Texas lemon law
Lemon Law is practiced in the state of Texas that helps consumers who buy or lease new motor vehicles and have problems in getting their vehicles repaired properly. The law was administered by Texas Department of Transportation?s Motor Board. The law as enforced in 1983 by the Texas Legislative. About 12,282 complaints were resolved in the period 1988 to 1999 through mediation and formal hearings. Some 182 complaints were resolved informally in 1997 out of the 1,291 written complaints received.
Changes to the Lemon Law
In 1991, the law was changed to the benefit of the consumers. The definition of lemon was expanded, the time period for filing a complaint was increased, the consumers were even reimbursed for incidental expenses.
In 1997, Towable Recreational Vehicles (TRVs) were added to the list of vehicles under the Lemon Law. Besides being used for temporary human habitation the TRV?s must be registered in Texas, built on a single chassis, contain life support systems more than one and be towable by another motor vehicle.
The Cover
Lemon Law applies only to the new vehicles that develop problems and are covered by a written factory warranty. They include cars, trucks, vans, motorcycles, all-terrain vehicles, motor homes and towable recreational vehicles.
The law does not cover used motor vehicles (including program vehicles). It also does not cover even new vehicles if they are
1. abused or neglected by the owner or unauthorized changes are done by the
owner.
2. Contains parts or components not installed or authorized by the manufacturer.
3. problems that do no affect the used of the vehicle or affect the resale
value of the vehicle
Identification of a Lemon
A motor vehicle becomes a lemon only under the following circumstances:
1. The vehicle has an abnormality or serious defect.
2. Warranty covers the defect or condition
3. If the defect or condition is reported to the manufacturer within the
warranty period.
4. Written notice was issued by the owner to the manufacturer and the manufacturer has one opportunity for repair.
5. Defect persists even after the manufacturer repairs the same, and the defect may cause a serious safety hazard or impairs the vehicles use or market value.
6. The complaint under Lemon Law is filed after the owner pays the filing fees.
Chance given to the Dealer to fix the Impairment
The manufacturer has to pass the following tests
Serious Safety Hazard test The 30 days test Four times test Need not pass the mileage requirements for the TRV?s.What are these tests
Four times testThe vehicle is taken to the manufacturer
a. two times for the same problem or defect within 12 months from the date of sale or after completion of 12,000 miles whichever comes first.
b. Twice during 12 months or 12,000 miles after the second repair
c. The problem is still not set right
Serious Safety Hazard TestThe rules as above applies to this test also
30 Days TestIf the vehicle is out of order for more than 30 days during the first 24 months or 24,000 miles. The total days may not necessarily be at one time Two repair attempts were over during 12 months or 12,000 miles Problem still exists after repairs were done.
Time to file a complaint
A complaint must be filed within 6 months following
earlier expiration of expenses warranty term earlier than 24 months 24,000 miles of date of deliveryTo be on the safer side the owner has to file a complaint as soon as he realizes that the manufacturer is having difficulty in repairing the vehicle
Reason for so many requirements
The general feeling is that the manufacturers should replace or refund the purchase price without any hassles. There are a lot of practical problems facing the manufacturers, like their products are more expensive than most consumer goods. Therefore warranty disputes in case of motor vehicles become more complicated.
Lemon Law Requirements
The consumers have to file a lawsuit before the law to get relief. Other states have laws that provide consumers with quick relief. Under Lemon Law, the consumer advisors will help the owners to understand the legal requirements and procedures.
Procedures to File a Complaint
First Step
In case the dealership is not able to rectify the problem with the vehicle, the owner has to send a letter by certified mail to the manufacturer. The Manual or Warranty card should carry contact name and the address of the manufacturer?s regional office. The letter has to describe the vehicle?s condition and allow the manufacturer an opportunity to fix the problem. It is also safe to inform the manufacturer when the vehicle will be available at the dealership for repair.
Record all the correspondence with the manufacturer and dealer, including the copies of repair orders, letter and records of phone calls should be available with the order. All the above records should be sent along with the Lemon Law complaint.
Filing of Complaint
The complaint must be in writing accompanied with $35 non-refundable fee. In case the owner wins the complaint, the manufacturer will reimburse the fee for the owner. In case only repairs are required under the warranty no fee is required.
How long does it take to resolve a complaint?
The manufacturer and dealer will be contacted by the TxDOT about the owner?s complaint. After this the manufacturer will send an expert to fix the problem with the vehicle at the dealers. If the vehicle is satisfactorily repaired, the case is resolved. If the vehicle is not repaired TxDOT will send its representatives to the manufacturer and dealer and a technical expert to the owner. At the meeting TxDOT?s experts will help resolve the dispute between the two. In most cases, the complaint is resolved at this stage, maximum within 30 to 60 days after filing of the complaint. If the complaint is not settled it is taken for hearing.
The Lemon Law Formal Hearing
In a Lemon Law hearing the owner has to prove to an Administrative Law Judge (ALJ) that one?s vehicle is a lemon. The owner should present his testimony or the testimony of his witness. The owner should also present letters, repair orders or other documents to provide to the ALJ that his vehicle is a lemon.
The Lemon Law is subject to the Texas Administrative Procedure Act, The Texas Rules of Civil Procedure and Texas Rules of Evidence. The owner while presenting his case to an ALJ is almost like appearing before a small-claims count. There are certain legal procedures that the ALJ has to follow
The goal of TxDOT is to issue a decision within 150 days of file of complaint.
In case, 150 day period gets over the complainant or the owner has the right to use Lemon Law procedure were complete.
To prepare for a hearing
The owner should Collect documents like sales contract, warranty booklet, work orders or repair tickets and letter to or from the dealer or manufacturer. Three copies of all the documents are required for hearing Chronologically arrange the work orders with the oldest first and a log of entries with notes of the owner or testimony of witness. The owner has to arrange for witness like friends or family who can testify the problems the vehicle has faced. The procedure may take the whole of morning or afternoon hence the witness has to be prepared for it. The vehicle has to be ready to be inspected or to be driven at the time of hearing and have current regulation and state inspection.
To prove a Lemon Case
The owner has to prove to the ALJ that he has purchased or leased the new vehicle which is still under the warranty period. He has to prove the defects at the time of hearing and also prove that the vehicle has enough maintenance and was taken to the manufacturer or dealer for repair and the problem was not resolved.
Although the defect was not resolved by the dealer and after continuous correspondence with the manufacturer the defect was not set right and the Lemon case was filed with the submission of necessary filing fee. The defect may decrease the market value of the vehicle or create a serious safety hazard.
People involved in the hearing
The owners represent their own cases while manufacturers send their customer relations manager. However both sides may hire attorneys. In case, the owner hires an attorney, he should inform the TxDOT?s Vehicle Division and the manufacturer atleast five days before the hearing.
At the Hearing
The owner presents his side of story, where he may be questioned by the ALJ or the manufacturer?s representative or attorney.
The manufacturer, then presents his case and try to defect that there was no defect with the vehicle, the defect is minor or the defect was caused due to the owner?s neglect
ALJ then conducts an inspection and a test drive after all the evidence is presented. At conclusion both parties summarize and argue for a specific result.
After the hearing
The ALJ decides and the verdict may be of three types
The case dismissed The vehicle has minor repair to be set right by the manufacturer. The vehicle is pronounced as a lemon and has to be repurchased or replaced.In the third case it is evident the owner has won the case, the ALJ may decide that
The manufacturer has to buy back the vehicle. This includes full purchase price, taxes, title and license fees minus the amount charges for the use of the vehicle The manufacturer has to replace the vehicle of the same model, make and accessories acceptable to the owner. The manufacturer must correct the defects of the vehicle.Any incidental expenses incurred by the owners like costs of touring, rental card, lodging and meals in case the vehicle broke down while out of town to be borne by the manufacturer.
If the owner is not satisfied with the judgement of the Lemon Law then they may appeal for a rehearing within 20 days to the Director of Motor Vehicles Division. In case rehearing is denied, either party can appeal to the State District Court in Travis County.
Other Options
Lemon Law provides the owner freedom to use other rights or remedies available under any other law. The owner may file a lawsuit against the manufacturer or dealer under breach of warranty, deceptive trade practices or any other reason as long as it is within the limits of statutes. Only a qualified attorney will be able to elaborate the above.
The owner may use certain provisions of the Lemon Law in his lawsuit. Also prove his case in case he has not received a decision from TxDOT within 150 days of filing of a complaint.
Ultimately the Lemon Law is a viable means of proving the owner?s point of view with a few hassles.
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