Many people think that they are automatically protected when buying a used car because of the Lemon Law that exists in the United States. However, this is not always the case, as this piece of legislation only applies to certain situations. Knowing what those situations are and when you are covered will help you to determine whether or not you can pursue legal remedies when you receive a car that does not meet the standards set forth by the government – or in other words a “lemon”.
The first thing that you need to understand is the there are two types of Lemon Laws. The first is a federal law that protects consumers from cars that fail to meet standards of quality and performance over and over again. This means that car manufacturers that continue to sell cars that don’t run, or are unsafe, can be subject to legal action. The official name of the federal Lemon Law is the Magnuson-Moss Warranty Act and it applies to citizens in every state. This law may exceed the warranties normally offered by dealerships or outlined in the purchase contracts.
Magnuson-Moss Warranty Act
This federal law protects the buyer of any products, not just cars, that cost more than $25 and has a warranty that is put in writing. The act exists to prevent car manufacturers from creating warranties that are completely unfair to consumers, and allows consumers to sue for warranties such as this without having to pay a fortune in court costs or attorney’s fees, in other words, making the car manufacturer liable for these fees if the case is won. This is because in the past, it was simply not an financially sound decision to sue over a warranty, as the attorney’s fees negated whatever was won.
Another law exists in the Uniform Commercial Code or the UCC which is valid in all fifty states as well as the District of Columbia and Puerto Rico. This law deals with contracts that come with the sale of a product and allows the customer to receive a refund on an item that has been deemed a lemon. However, the decision as to whether or not a car, or any other item that you want a refund on, is a lemon or not rests with the court systems. However, if you do win a case and the company gives you a refund, they are also likely responsible for your attorney’s fees through the Federal Lemon Law of state specific laws.
State Lemon Laws
Beyond the Magnuson-Moss Act and the UCC, each state has different laws as to how they deal with used cars and other products that are ‘lemons’ as well as how they define a product as such. It can be difficult to know whether or not you are covered by your particular state for a specific situation but here are some general guidelines that will help you in many of the fifty states regarding local lemon laws and consumer protection.
The first thing that you should be aware of is that in most states, the lemon laws are very specific on what types of vehicles that they will cover. Each state varies slightly, but most states do not cover motor homes or vehicles that has a gross weight of 10,000 pounds or more. Many states will also specify that a vehicle has to be self propelled so that it does not cover bicycles and other vehicles that are not propelled by themselves. Also, some states restrict the number of wheels that a vehicle must have or may have in order to be covered.
Some also stipulate that the vehicle must be used primarily for the highways and roadways which means that farm vehicles such as tractors and off road vehicles like ATV’s. Also, many times motor homes are excluded from these lemon laws as well. Also, keep in mind that some states, such as Delaware and Colorado exclude motorcycles from these Lemon Laws and Florida excludes Mopeds as well. Make sure that you are aware of what the lemon law covers in your particular state before you buy if you are concerned about having to be protected by it after the sale.
Once you determine what kind of vehicles are covered by the lemon law then you must find out what sort of coverage periods and intervals are required by the state specific law. For instance, some states cover the vehicle for the warranty period, or for a certain period of time such as a year, while others cover up to a certain amount of miles or miles or period of time, whichever comes first. Also, there is a certain number of repairs that must be attempted in some states as well to be covered by the Lemon Law and this will generally only include repairs for the same problem.
For instance, if your brakes go out and you get them repaired, and then a fuel line gets clogged as well, then that may not fall under the lemon law. However, depending upon the state in question, any vehicle repairs within a certain period of time that can be proven may result in the dealer or manufacturer having to replace the car. Unfortunately, when it comes to lemon laws, there are no hard and fast rules that apply to every state, other than the federal statutes mentioned such as the Magnuson-Moss Warrantly Act and the UCC.
If you are a victim of auto fraud or believe that the Lemon Law may apply to your purchase it is important to keep in mind that in most states you will need to hire an attorney and take the matter to court. It is also important to note that it will be the auto manufacturer that you will be seeking recompense from most of the time rather than the car dealership. Some states have an Arbitration Board that you are required to go through to resolve disputes before you can go to court. Some of these are run by the state and some are private programs.