What Is The Lemon Law And How Does It Work?

Tue, 29 May 2007 21:19:00 GMT

New cars and other new motor vehicles are covered by manufacturers` warranties. These warranties must follow the rules set by the federal MagnusonMoss Warranty Act and the Uniform Commercial Code (UCC) (refer to the section on WARRANTIES for more information). The manufacturer`s warranty is provided at no extra cost to the buyer. Sometimes, despite the best efforts of a dealer`s service department, a defect cannot be satisfactorily fixed. These unfixable vehicles are popularly referred to as lemons. New Hampshire`s lemon law provides a method for the lemon owner to satisfactorily resolve the problem.

New Hampshire`s Lemon Law (RSA 357D) applies only to new vehicles purchased from New Hampshire dealerships. New Hampshire consumers who find themselves with a defective new vehicle which the dealer has been unable to repair may turn to the Motor Vehicle Arbitration Board (MVAB). The MVAB will decide whether the motor vehicle is so impaired by its defect that the manufacturer should take the vehicle back. The MVAB, a fiveperson panel of consumers, auto dealers and certified mechanics, has been in existence since January 1, 1992. The MVAB reviews consumer complaints about defective vehicles and holds evidentiary hearings which typically include inspecting and/or test driving the vehicle. If a majority of the panel members find that the vehicle is substantially impaired due to defects covered by the manufacturer`s warranty, the board will order the manufacturer to either buy the lemon back from the consumer or, at the consumer`s option, trade the lemon for another vehicle of equal value. The MVAB can also award damages which can include license and registration fees as well as the finance charges (interest) for the loan to purchase the defective vehicle. Either the consumer or manufacturer can appeal MVAB decisions to the Superior Court.

How Do I Qualify For Arbitration Under The Lemon Law?

Tue, 29 May 2007 21:19:00 GMT

In order to qualify for arbitration, you must ordinarily show either:

the manufacturer or its representative has made at least three unsuccessful attempts to fix the motor vehicle; or
the motor vehicle has been out of service for 30 or more business days (cumulative) due to defects or nonconformities covered by the warranty. NOTE: In some cases involving extensive or dangerous defects, the MVAB may decide to hear a case with fewer repair attempts or days out of service.

New Hampshire`s Lemon Law (RSA 357D) requires that manufacturers of new motor vehicles provide purchasers with a notice of their rights to arbitration under New Hampshire law, including a demand for arbitration form. Furthermore, New Hampshire dealerships are required to post a notice of consumer rights under this statute in all new car showrooms.

How Does The Manufacturers' Warranty Factor Into The Lemon Law Equation?

Tue, 29 May 2007 21:19:00 GMT

New Hampshire`s Lemon Law also requires that any motor vehicle sold in New Hampshire conform to the applicable manufacturer`s warranty and that manufacturers promptly correct defects covered by the warranty. This requirement is complemented by RSA 382A:2329 which requires automobile manufacturers to maintain instate service agents and to provide parts needed for repairs within 30 days or less.

Under What Conditions Is A Vehicle Considered A Lemon?

Tue, 29 May 2007 21:19:00 GMT

A vehicle is considered to be a lemon if:

the new vehicle is substantially impaired in use, value, or safety due to a defect covered by the manufacturer`s warranty that the manufacturer or its authorized representative has not fixed.

What Vehicles Are Covered Under The Lemon Law?

Tue, 29 May 2007 21:19:00 GMT

New Hampshire`s Lemon Law applies only to new motor vehicles, described in the statute as vehicles still under manufacturer`s original warranty. Low mileage used cars may, under some circumstances, qualify for arbitration and relief under the lemon law for defects in systems covered by a warranty. Older used cars, which are out of warranty when purchased do not generally fall within the protection of the New Hampshire Lemon Law.

The following table summarizes what is covered, how many times the vehicle has to be repaired for the same defect and the warranty period.

Vehicles Covered

Repair Interval and Coverage Period

Any 4wheel motor vehicle with a gross weight not exceeding 9,000 pounds. Also includes off highway recreational vehicles, mopeds and motorcycles.

3 repair attempts or 30 business days out of service

Warranty period *plus* 1 year.

Note:

Generally, the term Repair Attempts, as it relates to Lemon Law, refers to one or more attempts to fix the same defect although some states consider a vehicle to be a lemon if it required the specified number of repairs within the coverage period.

A car is out of service while being repaired or waiting for parts.

Warranty Period refers to the Manufacturer`s Express Warranty. Where the Coverage Period lists more than 1 option, the period applies to that option which occurs first.

This is only a summary, to get the complete Lemon Law Statute select your state from the combo box menu on the right side of this page, and click Get Statute.

Who Can I Contact If I Have A Problem?

Tue, 29 May 2007 21:19:00 GMT

Better Business Bureau for mediation and arbitration assistance if your car`s problem does not fall under New Hampshire`s Lemon Law

New Hampshire Motor Vehicle Arbitration Board (MVAB) for arbitration if your car`s problem falls under the New Hampshire Lemon Law

NH Consumer Protection & Antitrust Bureau

Free Lemon Law Attorney FAQs

Thu, 26 Nov 2009 10:52:59 GMT

Free Lemon Law Attorney FAQs