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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).
12
801 N. Brand Blvd. Suite 210
Glendale, CA 91203
Tel. (818) 553-1000
Fax (818) 553-1005
www.facebook.com/MargarianLaw
www.linkedin.com/company/margarian-law
https://www.youtube.com/user/dealerfraudlawyer
Contact Us
13
For further information visit:
http://lemonlawcourt.com/
https://www.case.org.sg/pdf/Lemon%20Law%20FAQs.pdf
http://www.nolo.com/legal-encyclopedia/lemon-law-used-cars-30107-2.html”
THANK YOU!

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What is the Lemon Law

  • 2. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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).
  • 12. 12 801 N. Brand Blvd. Suite 210 Glendale, CA 91203 Tel. (818) 553-1000 Fax (818) 553-1005 www.facebook.com/MargarianLaw www.linkedin.com/company/margarian-law https://www.youtube.com/user/dealerfraudlawyer Contact Us
  • 13. 13 For further information visit: http://lemonlawcourt.com/ https://www.case.org.sg/pdf/Lemon%20Law%20FAQs.pdf http://www.nolo.com/legal-encyclopedia/lemon-law-used-cars-30107-2.html”