Summary
- Most states have lemon laws that cover certain vehicle purchases
- Vehicles with incurable defects may be considered lemons
- A lemon law can force the manufacturer to honor your warranty
What states have lemon laws? Every state in the country, as it happens.
Why is it called “lemon law”? Generally speaking, a “lemon” is a new vehicle with a problem that can’t be fixed after a reasonable number of attempts. Lemon laws provide an escape route so buyers aren’t stuck with non-functioning vehicles.
These laws are based on warranty principles. When a buyer or lessor receives a new vehicle, they expect it to work. When it doesn’t, they deserve a remedy. State lemon laws, combined with contract law, offer that remedy.
What Is a Lemon Law?
In most states, lemon laws perform two functions. First, they define when a car is considered a lemon and what rights the consumer has against the manufacturer. Second, they give the consumer a process for resolving their dispute over the defective vehicle.
What Qualifies for Lemon Law Protections?
States vary in their coverage. Some cover all vehicle transfers, including new vehicle sales, leases, and used car sales.
California’s lemon law, for example, imposes warranty requirements on new and leased vehicles. It also requires manufacturers to honor any remaining warranty terms on used cars. Thus, if you bought a used vehicle with a 50,000-mile/five-year warranty and it had only been used for 40,000 miles and two years, the law would cover it.
Based on how many cars in the U.S. are transferred every year, some states limit their lemon laws.
For example, certain states restrict the scope of their laws to new and leased vehicles. Florida requires manufacturers to conform new and leased vehicles to the terms of their warranties. In other words, the new or leased vehicle must meet the conditions specified in the manufacturer’s warranty.
What Does the Lemon Law Cover?
Any vehicle exhibiting a defect that impairs its value, use, or safety is considered a lemon car, meaning minor flaws and cosmetic problems aren’t recognized under most state laws.
A poorly designed door that results in paint rubbing off the door frame likely wouldn’t be enough to classify the vehicle as a lemon. However, a poorly designed door that springs open without the user touching the handle would qualify since it could result in injuries in auto accidents.
That said, defects may be covered even if they don’t result in accidents. For instance, a car that doesn’t reliably start in cold weather might qualify.
How Does the Lemon Law Work?
Lemon law requirements vary from state to state, so the lemon law in Texas will be different than it is in New Jersey. The following criteria are common; however, you should speak to a lawyer to discover your state’s specific requirements:
- A defect that affects the value, use, or safety of the vehicle
- Notice to the manufacturer of the defect and a request to cure it
- A reasonable number of attempts by the manufacturer or dealer to fix it
- A persistent recurrence of the defect, even after repair attempts
If you’ve fulfilled these requirements, most states allow you to pursue a lemon law complaint. Depending on where you live, you might file the complaint with a state agency, such as a consumer protection office or department of motor vehicles. In some places, you may need to file a lawsuit to enforce your lemon law rights.
Many states require the complaint to first go to mediation or arbitration. During mediation, the parties try to settle their case with the help of a neutral third party. The mediator doesn’t pick a winner or loser; rather, they try to guide the parties toward an agreeable settlement.
Arbitration is similar to an informal trial. Both sides present evidence in an attempt to get the arbitrator to find in their favor. The manufacturer could present defenses, as well, such as contributory negligence by the owner in causing the defect.
Lemon Law Remedies
Lemon laws typically provide three possible remedies:
Repair
The court, arbitrator, or administrative agency can order the manufacturer to try to fix the problem again. However, since you must prove that you already gave the manufacturer a reasonable number of repair attempts, this remedy is unusual.
Such a remedy might be ordered when the manufacturer changes the design of a part based on similar complaints and wants to install the new part in your car.
Replace
The manufacturer may be required to replace your vehicle with a comparable one. In identifying a suitable replacement, they have the right to depreciate the vehicle according to your use.
Repurchase
A repurchase is essentially a refund. The manufacturer must pay you the amount charged for the vehicle minus a reasonable allowance for use (RAFU).
Alternate Remedies to the Lemon Law
Generally, you aren’t required to register a lemon law complaint for your vehicle — instead, you can go straight to a lawsuit. You would likely sue for breach of warranty. You could also sue for product liability if the defective vehicle caused any injuries.
Used Car Lemon Remedies
Most states don’t cover used vehicles in their lemon laws. However, you have certain rights under your purchase contract that you may be able to enforce. Additionally, many states impose an implied warranty of merchantability on the sale of used cars. This means that the vehicle must be suited for driving unless it was sold “as-is.”
ConsumerShield Can Help You Exercise Your Rights
A defective vehicle can cause significant hardship by forcing you to find alternative transportation. At ConsumerShield, we educate consumers about their rights and help connect them with qualified legal professionals. Contact us today for a free case evaluation and lawyer referral.
