off-road vehicles. Must have been three repair attempts or 30 calendar days out of service.

GEORGIA: Covers both leased and purchased vehicles for their 12,000 miles or one year, whichever occurs first. Excludes motorcycles, living quarters or office/commercial spaces of motor homes, and trucks weighing more than 10,000 lbs. Must have been one repair attempt for a serious safety defect in the braking or steering systems; otherwise, three repair attempts or 30 calendar days out of service.

HAWAII: Covers vehicles (including a dealer-owned vehicle used as a "demonstrator") for their express warranty period, two years, or 24,000 miles, whichever occurs first. Excludes mopeds, motorcycles, motor scooters, and dwelling quarters of mobile homes. Must have been one repair attempt for a serious safety defect in the braking or steering systems; otherwise, three repair attempts or 30 business days out of service.

IDAHO: Covers vehicles for their express warranty period or one year, whichever occurs first. Excludes tractors, house trailers, motorcycles, and vehicles weighing more than 12,000 lbs. Must have been four repair attempts or 30 business days out of service.

ILLINOIS: Covers vehicles under 8,000 lbs. and recreation vehicles for one year or 12,000 miles, whichever occurs first. Excludes camping and travel trailers and motorcycles. Must have been four repair attempts or 30 business days out of service.

INDIANA: Covers vehicles for 18 months or 18,000 miles, whichever occurs first. Excludes conversion vans, motor homes, all tractors, motorcycles, mopeds, snowmobiles, and off-road vehicles. Must have been four repair attempts or 30 business days out of service.

IOWA: Covers purchased or leased vehicles for two years or 24,000 miles, whichever occurs first. Excludes motorcycles, mopeds, motor homes or vehicles weighing more than 10,000 lbs. Must have been one repair attempt for a defect that may cause death or serious injury; otherwise, three repair attempts plus a final attempt, or 30 calendar days out of service.

KANSAS: Covers sold and registered vehicles under 12,000 lbs. for their express warranty period or one year, whichever occurs first. Must have been four repair attempts or 10 repair attempts for different defects; otherwise, 30 calendar days out of service.

KENTUCKY: Covers vehicles purchased or leased in the state and owned by Kentucky residents for one year or 12,000 miles, whichever occurs first. Excludes conversion vans, farm vehicles, motorcycles, mopeds, motor homes, and vehicles with more than two axles. Must have been four repair attempts or 30 days out of service.

LOUISIANA: Covers sold vehicles for their express warranty period or one year, whichever occurs first. Excludes motorcycles, motor homes, and commercial vehicles. Must have been four repair attempts or 30 calendar days out of service.

MAINE: Covers sold or leased vehicles for two years or 18,000 miles, whichever occurs first. Excludes commercial vehicles over 8,000 lbs. or business enterprises registering three or more motor vehicles. Must have been three repair attempts or 15 business days out of service.

MARYLAND: Covers purchased vehicles for 15 months or 15,000 miles; leased vehicles for 12 months or 12,000 miles, whichever occurs first. Excludes fleets of five or more vehicles, and certain motor homes. Must have been one repair attempt for a serious safety defect in the braking or steering systems; otherwise, four repair attempts or 30 calendar days out of service.

MASSACHUSETTS: Covers vehicles for oneyear or 15,000 miles, whichever occurs first. Excludes commercial vehicles, motorized bicycles, motor homes, and off-road vehicles. Must have been three repair attempts or 15 business days out of service.

MICHIGAN: Covers vehicles for their express warranty period or one year, whichever occurs first. Excludes fleets of ten or more vehicles, buses, trucks, motor homes, vans. Must have been four repair attempts or 30 business days out of service.

MINNESOTA: Covers sold or leased vehicles for their express warranty period or two years, whichever occurs first. Must have been one repair attempt for a serious safety defect in the braking or steering systems; otherwise, four repair attempts or 30 business days out of service.

MISSISSIPPI: Covers vehicles for their express warranty period or one year, whichever occurs first. Excludes motorcycles, mopeds, customized portions of motor homes, and off-road vehicles. Must have been three repair attempts or 15 business days out of service.

MISSOURI: Covers vehicles for their express warranty period or one year, whichever occurs first. Excludes commercial vehicles, motorcycles, mopeds, and RVs, except for chassis, engine, or powertrain components. Must have been four repair attempts or 30 business days out of service.

MONTANA: Covers sold vehicles for two years or 18,000 miles, whichever occurs first. Excludes trucks weighing more than 10,000 lbs., motorcycles, and living quarters of motor homes. Must have been four repair attempts or 30 business days out of service.

NEBRASKA: Covers sold vehicles for their express warranty period or one year, whichever occurs first. Excludes self-propelled motor homes. Must have been four repair attempts or 40 days out of service.

NEVADA: Covers vehicles for their express warranty period or one year, whichever occurs first. Excludes motorjhomes or off-road vehicles. Must have been four repair attempts or 30 calendar days out of service

NEW HAMPSHIRE: Covers purchased or leased vehicles under 9,000 lbs. for one year beyond their express warranty period or final repair attempt. Excludes tractors, mopeds, and off-road vehicles. Must have been three repair attempts or 30 business days out of service.

NEW JERSEY: Covers purchased, leased, or registered vehicles for whichever occurs first. Excludes living quarters of motor homes. Must have been three repair attempts or 20 calendar days out of service.

NEW MEXICO: Covers sold and registered vehicles under 10,000 lbs. miles for express warranty period or one year, whichever occurs first. Must have been four repair attempts or 30 business days out of service.

NEW YORK: Covers purchased and leased passenger vehicles for two years or 18,000 miles, whichever occurs first. Must have been four repair attempts or 30 calendar days out of service. Substantial defects must be repaired within 20 days of notice by certified mail.

NORTH CAROLINA: Covers vehicles for two years or 24,000 miles, whichever occurs first. Excludes house trailers but includes motorcycles. Must have been four repair attempts or 20 calendar days out of service during any 12 month period.

NORTH DAKOTA: Covers vehicles under 10,000 lbs. miles for their express warranty period or one year, whichever occurs first. Excludes house cars and motocycles. Must have been three repair attempts or 30 business days out of service.

OHIO: Covers vehicles for 18,000 miles or one year, whichever occurs first. Excludes business or commercial fleets registering three or more vehicles and living quarters of motor homes. Must have been one repair attempt for defect likely to cause death or serious injury or three repair attempts for same defect or 8 total repairs or 30 calendar days out of service.

OKLAHOMA: Covers vehicles under 10,000 lbs. for their express warranty period or one year, whichever occurs first. Excludes living quarters of mobile homes. Must have been four repair attempts or 45 days out of service.

OREGON: Covers sold or purchased vehicles for 12,000 miles or one year, whichever occurs first. Must have been four repair attempts or 30 business days out of service.

PENNSYLVANIA: Covers purchased and registered vehicles for one year or 12,000 miles, whichever occurs first. Excludes motor homes, motorcycles, and off-road vehicles. Must have been three repair attempts or 30 calendar days out of service.

RHODE ISLAND: Covers sold or leasedvehicles under 10,000 lbs for one year or 15,000 miles, which-ever occurs first. Excludes motorized campers. Must have been four repair attempts or 30 calendar days out of service.

SOUTH CAROLINA: Covers sold and registered non-commercial vehicles for 12,000 miles or one year, whichever occurs first. Excludes living quarters of recreational vehicles, trucks over 5,000 pounds, motorcycles, and off-road vehicles. Must have been three repair attempts or 30 calendar days out of service.

SOUTH DAKOTA: Covers vehicles for 12,000 miles or one year, whichever occurs first. Excludes tractors, farm vehicles, motorcycles, and off-road vehicles. Must have been four repair attempts plus a final attempt.

TENNESSEE: Covers Class "C" vehicles under 10,000 lbs. for their express warranty period or one year, whichever occurs first. Excludes motor and garden tractors, motor homes, motorcycles, and off-road vehicles. Must have been three repair attempts or 30 calendar days out of service.

TEXAS: Covers vehicles with two or more wheels, also covers engine transmissions and rear axles, for their express warranty period or one year, whichever occurs first. Must have been four repair attempts (two attempts for a serious hazard) or 30 days out of service.

UTAH: Covers new vehicles under 12,000 lbs. for their express warranty period or one year, whichever occurs first. Excludes truck and farm tractors, living quarters of motor homes, motorcycles, and off-road vehicles. Must have been four repair attempts or 30 calendar days out of service.

VERMONT: Covers purchased or registered vehicles for their express warranty period only. Excludes tractors, highway-building equipment and road-making appliances, motorcycles, mopeds, snowmobiles, and the living quarters of RVs. Must have been three repair attempts or 30 calendar days out of service.

VIRGINIA: Covers purchased and lease-purchased vehicles for 18 months. Must have been three repair attempts or 30 calendar days out of service, or one attempt for a serious defect.

WASHINGTON: Covers leased or purchased vehicles for two years or 24,000 miles, whichever occurs first. Excludes buses, vehicles in fleets of ten or more, living quarters of motor homes, and trucks weighing more than 19,000 lbs. Must have been two repair attempts for the same serious safety defect, one of which occurred during the manufacturer's warranty period; otherwise, four repair attempts or 30 calendar days out of service, 15 of which occurred during the manufacturer's warranty period.

WEST VIRGINIA: Covers vehicles for their express warranty period or one year, whichever occurs first. Must have been three repair attempts (or one attempt if it involved a condition likely to cause death or serious bodily injury) or 30 calendar days out of service.

WISCONSIN: Covers purchased, leased, or transferred vehicles for their express warranty period or one year, whichever occurs first. Excludes mopeds, semi-trailers, or trailers designed to be used with trucks or truck-tractors. Must have been four repair attempts or 30 days out of service.

WYOMING: Covers sold or registered vehicles under 10,000 lbs. for one year. Must have been three repair attempts or 30 business days out of service.

"State Lemon Law Summary." Available at http://www.autopedia.com.

Consumer Federation of America

1424 16th St. NW, Suite 604
Washington, DC 20036 USA
Phone: (202) 387-6121
Fax: (202) 265-7989
URL: www.cfa.org

Gale Encyclopedia of Everyday Law

Lemon Laws

views updated May 29 2018

LEMON LAWS

Laws governing the rights of purchasers of new and used motor vehicles that do not function properly and which have to be returned repeatedly to the dealer for repairs.

Laws in all 50 states and the District of Columbia provide remedies to purchasers of defective new vehicles, often called lemons. These so-called lemon laws protect consumers from substantial defects occurring within a specified period after purchase and provide that a manufacturer must either replace the lemon with a new, comparable car or refund the full purchase price. According to the consumer advocate group Consumers for Auto Reliability and Safety, automakers repurchase 50,000 vehicles a year, about .33 percent of the 15 million vehicles sold annually.

California and Connecticut passed the first lemon laws in 1982, in response to dissatisfaction with remedies in state sales laws and the 1975 federal magnuson-moss warranty act (15 U.S.C.A. § 2301 et seq.). Magnuson-Moss and other laws previously in effect provided remedies for the breach of full warranties, but the automobile industry typically provided only limited warranties. Other states quickly followed California and Connecticut in an effort to provide relief to new-car buyers under limited warranties.

Lemon laws typically provide consumer protection for owners of new cars, trucks, and vans. A significant minority of states also provide coverage for leased vehicles. Many states specify coverage for one year from delivery or for the written warranty period, whichever is shorter; a handful of states mandate coverage for the shorter of two years or 24,000 miles.

Lemon laws cover only substantial defects, meaning defects that substantially impair the use, value, or safety of the vehicle. If a defect is safety related, the manufacturer is usually allowed just one chance to fix it before the owner may invoke the lemon law; if a defect impairs the use or value of a vehicle, the manufacturer is usually permitted three or four attempts to repair it. A consumer may also invoke the law if a vehicle is out of service for a certain number of days because of any combination of substantial defects. The time out of service is cumulative, not consecutive, and ranges from 15 to 40 days. Paint defects, rattles, cosmetic flaws, jumpy suspensions, premature wear of the tires, and the like are not normally considered substantial defects.

The purchaser of a new car typically returns to the dealership to have repair work done. Therefore, the dealer knows that a defect exists. However, lemon laws generally require that the purchaser give the manufacturer written notification of a problem within a specific time frame. The manufacturer then has a final opportunity to repair the vehicle before a lawsuit may be commenced. It has been argued that this notice requirement is unduly burdensome for consumers, who are often unaware of it. Consumer advocates have also argued that such notice is redundant. A substantial defect means that the defect would be covered by the automobile's warranty. If a car requires repair for an item covered by warranty, it is done at no cost to the consumer. The manufacturer reimburses the dealer for the warranty repair; the manufacturer would have notice of the defect when the dealer requests reimbursement from the manufacturer for the repair.

After a consumer invokes the lemon law, the parties arbitrate the matter in an attempt to resolve it. Some statutes provide for a state-run arbitration process. Others provide for arbitration provided by private groups such as the Better Business Bureau or even a manufacturersponsored panel. Arbitration is an informal trial with a panel or individual deciding the matter. Each side tells its story. Mechanics might testify on behalf of either side. Lawyers are not required but may increase a consumer's likelihood of prevailing or settling prior to the arbitration hearing.

According to one report, fewer than 10 percent of the cases handled by a manufacturersponsored panel are decided in the consumer's favor. Consumers tend to fare slightly better in cases handled by the Better Business Bureau and fare best of all under state-run arbitration procedures. An early 1990s survey of three states with state-run arbitration found that consumers were awarded a full refund or replacement car in at least half of the cases. Many states make the arbitrator's decision binding on the manufacturer but not on the consumer.

During arbitration automakers frequently argue that the consumer abused the car or failed to service the vehicle properly or that the defect does not substantially affect the car's safety or value. For this reason consumers should save all documentation about a vehicle and should keep meticulous records of all service problems. One owner of a top-of-the-line luxury car succeeded in arbitration for a whining noise in the air conditioner because an advertising brochure promised that the car would be a soothing and calming haven.

States vary on whether the manufacturer or the consumer chooses the remedy. A lemon owner is entitled to a refund of the vehicle's purchase price, including sales tax, license, and fees, or a new, comparable car—minus a deduction for the value of the owner's use of the lemon. Some states also provide that the manufacturer reimburse the owner's attorney's fees and costs for bringing the lawsuit.

Used-car purchasers must also be wary of lemons. Once a lemon has been repurchased by the manufacturer, either voluntarily or pursuant to an arbitrator's or judge's decision, scant protections prevent its resale elsewhere. States vary greatly on how much information must be disclosed to subsequent purchasers. Some states require the title of a lemon to carry a notation reflecting the lemon status. The notation varies from "nonconforming vehicle" to "defect substantially impairs use, value, or safety." A handful of states require that buyback stickers be placed on the vehicle. However, enforcement of such requirements is often a low priority for state governments, and enforcement of lemon laws effectively ends at a state's border. In response to complaints about resold lemons, in 1996 the federal trade commission (FTC) began investigating the possibility of imposing a national standard for the resale of lemons. However, the FTC did not take action after completing its inquiry.