Lemon Law FAQs

Definitely not - in California, you have the right to settle your Lemon Law dispute using arbitration, but it is not mandatory to take part in this process. In reality, arbitration is generally not a favorable approach to seek reimbursement according to the Lemon Law. Although arbitrators are expected to be unbiased, individuals who have close connections to the field and sufficient financial resources often have a upper hand in arbitration.

Consider this: a magistrate may show bias against an individual who files a legal case without representation, since they understand - whether they acknowledge it or not - that large corporations frequently engage in legal disputes and may require their assistance in resolving conflicts down the line. Although the objective of ensuring equity and neutrality is important, it cannot be ignored that arbitrators who provide favorable decisions for the manufacturer could potentially gain a future benefit.

So, there are mainly three choices: 1) a payment agreed upon outside of the courtroom, which may not necessarily be based on a specific calculation of damages, 2) getting a new vehicle to replace the defective one, or 3) being paid back for the losses caused by the faulty vehicle.

The cash settlement can be rather variable, so we won’t cover that here.

Regarding the replacement of a vehicle, the maker must offer a satisfactory substitute. It is your decision whether or not you agree to the replacement. According to the law, you have the freedom to decline a substitute solution (which you may consider since you have had unpleasant encounters with the maker and that specific vehicle type).

Compensation is the most common resolution in instances of Lemon Law. When you choose to receive a reimbursement, the manufacturer repurchases their vehicle from you (after deducting the value of usage determined by the distance covered). Furthermore, they will address additional expenses associated with the vehicle, like taxation, fees for registration, monthly payments, repair costs, and other comparable overheads.

Yes, even though you will not be given money to replace or pay back what you've lost. If your car is faulty but does not meet the requirements to be considered a "lemon," you have the option to take legal action and receive payment for the decrease in value of your car due to its defects. This usually happens when there is a problem with the car, but it's not so serious that you cannot use it.

If your car's engine makes a bothersome hissing sound that doesn't affect its performance, your vehicle may not be a "lemon," but it does have a lower worth that could lead to compensation if you decide to take legal action.

It is possible. If the changes you made to the item caused or added to the issue, then the manufacturer does not have to give you a new one or pay for any damage. Therefore, if you have made any alterations, you must demonstrate that the adjustment is unrelated to the poor state of your vehicle.

The Lemon Law covers the following new and used vehicles that come with the manufacturer’s new vehicle warranty:

• • Cars, pickup trucks, vans, and SUVs.
  • The chassis, chassis cab, and drive train of a motor home.
  • Dealer-owned vehicles and demonstrators.
  • Many vehicles are purchased or leased primarily for business use.
  • Vehicles purchased or leased for personal, family, or household purposes

If the manufacturer or dealer can’t repair a serious warranty defect in your vehicle after a “reasonable” number of attempts, the manufacturer must either:

• Replace the vehicle.
• Refund its purchase price (whichever you prefer)

There is no set number. However, California’s Lemon Law Presumption contains these guidelines for determining when a “reasonable” number of repair attempts have been made:

• The manufacturer or dealer hasn’t fixed the same problem after four or more attempts.
• Your vehicle’s problems could cause death or serious bodily injury if it is driven, and the manufacturer or dealer has made at least two unsuccessful repair attempts
• The vehicle has been in the shop for more than 30 days (not necessarily in a row) for repair of any problems covered by its warranty. This is called the Lemon Law Presumption

No. In many cases, the manufacturer of your vehicle may offer a state-certified arbitration program that may assist you in resolving your dispute. If so:

• You must request arbitration in order to claim the benefits of the Lemon Law Presumption.
• You may accept or reject the arbitrator’s decision.

No. The Lemon Law applies only to disputes involving the manufacturer’s new vehicle warranty.