The lemon law was passed by the 1983 Legislature. This law allows
citizens who purchased lemon products, usually motor vehicles, the
right to have their purchase refunded or repurchased if only used on a
reasonable basis. Motor vehicles may only be declared lemons if the
proper paperwork is in order. Thus when a vehicle is "fixed," the
proper paper needs to show proof of which portion of the vehicle had
attempted repair.
First, and foremost, in order for a motor vehicle to be deemed a lemon,
the motor vehicle must be under warranty. All the attempted repairs
must also be while the vehicle is under warrant. However the vehicle
may not be under warranty still while finishing the lemon process.
First Requirement
Oregon has four requirements to be met prior to having a motor vehicle
declared a lemon. Individuals must meet all requirements. The first
requirement states that the motor vehicle must have been purchased
after the first of January in 1984. This law was altered in 2008 and
vehicles no longer must be purchased in the state of Oregon to be
declared Oregon lemons. A 1989 amendment also include motorcycles as
possible lemons.
Second and Third Requirement
The second requirement states that the consumer must have purchased the
motor vehicle for family, personal, or household reasons while still
under warranty. The consumer does not need to be the original owner.
The third requirement states that the motor vehicle must be a true
lemon.
Oregon law, as of 2009, states that a motor vehicle qualifies as a
lemon if the dealer, manufacturer, or agent cannot repair a reoccurring
defect. This must happen three or more times or the vehicle must be out
of use for thirty days. These thirty days are not required to be in a
row and can be added up over several months. Lemons must also be
defects that will impede the safety of the driver or passengers, or
will cause death if not repaired after two tries. The consumer must
notify the manufacturer within two years or twenty-four thousand miles
since purchase for the defect to receive repair.
Final Requirement
The fourth and last requirement is that the manufacturer be a
participant in a third party arbitration program and the consumer is
notified of the lemon process. When the manufacturer participates in
the program, it will be required to replace or refund the lemon motor
vehicle. Arbitration must be settled. If no settlement is possible then
the court has the option of awarding a payable about for damages, but
cannot exceed fifty thousand dollars.
When all requirements are met, a consumer is eligible to have his or
her vehicle refunded for the purchasing price or replaced. If there are
other damages to the vehicle, the manufacturer is not required to pay
for those separate defects. Collateral charges are also included in
lemon refunds. These include license and registration, taxes, finance
charges, certain dealer-installed products, repayment penalties, or
after-market products.
If cosmetic additions have been added to the motor vehicle, such as
paint, stereos, or spoilers, the manufacturer is not required to make
those replacements.