Lemon Law Blog

Posts Tagged ‘federal lemon law’

Many of us have owned a car that we referred to as a lemon car. To legally be considered a lemon, a vehicle must meet certain requirements established by state or federal lemon law. Under state lemon laws, a vehicle must undergo a certain number of unsuccessful repair attempts (usually about three) within a certain number of miles (usually less than 18,000) of its original delivery date. Most states do not cover used cars or alternative vehicles such as motorcycles, boats and ATVs.

Unlike state lemon laws, federal lemon laws do not require that an irreparable defect occur within a certain range of miles, but cover all vehicles that are still under the manufacturer’s original warranty, including used cars and alternative vehicles that are deemed personal vehicles (e.g. dump trucks and bulldozers are excluded). Just as federal and state lemon differ in their lemon criteria; they also differ in terms of how lemon owners are compensated. Under state lemon laws, lemon owners can choose to receive either a free comparable replacement vehicle or a refund of their vehicle’s purchase price minus a mileage-based allowance. Under federal lemon laws, lemon owners receive a cash award and can keep their vehicle, but cannot receive a free replacement vehicle.

Although lemon cases seem straightforward, they can often become frustrating and complex when it comes to dialoguing with an automaker. As a result, most consumers require the help of a lemon law attorney to receive meaningful compensation in a timely fashion. If you are considering handling your own lemon case to avoid attorney fees, be aware that federal lemon laws allow you to recover attorney fees when your case is successful, which is almost always the case when an experienced attorney is on your side.

Most vehicles that are called lemons are older vehicles that have high mileage. But it’s also possible for vehicles that are still under warranty to be lemons, with the difference being that the latter situation legally entitles consumers to receive compensation. If your new vehicle requires occasional repairs, it does mean that it is a legal lemon. However, if it has undergone repeated repairs for a defect that is still unresolved, chances are that it is a legal lemon, especially if you drive it with care.

Two types of laws determine lemon status: the state lemon law and the federal lemon law. Under state lemon law new cars, a vehicle is considered a lemon if it undergoes a certain number of unsuccessful repair attempts (usually about three) within a certain range of miles (usually less than 18,000) after its original delivery date. However, federal law applies to all vehicles that are still under the manufacturer’s warranty and experience a defect that cannot be resolved within a reasonable number of repair attempts, regardless of the vehicles’ mileage. Unlike the lemon law in most states, federal lemon law also applies to alternative vehicles that qualify as personal vehicles, such as motorcycles, ATVs, boats and motor scooters.

If you own a vehicle that meets the legal definition of a lemon, the best thing to do is hire a lemon law attorney to resolve your case. Although some consumers choose to dialogue with an automaker on their own, consumers who hire an attorney usually receive a faster response, as well as a higher settlement offer. If you fear hiring an attorney because of attorney fees, it’s important to realize that most state lemon laws and the federal lemon law allow you to recover attorney fees when your case is successful.

In many cases, car lemons exhibit a persistent defect shortly after they leave the dealership, while in other cases, their persistent defect doesn’t appear for thousands of miles. But in either case, consumers are entitled to receive compensation for owning a lemon vehicle, with the only difference being whether they will be compensated under state lemon laws or federal lemon laws.

State lemon laws are more rigid than federal lemon laws, establishing a certain number of miles (usually under 18,000) after a vehicle’s original delivery date within which it must experience a certain number of unsuccessful repair attempts (usually about three) to qualify as a lemon. Therefore, if you’ve driven your vehicle more than 18,000 miles before it exhibits a persistent defect, chances are that it will not be covered under your state’s lemon law. Also of note is that most states do not cover used cars or alternative vehicles, such as motorcycles and boats.

The Federal lemon law does cover alternative vehicles, as well as any vehicle that is still under the manufacturer’s original warranty, regardless of its mileage. Under the state lemon law, lemon owners are entitled to receive either a free comparable replacement vehicle or a refund of the lemon’s purchase price less a mileage based allowance. Under federal lemon laws, lemon owners are entitled to a cash award and can keep their vehicle, but cannot receive a free replacement vehicle. Also of note is that most state lemon laws and the federal lemon law allow consumers to recover attorney fees from an automaker when their case is successful.

Owning a vehicle that suffers from an irreparable defect can be more than frustrating. Instead of being able to drive where you want when you want; your car is either in the repair shop or making you to wonder if it won’t break down in the middle of your journey. In such situations, some car owners think that the only solution is to have the vehicle repeatedly worked on until its defect disappears. However, because some defects are the result of faulty design and never go away, there are state and federal laws known as “lemon laws” that protect consumers from owning vehicles that consistently fail to live up to their warranty.

Under the state lemon law, a vehicle qualifies as a lemon when it undergoes a certain number of failed repair attempts (usually about three) within a certain number of miles (usually less than 18,000) after its original delivery date. Once these criteria are met, the vehicle’s owner can choose to receive either a new comparable replacement vehicle or a refund of the vehicle’s purchase price minus a mile-based allowance. Although all state lemon laws cover cars, trucks and SUVs, most states do not cover used cars and alternative vehicles such as motorcycles, ATVs and boats.

Unlike the lemon car law in most states, federal lemon laws cover used cars and alternative vehicles that qualify as personal vehicles (e.g. commercial vehicles such as dump trucks and moving trucks are exempted). A second difference between federal and state lemon law is that the former does not require that a certain number of repair attempts occur within a certain range of miles, but covers all vehicles that are still under the manufacturer’s warranty and experience a defect that cannot be resolved within a reasonable number of attempts. In federal lemon cases, lemon owners receive a cash award and can keep their vehicle, but are not entitled to a free replacement vehicle. The Federal lemon law also allows consumers to recover attorney fees when their case is successful as well as most state lemon laws.

If you own a new car that suffers from a significant defect that isn’t resolved by three or more repair attempts, chances are that your vehicle will qualify as a lemon under your state’s lemon laws. In most states, a vehicle qualifies as a lemon if it undergoes a certain number of unsuccessful repairs before it’s been driven for a certain number of miles (usually less than 18,000). In addition, a vehicle within the proper mileage range can instantly qualify as a lemon if it suffers a defect that jeopardizes the safety of the driver and/or other drivers. But what you do if you own a problematic used vehicle or a type of vehicle that isn’t covered by your state’s lemon laws in the first place?

Unlike state lemon laws, The Federal Lemon Law covers any personal vehicle that is still under the manufacturer’s warranty, regardless of mileage. Because many states don’t cover leisure vehicles like motorcycles, scooters, boats and ATVs, their owners seek compensation under The Federal Lemon Law in the event that a vehicle suffers a persistent defect that can’t be resolved within a reasonable period of time or reasonable number of attempts. And the same is true of some used cars. If you own a used lemon car that’s still under the manufacturer’s warranty or that began suffering its current problem while still under the manufacturer’s warranty, you can receive compensation under The Federal Lemon Law.

In terms of compensation, Federal Lemon Law differs from state lemon law in one basic respect: Under state lemon law, vehicle owners are entitled to receive either a replacement vehicle of similar make free of charge or a full refund of the vehicle’s sale price minus a mileage based allowance. Under Federal Lemon Law, consumers are entitled to a cash award in the form of either a settlement from the manufacturer or a court award, but are not entitled to a free replacement vehicle.

Every state has a body of statutes known as lemon laws that protect consumers from owning vehicles that fail to live up to the manufacturer’s original warranty. Under state lemon law, a vehicle qualifies as a lemon when it undergoes a certain number of unsuccessful repairs for the same problem within a certain range of miles after its original delivery date, meaning that owners of used lemon cars typically aren’t covered by state lemon laws. However, if you own a used lemon car and your state’s lemon laws don’t cover used vehicles, you still have a right to compensation under the Magnuson-Moss Warranty Act, which is often referred to as the “Federal Lemon Law”.

Driving a used lemon car can feel the same as driving a new lemon car, but with one exception: its “used” status often results in its owner having it endlessly repaired, thinking that the window of mileage to pursue a lemon law claim has expired. Under the Magnuson-Moss Warranty Act, a car can qualify as a lemon at any point during its warranty. For example, if your used car is 86,000 miles into its 100,000-mile warranty and experiences a problem that can’t be fixed within a reasonable period of time or reasonable number of attempts, the act allows you to receive compensation.

In terms of compensation, the biggest difference between state lemon laws and the Magnuson-Moss Warranty Act is that the latter does not entitle consumers to full refund of a vehicle’s purchase price or a free replacement vehicle. Instead, vehicle owners receive a cash award and may return the lemon vehicle on their own. The act also allows consumers to recover attorney fees from the manufacturer.

State lemon law and Federal Lemon Law are principally the same: they exist to protect consumers against owning products that fail to live up to the manufacturer’s warranty, establishing rights and remedies that allow consumers to recover all or a significant portion of their investment. From a consumer perspective, the most significant difference between state lemon law and Federal Lemon Law regards reimbursement for lemon products. While state lemon law entitles consumers to receive either a free replacement product or a refund of the defective product’s purchase price, Federal Lemon Law only entitles consumer’s to receive a cash award.

 Another difference between state and Federal Lemon Law is that the latter is typically less restrictive of the circumstances under which a product can qualify as a lemon. For example, whereas state lemon law establishes that a consumer vehicle must undergo a certain number of repairs within a certain range of miles after its original delivery date to achieve lemon status, Federal Lemon Law states that, as long as a consumer vehicle is under the manufacturer’s original warranty, it can qualify as a lemon. Concerning vehicles, a third major difference between state and Federal Lemon law is that Federal Lemon law covers certain types of vehicles that lemon laws in many states do not, including: motorcycles, mobile homes, speed boats and used cars.

 Although manufacturers are usually motivated to settle lemon law cases out of court for financial reasons, reaching a favorable settlement usually requires the aid of a lemon law attorney. Because only attorneys can file lawsuits, simply displaying to a manufacturer that you are aware of lemon laws usually won’t motivate a settlement. Due to the prevalence of Federal Lemon Law cases, many attorneys that concentrate in state lemon law are also skilled in the Federal Lemon Law.

If you own an ATV that fails to live up to its warranty despite being repaired for the same problem numerous times, chances are that your state’s lemon laws won’t entitle you to receive a replacement ATV or a refund of your ATV’s purchase price. While some states have lemon laws that apply to alternative types of motor vehicles such as speed boats, motorcycles and ATVs, the lemon laws in some states only apply to personal trucks, cars, SUVs, etc. However, the Federal Lemon Law does cover alternative types of motor vehicles, including ATVs.

The Magnuson-Moss Warranty Act, also known as the Federal Lemon Law, covers all manufacturer warranted consumer products that cost $25 or more, the key being that a product is a consumer product. Although state lemon law entitles owners of lemon vehicles to a free replacement vehicle or a refund of the vehicle’s purchase price less a mileage based allowance, The Federal Lemon Law entitles lemon owners to receive a cash award but not a buyback. As a result, the vehicle’s owner may either keep the vehicle or attempt to sell it or trade it in.

Because Federal Lemon Law entitles successful litigants to recover attorney fees from a product’s manufacturer, most manufacturers prefer to settle lemon cases before they proceed to trial. As with any other legal case, winning a Federal Lemon Law case usually depends on hiring an experienced attorney that concentrates in lemon law type cases, including Federal Lemon Law cases.