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If a vehicle purchased in the state develops such defects that affect the whole ownership of the vehicle, then the vehicle is said to be a “lemon” and comes under the protection of the State’s lemon laws.

Manufacturers’ obligations and duties

The manufacturer, on receipt of intimation about the defect should attempt repairs as soon as possible at his cost.

The manufacturer is given reasonable number of attempts to rectify the defect. Reasonable number will be three attempts in the warranty period, of the non availability of the vehicle to the consumer due to such repairs for fifteen days.

If the defect still persists, then the manufacturer may replace or refund the vehicle. If replaced, then it should be with a comparable one.

In case of refund, the buyer should be refunded not only the full price so tendered, but also the incidental expenses relating to the defect, including all taxes, etc.

The manufacturer may deduct some reasonable expenses towards the normal ware of the vehicle.

If the manufacturer intends to resell such a vehicle, then it has to be certified by the state authorities as to its integrity.

However, if it is proved that the defect is caused due to the abuse or neglect of the consumer, then the manufacturer’s liability is extinguished.

Dispute resolution

If the manufacturer has set up a dispute resolution mechanism, then such facilities can be used to resolve warranty disputes. The awards are binding on the manufacturer.

If the consumer is unhappy with the award, he may prefer to move the court of law in appeal. Here if he is successful, then he is entitled to damages plus costs including attorney fees.

The US federal law governing lemons is officially called The Magnuson-Moss Warranty Act, however, most American states each have their own lemon law.


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