Online Library - General Laws - Lemon Laws

New cars and other new motor vehicles are covered by manufacturers’ warranties. These warranties must follow the rules set by the federal Magnuson-Moss Warranty Act and the Uniform Commercial Code UCC. The manufacturer’s warranty is provided at no extra cost to the buyer. Sometimes, despite the best efforts of a dealer’s service department, a defect cannot be satisfactorily fixed. These un-fixable vehicles are popularly referred to as "lemons." New Hampshire’s "lemon law" provides a method for the "lemon" owner to satisfactorily resolve the problem.

A vehicle is considered to be a "lemon" if:

The new vehicle is not in accordance with the manufacturer’s warranty express contract and has inherent defects which the manufacturer or its authorized representative has not fixed.

The manufacturer or its representative has made at least 3 unsuccessful attempts to fix the motor vehicle; or

The motor vehicle has been out of service for 30 or more business days.

Once it has been established that the vehicle is a lemon, arbitration of the consumer's complaint, either through the manufacturer's dispute settlement program or the board, shall commence within 40 days. The manufacturer shall have one final opportunity to correct and repair within the 40 day period.

New Motor Vehicle Arbitration Board Established (‘MVAB’):

The MVAB will decide whether the motor vehicle is so impaired by its defect that the manufacturer should take the vehicle back. The MVAB, a five-person panel of consumers, auto dealers and certified mechanics, has been in existence since January 1, 1992. The MVAB reviews consumer complaints about defective vehicles and holds evidentiary hearings which typically include inspecting and/or test driving the vehicle. If a majority of the panel members find that the vehicle is substantially impaired due to defects covered by the manufacturer’s warranty, the board will order the manufacturer to either buy the "lemon" back from the consumer or, at the consumer's option, trade the "lemon" for another vehicle of equal value.

The MVAB can also award "damages" which can include license and registration fees as well as the finance charges (interest) for the loan to purchase the defective vehicle. Either the consumer or manufacturer can appeal MVAB decisions to the Superior Court. The manufacturer shall refund the reasonable allowance provided or make the replacement required by the board within 30 days of a decision of the board or within 15 days of final adjudication.

If any proceeding is to undertaken, it has to begin within one year following the later of:

The expiration of the express warranty term; or

The manufacturer's final repair attempt of the nonconformity, which resulted in vehicle being replaced or the money refunded.

New Hampshire's "Lemon Law" also requires that any motor vehicle sold in New Hampshire conform to the applicable manufacturer's warranty and that manufacturer promptly correct defects covered by the warranty. This requirement is complemented with the automobile manufacturers to maintain in-state service agents and to provide parts needed for repairs within 30 days or less.

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


Contact Us \|	You are here: Library > General Laws > Lemon Laws > New Hampshire Lemon Laws