What is the California Lemon Law? When Does the Lemon Law Apply?
What is the California Lemon Law?
Consumer protection state laws, such as lemon laws, were created to protect consumers and provide a solution for purchasers of faulty vehicles and other consumer goods to compensate for products that repeatedly fail to meet safety standards and the same problem can not be resolved even after a reasonable number of repair attempts.
While a whole scope of consumer goods can be labelled as defective, the term "lemon" is typically used to describe motor vehicles, including cars, pickup trucks and motorcycles. State and federal laws both play crucial roles in regulating consumer protection, with state laws often providing more specific provisions such as California's Lemon Law for defective vehicles. Under the California civil code, a motor vehicle is deemed a "lemon" when it has one or several defects, that significantly impair the performance, safety, or value of the vehicle that is still covered under a valid vehicle warranty. This includes defects that could potentially lead to serious bodily injury.
The California Lemon Law protects consumers who purchase or lease defective motor vehicles that cannot be fixed even after multiple repair attempts. In this case, California law requires vehicle manufacturers to provide a replacement vehicle or refund the purchase price.
The Lemon Law applies to new, leased and some used vehicles.
What is the Song-Beverly Consumer Warranty Act?
In 1970, the California Legislature created the California Lemon Law, also referred to as the Song-Beverly Consumer Warranty Act to protect consumers and regulate consumer warranties. Consumer protection laws are written to prevent the distress and damage caused by fraudulent transactions, and misleading sales gimmicks and to eliminate the frustration caused by manufacturers who fail to fulfill their repair obligations under the rules of their warranties.
The Consumer Protection Act is covered by federal law through the Federal Trade Commission, which inspects complaints of scams and protects customers from defective products, dangerous goods and services, and fraudulent business practices.
When Does the California Lemon Law Apply?
For the California Lemon Law to be applicable, the vehicle must have a significant defect that impairs its use, value, or safety. Additionally, this defect must be covered by the manufacturer's warranty. Under certain conditions, the law presumes that a vehicle has undergone a reasonable number of repair attempts if it has been brought in for repair two or more times for a safety-related defect, or four or more times for a non-safety defect, within the first 18 months of purchase or lease, or within 18,000 miles driven, whichever comes first.
Additionally, the owner must have made multiple attempts to repair the defective vehicle, or the car must have been out of service for an unreasonable number of days to qualify as a valid Lemon Law claim.
The Tanner Consumer Protection Act, an extension of California's Lemon Law, offers consumers additional protections beyond those provided by the Song-Beverly Consumer Warranty Act. This act clearly defines what constitutes a "reasonable number of attempts" to repair a defective vehicle, setting clear criteria for when a vehicle can be presumed to be a lemon.
Example of a Manufacturer's Profit Over Safety
Even though auto manufacturers are required by law to repurchase defective vehicles, over the years, several high-profile automobile manufacturers such as Ford, Nissan, Toyota, BMW, Honda, Volkswagen, Mercedes, and many others, have been known to occasionally prioritize profit over reliability and one famous example was a products liability case.
In 1981, the court heard the landmark case of Grimshaw v. Ford Motor Company in which the jury assessed punitive damages against Ford for $125,000,000, following a rear-end accident, which caused a Ford Pinto vehicle to explode and severely burn and disfigure the car's occupants.
Astonishingly, during the trial, the jury learned that the car giant was fully aware of the Pinto's susceptibility to explode during a possible low-speed rear-end collision, for the manufacturer had tested the model before its release for sale to the general public.
Despite this knowledge, Ford continued to sell the Pinto as it was deemed cheaper to settle an anticipated lawsuit than to amend the design of every single car at $6.65 per piece. In this seismic lawsuit, the jury justifiably returned a verdict for the plaintiffs awarding $2,516,000 in compensatory damages and $125,000,000 in punitive damages.
What Should I Do if I Think I Have a Lemon?
If you suspect that you may have purchased a lemon, it is paramount that you keep track of every defect and repair that takes place.
These are some simple steps to follow:
Make a note of the problem you are experiencing and check it against the vehicle manufacturer's warranty whether it is covered.
Immediately report the issue to the dealer and the manufacturer directly.
Document every single repair attempt on your car.
After numerous failed attempts to repair the defect on your car, write to the manufacturer to commence a buyback process.
Should you encounter animosity or resistance during the buyback process, it is worth familiarizing yourself with the state Lemon Law and it may also be worth contacting a lawyer who could give you a free consultation.
An experienced Lemon Law attorney will be able to help you determine if you qualify for a replacement vehicle or refund under the lemon law. The lawyer can also assist you in filing a claim with the manufacturer, and take things further should it be required.
What are the Benefits of the Lemon Law?
In a nutshell, the Lemon Law provides financial protection to consumers who purchase defective vehicles, which are still under the manufacturer's warranty. The law requires manufacturers to provide a replacement vehicle or refund the purchase price if the vehicle cannot be repaired after a reasonable number of attempts. The Lemon Law also applies to leased and even some used vehicles.
The benefits of the Lemon Law include:
A refund of the purchase price
A replacement vehicle
The return of any down payments or trade-ins
The reimbursement of the customer's monthly payments
The reimbursement of the customer's towing and rental expenses
The reimbursement of the customer's repair costs
New Cars vs Used Cars in California
Lemon Law is implemented to various degrees in all 50 US states, however, only seven states have a Lemon Law for used cars, and not every vehicle qualifies. Each state has its own process that buyers, manufacturers, and dealers need to follow before a car can be written off as a lemon. California Lemon Laws are some of the best and most comprehensive in the country, while some states offer very little if any, protection to their customers.
The Lemon Law for New Cars in California
The California Lemon Law covers new and leased vehicles that have a serious defect that cannot be repaired by the manufacturer or its authorized dealer within a reasonable number of attempts. In this case, the law requires the manufacturer to replace or repurchase the defective vehicle.
The Lemon Law for Used Cars in California
The Lemon Law for used cars in California is different from the law referring to a new motor vehicle or leased cars. The California Lemon Law for used cars protects a buyer only if the vehicle is still under warranty and has a serious defect that cannot be repaired after a reasonable number of attempts by the manufacturer or its authorized dealer.
The vehicle must be purchased from a licensed dealer or retailer, and not from a private individual, to be eligible for this protection. Furthermore, the vehicle must have a valid warranty at the time of purchase.
For vehicles purchased in California, it is important to ensure that all transactions are properly documented and that the car's warranty terms are clear and enforceable. This ensures that if the vehicle turns out to be defective, the buyer can take full advantage of the protections offered by California's Lemon Law.
What if I Leased My Vehicle?
The California Lemon Law also covers leased vehicles. If your leased vehicle qualifies as a lemon, you may be entitled to a refund of your monthly payments, the return of any down payments or trade-ins, and reimbursement for towing and rental expenses. Whether you receive a refund or a replacement vehicle is determined by the manufacturer.
Lemon Law Presumption
The Lemon Law provides a presumption that the vehicle exceeds a reasonable number of attempts if one of the following occurs:
The vehicle has been in the shop for repair for 30 days or more in the first 18 months or 18,000 miles.
The vehicle has been in the shop for repair two or more times for the same safety defect within the first 18 months or 18,000 miles.
The vehicle has been in the shop for repair four or more times for the same non-safety defect within the first 18 months or 18,000 miles.
Lemon Law Buyback vs Replacement Vehicle
If your vehicle is a lemon, you may be entitled to a replacement vehicle or a refund of the purchase price. Most manufacturers prefer to offer a settlement before the case escalates to arbitration or trial. The settlement can include:
Offering a full refund buyback on the vehicle
Offering a replacement vehicle
In the case of a lease, paying off the loan and refunding payment instalments to the buyer
Offering a cash settlement instead of repurchase or replacement while keeping the car
Lemon Buyback
A lemon buyback occurs when the manufacturer agrees to repurchase the defective vehicle from the customer, providing a refund minus a usage offset. This refund typically includes the purchase price, taxes, fees, and other payments made under the vehicle's financing terms. Additionally, the manufacturer may reimburse the customer for expenses related to towing, storage, and rentals incurred due to the defective vehicle.
Replacement Vehicle
Under the Lemon Law, the manufacturer is required to provide a repurchase or a comparable replacement vehicle of the consumer's choice. If the consumer opts for a replacement, the manufacturer must ensure that the replacement vehicle is of similar value, model, and features to the defective vehicle.
Cost Deductions
The Lemon Law does not cover all expenses related to the purchase or lease of a vehicle. The following costs are not covered by the California Lemon Law:
The cost of repairs unrelated to the reoccurring defect that was not authorized by the manufacturer.
The cost of aftermarket products or services.
The cost of repairs unrelated to the reoccurring defect made by an unauthorized repair facility.
The cost of towing and rental cars is incurred for reasons unrelated to the reoccurring defect.
The manufacturer may not deduct any amounts for depreciation. The refund or replacement vehicle must be based on the original purchase price of the vehicle.
What is the Mileage Offset
The vehicle mileage offset is a deduction from the consumer's lemon claim "actual damages." This deduction is calculated based on the number of miles the vehicle travelled before it was first delivered to the manufacturer, distributor, or authorized service and repair facility for fixing the problem that led to the lemon claim.
This calculation ensures that the refund amount accounts for the usage the consumer had of the vehicle before the defect was addressed.
Lemon Law Timeline
There is no set timeline for the lemon law process. The length of time it takes to resolve a California lemon law claim depends on many factors, including:
The severity of the defect.
The number of times the vehicle has been in the repair shop.
The willingness of the manufacturer to cooperate.
Whether you are pursuing a refund, replacement vehicle or cash settlement.
Is There a Lemon Law Claim Time Limit?
The statute of limitations for filing a Lemon Law claim in California is four years from the date the consumer knew or should have known about the defect. This means that once you notice a defect that significantly impairs the vehicle's use, value, or safety, you have four years to file a claim. It is important to act promptly and not delay the process. Delaying can weaken your case, as it might appear that the defect is not severe. Keeping detailed records of all repair attempts and communications with the manufacturer or dealer is crucial for supporting your claim.
What to Do if You Think You Have a Lemon?
If you think you may have purchased or leased a lemon, and you are struggling to reach a satisfactory resolution with the car dealer, you should consider the involvement of a legal team by contacting a specialized lemon law firm that may offer a free case evaluation.
A California Lemon Law attorney can offer advice on a case-by-case basis and they can help you determine whether you qualify for a refund under the lemon law. In certain circumstances, the California lemon law lawyer can even assist in filing a claim with the manufacturer.
How to Hire a Lemon Lawyer?
California's Lemon Laws are there to protect consumers who purchase defective vehicles. The law requires manufacturers to provide a replacement vehicle or refund the purchase price if the vehicle cannot be repaired successfully after several attempts. However, the truth is that dealerships and manufacturers are sometimes reluctant to fulfil their obligation, and in these circumstances the assistance of California Lemon Law attorneys becomes necessary.
Attorney Benjemen Beck and The Beck Law Office, APC have spent over a decade fighting on our client's behalf to obtain the results they deserve. We have successfully resolved hundreds of California lemon law cases out of court but we don't shy away from taking some cases to trial when further action is required and auto manufacturers fail to prioritize safety and reliability. We know the California lemon law inside and out, and our specialist team will do whatever it takes to ensure that your consumer rights are upheld under California's lemon law.
At The Beck Law Office, APC we pride ourselves on our personal approach and our professionalism and we will do our utmost to fight your corner and get the justice you deserve quickly and efficiently.
How Much Does a Lemon Law Attorney Cost?
One of the most significant advantages of California's Lemon Law is that it comes at no cost to the consumer. The law mandates that the manufacturer is responsible for paying the attorney fees, costs, and expenses incurred in pursuing your case.
This arrangement has two primary benefits. First, it ensures that the attorney is confident in the validity of your case, as they will only get paid if they win. Second, it allows you to be represented by experienced attorneys without worrying about legal fees, making it easier to seek justice for your defective vehicle.
When The Beck Law Office, APC accepts you as a client, you can be confident that we believe in the strength of your case and are committed to winning. Our confidence is backed by our extensive experience and dedication. You can have peace of mind knowing that your case is being handled by an experienced trial attorney who has successfully navigated numerous similar cases. Rest assured, we are fully invested in achieving the best possible outcome for you.