Law Blog


How Does The Lemon Law Work?

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Consumers are protected by consumer rights laws against any manufacturers that do not provide products that perform as expected or place consumers at risk. Automobiles must perform as expected, and dealerships cannot violate consumer rights laws or any legislation that applies to the purchase of an automobile.

What Protection Does a Consumer Have?

They protect all consumers against faulty products, and this includes faulty automobiles sold by dealerships. The consumer may take action if they suspect that the automobile is a lemon and exhibited signs of serious defects and flaws. Federal and state laws protect the consumer and give them a legal avenue to navigate. The laws prohibit manufacturers from releasing faulty automobiles onto the market that do not perform as expected or increase risks for the auto buyers.

Is the Lemon Law Restricted to New Cars?

No, the Lemon law is not restricted to new cars only. It applies to new and used cars that are sold through an auto dealership. All vehicles purchased through a dealership must come with a warranty according to the vehicle’s mileage. Brand new cars have an extended warranty. Used cars receive up to a 90-day warranty. If the vehicle has issues, the buyer must take the vehicle to the dealership to get repairs. The dealership has up to three attempts to remedy the problem.

How Can the Consumer Take Legal Action?

The buyer must get documentation from the dealership for all three times the dealership tried to correct the problem. If they cannot, the buyer sends a certified letter to the manufacturer explaining why they believe the automobile is a lemon and what the manufacturer must do to correct the situation. The manufacturer must respond to the letter and take action. If they do not, the auto buyer has the legal right to take the manufacturer to court.

Is It Possible to Settle Out of Court?

Yes, the manufacturer could provide a full refund to the consumer or provide a replacement vehicle. However, the manufacturer must take action before the schedule court date to correct the problem and settle the dispute. The buyer must keep all records pertaining to the automobile so they can present clear evidence in their claim.

What Could the Consumer Get If They Win Their Case?

If they win, the consumer could get a complete refund for their entire financial investment. If they buy the vehicle outright, the manufacturer must provide the full refund to the consumer minus any depreciation of value. If they financed it, the manufacturer provides a refund of all the money the consumer paid toward the vehicle and refund the remaining balance to the lender. Legal fees and any additional costs for the claimant might be included in the award.

Consumers have the legal right to seek compensation if a dealership violates local lemon laws. The laws are in place to protect consumers against faulty automobiles purchased through dealerships. The laws apply to any new or used consumer vehicle sold through the dealership. Consumers can seek help through an attorney if they feel it violated their rights.