Lemon Law Questions

While most states require manufacturers to provide information about the process of dealing with a lemon vehicle, this information is usually buried in the owners manual where most people will never see or read it. It’s there, as required by law, but it just looks like so much legalese and the only time most people look at their owner’s manual is when they first buy the car and can’t figure out how the stereo works.

That being the case, we frequently encounter people who have no idea how these lemon laws work or how they can benefit from them. For that reason, we have posted some frequently asked questions here. Remember, if you have a specific question about your vehicle or your own state’s laws, you should probably contact your state’s Attorney General’s office.
 

Common Questions

What is arbitration?
Most manufacturers have established guidelines for assisting with defective vehicle problems. Most, but not all states, require that anyone with a lemon law complaint must first submit to arbitration before filing a lawsuit in court. Arbitration consists of stating your case before an impartial panel of people who will listen to both sides of the case and determine an outcome based on the merits of the information provided. While arbitration panels are supposed to be impartial, they tend to lean in favor of the manufacturer.

What is a “nonconformity”?
This is legal-speak for “defect.” A “nonconformity” is usually defined by most state laws to be any defect not caused by abuse or neglect that negatively affects the use, safety or value of the vehicle.

What happens if I win my case? Do I get a new car?
Typically, your state’s lemon law obligates the vehicle’s manufacturer to provide you with either a refund or a “comparable replacement vehicle.” The refund would include the full purchase price plus options and taxes, minus a deduction for normal wear and tear, if applicable. A replacement vehicle must be identical or very similar to the vehicle in question. The decision to grant a refund or a replacement vehicle may be yours or it may be up to the manufacturer. Laws vary by state.

What happens to my car after the settlement?
This can vary by state, but such cars are usually branded as lemons, repaired and sold as used cars. It’s always a good idea to check a used car thoroughly before you buy it, as you may not have any way of knowing if it has previously been returned to the manufacturer as a lemon. This is much more likely if the car has been moved from one state to another. A good way to avoid this is to run a VIN (Vehicle Identification Number) search through a service such as Carfax (Carfax.com.)

Is an attorney necessary?
Generally not. You can certainly go through the lemon law process without an attorney. Many states offer an arbitration process than can work out an equitable solution to your problem without it being necessary for you to go to court. Should court be unavoidable, it may be in your best interests to hire an attorney who specializes in problem vehicles.

What if my car doesn’t qualify as a lemon? It’s still a piece of junk!
If your car doesn’t qualify as a lemon under the laws of your state, you may still have recourse through the federal Magnuson-Moss Warranty Act. For details, see >Attorneys and Lawyers