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Saturday, November 22, 2014

Lemon Law Tips

Federal and State Lemon Laws Require the Automobile Manufacturer to Pay Your Attorneys' Fees and Costs

 In 1975, Congress enacted the Magnuson-Moss Warranty Act, which is often referred to as the federal “Lemon Law.” This law provides that if a warrantor of a consumer product fails to comply with the obligations of its warranty, i.e. repair defects in materials or workmanship, after being afforded a reasonable opportunity to do so, that the consumer may bring suit not only for damages, but also for attorneys’ fees, and costs. This is extremely important, because it allows law firms to represent consumers without charging them for their time and expenses.  In essence, this “fee-shifting” provision levels the playing field so that an individual consumer may hire an attorney who is experienced in handling “lemon law” and “breach of warranty” claims to take on some of the world’s largest corporations. Moreover, this provision allows consumer attorneys to do the work that state agencies are often too burdened to handle by making “private attorney generals” responsible for enforcing the law.
Congress knew that without this attorneys’ fee provision that most consumers would not be able to afford to hire an attorney to get rid of their “lemon” car, truck, boat, motorcycle, refrigerator, and other consumer products. In fact, in lobbying for the inclusion of this “fee-shifting” provision, Senator Warren Magnuson noted, “Because enforcement of the warranty through the courts is prohibitively expensive, there exists no currently available remedy for consumers to enforce warranty obligations.  If warrantors who did not perform as promised suffered direct economic detriment, they would have strong incentives to perform. Therefore, there is a need to insure warrantor performance by monetarily penalizing the warrantor for non-performance and awarding the penalty to the consumer as compensation for his loss. One way to effectively meet this need is by providing for reasonable attorneys’ fees and court costs to successful consumer litigants, thus, making consumer resort to the court feasible.” Senate Report – No. 93-151, 93rd Congress, First Session, at pp. 7-8 (1973) (emphasis added).
Following the enactment of the Magnuson-Moss Warranty Act into law in 1975, states throughout the country drafted their own lemon laws with similar “fee-shifting” provisions. While every state lemon law is a little bit different, virtually every state has recognized that in order for the law to be enforceable there must be some provision that allows the consumer to recover their attorneys’ fees and costs from the automobile manufacturer.
Not only have Congress and state legislatures recognized the importance of “fee-shifting” provisions, but courts that interpret these laws have recognized the same. As noted by one court, fee-shifting provisions were “intended to encourage consumers to pursue their legal remedies by providing them with access to legal assistance.”  State Farm Fire and Casualty  v. Miller Electric Co., 596 N.E.2d 169,171 (Ill. App. 1992). In State Farm, the court recognized that “without such assistance, consumers would frequently be unable to vindicate their warranty rights accorded by law.”  Another court, the United States Seventh Circuit Court of Appeals, also recognized the importance of fee-shifting provisions and declared that “statutory fee-shifting provisions reflect the intent of Congress to encourage private enforcement of the statutory substantive rights, be they economic or non-economic, through the judicial process.” Skelton v. General Motors Corporation, 860 F.2d 250, 254 (7th Cir. 1988).
The federal Magnuson-Moss Warranty and state Lemon Laws allow private citizens to redress wrongs that have the ability to impact all of us.  The “fee-shifting” provisions of these laws give them teeth and make them enforceable, which benefits all of us.  As a result, automobile manufacturers, and the manufacturers of other consumer products, can be held accountable when their products do not operate like they should.
If you believe that your car, truck, motorcycle, SUV, or other consumer product is a lemon, contact the experienced Lemon Law attorneys at Krohn and Moss, Ltd. Consumer Law Center ® who have helped over 35,000 consumers nationwide since first opening their doors in 1995.  The attorneys at Krohn and Moss, Ltd. Consumer Law Center ® will provide you with a FREE CASE REVIEW in order to determine whether you qualify for the federal Lemon Law or your state’s Lemon Law.  You may also use their free and quick Lemon Law case evaluator.  Finally, you may call Krohn and Moss, Ltd. Consumer Law Center ®  toll free at 1-800-875-3666 or visit their website at http://www.yourlemonlawrights.com

The "What and Why" of Lemon Law: Consumer Protection Rules to Know

The purchase of any new product comes with expectations that it will work as intended, especially if that product comes with a warranty. Unfortunately, this basic premise is not always true. Since your purchase, you may have had continuous problems with the product resulting in multiple repairs, impairment of its use, decreased value and/or increased safety risks. If this describes your situation, you may have purchased what is known as a “lemon” and you may be eligible for a refund of your money, a replacement product or a cash settlement.
Federal and state laws protect consumers who purchase products with a written warranty; these are commonly referred to as “Lemon Laws”. Each state has adopted its own provisions, in addition to the overarching federal law. However, many times the law varies from state-to-state and some of the requirements or conditions may be materially different. Thus, it is best to have an experienced Lemon Law attorney advise you of your rights under applicable state and federal laws.
The main source of the federal Lemon Law is the Magnuson-Moss Warranty Act. In 1975, Congress passed this Act which requires manufacturers of consumer products to provide consumers with detailed information about the product’s warranty coverage. It serves to help prevent manufacturers from using unfair warranty provisions and agreements. The Magnuson-Moss Warranty Act also makes it easier for a consumer to receive warranty information, review warranty information and bring a warranty case against a manufacturer by providing for the payment of attorneys’ fees should you receive a successful outcome in either settlement or at trial. For more information on the Magnuson-Moss Warranty Act, please visit our website here.
When most people think of the “Lemon Law,” they think of motor vehicles. However, each state has adopted different rules and many state laws and the federal law will apply to a multitude of consumer products, you can click on any state to see its respective Lemon Law here, but most state laws have three (3) main components:
  1. What specific vehicles are covered under the law? Does the law apply to just new cars, or are used cars also covered? Are other vehicles such as motorcycles or motor homes covered?
  2. What is the minimum number of repair attempts or the minimum number of days the vehicle has been rendered unavailable while being repaired?
  3. What is the coverage period? Most states have alternative periods whether it be one (1) year or 12,000 miles or two (2) years or 24,000 miles.
The experienced attorneys Krohn and Moss, Ltd. Consumer Law Center ® have also provided many helpful resources regarding the Lemon Law. We have been successfully representing consumers of lemon products since 1995, and have a long list of successful stories to share with you, including personal testimonials regarding Lemon Law cases. We offer a FREE CASE REVIEW for you to assess whether we can assist you with your matter and a free and quick Lemon Law case evaluator. Please do not hesitate to contact us toll free at 1-800-875-3666 or visit our website at http://www.yourlemonlawrights.com.


A Lemon Lawyer's Tips to Avoid Purchasing a "Lemon"

Buying a “new” or “used” car can be less of a game of chance by following a lemon lawyer’s tips for car buying. These tips are designed to empower you, the consumer, with the information you need to make an educated decision in purchasing the most reliable vehicle possible for your budget.
  1. Do not be hasty. Odds are that you are purchasing either the most expensive or second most expensive item of your life (other than a home), every time you buy a car. While buying a new or used car can be exciting, you should not do so hastily. Don’t let the new car smell or fresh coat of wax blind you to problems that can be avoided. Just like you shouldn’t judge a book by its cover, don’t judge a car simply by its shiny exterior.
  2. Research – do your homework. There are many websites available to shop for a new or used vehicle. These days, you can find websites that will not only tell you the dealer’s invoice price for the vehicle, but will also give you quality control ratings or other consumers’ reviews of the same make and model. Before you go to the dealer, be sure to check out some of these websites, such as Edmuds.com, KBB.com, ConsumerReports.org, or CarandDriver.com. Knowing as much as you can about the vehicle you are interested in purchasing will not only help you to select a more reliable vehicle, but will also arm you with knowledge to negotiate a better purchase price.
  3. Test Drive the vehicle. Whether the vehicle is “new” or “used” there is no substitute for test driving a vehicle. For starters, you might find that there are certain characteristics of the vehicle that you simply don’t like. More importantly, you may also avoid purchasing a vehicle that already has a defect or non-conformity. However, make sure your test drive is not merely perfunctory. Tell the dealer you not only want to drive the vehicle on the dealer’s designated route, but that you also want to take the vehicle out on the highway. Be sure to drive the vehicle at different rates of speed and under different conditions to really assess it. Don’t just assume that the dealer has first checked out the vehicle and given it a stamp of approval. All too often, we see examples of problems that occurred when the car was driven off the lot for the first time. A simple test drive could have avoided selecting a car with a defect already manifesting itself.
  4. Check out any “used” car’s title history before purchase. Autocheck.com and CarFax.com are consumer friendly websites designed to provide you with information that has been recorded on the title of any vehicle. For a small fee and by inputting the vehicle’s identification number, you can find out information that has been recorded about a vehicle. Knowing this information will help you to avoid purchasing a vehicle that has been in an accident, flood, or had its odometer rolled back. While these websites are not 100 percent infallible as they rely upon other organizations to provide them with this important data, they are a useful starting point to avoid making a bad purchase.
  5. Avoid buying a “Tricked Out” Vehicle. Many dealers will advertise that a vehicle has a DVD player, enhanced stereo system, custom wheels, or other accessories. Make sure these accessories are factory supplied by the manufacturer of the vehicle. If not, you could be asking for electrical or other problems with your vehicle that won’t be covered by the manufacturer’s warranty. Every car manufacturers’ warranty that we have ever seen has a section in it that excludes problems that arise due to aftermarket or non-factory supplied components.
  6. Inspect the vehicle in the “daylight.” Even the untrained eye can spot obvious and tell-tale signs of accident damage. However, do your inspection during the daytime. If you arrive at the dealership in the evening, make sure you wait until it is daylight so you can inspect the vehicle. When doing so, look for paint overspray on the trim, headlights, or wheel wells. Look for dents or anything that looks out of alignment. If you see anything that concerns you, it is best to move onto another vehicle. Remember, even cars that are sold as “new” can have damage that occurred in transit from the manufacturer or during a test drive.
  7. Find out the “warranty history” on any “used car” before purchase. Even if you are buying a “used” Ford from a GM dealer or a car from a used car lot, make sure that you know the vehicle’s repair history before you buy it. Every car manufacturer’s dealer has a computer system that can pull up the vehicle’s warranty history report by its vehicle identification number. This report will tell you all repairs to the vehicle that were covered by the manufacturer’s warranty and it will alert you to vehicles that have been subject to repeat or significant issues. While a GM dealer cannot access the history report for a Ford vehicle, the GM dealer can make a phone call for you to get it or put you in touch with someone to get this history. Just like an insurance company won’t sell life insurance without knowing your medical history, don’t let a car dealer sell you a car without knowing the vehicle’s repair history.
  8. Make sure an independent mechanic inspects any “used” car. While a test drive and visual inspection should be good enough before purchasing a “new” car, insist that an independent mechanic inspect any “used” car that you are planning to purchase. If the dealer either refuses to allow your mechanic to inspect the vehicle at the dealer or let you take it for a couple of hours to an independent shop, then it’s time to pick another place to buy your car. Any reputable car dealer should allow for this independent inspection. You will likely have to flip the bill for this cost, but the peace of mind is worth it and no less important than having a home inspector inspect your home before you go to closing.
  9. Warranty, Warranty, Warranty. Any “new” car you purchase will have the manufacturer’s warranty in place that will promise to repair defects in materials or workmanship that arise during the term of the warranty. However, “used” cars are a different story. Do not purchase a car that is sold “as-is.” If the dealer tells you the car is “as-is” they are telling you that they don’t trust it enough to stand behind it, and you are more prone to being stuck with a lemon. Make sure that the dealer provides you with a written warranty that covers the vehicle for at least ninety (90) days. The sale of this warranty will not only provide you with the express protection of what the dealer covers in writing, but will also provide you with certain warranties that are implied in law. In fact, per section 2308 of the federal Magnuson-Moss Warranty Act, sellers and suppliers of any consumer product are prohibited from disclaiming these “implied” warranties if they enter into a written warranty or service contract with you within 90 days of sale. These “implied” warranties make sure that your vehicle is of the level of quality that you would expect from another one just like it, i.e., that the vehicle is fit for its ordinary purpose. If the dealer won’t stand behind their car in writing for even a modest period of time, they are telling you that they don’t have the confidence that the car will get you home.
  10. Don’t hesitate to use the “Lemon Law.” Despite the above tips that can help to minimize your chances of being stuck with a lemon, not all lemon vehicles can be avoided. Often, a car will drive perfectly for years or thousands of miles before problems arise. Should that occur, state and federal laws provide protection to consumers who are saddled with lemon vehicles. The experienced attorneys at Krohn and Moss, Ltd. Consumer Law Center ® have successfully represented consumers who have purchased lemon vehicles since 1995. We offer a FREE CASE REVIEW for you to assess whether we can assist you with your matter and a free and quick Lemon Law case evaluator. Please do not hesitate to contact us toll free at 1-800-875-3666 or visit our website at http://www.lemonlawamerica.com.

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