Lemon Law

Posted on November 3, 2014 by GPAB

So many transactions in the United States are regulated. The Federal Reserve governs your bank. Your stock investments likely fall under the purview of the Securities and Exchange Commission. The food that hits your table should have passed a U.S. Department of Agriculture inspection, and your prescriptions have passed rigorous Food and Drug Administration testing.

But when you buy a brand new car only to find it has chronic troubles, where do you turn for help? Most states have what are known as “Lemon Laws” to protect car buyers.

Meeting strict requirements

While Nebraska’s Lemon Law entitles the buyer to a refund or replacement, qualifying as a lemon may not be easy. A “lemon” is any vehicle (including motorcycles) with a defect that substantially impairs the use or market value. Nebraska’s DMV goes on to say it is a vehicle that has been sent back to the dealer four or more times to repair the same problem, or you have been without use of it for 40 or more days. The Nebraska DMV also offers an overview of what to do when invoking the Lemon Law.

• Car requirements – Your car must be under warranty, purchased in Nebraska and less than one year old when you notify the manufacturer it is a lemon. Be mindful of used cars sold “as-is,” and know that service contracts and extended warranties are not part of the Lemon Law.

• Notify the manufacturer – You must send notice to the manufacturer (not the dealer) and give it a chance to fix the problem. It’s best to consider doing this after the third consecutive repair, or 30 days without use of the vehicle.

• Keep records – The Lemon Law provides for informal arbitration or suing the manufacturer in court. Either way, it’s in your best interest to prove every repair and every day you were without your vehicle. This means keeping track of the paperwork.

You also might want to hire an attorney to assist if you decide to proceed down the Lemon Law road. It can be a tough case to make, but in the end, the Lemon Law is designed to protect new car buyers.

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