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This legislature mandates that the manufacturer of vehicles sold in the state honor their commitments towards the warranties given on these vehicles.

Manufacturer’s obligations

The manufacturer should prominently make the consumer known about his rights under this Act at the time of sale via a written notice.

If a vehicle does not abide by the warranty after its sale, then once the consumer reports the defect to the manufacturer then the manufacturer shall take all the necessary steps to rectify the defect.

Every time the vehicle is repaired the manufacturer will have to give the consumer all the details of the work done on the vehicle.

If after reasonable number of attempts the defect persists, then the consumer can demand either a replacement of the vehicle, or a refund of the amount for the vehicle.

In case a refund is opted for, then the consumer will be entitled to not only the price paid for the vehicle, but also all other statutory and incidental charges the consumer has incurred on the vehicle till date.

The manufacturer will be entitled to deduct reasonable amount from the refund towards the depreciation of the vehicle.

The manufacturer will be entitled to at least three attempts at repairing the defect, or will be allowed to keep the vehicle un-operational for at least thirty days within the warranty period.

Dispute settlement

If the manufacturer has set-up an arbitration mechanism, then the consumer is mandated to approach it first with his complaints.

In case such above mechanism does not exist, then the consumer can approach the state arbitration board for relief. He must make sure that the defaulting vehicle is present at the sight for testing.

In case the consumer is dissatisfied with the verdict of the arbitration, then such a verdict can be appealed against within 30 days of the consumer receiving the order.

Resale of returned vehicle

The manufacturer can resell the vehicle returned to a new buyer only if he clearly mentions the fact of resale to the prospective buyer before the sale.

Further, in case the defect is of such nature that there is a possibility of serious injury or death due to it, then such a vehicle will not be allowed to be sold.

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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