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Chapter 203-A, known as the “Maine Lemon Law” contains the lemon law for the State. It protects the buyers of new motor vehicles in case any defect is encountered within the warranty period.

Manufacturer’s duties and liabilities

If a new vehicle develops any fault or defect within the warranty period, then the manufacturer, either himself or through his dealer shall undertake necessary repairs at his cost. The buyer however has to intimate the defect to the manufacturer. The provision will be applicable only if the defect has occurred within three years of purchase, or the vehicle has run less than 18000 miles.

If the manufacturer is not able to rectify the defect even after repeated attempts, then he should either replace the vehicle with a new comparable one, or repurchase the vehicle from the consumer and refund the price paid.

In case of a refund, the manufacturer has to give back not only the actual purchase price, but all other incidental charges incurred by the consumer towards taxes, licenses, etc. of the vehicle. The manufacturer will be permitted to deduct a reasonable amount towards the normal ware and depreciation of the vehicle.

It would be considered a reasonable attempt at rectification of the defect, if the manufacturer has tried, unsuccessful, repairs at least three times, or has kept the vehicle un-operational for at least 15 days due to repairs. All this has to be within the warranty period for the provisions of this statute to attach.

Resale or returned vehicle

The manufacturer can resell a returned vehicle to a new purchaser or a dealer, only if he makes a full and detailed disclosure about the defects in the vehicle and the steps taken to rectify the same.

Defenses

The manufacturer will not be held liable if he can prove the defect is not of such a nature that it will hamper the functioning and safety of the vehicle. Or he may prove that the defect is caused due to some abuse, misuse or negligence of the owner.

Dispute settlement

If the manufacturer has established an informal dispute settlement mechanism, then the consumer has to approach this first to claim any replacement or refund.

In case no such mechanism exists, then the consumer can approach the consumer can approach the state established motor vehicle arbitration authority. He has to do so within a period of three years from the date of the delivery of the vehicle. This arbitration is mandated to give an award within 45 days.

In case the consumer is unhappy with the award, then he can appeal against it to the superior court within 21 days of receipt of the award copy.

In case he prevails in the trial, then the consumer will be entitled to damages and costs including attorney’s 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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