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. Budgeting

    How To Avoid Buying A "Lemon" Product

    A lack of information can lead people into bad purchases and bad investments. Find out how you can avoid these lemons.
  2. Home & Auto

    Did You Buy A Lemon?

    Find out how to fix a sour deal on your car purchase.
  3. Home & Auto

    Used Car Shopping: How To Avoid A Lemon

    Being prepared before buying will save you thousands in the long run.
  4. Options & Futures

    Car Shopping: New Or Used?

    Don't get taken for a ride. Learn the pros and cons before the salesperson makes a pitch.
  5. Savings

    When Is Leasing A Car Your Best Bet?

    Leasing a car isn't right for everyone. But it's attractive for those who want low initial payments and the ability to get a new vehicle every few years.
  6. Budgeting

    The Momentum, And Methods, Behind Walmart's Model

    Walmart's success stems from low costs, which are possible through specific supply and distribution strategies, and are passed to consumers as low prices.
  7. Trading Strategies

    Has Coca-Cola Lost Its Pop?

    Coca-Cola has been a name synonymous with sustainable success. This hasn’t just pertained to consumers but investors as well. But are times changing?
  8. Investing Basics

    Are dividend payout ratios different in different economic sectors?

    Discover which economic sectors have traditionally higher or lower dividend payout ratios and the various factors that determine payout ratios.
  9. Chart Advisor

    Profit From Holiday Spending With This ETF

    As Americans finish purchasing the last of their holiday gifts, the consumer discretionary sector will continue to be one of the primary beneficiaries.
  10. Chart Advisor

    'Tis The Season For Food And Beverage Stocks

    The holidays tend to be a gift to investors in defensive consumer stocks. Here's a food and beverage sector ETF (and its top holdings) to consider

You May Also Like

Hot Definitions
  1. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  2. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  3. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  4. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  5. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  6. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
Trading Center