This change
in the law caused new problems. What constituted an opportunity to repair? How
many times did a consumer have to put up with trying to get a defective product
repaired before he could demand that the sale be rescinded? In 1984, the
Legislature passed a new law covering warranties on motor vehicles. This law
became popularly known as the "lemon law" because it gave new rights to people
who bought cars with chronic problems.
The law applies to any
motor vehicle sold or leased by a dealer in Louisiana for non-commercial
purposes and the vehicle must be subject to an express warranty by the
manufacturer. A person who buys the motor vehicle from the original purchaser
while the original warranty is still in effect would also be covered. The lemon
law places a duty to repair on the manufacturer when the vehicle does not
conform to the express warranty. The consumer must report the problem to the
manufacturer or the dealer within the warranty period or within one year of
buying the vehicle, whichever is sooner. Once the problem is reported, the
dealer must repair the vehicle to make it conform to the warranty.
If the vehicle is out of
service for repairs for a total of ninety days, or if the dealer has attempted
to repair the same defect on four separate occasions, the lemon law applies. The
attempts to repair can extend beyond the warranty period if the problem was
first reported during the warranty period or the one year limit, whichever was
earlier.
When the lemon law applies
to a vehicle, the manufacturer has the option of replacing the vehicle with a
new comparable vehicle or refunding the purchase price together with all
collateral costs. Collateral costs include sales tax, registration fees, license
fees and other costs paid by the consumer at the point of sale. The manufacturer
can charge the consumer for the time the consumer had the vehicle before he
first notified the manufacturer or dealer of the problem and for any use he had
while the vehicle was not out of service for repair.
The manufacturer can, if
it wants, provide an informal process to settle disputes if the written warranty
contains a description of the process. If this is properly done, the consumer
must first rely on the process before he can demand a replacement or refund.
Although manufacturers have not yet seemed to take advantage of the dispute
settling process, it may become more common in the future. Check the warranty
that came with your new vehicle to see if any provisions have been made to
require that you first go through a dispute settling process before demanding
replacement or refund.
To
sum up your rights under the lemon law, you may be entitled to a refund or a
replacement if you
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have brought your car back to the dealer on four separate occasions in an attempt to fix the same problem, or |
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if your car has been in for service a cumulative total of ninety days regardless of the reason. |
The first complaint must be within one year of the purchase or within the warranty period, whichever is earlier. If you have had to rent a car while the repairs are attempted, you may also be entitled to a reimbursement for your rental car fees.
Spot Financing
Spot financing is when the sale of a vehicle to a purchaser is conditioned
on the financing and is subject to some terms. These terms are:
1) The sale must be concluded within seven days of delivery.
2) The purchaser's trade-in cannot be sold until the sale is completed.
3) The delivery of the vehicle is made at the risk of the dealer with no
charges to the purchaser if the sale is not completed.
4) The purchaser shall be refunded any deposit from the dealer should the
sale not be completed.
MyLemon.com offers free Lemon Law help for Pennsylvania and
New Jersey consumers of defective cars.
Lemon law attorney.
Visit Pharis Law Offices
for a free claim evaluation if you are experiencing problems with your new
car.