Lemon law

2010-11-10T10:02:00.000-08:00

Lemon laws are American state laws that provide a remedy for purchasers of cars in order to compensate for cars that repeatedly fail to meet standards of quality and performance. These cars are called lemons. The federal lemon law (the Magnuson-Moss Warranty Act) protects citizens of all states. State lemon laws vary by state and may not necessarily cover used or leased cars. The rights afforded to consumers by lemon laws may exceed the warranties expressed in purchase contracts. Lemon law is the common nickname for these laws, but each state has different names for the laws and acts.

In California, lemon laws cover anything mechanical, as do the federal lemon laws. The federal lemon law also provides that the warranter may be obligated to pay the prevailing party'sattorney fees in a successful lemon law suit, as do most state lemon laws.

Warranty Overview

At the core of most lemon laws is the manufacturer's breach of warranty. A manufacturer's warranty is what makes the manufacturer legally responsible for repairs to the consumer's vehicle or good. It is a form of guarantee. An express warranty is typically a written warranty. An implied warranty unlike an express warranty, is not written. The law imposes these obligations on the manufacturer, the seller or both as a matter of public policy. These vary from state to state. ^[1]

Used car purchases

If you purchased a used car there are two situations in which you may be qualified for cash or other lemon law benefits:

Situation #1: Under Warranty

You may be entitled to compensation for breach of warranty if you had one of the following warranties:

Any warranty left from the manufacturer when you purchased your vehicle (for example, almost all vehicles sold with fewer than 36,000 miles will have this, unless the duration has ended. But if the warranty is longer, you may have even more time).
Your vehicle was "Certified" by the manufacturer (in which case it came with a short Manufacturer's Warranty, typically 1 year).
You purchased an Extended Warranty backed by the manufacturer (typically 5 years or longer).

Normally, these types of cases fall outside the scope of the state lemon law but are covered under special federal lemon laws.

Situation #2: When No Manufacturer's Warranty Exists

If you do not have a manufacturer's warranty of any kind you may be entitled to compensation for violations of consumer protection laws that fall outside of the lemon laws. The following is a list of some of the problems and/or issues which may be present in your vehicle.

Prior history of mechanical problems known to the seller: Laundered Lemon.
Previously salvaged or wrecked.
Fraudulently rolled back odometer.
Rental car, police car, taxi, or similar.
Stolen, stripped and rebuilt.
Involved in a flood.

Lemon Laws vary from state to state, so accurate information on the scope and restrictions of Lemon Laws in a particular state should be obtained from an attorney practicing in that state.

"As is" purchases

Knowingly purchasing a car in "as is" condition does not void the buyer's rights under applicable lemon laws.^{[citation needed]}

Other lemon laws

Lemon laws are not limited to cars. There are RV, boat, motorcycle, and wheelchair lemon laws.

In popular culture

The character Barney Stinson from the TV series How I Met Your Mother introduced a concept of a Lemon Law for Blind Dates^[2].

Canada

The Canadian Motor Vehicle Arbitration Plan Canada - Canadian Motor Vehicle Arbitration Plan is the dispute resolution program for consumers in Canada that have problems with the assembly of their vehicle or with how the manufacturer implements its new vehicle warranty. CAMVAP covers new or used owned or leased vehicles that are from the current model year and up to an additional four model years old.

CAMVAP is an arbitration program. It is free to consumers. Hearings are held in the consumer's home community. The process normally takes less than 70 days from start to finish. Most consumers are able to handle their own case without the assistance of lawyers. The manufacturers do not use lawyers. Their representatives usually are serving or retired district parts and services representatives. An inspection of the vehicle normally is part of an arbitration hearing and the arbitrator can order a technical inspection of the vehicle at the program's expense if doing so is required.

CAMVAP arbitrators can order the manufacturer to buyback the vehicle; repair it at the manufacturer's expense; pay for repairs already completed; pay out of pocket expenses for items such as towing, diagnostic testing, rental cars and accommodation related to the problem with the vehicle. The arbitrator can also order that the manufacturer has no liability.

CAMVAP is available in every Canadian Province and Territory.

References

^ Taylor, Norman F. (2004). Lemon Law The Standard Reference Guide, p. 117-120. Wallace Publishing, Glendale. ISBN 0976005808.
^ Neil Patrick Harris on Playing a Cad. The Early Show. October 9, 2006. Retrieved 2008-05-02

External links

Government

Information and organizations

Source : Wikipedia

California Lemon Law