Lemon Law Overview

The Lemon Law is both a federal and state law that primarily protects consumers who purchase new and, in some cases, used cars. The Lemon Law may apply if your car has a substantial defect within a fixed period of time or number of miles driven after purchase; the defect is covered by a warranty, the defect is not repaired after a certain number of attempts by the dealer or manufacturer. The Lemon Law may also cover other purchases. Laws vary from state to state, but most provide for the replacement or refund of a "lemon." If you are not offered satisfactory reimbursement under the Lemon Law, you may have to go through arbitration (out-of-court resolution process) or court procedures.