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Alternatively, if the vehicle poses a serious safety hazard and you present it to the dealer for repairs once during the first year or 12,000 miles and once more during the next year or 12,000 miles, the vehicle qualifies as a lemon. This is rather unusual; most state laws allow only a single repair attempt for a defect related to vehicle safety, such as a steering or braking problem. Texas law requires two attempts for such a defect.
The vehicle also qualifies if it spent more than 30 cumulative days in the shop following an initial repair during the first year or 12,000 miles of service.
Once a vehicle qualifies as a lemon, the owners are entitled to an arbitration hearing with the state. This is done by having each side present their case before an Administrative Law Judge. The judge will listen to evidence from both the owner or his or her representative and the manufacturer’s representative. Based upon this evidence, the judge will rule on behalf of one party or the other.
Should the judge rule in favor of the owner, they shall be granted either a replacement vehicle or a refund of the purchase price. That refund will include taxes, license fees, registration fees and other fees associated with the purchase of a new vehicle. An adjustment will be made to allow for normal wear, tear, and use of the vehicle based on miles driven.
Most states that have arbitration panels require that the manufacturer accept the ruling but not the vehicle owner. Texas is an exception to this; either party may dispute the ruling of the arbitration judge by taking the case to court. Should this happen, vehicle owners are advised to consult with a qualified lemon law attorney.
A complete guide to the Texas Lemon Law can be found here.
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