The federal law and Massachusetts state law in relation to lemon
products are also called Magnuson-Moss Warrant Act. The lemon law was
created to allow consumers to be compensated for defective motor
vehicles when still under the manufacturer's express warranty. Lemon
laws also cover motorcycles, trucks, recreational vehicles, boats,
computers, and any other product or appliance that is considered
consumer.
Motor vehicles are the most common lemon products. When a motor vehicle
is deemed a lemon, the consumer can be compensated in reimbursement or
replacement. In order to qualify for lemon compensation a motor vehicle
must first undergo several attempted repairs on the same defect. By law
the manufacturer, dealer, or agent is required to attempt a repair
prior to providing compensation.
Repairs
When a repair is attempted, by another facility other than the agent,
dealer, or manufacturer, the consumer is required to keep the proper
documentation. Such documents will be required when filing for lemon
compensation. If enough repair attempts have been made, normally
between three and four attempts, the manufacturer, agent, or dealer is
lawfully required to first attempt their own repair.
If the manufacturer, dealer, or agent cannot complete the repair within
thirty calendar days, the consumer is automatically entitled to a
refund or replacement vehicle. If the dealer, manufacturer, or agent
cannot repair the defect at all, the consumer is also entitled to
replacement or compensation.
All repairs are required to restore the motor vehicle to its market
value as stated in the express warranty. If the vehicle is out of use
and in an attempt of repair for more than thirty days, the reasonable
number of repair attempts will be waived.
Warranties
Motor vehicles are only eligible for lemon repair attempts if still
under the manufacturer's express warranty. All attempted repairs are
also required to take place while under the warranty. However if the
consumer reports the lemon vehicle to the manufacturer, dealer, or
agent following the express warranty's expiration, the manufacturer,
dealer, or agent is required to still attempt a restoring repair. If
reported following the express warranty's expiration, the manufacturer
may decline to repair the vehicle.
Defects
Only certain defects are eligible for lemon compensation. Defects are
required to hinder driver safety or alter the market value of the
vehicle. Such defects may include seatbelt problems or engine problems.
However cosmetic issues and stereo issues are not eligible for
compensation.
Refunds
When an agent, manufacturer, or dealer is unable to repair a vehicle,
the consumer is eligible for compensation or replacement. When a motor
vehicle is to be replaced the replacement vehicle is required to be of
the same market value as the lemon vehicle. A consumer sometimes may
have the option of declining a replacement vehicle and may opt for cash
compensation through a refund. Refunds are required by law to include
the purchasing price, registration fees, licensing fees, taxes,
government fees, collateral charges, and all other purchasing fees.
When a motor vehicle is to be refunded all cosmetic additions, like
stereo systems or paint, will not be compensated. Any neglect or abuse
to a motor vehicle will be subtracted from the purchasing price.