Understanding the Rules Applicable to Lemon Law Buyback

Understanding the Rules Applicable to Lemon Law Buyback
By Wayne Cowan

Every state has its own version of lemon laws. The names of these laws differ from state to state. Some states do not have any used car laws in force. However, there are other laws which protect the interests of consumers. The lemon law was created in the year 1996 and was meant for those cars which repeatedly fail to achieve the prescribed quality standards.

Cars which fall under this category are called as a Lemon. This law is also applicable to motorcycles, computers, RVs and other such consumer based products.

So, what is this Lemon Law Buyback? Well, this style of buyback is a set of special rules for motor vehicles. Under this law, a manufacturer buys back from an individual his lemon car or vehicle and fixes the problem before selling it as used cars. These lemon cars are registered in the manufacturer's name until they are sold in used car market.

There are many instances where the vehicle buyback can be applied in order to benefit the customer. For example, a person has purchased a car and he discovers that the car is not performing according to the desired quality standards in spite of repeated efforts to rectify the problem. In such instances, a person can take recourse in the buyback rules and claim compensation.

However, if a person has warranties for mileage, performance for a minimum period of one year or for an extended period of five years from the manufacturer and the vehicle is not meeting any of the warranty requirements, in such an instance you can make a claim for breach of warranty under the lemon laws and seek compensation.

Once a manufacturer buys back the vehicle from the consumer under the state buyback rules, he has to get a Title Certificate and Registration Certificate, clearly marked as 'Lemon Law Buyback'. Once this is done, the manufacturer will register the vehicle in his name and put it up for sale at any Auto fairs or auction as a used car.

Lastly, buyback rules have been framed to protect the consumer's interests from unscrupulous manufacturers so that they do not get cheated.

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Understanding the Rules Applicable to Lemon Law Buyback

Some Commonly Asked Questions Regarding the Lemon Law

Some Commonly Asked Questions Regarding the Lemon Law
By Sarah Ballentine

When your car breaks down, you might refer to it as a "lemon." However, there's a big difference between a car that occasionally behaves like a lemon and a car that meets the legal definition of your State's lemon law. Most people think that a car that has numerous problems while still under warranty is a legal lemon. However, the Lemon Law varies from state to state, and what qualifies as a lemon in one state might not qualify as a lemon in another.

Also, many people do not know that there is a federal lemon law that has a more relaxed standard than the statute. To find out if you're driving a lemon, you should consult with a Lemon Law attorney or review the Lemon Law statutes for your state. However, if you simply want basic information regarding Lemon Law, the following is list of frequently asked questions that may help you out.

- Question 1: What is the legal definition of a lemon?

Each state has different legal criteria for establishing vehicles as lemons. However, a new vehicle that is repaired four or more times within the first year and still continues to suffer from the same defect generally achieves lemon status.

In most states, the recurring problem must be something that significantly reduces the vehicle's use, market value or presents a safety hazard. There is also a federal lemon law which can provide compensation in many instances when a vehicle does not meet the definition of the state lemon law.

- Question 2: How do I know if I have a lemon?

Again, if your vehicle is under warranty and is repaired four or more times for a persistent problem that significantly reduces its use, market value or presents a safety hazard, you probably have a lemon. However, in some cases, a safety hazard that cannot be resolved with only one repair qualifies a car as a lemon.

For conversation's sake, a car that breaks down or has a malfunctioning transmission would most likely qualify as a lemon due to decreased use, market value and even safety, while a car that failed to brake properly would qualify as a lemon due to a safety hazard and market value.

- Question 3: Do I need an Attorney if I have a lemon?

If the dealer is not being helpful and your calls or letters to the manufacturer are not being answered, you may want to avoid aggravating yourself further and wasting time. If you fail, you will have wasted precious time if you then have to hire an attorney. Hiring an attorney generally serves to expedite the compensation process.

- Question 4: Will I be compensated for attorney's fees?

By using a combination of the state and federal lemon law you can generally recover attorney's fees if your case is successful. However, you need to also pay attention to the type of Agreement you have with your attorney as that will govern how attorneys' fees are handled between you and the attorney.

Also, make you should be aware that some states lemon laws require you to pay the manufacturer's attorney's fees under certain circumstances if your suit is unsuccessful.

- Question 5: Can leased cars, leased cars, motor homes and motorcycles be lemons?

By using a combination of the state and federal lemon law you can generally recover for leases cars as well as purchased cars. Some states also protect used cars, although under different statutes than apply to new cars. Most states cover the drive train of motor homes but not the dwelling portion of a motor home. Only a few states protect motorcycles.

In the event that your vehicle isn't protected by state lemon law, you still have rights under the Uniform Commercial Code and the Magnuson-Moss Warranty Act, provided that your vehicle came with a written warranty.

- Question 6: How will I be compensated if I own a lemon car?

Under most state's laws you generally have the option of either receiving a new vehicle that is similar in price, expected performance and style to your current vehicle or receiving a full refund of your vehicle's purchase price, minus a mileage based allowance. In addition, you may also be reimbursed for various collateral costs in either case.

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Some Commonly Asked Questions Regarding the Lemon Law