Lemon laws are American state laws that provide a remedy for purchasers of cars in order to compensate for cars that repeatedly fail to meet standards of quality and performance. These vehicles are called lemons. The federal lemon law (the Magnuson-Moss Warranty Act) protects citizens of all states. State lemon laws vary by state and may not necessarily cover used or leased cars. The rights afforded to consumers by lemon laws may exceed the warranties expressed in purchase contracts. Lemon law is the common nickname for these laws, but each state has different names for the laws and acts.

Federal lemon laws cover anything mechanical. The federal lemon law also provides that the warranter may be obligated to pay the prevailing party's attorney in a successful lemon law suit, as do most state lemon laws

Basis

At the core of most lemon laws is the manufacturer's breach of warranty. A manufacturer's warranty is what makes the manufacturer legally responsible for repairs to the consumer's vehicle or good. It is a form of guarantee. An express warranty is typically a written warranty. An implied warranty unlike an express warranty, is not written. The law imposes these obligations on the manufacturer, the seller or both as a matter of public policy. These vary from state to state. ^[1]

Lemon laws may cover situations even when the vehicle is not under warranty, especially if the seller failed to disclose critical information such as previous damage to the buyer. Knowingly purchasing a car in "as is" condition does not void the buyer's rights under applicable lemon laws.^{[citation needed]} Lemon laws are not limited to cars. There are RV, boat, motorcycle, and wheelchair lemon laws.

[edit]Canada

The Canadian Motor Vehicle Arbitration Plan Canada - Canadian Motor Vehicle Arbitration Plan is the dispute resolution program for consumers in Canada that have problems with the assembly of their vehicle or with how the manufacturer implements its new vehicle warranty. CAMVAP covers new or used owned or leased vehicles that are from the current model year and up to an additional four model years old.

CAMVAP is an arbitration program. It is free to consumers. Hearings are held in the consumer's home community. The process normally takes less than 70 days from start to finish. Most consumers are able to handle their own case without the assistance of lawyers. The manufacturers do not use lawyers. Their representatives usually are serving or retired district parts and services representatives. An inspection of the vehicle normally is part of an arbitration hearing and the arbitrator can order a technical inspection of the vehicle at the program's expense if doing so is required.

CAMVAP arbitrators can order the manufacturer to buyback the vehicle; repair it at the manufacturer's expense; pay for repairs already completed; pay out of pocket expenses for items such as towing, diagnostic testing, rental cars and accommodation related to the problem with the vehicle. The arbitrator can also order that the manufacturer has no liability.

CAMVAP is available in every Canadian Province and Territory.