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The lemon laws in the State of Oregon can be found in the Oregon Revised Statutes. They give the buyer of a new vehicle in the state a good remedy against any defect arising during the warranty period.

Manufacturers’ responsibility

It is the manufacturer’s responsibility to ensure that the vehicle sold by him confers to the warranty that accompanies the vehicle. If it does not, then on receiving a written intimation in this regard from the consumer, he would have to undertake immediate repairs.

A serious attempt at repairing the vehicle is considered if he attempts it at least four times, or keeps the vehicle non-operational for repairs for a total of 30 days, during the warranty period.

If he fails to rectify the defect after repeated attempts, then he would be obliged, either to replace the vehicle with a new one, or repurchase the vehicle from the buyer.

In case the refund option is exercised, then the manufacturer has to compensate the buyer with the full price of the vehicle along with all the other incidental expenses and taxes paid for the vehicle.

In case there is any lease on the vehicle, then the refund should be distributed in the proportion to the interest in such lease.

The manufacturer is permitted to deduct a reasonable sum from the refund amount owing to the normal ware on the vehicle before the defect arose.

Loss of legal protection

The buyer will loose the benefits of this statute, if he has in any way abused, or neglected, or used the vehicle in a way that it was not designed for.

The manufacturer can also escape the liability, if he can prove that the defect will not hamper the regular use and safety of the vehicle.

Dispute settlement mechanism

The manufacturer is given the option to set up or participate in an informal arbitration process. If he agrees to it, then he must inform the consumer about the existence of such an option.

The consumer will then be eligible for remedies under this statute only if he first exercises the above option.

The decision of the arbitration is binding on the manufacturer, but not on the consumer.

If the consumer wishes to appeal against the arbitration award, he can move the court of necessary jurisdiction. In case he is successful in his motion, then he will be granted, along with the compensation, damages and costs as well.

This kind of court action should be brought within a period of one year from the date of delivery.

This statute does not however restrict the consumer’s right to seek other remedies under any other law for the time being in force.

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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