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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]
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.
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.
The Center for Auto Safety counts the enacting of lemon laws in all 50 states among its greatest successes. The Center has testified over 50 times before Congressional Committees on auto safety, warranties and service bulletins, air pollution, consumer protection, and fuel economy.
State "lemon laws" often require that, if vendor attempts to repair a problem under a new-car warranty repeatedly fail, the manufacturer or dealer buy back or replace the vehicle. Depending on the jurisdiction, this may be required to be disclosed to subsequent owners of a problem car.
Iowa consumer law expert says lawsuit without precedent. Bill Brauch, a retired attorney who served as director of the Iowa attorney general's consumer protection division from 1995 to 2015, said ...
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