Lemon Law Terms
"As is" Condition
A car that is sold "as is" is likely sold with no warranty, thereby usually imposing no duty on the dealer or seller to make any repairs, regardless of the vehicle's condition, unless there are other legal concerns such as a misrepresentation or fraud.
Arbitration
Arbitration is an informal legal process that consumers may use to obtain a resolution of their lemon law case. The decision of the arbitrator is not legally binding on the consumer, but it is binding on the manufacturer. It is a dangerous tool to use, however, because a decision against the consumer may be used by the manufacturer at any future legal proceeding, and that decision has the same weight as if made by a judge in a court of law-even thought the arbitrator may have no legal experience or automotive expertise.
Demand Letter to Manufacturer
A written statement sent to the manufacturer which describes the motor vehicle, its defects, and the attempts made to repair such defect(s) by a manufacturer's authorized repair facility.
Express Warranty
A written warranty, issued by the manufacturer of a new motor vehicle. The express warranty provides certain promises concerning the vehicle's condition, fitness for use, and the manufacturer's obligations to repair the vehicle, including any terms or conditions under that warranty.
Incidental Charges
These are reasonable costs which may have been incurred by the consumer as a result of the vehicle's defect(s). These may include towing charges, car rentals, and other related out of pocket expense, but do not include loss of use, loss of income, or personal injury claims.
Lemon Laws
Lemon Laws of most states provide that a new car (and in some also a used car, if it was purchased with the original, manufacturer's new car warranty still in effect), may be returned to the manufacturer for a refund or a replacement if the vehicle has substantial warranty defects which have not been repaired within a reasonable number of attempts by the manufacturer's authorized repair facility, or if the vehicle is out of service at an authorized repair facility, for more than a set time or mileage.
Magnuson-Moss
A federal Act, which is a group of laws, which provide legal rights for consumers.
Mediation
Mediation is an inexpensive, informal procedure for dispute resolution. It does not required that you hire a lawyer nor that you go through the court system.. It is a flexible procedure allowing for more creative settlements. Both parties must agree to use the resolution process, but it may be less effective in getting a manufacturer to agree to a refund or replacement vehicle. Most states do not offer mediation programs as part of their offerings to help consumers in Lemon Law disputes.
Reasonable Number of Repair Attempts
Most state laws count "repair attempts" as occasions when you make the vehicle available to a manufacturer's authorized repair facility, regardless of whether the dealer verifies the defect or makes an attempt to repair it.
Repair Order
The Repair Order is usually the final document prepared by the service department cashier after work has been completed on your vehicle. This document is usually more comprehensive than the original work order and should be retained by you for your records.
Replacement Vehicle
The consumer has the option of electing either a replacement vehicle (typically same year and model with the same accessories) or reimbursement (getting your money back). In almost every case, we recommend our clients opt for reimbursement and then use that money toward the purchase or lease or any other vehicle.
Safety Defect or Safety Non Conformity
This is a manufacturing defect which creates a risk of a life-threatening malfunction. Substantial defects such as steering or brake system failures may be examples of safety-related defects.
Service Contracts (Extended Warranties)
Service contracts and extended warranties are basically insurance policies. The consumer pays an additional amount to the seller or a third party for protection against defects beyond those that are covered by the manufacturer's express and implied warranties, but such contracts are not warranties, and they do not apply to, or extend your rights under Lemon Law statutes. Also, the manufacturer is not required to reimburse you for these contracts, although most may be cancelled if your vehicle is repurchased and the full or partial premium may be separately recovered from the seller of the contract.
Substantial Non-Conformity
This means a manufacturing defect that significantly impairs the safety, use, or value of a vehicle. Whether a defect is substantial is a decision for the arbitrator, judge, or jury, but minor or cosmetic problems are not considered to be substantial defects.
The Uniform Commercial Code (UCC)
In addition to your rights under state Lemon Laws, and the federal Magnuson Moss Warranty Act, the Uniform Commercial Code is a set of state warranty laws, which may be used in limited circumstances in dealing with the manufacturer or dealer.
TSB
Technical Service Bulletin is a bulletin issued by the manufacturer to its dealers and service departments, usually pertaining to a problem commonly found in vehicles like yours. When bringing your vehicle in for repairs, ask the service technician if the manufacturer has issued any TSB's relating to your vehicle for the same or similar problem.
VIN (Vehicle Identification Number)
This is the manufacturer's number which you can find on your vehicle or on your title. It is also included on each repair order.
Work Order
The initial document given to you by the service or technical representative at the dealership when bringing your vehicle in for repairs. Be sure to check the work order for correct date, odometer mileage, and that the items you complain of are as your described them.
