Lemon Law

Lemon laws are state laws in the United States, that provide remedies for consumers in situations, when the motor vehicle purchased by them, repeatedly fails to meet standards of quality and performance. Such vehicles are called lemons because of their lack of quality and make perfection. Lemon laws vary from state to state and it is not necessary for the law to cover used or leased vehicles. Lemon Law was enacted in the year 1993 and it is designed to enable consumers, to get a replacement or a refund for their new car, light pickup or motorcycle, under certain conditions. Take a situation where a consumer who has just purchase a car, finds a condition which does not conform with the vehicle's warranty within the first year or the first 12,000 miles, whichever occurs first. If this condition is arising out of normal and ordinary use and cannot be repaired after four or more repair attempts and when such a condition deteriorates the usability, value and safety of the car, the consumer is probably entitled to a replacement or refund. The compensation amount is determined by taking into account the time for which the vehicle was used and the total mileage on the vehicle at the time the faulty condition was first reported to the manufacturer or authorized dealer.Lemon law is intended to mainly help vehicle owners who face continuing warranty repairs by allowing the owner to request an arbitration hearing through the Attorney General’s Office. In the year 2000 statistics show Lemon Law administration benefited a large number of consumers. Through lemon law administration consumers received close to $8 million in awards and settlements from vehicle manufacturers. Out of the 299 arbitration requests filed, 79 percent of eligible disputes were resolved in the consumer's favor. The implementation lemon law and direct assistance provided through more than 20,000 telephone inquiries help many disputes to be directly resolved and not go to arbitration.Implementation of Lemon Law has helped resolve consumer and manufacturer warranty disputes, brought out consumer and industry education and enforced manufacturer and dealer obligations. The laws can provide consumer its advantages even after the expiry of the warranty period on their vehicle.

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