Lemon Law FAQs

California Lemon Law

If they buy back my Lemon, what can I expect?
On a new motor vehicle, you are entitled to get back:

All Monies Paid and Payable, less a “statutory” offset, related to the number of miles you put on the vehicle PRIOR to the initial problem creeping up.

The all monies paid or payable should include, at least:
- Your down payment (or initial leasing funds)
- Monies paid for Government related fees/taxes
- Rental Car expenses paid during warranty repair
- Payments you've made up until and through the settlement date

You may also be entitled to towing reimbursement. The manufacturer should also pay off an outstanding loan/lease and most if not all of your attorney's fees.

What if the Lemon Law does not apply?
We look to a number of consumer related laws to get you satisfaction. The Magnuson-Moss Warranty act is a Federal Law that protects the buyer of any product that costs more than $25 that comes with a written warranty or service contract.

The Consumer Legal Remedies Act protects consumers against unfair and deceptive acts from businesses, based largely on misrepresentations. Its main purpose is to make fraud cases easier to prove. If you received a product that is significantly different than the one you thought they were purchasing, or did not receive the product at all, that law should apply.

Contract law [California's Commercial Code] calls for the dealer/manufacturer to live up to their end of the bargain/contract.

Automobile Sales Finance Act - This law requires Dealers to jump through a number of legal "hoops" and to properly disclose all terms of the sale on that very long two sided contract. If they improperly fill out the form or they purposely defraud you using it, you are entitled to strong protections under this law.

Isn't it quicker and cheaper to do this myself?
Doing it yourself is almost never the way to go. You may have experienced already, what feels like "stonewalling" or plenty of talk but no action. After hearing "there is no problem" or "it's fixed" many times, a certain percentage of people just give up, trade in their lemons, or sell their vehicles to other unlucky consumers.

On the rare occasion when a manufacturer does agree to replace your vehicle or give you a refund, it seems to always find a way to give you significantly less, perhaps thousands of dollars less, than you are entitled to by law.

Using an experienced attorney will likely save you time, hassle and a LOT of $$$.

Is Arbitration a requirement?
Despite what the manufacturers or others will tell you, the California Lemon Law does not require the consumer to participate in arbitration. In fact, by law, their arbitration programs are financed by the manufacturers. The arbitrators know where their bread is buttered and you can take a guess how often consumers win in that process.

Do I have to notify the manufacturer prior to pursuing a Lemon Law claim?
California law has no "notification" requirement, despite what your owner’s manual may say. In fact, there is law that says that the manufacturer has a duty to monitor your warranty history and offer a buy back even without a buy back demand.

The law only requires you give the manufacturer a “reasonable number of opportunities to repair” warranty related problems. If you've given the manufacturer that opportunity, no further "notice" regarding the problem(s) is required.

I have an SUV, does the Lemon Law apply?
Yes. It applies to passenger cars, SUV's, trucks, vans, and despite the misinformation out there, it also applies to motorcycles, and motor-homes.

What exactly is a "Certified" used car?
A certified used car NOW has a legal definition, at least as to what it cannot be. Still, each different manufacturer has a different "program" and a different amount of "points" that they use to check off before "certifying" their used cars.

For the most part, it’s a marketing scheme, allowing the manufacturers and dealers to make you “feel” like this car is “special” but frankly, they’ve just added a service contract (often called an extended warranty) to it and added that cost into your vehicle purchase price.

What is the lemon law?
Lemon law is the layperson’s name for “breach of warranty” law. It protects consumers of automobiles (and other consumer products) from the risk of serious and/or dangerous defects.

It covers new consumer products, purchased or leased with a manufacturer's warranty and/or a service contract, that have not been repaired in a reasonable number of attempts or at all.

In some instances, a used product will qualify for the lemon law, if it were purchased with some portion of the manufacturer's warranty remaining, an express warranty from the seller and/or a service contract.

How do I know if I my vehicle is a California Lemon?
Your vehicle must have a non-conformity that substantially impairs the car's use, value or safety, that first occurs under the vehicle's new car warranty.

The three legal presumptions that a consumer has given the manufacturer a reasonable number of attempts to fix (or is a lemon) are (1) FOUR attempts to repair the same defect; (2) THIRTY days in the shop on multiple defects; (3) TWO attempts for something likely to cause serious injury or death. These attempts must be within the first 18,000 miles or 18 months of purchase to qualify for the presumption.

If you are beyond the presumption period, you may still qualify for the lemon law.

The only test is simply, did you give the manufacturer a reasonable opportunity to repair a non-conformity that substantially impairs the car's use, value or safety?

Does the lemon law apply to new cars only?
The lemon law applies to used cars too. If the problem(s)Toccurred under the manufacturer's warranty or service contract.

The higher your mileage is, the less likely it is that you will be able to get a buyback or replacement for your vehicle. If a buy back or replacement is not available, you still may be entitled to a cash settlement of your claim.

Does the Lemon Law apply to my dealer "Demo?"
Yes. Dealer Demo vehicles are specifically included under the California Lemon Laws.

I just bought a one year old car, is the manufacturer warranty any good?
A typical manufacturer's warranty is 3 years or 36,000 miles, whichever comes first and may often run longer. The warranty covers the car and tends to go with the vehicle, no matter the owner. Some manufacturers’ warranties, like Hyundai magically begin to disappear when a second or third owner comes into the picture. To learn more about warranties, click here.

My business owns my vehicle. Does the California Lemon law apply?
California lemon law covers some small businesses. If the vehicle has a gross vehicle weight under 10,000 pounds, AND the business has no more than five motor vehicles registered in California, it's covered.

I have an extended warranty, is it covered by the Lemon Laws?
The typical “extended warranty” is not a warranty at all, but, a service contract.

If a dealer sells you a “service contract” an “implied warranty of merchantability” attaches, by operation of law. That should give you lemon law protection.

If the dealer uses the word warranty or it is written somewhere in the sale documents, you have an express warranty and lemon law protection.

Be sure to know what your extended warranty covers. If it is breached, then you may have some alternative protection(s).

What can I expect in trying to get rid of my Lemon?
First and foremost, expect a lot of resistance. Any car salesperson will tell you, “You can replace the car, but, not the customer.” These businesses do not stay in business by rolling back sales.

Should the manufacturer decide they prefer a negotiated settlement, you may expect:

Possibility #1 :
A "buyback" or a "repurchase" of your Lemon. This is usually handled locally and if your case is considered a strong one by the manufacturer, it may occur within 6-8 weeks of your original call to this office.

Possibility #2 :
A replacement vehicle. This is also handled locally. You receive a vehicle of equal or similar value to your current vehicle. There is a “replacement” of collateral in your loan, if you have one. We tend to advise against this option for numerous reasons, not the least of which, you may get another Lemon!

Possibility #3 :
A cash settlement. Some Lemon Law cases are borderline and may just be worth a nuisance settlement with the manufacturer. Those few cases may be settled for a partial refund of the original purchase price. The owner may then keep or dispose of the vehicle as s/he sees fit. This option does tend to lessen the pain of selling an older vehicle and allows you to do so at a lower than market price.

* YOU, the consumer, can decide on the issue of #1 repurchase or #2 replacement and have complete control over any settlement during litigation.

How do you guys get paid?
The Laws that we use call for the "bad guy" to pay your attorney's fees. We work on a contingency basis and you pay NO FEES out of pocket. No recovery for you typically means No fee for us.

You have the power to approve or reject ANY settlement. If a settlement that YOU have approved does not include a full compliment of attorney's fees, the difference, which is usually very small, will come from the settlement funds. You should not have to scratch a check.

Please beware of firms that require you to pay a “retainer fee” or an “hourly fee” for Lemon Law claim. If an attorney wants a retainer, that attorney is not likely trained in the field of lemon law.

 

California Consumer Law

My computer is on the fritz, is that a Lemon?
Yes, potentially. There are consumer protection laws that apply to virtually all consumer goods that are covered by a written manufacturer's warranty, cost more than $25.00, and are used primarily for personal, family or household use.

We recently got a judgment of $1,000.00 on a lemon printer she paid $200.00 for. Results will vary.