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Lemon law protection arises under state law, with every U.S. state and the District of Columbia having its own lemon law. [1] Although the exact criteria vary by state, new vehicle lemon laws require that an auto manufacturer repurchase a vehicle that has a significant defect that the manufacturer is unable to repair within a reasonable amount of time. [2]
Lemon laws primarily serve to force manufacturers to buy back defective vehicles or exchange them. Depending on the jurisdiction, a process similar to vehicle title branding may also be used to warn subsequent purchasers of the history of a problem vehicle.
The Magnuson–Moss Warranty Act (P.L. 93-637) is a United States federal law (15 U.S.C. § 2301 et seq.). Enacted in 1975, the federal statute governs warranties on consumer products. The law does not require any product to have a warranty (it may be sold "as is"), but if it does have a warranty, the warranty must comply with this law.
The federal "lemon law" also provides that the warrantor may be obligated to pay the attorney fees of the party prevailing in a lemon law suit, as do most state lemon laws. If a car has to be repaired for the same defect four or more times and the problem is still occurring, the car may be deemed to be a "lemon".
The best-known examples of consumer protection statutes for product defects are lemon laws, which provide protection to purchasers of defective new vehicles and, in a small number of states, used vehicles. [51] In the United States, "cars are typically the second most valuable asset most people own, outranked only by their home." [52]
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[3] [6] [7] [8] It mandates refunds, replacements or compensation to consumers for life-threatening problems unfixed in new vehicles for the first 18,000 miles or 18 months, whichever is first. [ 6 ] [ 7 ] [ 9 ] On 1 January 2001, the law was amended to consider a vehicle a lemon if two repair attempts fail.
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