Lemon Law: Commercial Vehicle Rights And Protections

The Massachusetts Lemon Law protects consumers who have purchased a new car with serious defects that impair safety, use, or market value. Notably, the law does not cover vehicles used for commercial purposes. To qualify for protection, the vehicle must be used for personal or family purposes and not registered to a business. This distinction between personal and commercial use is crucial, as it determines whether the Massachusetts Lemon Law can be applied in the event of defects or nonconformities.

What is the Massachusetts Lemon Law?

The Massachusetts Lemon Law protects consumers who have purchased a new car with serious defects that impair their safety, ability to drive, or the vehicle's market value. This law applies to cars, motorcycles, vans, and trucks bought from a licensed dealer in Massachusetts and used for personal or family purposes. The defect must be discovered within one year or 15,000 miles of use (whichever comes first) and be subject to a reasonable number of repair attempts during this "term of protection".

A vehicle is considered a lemon if it has a substantial defect that persists after a reasonable number of repair attempts. The law defines this as three repair attempts for the same defect or if the vehicle is out of service for 15 or more business days during the term of protection. If the defect still remains, consumers can pursue compensation by dealing directly with the dealer or manufacturer. If this is unsuccessful, Lemon Law arbitration is available through the Office of Consumer Affairs and Business Regulation (OCABR).

The types of compensation that may be pursued include a refund, replacement vehicle, or reimbursement for various costs incurred due to the defect. It's important to note that the Lemon Law does not cover vehicles used primarily for commercial or business purposes, off-road vehicles, motor homes, or motorcycles.

In addition to the state Lemon Law, consumers in Massachusetts can also seek protection under the federal Magnuson-Moss Warranty Act, which covers vehicles under warranty that are experiencing continuous problems, even if they are outside the one-year or 15,000-mile term of protection.

What vehicles are covered by the law?

The Massachusetts Lemon Law covers new cars, motorcycles, vans, or trucks purchased or leased in Massachusetts from a licensed dealer. The law applies to vehicles bought for personal or family use and does not cover vehicles bought by or registered to a business.

The law covers vehicles within the "term of protection," which is one year or 15,000 miles of use from the date of original delivery, whichever comes first. This law defines a reasonable number of repair attempts as three times for the same defect. If the problem persists after three or more repair attempts within the "term of protection," the manufacturer must be given one final repair opportunity, not exceeding seven business days, to fix the defect.

The Massachusetts Lemon Law does not cover vehicles built primarily for off-road use, motor homes, or vehicles used primarily for business or commercial purposes. It is important to note that vehicles with defects caused primarily by owner negligence, accidents, vandalism, or unauthorized repairs by someone other than the manufacturer-authorized dealership are also not covered under this law.

What vehicles are not covered by the law?

The Massachusetts Lemon Law does not cover all vehicles. The following vehicles are not covered by the law:

• Vehicles built primarily for off-road use
• Motor homes
• Vehicles used for commercial purposes
• Vehicles used primarily for business purposes
• Vehicles with defects caused primarily by owner negligence, accidents, vandalism, or unauthorized repairs by someone other than the manufacturer-authorized dealership
• Vehicles that are not used for personal or family purposes and are instead bought by or registered to a business

It is important to note that the law also has specific requirements for a vehicle to be considered a "lemon." The vehicle must have a substantial defect that impairs safety, the ability to drive, or market value, and the defect must persist even after a reasonable number of repair attempts. The "term of protection" is also defined as 1 year or 15,000 miles of use from the date of original delivery, whichever comes first.

What are the requirements for a vehicle to be considered a lemon?

In Massachusetts, a vehicle is considered a lemon if it has a defect that significantly impairs its use, market value, or safety. The defect must be covered by the manufacturer's warranty and persist after a reasonable number of repair attempts. The vehicle must be purchased in Massachusetts from a licensed dealer and used for personal or family purposes. It should not have been bought by or registered to a business.

The Massachusetts Lemon Law covers new cars, motorcycles, vans, and trucks. The defect(s) must be discovered and subject to a reasonable number of repairs during the "term of protection", which is one year or 15,000 miles of use from the date of original delivery, whichever comes first. The law defines a reasonable number of repairs as three times for the same defect. If the problem persists after three or more repair attempts within the specified time frame, or if the vehicle is out of service for repairs for 15 or more business days, it meets the requirements for a lemon.

Additionally, to prove that the vehicle's market value is substantially impaired, you must show that it is worth at least 10% less than it would be without the defect. This can be done by having the car appraised.

It is important to note that lemon laws vary from state to state. For example, in California, a vehicle may be considered a lemon if the manufacturer is unable to fix the car after at least four repair attempts for the same defect, or at least two repair attempts for a serious safety defect, or if the vehicle has been out of service for more than 30 calendar days for repairs. In New York, a car is considered new if purchased within two years of its original delivery date and has fewer than 18,000 miles on it. The New York State Lemon Law covers cars purchased, leased, or transferred within this timeframe and mileage limit.

What compensation can be claimed?

Lemon laws are designed to protect consumers who purchase or lease a new vehicle with a manufacturer’s warranty. In the case of Massachusetts, the lemon law applies to new cars, motorcycles, vans, or trucks bought or leased in Massachusetts from a licensed dealer. The vehicle must be used for personal or family purposes and must not have been bought by or registered to a business.

If your vehicle meets the criteria above, you may be eligible for compensation for serious defects that impair the use, market value, or safety of your vehicle. The defect must be discovered within the "term of protection", which is 1 year or 15,000 miles of use from the date of the original delivery, whichever comes first.

Cost of Repairs

If the defect hasn't been repaired after a reasonable number of repair attempts, you have the right to the cost of repairs. The law defines a reasonable number of repairs as 3 times for the same defect.

Refund

If you're offered a refund for a purchased vehicle, you will receive the full contract price of the car, including all credits and allowances for any trade-in vehicle. A reasonable allowance for the amount you used the car will be deducted based on the car’s purchase price and the miles you drove the car during the time you owned it. The formula for this deduction is:

Car Use Deduction Formula = Contract $ / 100,000 X Mileage

Motorcycle Use Deduction Formula = Contract $ / 25,000 X Mileage

Replacement Vehicle

The manufacturer may offer you a replacement vehicle. A new "term of protection" starts from the date of delivery of the replacement car. The manufacturer must reimburse you for the following costs:

• Transfer of registration fees
• Sales tax resulting from the replacement
• Towing or rental charges resulting from the defect

If you financed your car through the manufacturer and accept a replacement, you are not required to enter into any refinancing agreement that creates financial obligations beyond those in the original agreement. You have the right to reject the replacement car and demand a refund, but you cannot demand a replacement if you've been offered a refund.

Cancelling a Sale

If your car fails inspection within 7 days of purchase and you've had it for fewer than 14 days, you are eligible to cancel the sale. Additionally, you may cancel the sale if the estimated costs of defects or repairs exceed 10% of the purchase price.

Reimbursement for Associated Costs

The manufacturer must reimburse you for the following associated costs:

• Dealer-added options
• Towing or rental charges resulting from the defect
• Unused portion of an extended warranty
• Unused portion of credit insurance
• Defect-related incidental costs

You're also entitled to a pro-rated excise tax refund from your city or town hall, but you will not be reimbursed for lost wages or other consequential damages.

Frequently asked questions