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The objective of the lemon law with respect to new vehicle is to assist the purchaser of a defective vehicle, get certain vital rights so that their faulty cars can be repaired or replaced while under warranty. These laws are applicable to motorized vehicles which are registered in the state of New York, they are also applicable on motor homes but damages caused to such motor homes by consumer's negligence, vandalism, or by act of personal nature do not come under the purview of lemon laws of (NY).These laws extend to the purchasers and sellers of this state. Lemon laws in New York:A new vehicle is considered a lemon if it has more than one defect and the same persists even after four or more attempts have been made to repair the vehicle it is considered a lemon even if it was being repaired for more than a total of 30 days. Or two years from the date of delivery/18000 miles (whichever comes first). If the customer's new vehicle turns out to be a lemon then the dealer must be informed first hand ,after which the dealer has to forward a written notice to the manufacturer within seven days. Refund, Deductions & Replacements: If the manufacturer is unable to repair the inherent defects of the vehicle within the above mentioned time period then he may be required to refund the full purchase or lease price, or offer a comparable replacement car to the customer. The manufacturer may deduct an amount for mileage in excess of the first 12,000 miles. No deductions may be made for the first 12,000 miles of use. The court lays down that the customer is not entitled to receive a brand new vehicle if he elected to receive a "comparable replacement vehicle" instead of a refund. in such a case he is entitled to receive a car of the same year and model and which has approximately the same mileage as the car being replaced. Arbitration and its proceedings: An out of court settlement between parties which is less expensive, less time consuming and is not as rigid as law itself is called arbitration. There are arbitrators in place of judges who award their decision after hearing both sides. A consumer may take part in the New York State New Car Lemon Law Arbitration Program. The New York Program is administered by the New York State Dispute Resolution Association ("NYSDRA") under regulations issued by the Attorney General. The decisions awarded under the New York Program are binding on both parties. Participating in the auto manufacturer's arbitration program is another option available to the consumer. Decisions under the manufacturer's program are not binding on the manufacturer but not on the consumer .If the consumer has availed the provisions under the manufacturer's program and is not contended, then he may apply for arbitration under the New York Program. However, any prior arbitration decision may be considered at any subsequent arbitration hearing or court proceeding. In order to participate in the arbitration program a detailed request form is to obtained duly filled and submitted to the Attorney General's website or to any of the Attorney General's regional offices. The form will be reviewed and if the claim is legitimate then the customer will have to send in a filing fee for the arbitration under lemon law. The Administrator will appoint an arbitrator and schedule a hearing to be held within 35 days. If on the contrary the form is rejected then it will be sent back to the customer with a detailed reason as to why the form was not accepted. The manufacturer must comply with the arbitrator’s decision within 30 days from the passing of the award. Non compliance will result into additional $25 for each business day of noncompliance, upto$500. The grounds for modification the arbitrator’s award are very limited. Awards may be modified only to correct a miscalculation or a technical mistake. Either party may commence a lawsuit to challenge an arbitrator's award within 90 days of receipt of the award. However, the grounds for such challenges are limited by law. Generally, the courts will uphold an arbitrator's award if it is supported by evidence and is grounded in reason. Reasonable attorney’s fees may be awarded by the court if the customer is successful in challenging or defending an arbitration award.
NEW YORK USED VEHICLE LEMON LAWSDealer's requirements: No dealer will be allowed to sell a used vehicle to any consumer unless the vehicle is accompanied with a warranty. The period of warranty will differ according to the number of miles the vehicle has previously run. The periods are:
This warranty requires the dealer to repair or at his option reimburse the costs to the consumer of faults in the vehicle that appear frequently. The statute prescribes the vehicle parts that are covered under the warranty such as, Engine, Transmission, Drive Axle, Brakes, Radiator, Steering, etc. The dealer will not be obligated to reimburse any of the above unless the consumer notifies him of the same within the warranty period. This warranty may not cover the faults arising out of lack of proper maintenance, or any abuse, accident, negligence, theft, natural factors, unauthorized use etc. Consequences of dealer’s failure to honor the warranty: If, even after repeated attempts, the dealer fails to rectify the defect in the vehicle, then he shall refund to the consumer the amount paid for the vehicle including sales tax and other taxes. The dealer will be permitted to deduct a reasonable amount for the damages that cannot fall within the ambit of normal ware and tear of the vehicle. In case the vehicle is under a lease, the dealer should pay to the lessor and the lessee in the proportion to their interests. If the amount to be so refunded to a holder of a lien, then the dealer should notify the consumer o pay the difference to the lien holder within 30 days, the failure to do so will discharge the dealer from his obligation. Defenses of the dealer: The dealer has at his disposal some defenses which enable him to escape liability under the statute. He has to successfully prove that the defect is due to abuse, negligence or authorized use of the vehicle. He can also take the help of the fact that the defect may not alter the value of the vehicle. Reasonable attempt by the dealer: It would be considered as a reasonable attempt at repairs by the dealer, if he has tried to rectify the defect at least three times during the warranty period. It may also be considered as a reasonable attempt, if due to the repairs the vehicle has been out of commission for a total of fifteen or more days during the warranty period. Procedure for dispute settlement: If in the event that the dealer has set up an informal dispute settlement mechanism, and the consumer is aware of the same, then any of the provisions of this statute will not apply to the consumer unless he first exhausts this dispute settlement mechanism. If the award of the arbitration is acceptable to the consumer, then he has to inform the same to the dealer, and there after the dealer will get thirty days to comply with the award. The statute gives the consumer the consumer the option of referring the dispute with the dealer to a professional arbitration. He along with the dealer will have to pay the requisite filing fees. This arbitration will be conducted by a professional arbitrator appointed by the Attorney General. As in the earlier case, if the award of the arbitration is acceptable to the consumer, then he would give a notice to the dealer, who would, in turn have thirty days to comply with its provisions. Failure to do so will entitle the consumer to recover costs and damages to the tune of twenty five dollars per day till such time the default continues. The consumer will at no point in time be barred from approaching the court for relief. The court would award the costs and attorney fees to the successful parties. The limitation period for any action to be brought in any of the above forum is four years from the date or original delivery of the used vehicle to the consumer. 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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