History

• Lemon laws are derived from the 1975 federal law called the Magnuson-Moss Warranty Act. This legislation attempts to insure consumers are knowledgeable about their warranty and compare warranties before they make a purchase. The Magnuson-Moss Warranty Act applies to written contractual warranties optionally offered by the manufacturer. However, each state has its own take on lemon laws.
  
  

Features

• Lemon laws cover purchasers who reside or make purchases in that state. Lemon laws are intended for the individual buying a vehicle for personal use, not a reseller.
  These laws are designed to cover legally registered vehicles that travel the public highways. Common exclusions are motor homes, farm equipment and other machines used in production.
  The law normally covers defects that render the vehicle unsafe, impairs the use of the vehicle or significantly decreases the vehicle's value. The law will not cover vehicles that are neglected, mistreated or subjected to unqualified repairs.
  
  

Time Frame

• There is a definite timeline associated with lemon laws. Again, this will differ by state. A traditional example is 18 months or 18,000 miles from the date of purchase.
  Filing a claim is usually subject to limitations as well. A typical time period is 2 years after purchase. This means a claim must be filed during the allotted time period; the repairs and negotiations may take longer.
  
  

Prevention/Solution

• Both the consumer and seller are expected to make a good faith effort to resolve the problem preventing legal action. The consumer should report any defects to the seller and give them a chance to fix the problem. The seller is allowed a "reasonable number of attempts" to repair the vehicle before they must either buy it back or replace it. In Indiana and Michigan, for example, "reasonable" means four attempts.
  
  

Function

• What if both parties have reasonably tried to fix the problem to no avail? That's the function of the lemon law. The warranty may give steps to follow in resolving such claims. These requirements must be met before filing claim using a state's lemon law.
  If legal action is still desired, a consumer can contact the local clerk's office or the Better Business Bureau to inquire where to file the claim. The Better Business Bureau's website provides links to each state's lemon law and explains the law in simple terms. The BBB can assist in filing claim, in negotiations and even legal arbitration if necessary (see Resources below).