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What are Lemon Laws?

Lemon laws are a United States law that offers protection to consumers when they purchase vehicles or other lemon products that do not meet their intended usefulness. A lemon law is a legal protection that consumers enjoy when they buy defective vehicles. For instance, if a consumer buys a vehicle, especially a new one and it does not meet the expected value or safety requirements of a new vehicle, the lemon law can be applied. The lemon law requires that the seller or manufacturer repairs or replaces the defective vehicle or lemon product. The money used for the purchase can be refunded. The lemon law provides relief for buyers.

How do Lemon Laws Work?

The application of the lemon law vary from state to state. In many American States, the lemon law provide relief or compensation only for products that qualify as lemon products. It allows purchasers to be compensated for defective lemon products. In most states, the lemon law only applies to new cars but few states allows the law to be used for vehicles that are used. In the legal sense, the lemon law requires that the manufacturer of the product takes back the product if it is defective. The manufacturer can repair, replace or refund the money used in purchasing the product.

If a lemon product develops a defect before its useful life expires, or does not meet the expected usefulness or quality, such a product has a lemon problem. Lemon laws apply to vehicles purchased or leased and other lemon products. Depending on the state, the application of lemon law varies, illinois for instance allows the application of lemon laws 18 months after the product was delivered. Generally, lemon laws provide consumers with ways to resolve problems surrounding defective lemon products. A complainant can lodge a complaint with the federal or state government. Depending on the jurisdiction that has the responsibility to resolve such matters. Complainants are required to identify appropriate agencies to file their complaints. There are procedures that are involved when it comes to the settlement of lemon problems. If there have been efforts to repair the defective product, arbitration procedures can be used where manufacturers are given fair hearings. In states like North California, only new lemon products purchased in the state are covered by the lemon law. Such products include cars, trucks, vans, motorcycles that were purchased as new. Also, in some states, sellers and manufacturers of lemon products are required to put warranty on their products, this provides an assurance that problems with the products will be fixed throughout the period stipulated in the warranty. Also, there are many federal Acts on lemon law which contains the coverage of the law and its limits.

Related Topics

• What is the Federal Trade Commission
• Enforcement procedures of the FTC?
• Penalties for violating FTC regulations?
• Commercial Practices Prohibited by FTC?
• Unfair Trade Practices 
  
• Predatory Pricing
• Bait & Switch
• Lemon Laws
• Consumer Financial Protection Bureau