Understanding The Process: Applying For Lemon Law

Lemon laws are designed to protect consumers who have purchased a vehicle with a defect that cannot be fixed after several repair attempts. While there is no federal lemon law in Canada, each province has its own regulations and standards that car dealers and manufacturers must adhere to. These standards include disclosures and arbitration processes that protect car buyers. For instance, in Ontario, a vehicle that has spent more than 30 days in the repair shop for the same problem may be considered a lemon, while Quebec's new lemon law defines a lemon vehicle as one that has undergone three failed attempts to fix the same defect within 12 months or 12,000 km of purchase. If you believe you have purchased a lemon vehicle, it is important to keep detailed records of repair invoices, days out of service, and correspondence with the dealer and manufacturer. Consulting a legal professional can help you navigate the complex process of seeking compensation or a settlement.

Document everything

Documenting everything is a crucial step in the process of applying for lemon law. Here are some detailed instructions on what to document and how to go about it:

• Repair Orders: Obtain repair orders each time you bring your vehicle in for repairs. Ensure that the repair order lists all the problems you have described, the correct mileage, and the date. If a previous repair facility has tried to fix the same problem, make sure it is noted on the repair order.
• Repair Invoices: Whenever you pick up your vehicle from a repair facility, obtain a repair invoice. This document should list the problems, repairs completed, date, mileage, and cost of repairs. Even if there is no charge, request an invoice.
• Calendar/Timeline: Keep a record of repair appointments and the periods when you could not use your vehicle due to repairs. Maintaining a calendar or timeline helps demonstrate the number of repair attempts and the length of time your vehicle was out of service.
• Correspondence: Keep copies of all correspondence related to your vehicle. This includes letters, emails, or other communications with the dealership, manufacturer, or third parties such as government agencies.
• Notes: If you have any phone conversations or interactions with the manufacturer, dealer, or repair facility, make notes documenting the details of the conversation, including dates and names of individuals involved.
• Original Purchase or Lease Documents: Keep your original purchase or lease contract, as well as financing documents if you financed your purchase. These documents set out important details such as the date of purchase, price, and any aftermarket items added.
• Manufacturer's Warranty: The manufacturer's warranty is crucial, as it outlines what is covered and for how long. It also typically includes the responsibilities of the buyer, such as regular maintenance.
• Vehicle Registration and Other Expenses: Gather documents related to vehicle registration and any other expenses incurred due to the lemon vehicle, such as rental vehicle receipts.

Remember, the more documentation you have, the stronger your lemon law claim will be. Start a file and keep all relevant documents together. If you need to provide originals to your attorney, be sure to make copies for your records.

Research lemon law criteria in your province

While there is no federal lemon law in Canada, the criteria for what constitutes a lemon vehicle differs between provinces. Generally, a vehicle may be considered a lemon if it has spent an excessive amount of time in the repair shop for the same issue or if there have been multiple unsuccessful repair attempts for a major defect.

In Ontario, a vehicle that has spent more than 30 days in the repair shop for the same problem may be considered a lemon. Quebec's lemon law defines a lemon vehicle as one that has undergone three failed attempts to fix the same defect within 12 months or 12,000 km of purchase.

Other provinces like British Columbia, Alberta, and Nova Scotia lack a specified legal definition, but consumers can demonstrate a flawed vehicle through detailed service records showing excessive days out of use for repairs.

It's important to research the specific lemon law criteria in your province and keep detailed records of repair invoices, days out of service, and correspondence with the dealer or manufacturer to strengthen your case if you believe you have purchased a lemon vehicle.

Consult legal experts

Lemon laws vary depending on where you live. In California, for example, the Lemon Law was enacted in 1970 to provide drivers with relief from persistent problems with their vehicles. It applies to cars, trucks, vans, SUVs, RVs, motorcycles, some business-owned vehicles, and boats. It applies to purchased or leased new vehicles, as well as used vehicles that are certified pre-owned and/or still under a manufacturer's warranty.

If you think you might have a lemon, it's important to consult with a legal expert who is familiar with the specific lemon laws in your state or province. Here are some reasons why consulting a legal expert is a crucial step in the process:

• Understanding Your Rights: Lemon laws can be complex, and the specific laws and regulations may vary depending on your location. A legal expert can help you understand your rights as a consumer and explain the protections offered by the lemon law in your area. They will guide you through the intricacies of the law, ensuring you know what options are available to you.
• Evidence and Documentation: To support your lemon law claim, you will need to provide evidence and thorough documentation. A lawyer can advise you on what records to keep, such as repair orders, invoices, and communication with the dealer and manufacturer. They will ensure you have the necessary proof to strengthen your case and improve your chances of a successful claim.
• Dealing with Manufacturers: When facing a lemon law claim, manufacturers often have teams of lawyers defending them. A legal expert will advocate for your rights and stand up to the power of a large corporation's legal department. They will negotiate on your behalf and ensure you are not taken advantage of by the other party.
• Compensation and Settlements: Lemon laws often allow for various types of compensation, including refunds, replacement vehicles, and even punitive damages in certain cases. A lawyer will help you understand the different types of compensation you may be entitled to and work to maximize your recovery. They have the knowledge and experience to prove your claim effectively and ensure you receive a fair settlement.
• Free Consultations: Many lemon law firms offer free consultations, giving you the opportunity to discuss your case at no cost. This allows you to gain valuable insights and legal advice without any financial risk. It also helps you make an informed decision about whether to proceed with a claim and choose the right lawyer for your specific situation.
• No Upfront Costs: In some cases, lemon law claims may be handled on a contingency basis, meaning you don't have to pay any legal fees upfront. The Tanner Consumer Protection Act, for example, provides for attorneys' fees, so your lawyer can be paid through your claim without any initial out-of-pocket expenses from you.

By consulting a legal expert, you can gain a better understanding of your rights, improve your chances of a successful claim, and ensure you receive the compensation you deserve. They will guide you through the complex legal process and provide personalized advice tailored to your specific situation.

Seek compensation through arbitration

Arbitration is a less formal procedure for seeking compensation for your lemon vehicle. It is often faster and more cost-effective than pursuing legal action in court. However, it's important to note that arbitration may not always be in your best interest, as it can sometimes compromise your desired outcome.

In California, for example, lemon law arbitration is typically handled by a panel of arbitrators sponsored by the manufacturer. While this route is much cheaper for the manufacturer, it often results in consumers losing their claim or being awarded an additional repair visit, which they are already entitled to under the warranty. Very few consumers ever receive a buy-back or replacement vehicle through arbitration. Additionally, manufacturer-sponsored arbitrators may not always be neutral parties, as they are reliant on the manufacturer for business or, in some cases, created by the manufacturers themselves.

If you choose to pursue arbitration, you will need to gather all relevant documents, such as purchase documents, warranty papers, and records of repairs. You should also prepare a concise and comprehensive account of your vehicle's history, including all repair attempts and an explanation of why you believe your vehicle is a lemon. It is crucial to know your desired outcome, whether it be a new vehicle, a refund, or a cash settlement.

During the arbitration hearing, both you and the manufacturer's representative will present your cases, answer questions from the arbitrator, and provide any relevant evidence or witness testimony. These hearings are usually more relaxed than court proceedings and can be done through teleconferencing or in a neutral location. After the hearing, the arbitrator will render a decision, which is typically binding. If the decision is in your favor, you may be awarded a replacement vehicle, a refund (with or without a mileage deduction), or cash.

While arbitration can be a faster and more affordable option, it is essential to consider the potential drawbacks and seek legal advice if you are unsure. A specialized lemon law lawyer will be able to guide you through the process and protect your rights.

Go to small claims court

Small claims courts are designed to provide a fast, efficient, and inexpensive way to resolve claims against merchants or large corporations. They are a great resource for consumers, offering an informal and inexpensive forum to help settle disputes. Small claims courts are especially useful for those seeking compensation for a faulty car, as they are designed to help people settle problems with car dealers or manufacturers.

Small claims courts are generally county-wide, with claim limits ranging from $1,000 to $7,500. In California, individuals may claim up to $10,000. This court is not the place to seek a buyback or replacement of a lemon, or to seek considerable damages and expenses. However, if you win a buyback through arbitration, you can file for reimbursement of incidental expenses, such as towing, lodging, or rental cars, through small claims court.

Small claims court is advantageous because it is simple and does not require a lawyer. Even if the other party brings in high-priced lawyers, the process is designed to be informal and simple, allowing consumers to easily explain their problem and the remedy they seek. The judge may help present the case by asking appropriate questions, and formal courtroom procedures are usually ignored.

To file a complaint, you will need to fill out a form, which will include your name and address, the names and addresses of the person(s) you are suing, the amount of your claim, and the reason for your suit. The amount of your claim should include the cost of repair in the case of a defect or accident, and any consequential damages arising from the problem. For example, if you paid for a service that was not performed, you can sue to get that money back, as well as any additional costs incurred, such as a rental car.

After filling out the forms, you will pay a small filing fee, which is usually returned if you win, as the losing party typically pays it. The clerk will then give you a copy of the forms, a "docket number" for your case, and a date for the hearing, which is usually scheduled for 2-8 weeks from the date of filing.

When preparing your case, try to attend a session of the court to learn the procedure and what to expect. Bring all relevant documents, such as written estimates, repair orders, and canceled checks, as well as physical evidence (broken or defective parts) if possible. Written statements or affidavits that support your complaint are also beneficial, such as a statement from a car mechanic describing what is wrong with the car and why it would be considered a defect.

On the day of the hearing, the judge will ask each party to present their side of the story. Give the court copies of any written evidence you have, and if you have any witnesses, call them before the judge. The judge will ask questions to clarify anything that is not clearly presented, and the other party will then be given an opportunity to present their side. Rehearse your presentation beforehand so that you can present the facts easily and with confidence.

Frequently asked questions