Oregon was one of the first states to pass a law protecting owners of motor vehicles from problems associated with factory defects and to enforce manufacturer’s written warranties. Oregon’s legislature created the lemon law in 1983, not long after California became the first state to create one. The following year, the legislature added protection for owners of motorcycles.

Oregon’s law covers all passenger vehicles purchased in Oregon for personal, family or household purposes. The vehicle must be less than one year old, have been purchased within the state, and have fewer than 12,000 miles to qualify.

The law defines a vehicle as a lemon if the manufacturer or an authorized dealer is unable to repair a defect that substantially impairs the use, safety, or market value of the vehicle after a “reasonable” number of repair attempts. The law defines “reasonable” as four or more attempts to repair the problem during the warranty period, or if the vehicle is out of service for a cumulative period of 30 or more days due to the same problem during the warranty period. This period may be extended should the manufacturer be unable to make repairs due to circumstances beyond its control, such as fire, flood, invasion, strike or some other natural disaster.

The law does not apply unless the owner has notified the manufacturer in writing about the defect and permitted the manufacturer to attempt to make repairs.

Should the vehicle qualify as a lemon under Oregon’s law, the owner must notify the manufacturer in writing. Oregon requires that all owners of qualifying vehicles submit to an arbitration procedure. In arbitration, an impartial third party examines both sides of the case and delivers a decision in favor of one party or the other. Decisions made in favor of the owner of the vehicle are binding; decisions made in favor of the manufacturer are not. Should the manufacturer prevail in the arbitration hearing, the vehicle owner retains the right to sue in court. The court has the authorization to award up to three times the amount of any damages, up to a limit of $50,000, should the court rule that the manufacturer acted in bad faith when dealing with the vehicle owner. In addition, the court may award the owner reasonable attorney fees should the owner prevail in court.

The lemon law provides for the vehicle owner to receive either a full refund, including taxes, registration and license fees, less an adjustment for use and wear and tear. The manufacturer may also, at its discretion, provide a replacement vehicle in lieu of a refund. In this regard, Oregon’s lemon law is weaker than those of some other states, but the law generally works in favor of the consumer.

All in all, this statute is more than adequate. Oregon has a tendency to be a rather consumer friendly state. The only weak point of the law is that the manufacturer is permitted to decide whether to refund or replace. Otherwise, it’s a rather consumer-friendly statute.

If you are having concerns with your car, pickup truck or minivan, you may realize that you need a lawyer. LegalMatch can help find an experienced attorney to help you where you live. Confidentiality is protected, all legal representatives are licensed, and inquiries are free.

Additional information is available at the Website of the state of Oregon’s lemon law page.