Lemon Law: How To File A Claim In Your Region

Lemon laws hold manufacturers responsible for defective vehicles they sell. In the US, every state has its own lemon law, and the Magnuson-Moss Warranty Act serves as a federal lemon law. Thanks to these laws, consumers who purchase a lemon can seek compensation, which usually amounts to a refund or replacement vehicle. The first step in any lemon law case is to notice a defect and bring it to the manufacturer or one of its authorised dealers for repair. If the manufacturer fails to repair the defect on the first attempt, the vehicle may already qualify as a lemon. However, in most cases, you'll need to provide the manufacturer with at least one more repair attempt before pursuing compensation.

What constitutes a 'lemon' vehicle?

Lemon laws refer to recently purchased or leased vehicles with defects that the manufacturer or authorized dealership cannot correct despite a reasonable opportunity. The exact nature of lemon laws differs across states and the federal Magnuson-Moss Warranty Act.

In Arizona, the Lemon Law states that a vehicle must have been in the shop for an unreasonable number of repairs or an unreasonable amount of time. This is determined objectively by what an average person would consider unreasonable under the circumstances. The Lemon Law provides a presumption in favor of consumers when a vehicle has been in the shop a certain amount of times or a certain number of days. According to the Lemon Law, it is legally presumed that a manufacturer had a reasonable opportunity to repair a vehicle when it has had four or more repairs for the same problem or has been out of service for 30 or more total days as a result of all its different repairs.

In California, the Lemon Law grants dealers four repair attempts for any single defect. However, if the defect has the potential to cause serious injury or death, the law provides dealers with only two repair attempts. Additionally, if a car is out of service for repairs for a total of 30 days or more, it qualifies as a lemon.

In simple terms, any nonconformity, defect, or a combination of defects that substantially impair the safety, use, or value of a new vehicle, which is not corrected within a reasonable number of attempts or a specified period, constitutes a lemon.

What is a reasonable number of repair attempts?

Lemon laws are a set of consumer protection laws that safeguard buyers from purchasing defective vehicles. While the specific laws vary from state to state, most provide manufacturers with at least three chances to resolve the issue before the vehicle can be deemed a lemon. In some states, a single repair attempt may be sufficient, especially if the defect affects the safety of the vehicle.

The determination of a reasonable number of repair attempts depends on several factors:

• The number of repair attempts: Most states consider three or four repair attempts for the same defect to be sufficient to deem a vehicle a lemon. However, if the defect poses a severe safety risk, such as faulty brakes or transmission issues, even one or two repair attempts can be considered reasonable.
• The severity of the defect: The nature of the defect plays a crucial role in determining a reasonable number of repair attempts. Serious safety defects, such as issues with brakes or steering, are generally considered more urgent and may require fewer repair attempts to qualify as a lemon.
• The cumulative number of days the car is out of commission: Many states, including California, consider a vehicle a lemon if it has been in the repair shop for a cumulative total of 30 or more days within a specific time frame, often the first 12 to 24 months after the original purchase date.
• State-specific laws: Each state has its own lemon laws, and it is essential to understand the specific requirements in your state. For example, some states may require a higher or lower number of repair attempts than others.

It is important to note that the definition of "reasonable" can be subjective, and there may be disagreements between consumers, dealers, and manufacturers. Consumers should be prepared to provide detailed records of all repair attempts, the nature of the defects, and the duration of time the vehicle was out of service. Consulting with a qualified lemon law attorney is highly recommended to understand your specific state's laws and determine if your vehicle meets the criteria for a reasonable number of repair attempts.

What is a reasonable amount of time in the shop?

The amount of time a vehicle can spend in the shop is dependent on the state in which the repair is taking place. In Arizona, it is presumed that a manufacturer has had a reasonable opportunity to repair a vehicle when it has had four or more repairs for the same problem or has been out of service for 30 or more total days as a result of all its different repairs. In California, it is presumed that a vehicle has had a reasonable opportunity to be repaired if it has been in the shop four times for the same non-conformity within 18 months or 18,000 miles, whichever occurs first. However, if the issue poses a severe threat to the driver's safety, such as failed brakes, even one or two repair attempts can be considered reasonable. In Texas, a vehicle owner must pass one of three tests to be eligible for a refund or replacement vehicle: the four-times test, the serious safety-hazard test, or the 30-day test. For the four-times test, the vehicle must have been taken in for repairs at least four times for the same defect within the first 24 months or 24,000 miles, whichever comes first, and the defect must still be present. For the serious safety-hazard test, the vehicle must have been taken in for repairs twice during the first 24 months or 24,000 miles, whichever comes first, and the defect must still be present. The serious safety hazard must be a life-threatening malfunction that substantially impedes the ability to control or operate the vehicle normally or creates a substantial risk of fire or explosion. For the 30-day test, the vehicle must have been out of service for repairs because of a defect covered by the original factory warranty for a total of 30 days or more during the first 24 months or 24,000 miles.

What are the first steps to take when filing a claim?

The first steps to take when filing a lemon law claim will vary depending on your location. However, here is a general overview of the initial steps you can take to initiate the process:

Firstly, it is important to understand the specific lemon laws applicable in your state or region. Lemon laws can vary, but they generally provide protection for consumers who have purchased defective vehicles. These laws outline the criteria for a vehicle to be considered a "lemon" and detail the rights of consumers in such situations. Familiarize yourself with the relevant statutes and regulations in your area.

The next step is to gather all the necessary documentation related to your vehicle. This includes repair records, maintenance history, warranty information, and any other relevant paperwork. Having a comprehensive record of your vehicle's issues and the steps taken to address them is crucial for supporting your claim.

After you have compiled the relevant documentation, consider reaching out to a specialized law firm or attorney with experience in handling lemon law cases. They can provide you with a free case evaluation and guide you through the specific legal process in your area. They will assess the details of your situation, including the nature of the vehicle's defects, the number of repair attempts, and the duration of repairs. This information will help determine if you have a valid claim and the best course of action to pursue.

In some states, the next step may be to notify the vehicle's manufacturer of your intention to file a claim. This step can sometimes lead to an early settlement offer from the manufacturer if your case is strong. If this does not resolve the issue, you may then proceed to present your case to an arbitration board, which can often be done remotely by submitting the relevant documents. The arbitration board will review your case and provide their opinion.

If you are still unsatisfied with the outcome, you may have the option to escalate the matter further, potentially by filing a lawsuit. It is important to keep in mind that there may be time limitations for taking legal action, so it is advisable to be mindful of any statutes of limitations that apply in your jurisdiction.

What are the potential outcomes of a successful claim?

A successful lemon law claim can result in a few different outcomes, depending on the specifics of the case and the laws in your state. Here are some potential outcomes:

Repurchase or Refund

One common outcome of a successful lemon law claim is a repurchase or refund for your defective vehicle. This means that the manufacturer will refund you the money you spent on the vehicle, including sales taxes, title registration, and other fees. In some states, the manufacturer may also be required to reimburse you for incidental costs you incurred due to the vehicle's defects, such as rental car fees, towing costs, communication expenses, personal property damage, and even room and board if the vehicle failed while on an out-of-town trip.

It's important to note that in a repurchase, the manufacturer can withhold a certain amount of money based on your use of the vehicle before the defect was discovered. This deduction is known as a "reasonable allowance" and is calculated based on the number of miles driven or the amount of time you owned the vehicle before the defect arose.

Replacement Vehicle

Another possible outcome of a successful lemon law claim is receiving a replacement vehicle from the manufacturer. In this case, the manufacturer is obligated to provide you with a "comparable" vehicle, meaning one of the same make and model as your original, defective vehicle. The replacement vehicle should be as similar as possible to your original choice.

Cash Compensation

In some cases, you may be able to negotiate a cash compensation settlement instead of a repurchase or replacement. This option might be preferable if you want to keep your vehicle and obtain extra cash to cover any inconveniences or losses you experienced due to the defects. Cash compensation can help cover incidental costs, such as rental car fees, towing expenses, and legal fees if you hired an attorney.

Attorney's Fees

If you hire an attorney to assist with your lemon law claim, you may be entitled to have your attorney's fees covered by the other party. This means that even if you don't receive a refund or replacement, you won't have to worry about paying out of pocket for legal representation.

Other Compensation

Depending on your state's laws, you may also be eligible for additional compensation or remedies beyond what is mentioned above. It's always a good idea to consult with a knowledgeable lemon law attorney in your area to understand the specific outcomes and remedies available to you. They can guide you through the process and help you navigate the complex legal landscape to achieve a favorable outcome.

Frequently asked questions