Lemon Laws

AAA

DEFINITION of 'Lemon Laws'

Regulations that attempt to protect consumers in the event that they purchase a defective vehicle. Lemon laws apply to defects that affect the use, safety or value of a vehicle. If the vehicle cannot be repaired successfully after a reasonable number of attempts, the manufacturer must repurchase or replace it.

INVESTOPEDIA EXPLAINS 'Lemon Laws'

Lemon laws vary by state. These laws almost always apply to new vehicle purchases, but do not always apply to used vehicle purchases or to leased vehicles. The consumer may have a limited window of time in which to report a vehicle as a lemon. For example, in Illinois, where lemon laws only apply to new and leased vehicles, the timeframe is 18 months from the date of delivery.

RELATED TERMS
  1. Lemons Problem

    The issue of information asymmetry between the buyer and seller ...
  2. Plum

    A choice investment, or one that has outperformed other comparable ...
  3. Cash For Refrigerators

    A federal energy efficiency program introduced in the fall of ...
  4. Cash For Clunkers

    A program that allows car owners to trade in their old, less ...
  5. Lemon

    A very disappointing investment. A lemon is an investment in ...
  6. Fast-Moving Consumer Goods (FMCG) ...

    These are consumer goods products that sell quickly at relatively ...
Related Articles
  1. Did You Buy A Lemon?
    Home & Auto

    Did You Buy A Lemon?

  2. Used Car Shopping: How To Avoid A Lemon
    Home & Auto

    Used Car Shopping: How To Avoid A Lemon

  3. How To Avoid Buying A
    Budgeting

    How To Avoid Buying A "Lemon" Product

  4. Car Shopping: New Or Used?
    Options & Futures

    Car Shopping: New Or Used?

comments powered by Disqus
Hot Definitions
  1. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  2. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  3. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
Trading Center