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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]
The concept of describing a highly flawed item as a "lemon" predates its use in describing cars and can be traced back to the beginning of the 20th century as a British and American slang term. "To hand someone a lemon" in British slang dated 1906 was "to pass off a sub-standard article as a good one"; in 1909, American English slang use of ...
But lemon laws don't apply to all used vehicle sales, and while dealerships often include a warranty in the sale of a used vehicle, not every used car comes with the security of a warranty.
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]
According to the Texas Department of Insurance, Texas car insurance laws require drivers to obtain liability car insurance and carry proof of it to show a police officer if requested.