FAQs
Can I file a claim under the Magnuson-Moss Warranty Act if the Lemon law doesn’t apply?
A MMWA violation can absolutely be filed even if the Lemon Law does not apply. I’ve done it many times. Even though a Lemon Law repurchase may be a legal impossibility and that claims is not filed, the decrease in value to a vehicle because of a defect could possibly still fetch a notable award in court. Additionally, if it can be proven that a manufacturer behaved in a way that was unfair or unconscionable in their sale of the vehicle, additional damages can be awarded under the state’s consumer protection laws. On top of that, if they were purposefully unconscionable, even further damages can be awarded by a court. Bottom line is, if your vehicle had multiple warranty repairs, you should call for a free consultation, even if the Lemon Law seems to be out of reach.
Can issues not involved with the powertrain (i.e. engine/transmission) qualify for Lemon Law compensation?
Non-powertrain issues can absolutely qualify for Lemon Law compensation. Typically more minor issues such as intermittent bluetooth failures or a noise complaint will be more difficult, but even with those cases if a vehicle has been in an unimaginable number of times, a Lemon Law violation still could theoretically have occurred. Many times folks have problems with back up cameras, infotainment screens, modules, suspension, steering, brakes, or other issues. Although manufacturers may look at non-powertrain cases more skeptically, depending on the issue, creative arguments can still be made about how the issue “substantially” impairs a vehicle’s use, value, or safety; especially if it has been in numerous times for the same problem.
What is the Magnuson-Moss Warranty Act, and how does it help with defective vehicles?
Also known as the “Federal Lemon Law” the MMWA was enacted in 1975 to protect consumers from unscrupulous manufacturers who produced defective goods and unfair warranties. Although not originally written just for cars (but for any consumer products with a warranty), it quickly because a model for states to enact Lemon Laws to cover consumer vehicles. The MMWA helps with defective vehicles as the definition of a viable claim under MMWA is not as strict as the often lofty requirements of State Lemon Laws. The MMWA only requires a warrantable defect that is subject to an “unreasonable” number of repair attempts. Unlike many State Lemon Laws, it does not necessarily require a “substantial” impairment to a vehicle’s use, value, or safety. As such, prevailing under the MMWA is, many times, easier. However, the measure of damages is not as great as State Lemon Laws (which often require a full refund/repurchase/replacement vehicle), and as such the MMWA often acts as a back up plan if a consumer cannot recover under their State Lemon Laws.
Are engine or check engine light problems typically covered under lemon laws?
Powertrain issues are very common for Lemon Law cases. Typically they can be more valuable than other non-powertrain issues for two reasons, so long as the Check Engine Light leads to repairs. First, many times the warranty period is longer which means more warranty repairs have been made and the case is more valuable. Second, the defect is probably more “substantial” if it’s a powertrain issue than if it were something only covered under the initial warranty such as a bluetooth problem or an annoying noise someone hears.
How long does the lemon law claim process typically take from start to resolution?
If a manufacturer is going to make a settlement offer, we often see that within 60-90 days from the filing of the claim (but sometimes even sooner). Depending on whether the offer is acceptable, the timing of the process varies. If it’s a fair offer, settlement documents are quickly signed, and the manufacturer is on top of it; we could have a check within a couple of weeks after that. If the offer is too low, more repairs are needed, the amount needs to be negotiated, or the manufacturer is exceptionally difficult (there certainly are some that are), it could take a bit longer.
What are the common pitfalls people face when pursuing lemon law claims, and how can they avoid them?
The most common pitfall is to just accept the fact that you got a defective vehicle, trade it in, and take the financial hit without doing anything about it. With persistence, patience, and the right attorney things can get a LOT better. Time and again folks call us after having sold their vehicle or get impatient during the claim and sell it. Once that is done, your legal rights have changed and your case is not as strong. Patience and persistence usually pays off. We can’t always get a full buy back or replacement, but many times we can get cash to help make the situation better.
What is the process for resolving lemon law claims outside of court, and how effective is it?
There are a few different options to try to resolve a case outside of court. The first, and what we typically resort to, is engaging directly with the manufacturer for settlement discussions. We gather evidence, provide it to them, and make arguments on your behalf as to why you are entitled to compensation with the hopes that they make a fair offer. If that doesn’t work, depending on your state, sometimes there are administrative hearings through the DMV or other State agencies. If not, many manufacturers contract with third party arbitration organizations such as the National Center for Dispute Settlement, the American Arbitration Association, or the Better Business Bureau’s auto line to resolve disputes. All of these avenues have the potential to lead to a repurchase or refund, but we have found the most timely way is to go directly to the manufacturer’s legal team being represented by a qualified and experienced attorney. The other organizations can either be bogged down in red tape and delays, or may even have inherent conflicts of interest or biases against consumers!
Are there situations where a vehicle with fewer repair attempts might still qualify as a lemon?
Perhaps. If a vehicle defect is a “serious” safety defect, the requirements of a certain number of service visits or a certain time period out of service may not be needed. To be considered a “serious” safety defect the problem typically has to be a life-threatening malfunction that would impact a driver’s ability to safely control or operate the vehicle. If a condition like this exists and is not repaired after the first repair attempt, the vehicle may qualify for Lemon Law compensation.
How does a vehicle’s repair history influence the outcome of a lemon law claim?
Put simply, the greater the number of service visits, or days out of service, the stronger a consumer’s case is alleging that the manufacturer breached the warranty. The Lemon Law says that, to be entitled to compensation, a vehicle must be subjected to an “unreasonable” number of repair attempts. The more major the repair, or the more significant the number of repairs, the more valuable the case. Typically only a visit or two to the dealership with only a few days out of service will not qualify for compensation. However, three or four visits for warranty work, and/or a few weeks or more out of service for repairs could be a viable case that is entitled to compensation.
What role does the manufacturer’s warranty play in pursuing a lemon law case?
A “Lemon Law” case is simply a claim filed under the state Lemon Law statute alleging that the manufacturer breached their written warranty. The warranty itself is not a guarantee that a vehicle will be repaired, it is merely a promise to cover any repairs during that warranty period. However, the Lemon Law, and affiliated breach of warranty statutes, say the repairs have to be done in a “reasonable” number of repair attempts. If manufacturers cannot conform a vehicle to their warranty within a reasonable time frame, the law provides for financial compensation for the owner of the defective vehicle.