Maryland’s Automotive Warranty Enforcement Act, also known as the lemon law, was passed by the state’s General Assembly in 1984 in order to force manufacturers to comply with their written warranties. The law covers new vehicles, including cars, vans, motorcycles and trucks of under 3/4 ton capacity, for a period of one year or fifteen thousand miles, whichever comes first. Used cars that fall within this timeline are also covered. Motor homes are not covered by the statute.

Maryland considers a vehicle as a lemon under the following circumstances:

• The vehicle is registered in Maryland
• The vehicle is less than 15 months old and has fewer than 15,000 miles
• A brake or steering failure that was not corrected after the first repair attempt, and that causes the vehicle to fail Maryland's safety inspection; or
• Any one problem that substantially impairs the use and market value of the vehicle that was not corrected in four repair attempts; or
• Any number of problems that substantially impair the use and market value of the vehicle that have caused it to be out of service for a cumulative total of 30 or more days.
• Vehicles with defects that are caused by negligence, abuse, or unauthorized modifications are not covered by the law.

As in most states Maryland’s lemon law allows the owner of a defective vehicle to select either replacement with a comparable vehicle or a refund, including license fees, registration fees, and taxes. The manufacturer may reduce the refund by up to 15% to compensate for miles driven or wear and tear on the vehicle, but may not deduct for damage resulting from the nonconformity in question. Any replacement vehicle offered must be acceptable to the consumer.

Arbitration is an option; the owner may present their case before an arbitration panel. The results of the arbitration hearing are binding only on the manufacturer; the owner may elect not to abide by the panel’s ruling. At this time, the owner has the option of a lawsuit. The state recommends that in such a situation, the owner should consult with an attorney. Arbitration, particularly hearings conducted through the manufacturer, often tend to side with the manufacturer more than the courts. On the other hand, arbitration hearings tend to be expedited more quickly than lawsuits, and since the ruling of the arbitrator is not binding upon the vehicle owner, it may behoove the owner to proceed with arbitration if that option is available.

In a lawsuit, should the owner prevail, the remedies listed above will be available as compensation. In addition, the owner may receive compensation for attorney fees and additional compensation of up to $10,000 if the court rules that the manufacturer acted in bad faith in fulfilling its obligations under the lemon law. A ruling of bad faith may also subject the manufacturer to additional penalties due to what the state calls “unfair and deceptive trade practice.”

If you are having difficulties with your automobile, truck or van, you may discover that you need legal assistance. LegalMatch can help locate an experienced attorney in your city. Confidentiality is protected, all attorneys are licensed, and the service is free.

Details can be found the Maryland Lemon Law page