Lemon Laws Explained
To understand what a lemon law is and whether you qualify, first it’s important to understand what lemon laws are and why they exist. Lemon laws are a type of warranty law that are primarily designed to help those who have purchased a defective vehicle. These laws help protect consumers who have purchased a defective automobile, bike, boat, RV, truck or any other type of vehicle that the state in question has ruled as covered under lemon laws.
Lemon laws help protect consumers from defective vehicles that continue to have issues, even after several attempts by the dealer or manufacturer to correct the problems. Many states have lemon laws in place that dictate how many times you can bring a vehicle back to be repaired, what types of issues are covered, what types of vehicles are covered and how long you have to take the vehicle back for repairs before filing a claim.
Though lemon laws originally started as an idea to protect consumers from defective vehicles, over the years, some states have expanded their lemon laws to include bikes, RVs, boats, trucks and other vehicles that were previously not covered . This expansion has gone into affect so that any state with a lemon law will have to rule on what is covered and what is not.
It should be noted that not every state has a lemon law. As a result, a person who lives in one state that does not have a lemon law may find that buying a vehicle in a state with a lemon law will allow them to file a claim if their vehicle turns out to be defective. This can turn into a legal battle since consumers can often find themselves fighting for their rights to gain back control when a manufacturer refuses to cooperate.
States can vary in terms of both their definition of a "lemon," as well as the warranties that they will honor, and the owners’ rights under each state’s lemon law. This means that some states offer far more consumer protection than others, which can make the process of filing a claim confusing and difficult for those who have purchased a defective vehicle.
How to Identify a Lemon Vehicle
The Lemon Law depends on your vehicle having a defect which is covered under the law. However, the manufacturer must have had the opportunity to repair the defect. In order to qualify as a Lemon, your vehicle must exhibit a defect during the warranty period. In addition to the defect, the manufacturer must have had a reasonable chance to repair the defect and failed to do so. The Pennsylvania Lemon Law is not there to provide you with a new vehicle simply because you do not like it. If your vehicle is operating satisfactorily and meets your needs, you will not be entitled to a Lemon Law claim.
Common defects that are considered Lemon Law defects include problems with the transmission, brakes, heating and air conditioning systems, electrical systems, and even the paint job. In many instances, people have vehicles which do not fall within the traditional "lemon" criteria of the transmission, brakes, etc. Vehicles with electrical system and paint job defects have gone through the Lemon Law process and may have settled. You may have a valid Lemon Law claim.
If you are fortunate enough that your vehicle has a defect that falls within the Lemon Law parameters, you must also meet the repair attempt criteria. You must place the vehicle into the authorized repair facility, at least three times, for the same defect. In other instances, you may have placed the vehicle into the repair facility for the defect at least once during the warranty period, but your vehicle has been out of service for a cumulative of at least 15 business days for that same repair.
Another opportunity for you to establish a Lemon Law claim is when the manufacturer has made an attempt to repair the defect and it has failed within the first year or 12,000 miles, however, these claims are infrequently successful. Manufacturer warrants often require a single repair attempt for the defect in order to successfully qualify as a Lemon. Again, the Lemon Law is intended to assist you if the manufacturer has failed after having had a reasonable opportunity to repair the defect, not for you to unload a vehicle into the marketplace because you simply do not like it.
How to Start Your Lemon Law Claim
Once you have determined that you own a defective vehicle that qualifies for relief under your state’s lemon law, the next step will be to document all repairs and issues. Depending on your state’s requirements, you will need to provide information establishing that you meet the following criteria:
- You have given the manufacturer or dealer a reasonable opportunity to repair the defect;
- The defect substantially impairs the use, safety, or value of the vehicle; and
- You have notified the dealer of the defect.
The manufacturer will have had the opportunity to repair the defect if they have been provided a reasonable number of chances to fix the problem. No set number of attempts is necessarily considered reasonable, as each situation will need to be examined on a case-by-case basis.
Consider the following when determining if you have provided the manufacturer or dealer a reasonable number of attempts to repair your vehicle:
- The frequency of the repairs – Are you often bringing your vehicle back in because a previously-repaired issue has failed?
- Two repair attempts are nearly always considered reasonable
- In most lemon law states, one repair attempt is usually acceptable for dangerous defects (a steering problem, sudden brakes failure, fire risk, etc.)
Keep in mind that state lemon laws differ, therefore, it is a good idea to contact a consumer protection attorney regarding your state’s requirements.
Collecting Your Supporting Documents
Successful lemon law claims are often built on a foundation of solid documentation. When compiling the evidence necessary to prove your claim under your state’s Lemon Law, be sure to include the following types of paperwork:
Repair Records – one of the most important forms of documentation to support your claim is a reliable record of auto repairs. Make sure that you properly note all repairs, dates, and associated costs – including your labor spent repairing the defect or recurring issue. Record keeping is perhaps the most important aspect of a successful lemon law claim.
Purchase Agreement – a copy of your purchase agreement gives proof that you bought the covered vehicle in the first place. It also documents any inherent issues or manufacturer warnings that differ from state to state.
Communication Logs – maintaining a running list of all written and verbal communications with the manufacturer or dealer is essential to establish a history of your case. Keep records of telephone numbers, names, dates and times of contact, and results after following each channel of communication.
Your attorney will help ensure that you have the necessary documentation and will make a determination on whether additional documentation is required for your case.
Collaborating with a Lemon Law Lawyer
Lemon Law is often cited as a factor, along with market share, in why a particular mark will do better or worse in the marketplace. Even the biggest of names struggle. So it should be no surprise that when the going gets tough, lawyers get going. While not all lawyers handle Lemon Law cases, there are certainly more than a few who do, though they are still relatively rare when compared to other areas of practice.
The benefit of consulting with a Lemon Law attorney is multifaceted. First, the Lemon Laws – both the federal and state – are not as clear cut as one might imagine. They are imbued with technical terms that can be difficult for an individual to grasp fully. A qualified Lemon Law attorney can help an individual navigate this. However, an attorney does not simply have to be a mind of knowledge on the subject. The best Lemon Law attorneys are also great listeners. They will devote time to hearing the concerns of their clients. While some clients are no doubt misinformed or suspicious, a good attorney will take the time to listen and can explain how things are and why things will be. An important function here is to set realistic expectations. Some people go in expecting a million dollars. An attorney who listens can then directly ask them where the expectation comes from and , if needed, educate them on how such a demand would be unreasonable and likely lead to disappointment and disaster in the long run.
While some individuals may prefer to work with a general practitioner, M.A. Carlson strongly cautions that they not do so. This is because Lemon Law cases can be difficult both procedurally and in depth of law. As such, an attorney who has no experience or limited experience in the field can easily miss out or overlook a critical element of the claim that will result in the failure of the case. Having a Lemon Law attorney on hand helps.
An additional benefit of a Lemon Law attorney is that they can provide experienced counsel relating to dealings with the manufacturer, as well as any possible settlement or negotiation proceedings which may arise during the case. While a manufacturer may not be able to act in bad faith, an aggrieved consumer who has not consulted with an attorney may see settlements as far lower than what they could be. With so many technical and substantive elements in play, the expertise of experienced counsel is indispensable.
Common Obstacles to a Lemon Law Claim
One of the greatest challenges of pursuing a lemon law claim is determining whether or not something is covered under the law. Many people do not know that the law does not require a manufacturer to replace their vehicle with something of equal or greater value or be compliant with everything a consumer wants addressed. The law basically states, a product must be fixed to begin the lemon law process, if it still has a known defect after the manufacturer had the opportunity to fix a problem a consumer has filed a complaint about, then the manufacturer must replace the full car and address other issues that could potentially be causing problems for the affected consumer.
Most consumers are shocked when they find out what they are entitled to under the law. They assume that a little nuisance will prevent them from being able to request a replacement vehicle. Considering that many manufacturers know this and are willing to fight on issues that would benefit their customer tremendously, it can be a daunting task to get what you deserve under the law, especially when you feel like everything is against you.
Another common cause of headaches for consumers is the warranty required under the lemon law. Many consumers have difficulty understanding how a warranty works and how it applies to their case. When you decide to purchase a new vehicle, you are not the only person to benefit from spending the money on the warranty. It is beneficial for both the consumer and the manufacturer. This is done because when manufacturers see their product return for smaller, more insignificant defects, they take note and make improvements on future models even if it ends up costing them more to do so in the end.
A third hurdle a consumer may have to overcome is learning to be patient. Many people feel like they should be entitled to things just because they purchased a vehicle. They want the dealer to replace the vehicle immediately upon discovering any issue as small as finding that one speaker is not working. What people do not realize is that in order to really get the most out of a lemon law, they must give the dealer a chance to fix the vehicle. This means, a vehicle is found defective and the consumer strongly wishes to replace the vehicle. However, the dealer may fix the vehicle over and over again. Sometimes, a consumer is asked to come pick up their defective vehicle, only for it to break down again. When this happens, some customers get frustrated and try to turn the problem around on the dealer. They may claim the vehicle was fine when they left the day before and then insist it broke down again in an attempt to end the long journey of having the issue addressed. Doing this may get the consumer a loaner car, but it could also prolong the process and result in a less satisfying outcome.
Unfortunately, many fear that with a longer time span, this means their claim will be harder to prove because of the time that passes between each appointment. This is a common misconception. The law allows for the appropriate timespan for a reason. In order to build a strong lemon law case, you must play by the rules. Manufacturers know how to play and exploit the law, but are not likely to be able to get around a seasoned lemon law attorney that knows the ins and outs of the law. It can be a frustrating process at first, but the longer a manufacturer takes, the stronger your case will be and the more likely it will be that you will win a settlement for your lemon law claim.
Lemon Law Claim Time Frame
In general, a lemon law claim will include the following phases:
Phase One: Initiating Contact with the Manufacturer
The initial phase of your lemon law claim consists of contacting the manufacturer to alert them that you have a vehicle that does not conform to all warranties pursuant to the lemon law. This phase of the process can occur one of two ways—either through a call to a 1-800 number or through a certified letter from an attorney. When contacting the manufacturer, you will need to furnish several key pieces of information, including your name, address, phone number and VIN. You also need to provide a detailed description of each of the repair attempts that you tried, the dates of each repair attempt, and any other information they may ask about the specific problems that your vehicle has experienced. Make sure to keep a copy of every single communication you have with the manufacturer during this phase.
Phase Two: Engaging in Litigation
If there is no agreement between the parties within a reasonable amount of time after filing a lemon law claim, then the next phase of the claim is litigation. At this point, the manufacturer’s attorneys will be involved. During this process, both you and your attorney will prepare for litigation. The duration of this phase will vary widely based on the amount of time the manufacturer takes to conduct discovery, schedule depositions and prepare for possible litigation. Additionally, some manufacturers are willing to settle in the middle of this phase without going to litigation.
Phase Three: Alternative Dispute Resolution
Once you’re through the discovery phase, there is a good chance that litigation will be avoided through alternative dispute resolution (ADR). This process could be by way of mediation or arbitration.
Phase Four: Court Proceedings
If you are unable to reach a settlement with a manufacturer through ADR, the manufacturer is still protected by several protections if your claim gets brought to court. They can still defend your case using the following defenses:
Potential Outcomes of Your Lemon Law Claim
The resolutions to a lemon law claim and case may vary from straight compensation in the form of cash to some other remedy. A consumer may get the option of a refund, or the repurchase of the vehicle, or, they may get a replacement vehicle. The consumer may get a refund of the purchase price of the vehicle, sales tax, registration fees, loan fees, and other fees, as well as recovery of lost wages, as long as the consumer can prove those lost wages to the Court. Obviously depending on the facts of the case, with mileage on the vehicle , there would be a deduction of a reasonable use allowance where the manufacturer is entitled to deduct a certain amount per mile driven. It would be an exact math problem. If it were a replacement vehicle, the manufacturer would be obligated to offer the consumer a vehicle that is identical or the same as far as specs. So, if it were a Nissan Rogue, you may be given another Nissan Rogue or, say, keywords, another make and model as far as, the same model as far as warranty, specs, color, and equipment. For example, a Dodge Ram truck is a Dodge Ram truck, so you may get a Dodge Ram truck back: "This is a 20XX Dodge Ram with the exact same options as the one you’re giving back to us."
