Lemon Law was enacted at Federal, and subsequently State legislative level to protect consumers who have purchased or leased a defective consumer product that has not been repaired within a reasonable number of repair attempts, within a reasonable time.

Whilst Federal Lemon Law covers almost any type of product, most State Lemon Laws only apply to certain types of motor vehicles.

Federal Lemon Law

The federal Lemon Law is officially known as the Magnuson-Moss Warranty Act.

The Magnuson-Moss Warranty Act applies to all consumer products, not just vehicles. It also created strict requirement for warranties and disclosure of warranty terms, making them less confusing to consumers.

The Federal Lemon Law typically extends protection far beyond State law. Manufacturers [warrantors] are help responsible for irreparable defects for up to four years after the factory warranty has expired.

It also provides for cash compensation where the warrantor cannot make the product free from defects within a reasonable time.

State Lemon Law

Varies slightly between states in terms of vehicle types covered, repair attempts made and warranty or validity period. For a summary of Lemon Law in each state.

Most State Lemon Laws cover only new vehicles, although some, like Arkansas, cover vehicles licensed, purchased, or leased.

What Lemon Law Means To the Consumer

In basic terms Lemon Law kicks in when the item purchased by the customer requires "unreasonable" repair.

How the term "unreasonable" is defined, varies from state to state, but in most cases it refers to when the vehicle has only just been purchased and is still within the warranty period. It is not reasonable, that the purchaser or leasee should have the vehicle repaired on numerous occassions for the same fault, or on a single occassion, where the fault may have lead to serious harm or death of passengers.

It is also not reasonable that a repair need be made within a short period following a service or previous repair for the same fault.

Lemon Law therefore defines:

The type of vehicles to which the law applies, and often, the primary use of that vehicle
The type of repairs that it regards as unreasonable
The number of repairs deemed unreasonable
The period in which those repairs needed to be made

Lemon Law Compensation

If you win your claim under Lemon Law, the manufacturer is required to either refund your money or replace your vehicle if, during the first twelve to twenty-four months of ownership, your vehicle has suffered three to four repairs for the same problem or has been out of service by reason of repair more than thirty days.