What vehicles and products fall under the Lemon Law?

While many people think the lemon law applies only to cars, it has a much larger scope. Any item costing more than $25 garners protection under the federal lemon laws.

What is a lemon?

Besides the tasty, sour fruit, technically in relation to a vehicle, any new vehicle with a substantial problem that a reasonable number of attempts cannot fix. It can also describe a vehicle with a specific number of non-functioning days. With other types of products, it refers to defective items. If the product does not work as it was described in advertising and packaging, it qualifies as a lemon. That is a pretty broad category of products, but the federal and state laws made the definitions broad to better protect consumers.

Federal Lemon Laws

 At the federal level, two lemon laws protect consumers and each one provides a different scope. Applied together, these laws protect a wide diversity of consumer products.

The Magnuson-Moss Warranty Act

If you purchased a product that costs more than $25 and it came with a written warranty, the Magnuson-Moss Warranty Act covers it. Designed to protect consumers from unscrupulous manufacturers who would draft an unfair warranty, it makes it easier for a consumer to sue. The Act provides for the award of attorney’s fees, which makes it affordable for consumers to bring a lawsuit against a major corporation.

The Uniform Commercial Code (UCC)

Throughout the US, the UCC protects consumers by protecting the contract of sale. A consumer can demand a refund or a replacement of any product that qualifies as a lemon. The Code doesn’t define lemon though; a court of law must do that. The Magnuson-Moss Act’s provision for attorney fees also applies to the UCC.

State Lemon Laws

Each of the 50 states also has a state lemon law. The provisions of each of these laws vary, but typically, they require a replacement product or vehicle, or a full refund. The specific requirements for this refund or replacement differ. In the case of a new vehicle:

• when the manufacturer cannot repair a substantial defect in four attempts,
• when the manufacturer cannot repair a safety defect in two attempts,
• when the vehicle spends 30 days out of service in the first 12 to 24 months or the first 12,000 to 18,000 miles.

To bring a lawsuit or use arbitration in any state, you need to provide superbly kept records, provide the appropriate legal notice, and use mandated arbitration programs. Your documentation of the purchase transaction and all subsequent transactions related to the product or vehicle become imperative to your case. Since each state writes its own lemon law, you’ll need to consult yours to find out what it covers and how to file your case.

If you reside in California, for example, you have the protection of two state laws – the Tanner Consumer Protection Act and the Song-Beverly Consumer Warranty Act. In the state of California, a lemon vehicle can be a car, truck, SUV, motorcycle, utility vehicle, RV, travel trailer, or another vehicle type. Essentially, if it is wheeled, motorized, and defective, it qualifies as a lemon.

When the Manufacturer Buys Back the Vehicle

The court or arbitration can require the manufacturer to buy back the vehicle, which means you obtain a full refund on the cost of the vehicle. Otherwise, the court can require the manufacturer to fix the vehicle at their expense. When this cannot be managed, the buyback feature is used.

What happens to the vehicles the manufacturer buys back?

You should watch your local auto sales lots because these lemon vehicles can end up right back on the same lot from which you purchased them.

Once the manufacturer owns it again, it can put it through a remanufacturing process. In this process, it repairs all of the problems and places the vehicle in its certified used or remanufactured program. In most states, the manufacturer must provide a title stamped with a designation that marks it as a lemon, but many states don’t use that term. In California, the title reads “buyback” and in other states, other terms apply. It might say “reconditioned,” “remanufactured,” or “repurchased”.

In California, these vehicles do have to be clearly marked by decals and stickers on the sales lot. This is done to apprise the potential buyer of its previous issues and to provide upfront information on how the vehicle was repaired. This gives the consumer the ability to make an informed decision about the purchase of the used vehicle and to decide for themselves if the lemon could have been repaired.

Going to Court Over a Lemon

Whether you have a lemon vehicle or other product, you need to hire an attorney skilled with lemon law claims to obtain the best outcome. This is especially true if you incurred an injury due to the lemon in question.

A lawyer familiar with these types of cases and accustomed to litigating them can provide you with an edge. Consider attorneys with a high win rate. You can find lawyers who have won 99 percent of their cases.

Also, look for attorneys conversant in cases that may cross state lines. For instance, you might have driven across the California state line to Nevada to purchase a dune buggy. In this case, a court may need to decide which state law to apply. It might prove simpler to apply the federal law only if you could not obtain a greater remedy using the state law in either state.

If your lemon law case includes a motor vehicle, choose a firm that has experience specifically with lemon cars. This provides them with experience in dealing with the car manufacturers and this can work out to your advantage.