Glossary of Lemon Law Terms
Lemon law is a specialized area of law, with its own statutes and court decisions, and many terms you may be unfamiliar with if you haven’t dealt with the law before. This glossary breaks down some of the essential lemon law terms so you can better understand what is going on with your case and make informed decisions about how to proceed. For personalized advice tailored to your particular situation, contact Nita Lemon Law Firm to speak with an experienced and knowledgeable California lemon law attorney.
Lemon Law Basics
1. Lemon Law
California’s lemon law, also known as the Song-Beverly Consumer Warranty Act and Tanner Consumer Protection Act, is designed to protect consumers who purchase or lease vehicles with persistent defects. If a vehicle is deemed a “lemon” as defined in the statute, the law provides the owner with options for repair, replacement, or refund.
2. Lemon
A “lemon” is a vehicle that has a substantial defect that impairs its safety, use, or value and that cannot be repaired after a reasonable number of attempts by the manufacturer or dealer.
3. Song-Beverly Consumer Warranty Act
The Song-Beverly Consumer Warranty Act is California’s primary law governing lemon law cases. This law outlines consumers’ rights and the obligations of manufacturers regarding warranties and defective products.
Types of Warranties
4. Express Warranty
An express warranty is a specific, written guarantee provided by the manufacturer or seller about the quality or condition of the vehicle. Typically included in a new vehicle purchase, this warranty promises that any substantial issues will be repaired within a specific period or mileage.
5. Implied Warranty
An implied warranty is an unwritten promise that the vehicle will function as expected for a reasonable period. California law recognizes two main types of implied warranties for automobiles: the implied warranty of merchantability (the vehicle is suitable for ordinary use) and the implied warranty of fitness for a particular purpose.
6. Manufacturer’s Warranty
A manufacturer’s warranty is an express warranty provided directly by the manufacturer rather than the dealer or a third party such as a parts maker. It usually covers specific parts or systems for a designated period or mileage and is essential in lemon law claims.
7. Service Contract
A service contract, or extended warranty, is an additional contract to repair or replace specific parts after the original warranty expires. While not legally classified as a warranty, it can sometimes play a role in lemon law claims if defects persist after the warranty period.
Lemon Law Process and Remedies
8. Buyback
A buyback occurs when the manufacturer repurchases the defective vehicle from the consumer. California lemon law requires the manufacturer to refund the vehicle’s purchase price, minus any reasonable usage fees, and cover incidental costs, such as towing or rental fees.
9. Replacement Vehicle
If a vehicle qualifies as a lemon, the manufacturer may offer a comparable replacement vehicle instead of a buyback. Consumers can choose between a replacement vehicle or a refund if their vehicle is deemed a lemon.
10. Reasonable Number of Repair Attempts
Under California lemon law, the manufacturer must be given a “reasonable number of attempts” to repair the defect. Generally, this is defined as two or more attempts for a significant safety issue or at least four attempts for other substantial defects. However, the specifics can vary based on the case. Two or four unsuccessful repair attempts as discussed above create a presumption that the car is a lemon, but that presumption is rebuttable by the dealer providing evidence to the contrary.
11. Civil Penalty
In cases where the manufacturer willfully violates the lemon law, the court may impose a civil penalty of up to two times the amount of the consumer’s damages. Civil penalties are a significant deterrent against manufacturers who refuse to honor lemon law requirements.
12. Incidental Damages
Incidental damages cover out-of-pocket expenses directly related to the defective vehicle, including costs for towing, rental cars, and even storage fees. If you pursue a lemon law claim, you may be entitled to recover these expenses as part of your compensation.
13. Restitution
Restitution refers to the compensation a consumer receives when a lemon law case is resolved. It typically includes a refund for the defective vehicle, coverage for incidental damages, and occasionally, civil penalties if the manufacturer acted in bad faith.
Key Terms in California Lemon Law
14. Defect
For lemon law purposes, a defect is any condition in a vehicle that substantially impairs its use, safety, or value. Only substantial defects qualify a vehicle as a lemon under California law. Minor cosmetic issues, for example, are generally not considered grounds for a lemon law claim.
15. Nonconformity
Nonconformity refers to a defect or condition that does not meet the standards outlined in the manufacturer’s warranty. If a vehicle has a nonconformity that cannot be fixed after reasonable attempts, it may qualify as a lemon.
16. Mileage Offset
A mileage offset is a deduction applied to the buyback amount in a lemon law case. This fee accounts for the “reasonable use” of the vehicle before the defect was discovered. California law uses a formula to calculate this offset based on the mileage at the first repair attempt.
17. Substantial Impairment
To qualify as a lemon, the defect must cause a “substantial impairment,” meaning it affects the vehicle’s use, safety, or value. A vehicle with a minor issue that doesn’t significantly impact these areas likely won’t meet the lemon law requirements.
Additional Terms
18. Arbitration
Arbitration is an alternative dispute resolution process in which a neutral third party, or arbitrator, helps resolve disputes between the consumer and the manufacturer. While arbitration may offer a faster resolution, it’s crucial to consult an attorney, as arbitration may limit legal rights in some cases. At Nita Lemon Law Firm, we generally counsel clients to avoid arbitrating their lemon law claims.
19. Breach of Warranty
A breach of warranty occurs when the manufacturer fails to meet the promises made in the express or implied warranty. For instance, if a warranty promises repairs for specific defects, but the defect persists after multiple repair attempts, the warranty has been breached.
20. Qualified Repair Facility
A qualified repair facility is an authorized service center, usually designated by the manufacturer, where the vehicle must be taken for repair attempts. Taking the vehicle to an unauthorized repair shop can affect your lemon law claim, so it’s essential to follow the warranty requirements regarding repair facilities.
21. Manufacturer-Authorized Dealership
A manufacturer-authorized dealership is a dealership approved by the vehicle manufacturer to conduct repairs or service. California lemon law cases often require that initial repair attempts occur at an authorized dealership to ensure the manufacturer is responsible for warranty obligations.
Contact Nita Lemon Law Firm for Sound Advice and Skilled Representation Concerning Your California Lemon Law Claim
If you are experiencing persistent issues with your vehicle that aren’t being resolved by the dealer under your manufacturer’s warranty, consult with a California lemon law attorney who can guide you through the process and work to protect your consumer rights. In California, contact the Nita Lemon Law Firm by calling 213-232-5055 in Los Angeles or 877-921-5256 statewide for a free consultation. You can also submit a free case evaluation request at www.nitalemonlaw.com, or email nick@nitalemonlaw.com for a fast response.
