- The Lemon Law (AS 45.45.300) provides protection to buyers to new motor vehicles. If a new vehicle turns out to be defective and has not been properly repaired after a reasonable number of attempts, the law requires a refund or replacement vehicle.
- Only a small percentage of new vehicles will be declared lemons. However, all new vehicle buyers will benefit from this law. The manufacturer and the dealer now have a stronger economic incentive to deliver the vehicle free from defects, and if problems develop, to correct them quickly and accurately.
- The law encourages the vehicle manufacturers to establish third party arbitration programs. These programs must meet specific standards and must have the approval of the Attorney General. Any decisions ordered by the arbitration`s are binding on the manufacturer but not on the consumer.
- This law spells out clearly the owner`s, dealer`s and manufacturer`s responsibilities. It does not limit other rights and remedies that may be available to the owner of a motor vehicle under other provisions of law.
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