What Is Lemon Law?

The Magnuson-Moss Warranty Act (1975) is the federal law that governs written warranties on consumer products, including vehicles. It requires manufacturers to honor their warranties and gives consumers the right to sue in federal court if they don't. It does not, however, set a specific repair-attempt threshold — that's left to state law.

Under Magnuson-Moss, if a manufacturer fails to repair a defect covered by a written warranty within a reasonable number of attempts, you may be entitled to a refund or replacement. Attorney's fees can also be recovered if you win, which makes it practical to hire a lemon law attorney on contingency.

Every state has its own lemon law, and most are stronger than the federal baseline. State laws typically define specific thresholds: a set number of repair attempts for the same defect (often 3–4), a total number of days out of service (often 30), or both. Once you hit those thresholds within the coverage period, you're presumed to have a lemon.

Coverage periods vary. Most states cover the first 12–24 months or 12,000–24,000 miles, whichever comes first. A few states extend coverage further. The defect must substantially impair the vehicle's use, value, or safety — minor annoyances typically don't qualify.

The defect must be covered by the manufacturer's warranty and must substantially impair the vehicle. Courts and arbitrators look at whether the problem affects safety (a transmission that slips, a powertrain that fails), significantly reduces the vehicle's value, or makes it unreliable for normal use.

Defects caused by owner abuse, accidents, or unauthorized modifications are excluded. The manufacturer will argue these exceptions aggressively — which is why documentation matters. Every repair order should describe the problem in your words, not just the dealer's diagnosis.

If your vehicle qualifies, you're entitled to either a full refund (buyback) or a comparable replacement vehicle. A buyback includes the purchase price, taxes, registration fees, and finance charges — minus a usage offset for miles driven before the first repair attempt.

Manufacturers often push replacement over refund because it keeps you in their brand. You have the right to choose. If you financed the vehicle, the refund goes first to the lender; you receive whatever equity remains. If you leased, the calculation is different — consult an attorney.

Most manufacturers require you to go through their sponsored arbitration program before you can sue. Ford and Lincoln use the BBB Auto Line program. Arbitration is free and faster than court, but the arbitrator is paid by the program the manufacturer funds — keep that in mind.

You are not bound by an arbitration decision you don't like. If the arbitrator rules against you, you can still file in court. If the arbitrator rules in your favor and the manufacturer doesn't comply within the required timeframe, you can sue to enforce the award. Always get the decision in writing.