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Lemon law protection arises under state law, with every U.S. state and the District of Columbia having its own lemon law. [1] Although the exact criteria vary by state, new vehicle lemon laws require that an auto manufacturer repurchase a vehicle that has a significant defect that the manufacturer is unable to repair within a reasonable amount of time. [2]
Lemon laws primarily serve to force manufacturers to buy back defective vehicles or exchange them. Depending on the jurisdiction, a process similar to vehicle title branding may also be used to warn subsequent purchasers of the history of a problem vehicle. While this portion of a vehicle's history is usually not retained with the title when ...
The Magnuson–Moss Warranty Act (P.L. 93-637) is a United States federal law (15 U.S.C. § 2301 et seq.). Enacted in 1975, the federal statute governs warranties on consumer products. The law does not require any product to have a warranty (it may be sold "as is"), but if it does have a warranty, the warranty must comply with this law.
Motor Vehicle Manufacturers Association v. State Farm Mutual Automobile Insurance Co. , 463 U.S. 29 (1983), commonly known in U.S. administrative law as State Farm , is a United States Supreme Court decision concerning regulations requiring passive restraints in cars.
The best-known examples of consumer protection statutes for product defects are lemon laws, which provide protection to purchasers of defective new vehicles and, in a small number of states, used vehicles. [51] In the United States, "cars are typically the second most valuable asset most people own, outranked only by their home." [52]
Among other things, under the law implied warranties cannot be disclaimed if an express warranty is offered, and attorney fees may be recovered. [9] In some states, statutory warranties are required on new home construction, and "lemon laws" apply to motor vehicles.
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