Lemon Law FAQ
Lemon law FAQ will help you get your most basic questions answered before you begin your lemon law actions.
Define “nonconformity”
A nonconformity is any defect not caused by abuse or neglect that negatively affects the use, safety or value of the vehicle; a.k.a. defect.
What if my car doesn’t qualify as a lemon?
The federal Magnuson-Moss Warranty Act can help some people whose cars may not qualify as lemons, but that still have extensive issues.
When is a car considered a lemon?
The car must follow these qualifications:
1. was bought on or after October 3, 1989;
2. has a defect that impairs its use or will substantially lower its market value; and
3. which the manufacturer can not repair within a reasonable time.
What is covered in the law?
Defects which do not substantially impair the vehicle’s use, market value or safety are not covered, nor are defects due to a customer’s negligence. Most cars will also need to be reported for being lemons within the first year or first 12,000 to 15,000 miles, depending on the state.
Does the lemon law cover anything other than new motor vehicles?
The lemon law only covers certain motor vehicles: cars, vans, motorcycles, and small trucks.
What do you do when you spot a defect?
You must notify the manufacturer (or its agent) of the defect during the term of the warranty. The manufacturer must try to repair the defect at no cost to within a reasonable amount of time. The law states a reasonable amount of time to be either three repair attempts for the same defect or thirty days out of service for repairs. The 30 days of service do not have to be consecutive.
What is arbitration?
Arbitration is the first step in the lemon law process. In arbitration, you state your case before a panel of people who listen to both sides and then determine an outcome based on the merits of the information provided. Ideally, the panel will be impartial, but this is not always the case.
What can I do if I am not satisfied with the mediation decision?
If after arbitration, you are unsatisfied, you can and should then file suit in the courts.
What happens if I win my case?
Laws vary by state. But typically, lemon laws require the vehicle’s manufacturer to provide you with either a refund or a replacement vehicle of comparable value. The refund includes the full purchase price plus any added options and taxes, reduced by a deduction for normal wear and tear, if this applies to your situation.
What happens to my car after the settlement?
Some of these cars might be sold as used cars, even though they are lemons. This is why it’s so important to check on the car’s history to determine whether you are buying a lemon or not.
Do I need an attorney?
This is typically not necessary, especially in the arbitration process. If you find you need to move to the courts, then hiring a lemon law attorney is a good idea for a successful outcome.
What happens if the manufacturer is unable to repair the defect?
The manufacturer has the option to replace the vehicle or rescind the agreement and refund the money to the customer.