Did The Manufacturer Fail To Honor Its Warranty?
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Fortunately, there are laws in the State of New Jersey to protect consumers who purchase defective vehicles. Most people refer to defect vehicles as "Lemons." However, in order for a vehicle to be deemed a "Lemon," it must:
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Suffer a defect or non-conformity that substantially impairs the vehicle's use, value or safety
- That defect or non-conformity must be the subject of an "unreasonable" number of repair attempts
- The defect that substantially impairs the vehicle's use, value or safety, must occur within the first two (2) years or 18,000 miles, whichever comes first.
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If a vehicle is deemed a "Lemon," a consumer is then entitled to a full refund of the purchase price, or a new replacement vehicle. A "refund" under this law is: the full purchase price of the vehicle subtracted by a "reasonable allowance for vehicle use." A "reasonable allowance for vehicle use," means: the purchase price (times) the mileage when the vehicle was first brought in to an authorized dealer for the defect or non-conformity (divided) by 100,000 miles.
A vehicle refund may also include: sales tax, license and registration fees, finance charges, and any additional costs, such as, options or modifications added by the manufacturer or its authorized dealer within 30 days after the date of delivery.
The "Lemon" law also provides for payment of all legal fees and costs to be paid by the manufacturer should a consumer prevail.
Simply because a vehicle suffers from a multiple number of problems or repeat type problems, does not necessarily mean that this vehicle is a "Lemon." For instance, if the vehicle's problems are not deemed "substantial," or began to occur outside of the required "Lemon" law period, the vehicle would not be considered a "Lemon." However, there are separate remedies that a consumer is protected by and would be entitled to; such as, a consumer would be entitled to recover money damages should the manufacturer fail to honor its obligations under the warranty and correct the defects in the vehicle within a reasonable period of time. These remedies are governed by the Federal Magnuson-Moss Warranty Act and the Uniform Commercial Code and allow to collect damages even where the vehicle is not considered a "Lemon." Again, if a consumer prevails under a "breach" of warranty theory, the manufacturer would be responsible for all reasonable attorney fees and costs incurred.
It is important to have any and all problems with a vehicle reported to the manufacturer or its authorized dealer as soon as possible. It is also equally important that the repair records and invoices properly document all of the problems that exist in the vehicle. A consumer must make certain that they receive a full detailed repair invoice specifying all of the complaints and repair work that was performed on their vehicle. If their vehicle continues to exhibit problems of any kind, it is extremely important that the vehicle again be taken in for warranty repair work. Again, all information in the repair invoices must be complete and correctly documented.
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