Consumer Rights & Lemon Law — Law Library
Federal and state laws protecting consumers from defective products, deceptive practices, and unfair business conduct — including vehicle lemon laws.
Statutes & Rules
- Magnuson-Moss Warranty Act (15 U.S.C. § 2301 et seq.)
- Federal law governing consumer product warranties; allows consumers to sue for breach of warranty and recover attorneys' fees.
- FTC Act — Unfair or Deceptive Acts (15 U.S.C. § 45)
- Prohibits unfair or deceptive acts or practices in commerce; enforced by the Federal Trade Commission.
- State Lemon Law Statutes (All 50 States — State Lemon Laws)
- All 50 states have lemon laws requiring manufacturers to replace or repurchase defective vehicles that cannot be repaired after a reasonable number of attempts. Key examples: Fla. Stat. § 681.10 (FL — 3 repair attempts or 30 days out of service); Tex. Occ. Code § 2301.601 (TX — 4 attempts or 30 days); Cal. Civ. Code § 1793.2 (CA — strongest consumer protections, 2 attempts for safety defects); N.Y. Gen. Bus. Law § 198-a (NY — 4 attempts or 30 days); S.C. Code § 56-28-10 (SC); 815 ILCS 380 (IL); Mich. Comp. Laws § 257.1401 (MI). Repair attempt thresholds and buyback formulas vary by state.
Landmark Cases
- Henningsen v. Bloomfield Motors, 32 N.J. 358 (1960) — Landmark case imposing implied warranty liability on automobile manufacturers; established strict liability in product defect cases.
- Greenman v. Yuba Power Products, 59 Cal.2d 57 (1963) — California Supreme Court adopted strict liability for defective products; widely followed by other states.
Key Terms
- Lemon Law Presumption
- A rebuttable presumption that a vehicle is a lemon if it has undergone a set number of repair attempts (typically 3–4) or been out of service for a minimum number of days.
- Implied Warranty of Merchantability
- An automatic warranty that a product is fit for its ordinary purpose.
- Arbitration Clause
- A contract provision requiring disputes to be resolved through arbitration rather than court litigation.
- Breach of Warranty
- A failure of a product to meet the terms of its express or implied warranty.
- Class Action
- A lawsuit filed by one or more plaintiffs on behalf of a larger group with common claims.