How Lemon Law Works

This article covers consumer protection laws relating to defects in automobiles, recreational vehicles, and motorhomes.

What Is Lemon Law? FAQ

Lemon laws are state and federal laws that protect consumers should they purchase a defective vehicle.

Are All Vehicles Protected Under Lemon Laws?

No. Some states limit lemon law protection to new cars, vans, trucks, and motorcycles but exclude larger vehicles.

However, lemon laws under the Federal Magnuson-Moss Warranty Act also cover recreational vehicles, off-road vehicles, boats, and even off-road vehicles, motorhomes, and most other vehicles covered by the manufacturer’s warranty, including sales of used vehicles.

State Lemon Laws

Lemon laws Vary Substantially Between States

State laws provide consumers with legal rights and remedies against dealers, wholesalers, and manufacturers of defectively designed or manufactured vehicles.

According to Consumer Affairs, under most state lemon laws, a vehicle must have a substantial defect before a consumer can file a legal action against the manufacturer in either state or federal court.

What is a Substantial Defect?

According to Consumer Affairs, a defect must be considered substantial before it can qualify for lemon law protection under state and federal lemon laws.

However, determining whether a vehicle is “substantially defective” can be problematic. This is because the definition of substantially defective often turns on a technical opinion rather than what a consumer might think is a substantial defect.

Sometimes what qualifies as a substantial defect depends on the age of the vehicle and the level of technology under which the vehicle was originally manufactured.

The Changed Meaning Of A Substantial Defect

Automotive Technology Quickly Changing

Automotive technology and available safety features have changed substantially in the past decade. Preowned vehicles, especially those manufactured decades ago, may not have the same definition of what constitutes a substantial defect and, therefore, can be legally qualified legally as a lemon.

For example, a 1990 chevy corvette may not have the same product or safety features as a 2023 model.

Initial Attempt at Defining a Substantial Defect

Initially, both states and federal laws dealt with this issue by defining a substantial defect as one in which: The vehicle has been unable to be fixed within a reasonable number of attempts to repair the vehicle or by the number of days the vehicle has been out of service from the date of sale of the vehicle.

What is The Meaning of “Reasonable Number of Attempted Fixes” or “Days Out of Service”?

Most states later redefined the meaning of the above terms to specific statutory language.

Number of Attempted Fixes Limited

If the defect is not a safety one, the number of acceptable attempted fixes now requires four. And if the substantial defect is determined to be a safety defect, the attempts necessary to fix the defect have been reduced to two attempts.

Number of Days Out of Service Limited

The current way of legally determining a substantial defect is if the vehicle is out of service for 30 days within the first 12,000 to 18,000 miles or 12 to 24 months.

What If My Car Has More Than One Defect – Can Stack Defects?

You cannot stack multiple attempts or extend repair periods for different defects. Lemon law remedies are available only if the number of repair attempts or the time the car is out of service is attributable to a single defect.

Are Federal Lemon Laws More Protective?

Federal Lemon Law Are More Comprehensive

Federal law and regulations, such as the Uniform Commercial Code (now adopted by most states), and particularly, the Magnuson-Moss Warranty Act, offer a much broader range of remedies and consumer protections.

Federal Magnuson-Moss Warranty Act

The Federal Magnuson-Moss Warranty Act (MMWA) is usually broader than most individual state lemon laws. For example, the MMWA covers a more comprehensive range of vehicles under its lemon law protections.

The MMWA also offers a broader scope of consumer remedies. In addition, they also provide laws that prevent sellers of vehicles from selling one-sided and unfair warranties. Depending on the state, consumers who may not wish to take legal action under their state’s statutes may be able to claim damages under the MMWA.

Advantages of MMWA?

MMWA not only applies to new and leased vehicles, but it also covers used vehicles that are still covered under the manufacturer’s original warranty.

Under MMWA rules, so long as a vehicle is sold or leased under warranty, the buyer may be able to pursue legal action.

Finally, as mentioned above, the most compelling feature of the MMWA is that while many states still limit lemon law protection to different types of vehicles, MMWA protections cover almost all vehicles that are subject to warranty.

Uniform Commercial Code

The Uniform Commercial Code (UCC) is a unified body of federal commercial and consumer laws designed to provide consistency across all 50 states on commercial and all secured transactions and which now include the sale of vehicles.

What Is An Implied Warranty?

Under the UCC, sellers of goods are legally bound by its provisions as set forth by its implied warranties of merchantability. Including the legal mandate that sellers only sell products of reasonable quality (as measured against other products of like kind and quality) and that the product sold is fit for its particular purpose and intended use.

How Can An Implied Warranty Become of Basis Of An Express Warranty?

Under the guidance of the UCC, if a seller makes certain statements or representations (affirmations) about the vehicle and it becomes the basis upon which the buyer agrees to buy the vehicle, those statements (affirmations) become part of the express warranty of the seller and under which the buyer may enforce.

What Types of UCC Remedies Are Available in Lemon Law Cases?

While the UCC does not explicitly define the meaning of a defective vehicle, should the vehicle be found to be defective, it does provide the consumer with a choice of remedies.

Under Most State’s Adoption of The UCC

Under most state adoptions of the UCC, states require the manufacturer of a defective vehicle to make a refund or replace the vehicle. Depending on how progressive your state laws are, you may also be entitled to reimbursement for past repairs and payment of your attorney fees.

Should I Notify Both the Dealer And Manufacturer of The Defect?

Yes, but this timing should be discussed thoroughly with your lawyer. The law puts a premium on providing the other party with adequate and reasonable notice before taking legal action. This policy applies to lemon law as well.

Consumers Cannot Just Sit on Their Rights

They must take the necessary action to protect their rights as soon as possible.

For example, suppose there is a substantial defect in your new car. In that case, you must notify the dealer as soon as possible. You will want the dealer to have the opportunity to inspect and repair the vehicle. Depending on the dealer’s response and whether the issue has been fully resolved, you may need to notify the manufacturer promptly.

The consumer must be particular about the nature of all defects, so the manufacturer or dealer can have a fair chance to remedy the problem. It would be advisable to consult your lawyer when preparing such a letter.

Can I Continue to Use My Car After Notifying The Manufacturer?

Normally yes. But you might only want to do so after you consult with your lawyer. Continued vehicle use might lead to complications should you file a legal claim.

Can I Stop Payments on My Defective Car?

Normally no. Lemon laws do not permit you to discontinue payments on a purchase contract. If you stop making payments and the car is repossessed, you are no longer entitled to lemon law remedies.

Make sure to consult with your lawyer before stopping payment on your lease or sales contract.

What If My Car Can’t Be Fixed?

Some states allow you to return the car to the dealer. You are entitled to either a new car to replace the defective one or a refund of the purchase price, including finance charges and taxes.

If you choose a refund, the dealer may impose a reasonable amount for your use of the defective vehicle since the date of purchase. Be sure to obtain guidance from your lawyer.

What If I Decide to File a Legal Claim?

First, do not make this decision on your own. Before doing anything, consult an experienced lemon lawyer in your state.

In some states, the consumer may be required to participate in informal dispute resolution (arbitration or mediation) before filing a formal claim against the dealer or manufacturer.

Do Car Manufacturers Settle?

Generally, yes, and usually for the following reasons:

• Settlement is usually a wise option for the manufacturer for two reasons.
• First, most manufacturers prefer to pay instead of getting negative publicity about their cars.
• Second, settling consumer disputes before extensive and protracted litigation is much more cost-effective.
• The economics of settlement is usually in favor of both parties.

Should I Agree to Binding Arbitration?

Not without consulting with your lawyer. Many manufacturers’ warranties provide that disputes must be resolved through arbitration rather than formal litigation. A lawyer experienced in lemon law can advise you whether a mandatory binding arbitration provision should apply in your case or whether it should be legally challenged.

Can I Sue Both The Manufacturer and Dealer?

State lemon laws are in addition to other remedies available to a consumer. For example, you might be able to retain the car and sue the dealer for a “breach of warranty” if the vehicle is defective.

You might recover the cost of repair and any damage you suffered as a consequence, such as the cost of a rental car. You have several options, so make sure you retain an experienced lemon law lawyer who will explain your options and advise you on your best course of action.

If I Sue, Who Pays My Attorney Fees?

In many states, the manufacturer is responsible for paying your attorney fees. Make sure to check with your attorney.

Defective Motorhomes And RVs

Are Motorhomes Considered Class A or B-type “Recreational Vehicles?

Unfortunately, such classifications are only uniformly used in some states. Different states use different categories, so distinguishing between them is problematic without the specific guidance of an experienced lemon law lawyer. For this article, we will use the term Motorhome to include Recreational Vehicles.

Do State and Federal Lemon Laws Cover Luxury Vans?

The popular modern high-end van is sometimes considered a class “B” vehicle and is covered by most state and federal lemon laws.

Do State and Federal Lemon Laws Cover RVs and Motorhomes?

In most states, there is a presumption that if the defect is “substantial,” the buyer should be able to demonstrate an excessive number of repair attempts or have been out of service for an extended period.

Since Motorhomes-RVs often present mechanically complex repairs, they are often beyond the repair abilities of most Motor homes and RV dealers.

Do Lemon Law Lawyers Accept Motorhome-RV Cases?

Most Motorhomes-RV lemon law lawyers will agree to accept and prosecute a case only after the vehicle has been out of service for a “substantial” period (varies by state) or has reached a specific number of failed repair attempts. (also discussed above)

One incentive for lemon law lawyers to accept such cases is that they usually can sue for their attorney fees should the motorhome buyer win their case.

Does The Magnuson-Moss Warranty Act Apply?

Yes. The federal Magnuson-Moss Warranty Act applies to both motorhomes and RVs.

While suing under federal law has advantages, some states offer the owner of Motor Homes-RV even more consumer protections. For example, some states provide the Motorhome-RV owner with additional remedies, such as mandating liability between the Motorhome-RV manufacturer and the dealer.

To determine if you are in a friendly Motorhome-RV state, you will need to contact a local lawyer specializing in lemon law to determine which judicial forum (federal or state) offers you the most protection given the specific circumstances of your case.

What is The “Final Stage Manufacturer” Rule

RV’s and Motor Homes go through numerous stages in the manufacturing process and use many different suppliers.

For example, staging the primary framing of the vehicle may differ from its mechanical staging. Given how elaborate these vehicles can get, they will often require additional staging for plumbing, furnishings, generators, appliances, etc.

Some Motorhome-RV-friendly states require a one-year warranty and make the “final manufacturer” responsible for all of the vehicle’s parts, even if the problem was the fault of another manufacturer or supplier.

The reasoning behind this rule is grounded in public safety. Specifically, by the final stage in the production cycle, the last phase is also the final opportunity to inspect and repair the Motorhome-RV before being sold to the general public.

Therefore, the “final stage manufacturer” rule requires the entity in charge of the final stage to complete a comprehensive final inspection.

Are Living Quarters Covered Under The Final Stage Rule?

Some states make an exception to the rule by excluding the actual “living quarters” of the Motorhome-RV since the law focuses more on defects and repair problems related to the mechanical integrity and safety of the vehicle to be sold.

However, the final stage manufacturer rule does not prevent the last entity who performed the final inspection from later taking legal action against the responsible third-party supplier or subcontractor and obtaining reimbursement from them should they be a legal cause of the defect. Legally, this is called the right to indemnification.

Is There a Mandatory Disclosure at the Final Approval Stage?

Yes. Under federal law, Motorhome-RV sellers must expressly disclose the “Final Stage Manufacturer” rule on the seller’s warranty.

Failure to disclose the Final Stage Inspection on the actual seller’s warranty can trigger a separate claim under the federal Magnuson-Moss Warranty act and the Unfair and Deceptive Practices act.

Lemon Law Consumer Rights Lawyers

If you have questions or require additional information about your specific legal rights, we recommend you contact and consult with an online Consumer Rights Lawyer as soon as possible.

You can also learn more about consumer rights by visiting the Consumer Affairs Website.