WHAT IS “THE LEMON LAW”?

2 Table of content The idea of lemon law Sources of lemon law Elements of a lemon law claim Lemon law remedies Compensation under lemon laws Understanding lemon laws Warranties As-Is Time

3 Lemon Laws are state and federal laws that provide a remedy to buyers who purchase cars (and occasionally other consumer products) that fail to meet standards of quality and performance. The term “lemon” usually applies to defective vehicles, like automobiles, trucks, and motorcycles, though there are other “lemon laws” for a variety of different products ranging from small electronics to animals. The idea of lemon law

4 The federal lemon law is the Magnuson–Moss Warranty Act. It was enacted in 1975 and protects citizens of every U.S. state. Various states have their own lemon laws, and what they cover and the policies for making claims vary greatly. For example, some states' laws will cover used or leased cars while others' will not. Both the federal lemon law and many state laws also provide for prevailing party attorney fees if a lawsuit must be filed by a purchaser in order to recover for a lemon vehicle or other product. The federal lemon law generally covers mechanical defects, but stat lemon laws can be more expansive. Sources of Lemon Law

5 Learn what the lemon laws are in your state and what the definition of a lemon is Ask for any technical service bulletins for your car from the dealer. Find your car’s records, such as purchase contracts, service orders, warranties, and the owner’s manual Take notes in any conversation with dealers or service technicians Compensation under Lemon laws Log how long your vehicle is in for repairs Compensation under lemon laws varies by state and the type of problem experienced by owner. You can take steps to get compensation under lemon laws. Consult a lawyer about your options and ask them to evaluate your case.

6 Look at consumer organizations’ reviews of cars, such as Consumer Reports Test drive the car before buying it Look for complaints about the car model on safercar.gov Go with a manufacturer authorized dealer that is reputable Understanding Lemon Laws Learn your state’s lemon laws. You can potentially avoid buying a lemon with some basic steps. Some steps you can take while buying a car are:

7 Elements of a Lemon Law Claim Vehicle must have a written warranty, and Vehicle must have a defect or a “Nonconformity”, and Manufacturer unable to repair After a “reasonable number of attempts” “Reasonable” is usually ~four attempts. One repair attempt over 30 days sufficient. Presumption of reasonableness if, within 18 mo/18,000 miles: 1.Two repairs for a defect “likely to cause death or serious bodily injury;” or 2.Four repairs; or 3.Cumulative 30 days in shop.

8 Lemon Law Remedies Replacement of vehicle Recession Return the vehicle and get down payment, payments back. Subject to an offset for use. Attorney’s fees Penalties If violation was “willful”

9 Warranties Lemon laws are usually designed to exceed the contractual protections described in warranties. Indeed, many lemon laws take the form of “implied warranties,” or warranties that the law imposes upon a transaction that assures that the products are what they claim to be and reasonably fit for their intended purpose. Just as with a contractual (often called an “express”) warranty, the implied warranties created by lemon laws require the seller or manufacturer to correct any defects or face liability.

10 As-Is Although laws vary greatly by state, one general requirement is that a product must be purchased with a warranty in order to be eligible for protection under lemon laws. If the vehicle is purchased “as-is,” this is usually an express agreement between the buyer and the seller that the buyer assumes the risk of any defects in the product. If that is the case, the buyer, in essence, assumes the risk of any defects in the product and loses the right to seek recovery for those losses from the seller or manufacturer.

11  Time The time period in which one must make a claim for a lemon product also vary greatly. Some jurisdictions and products have terms as short as several days, while others may last for months. Every product deteriorates with use and a number of other variables affect the performance of a consumer good over time, so most of these time periods are relatively brief (usually no longer than 60 or 90 days).

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