What is a “lemon?”
Lemon law is a type of consumer protection law that provides rights and remedies to you the consumer when you purchase or lease a vehicle or used car that has defects or condition issues. Lemon laws are enacted in all fifty states as well as Washington D.C. If you have a vehicle that has problems, it is worth your time and effort to investigate the lemon law provisions in your particular state. Louisiana’s lemon law statute provides a remedy for either purchased or leased defective vehicles. The lemon law statute in Louisiana will only help you if you have purchased or leased a vehicle that is in warranty at the time of the defect. If the warranty has expired, and you have a defect, your remedy will be under the Magnuson-Moss act.
What is a defective vehicle? A vehicle is considered defective if it has a substantial defect a defect that impairs the use, value, or safety of the vehicle. The manufacturer of the vehicle has an obligation to repair the defect as long as the vehicle is in warranty . You are not entitled to a new vehicle unless the manufacturer is unable to repair the defect as long as the vehicle is in warranty. This is understood by the term "reasonable repairs." Most of the time, defects in the vehicle require several attempts to repair the defect before the manufacturer is required to accept the vehicle and replace the vehicle with a comparable vehicle.
If the vehicle is not repaired to your satisfaction, the manufacturer must replace the vehicle with a comparable vehicle or refund the purchase price. It is important to note that if you purchased the vehicle for $30,000 and the defects reduce the value to $25,000, you are not entitled to $30,000. You are only entitled to the amount that you paid for the vehicle minus the reduction in the value caused by the defects. The reduction of the value will not be based on the opinion of the buyer, but it will be based on the fair market value.
The lemon law statute has very specific filing requirements and deadlines. Most of the time, it is best for you to hire a lemon law attorney so that you can be assured that your claim is handled properly.
Louisiana Lemon Law: Overview
The Louisiana Lemon Law covers new vehicles sold to consumers for personal, family or household use. This includes automobiles, trucks, motorcycles, motor homes and other motorized vehicles (however, not motorcycles, motor homes and trucks are exempt from federal law). The vehicle must also be registered in Louisiana and have been purchased in the state. The lemon law applies to the original owner only (not used buyers) and it extends to vehicles leased for 12 months or more. If the vehicle was converted to commercial use, it may still qualify for lemon law protection. However, vehicles that are used for business or commercial purposes are not covered. School buses, taxis, motorcycles, trailers, motor homes, vans, trucks over a three-quarter ton payload, or vehicles with a gross vehicle weight rating of 10,000 pounds or more are not included either. A vehicle qualifies for protection under the Louisiana lemon law if it meets both of the following conditions: The Louisiana lemon law covers dealerships, distributors and manufacturers. So, whether the full amount of the repair work was performed by the dealership, a distributor or the manufacturer, you may be entitled to a valid lemon law claim. The law requires that you use the original dealer or manufacturer designated "authorized" repair facility. You must give the dealer or manufacturer the chance to repair the defects within the manufacturer’s warranty period or in the case of a manufacturer repurchase, within the first 30 days after you got the vehicle. Additionally, you must notify the dealer of the defect in writing via certified mail and request further repairs. The dealer is then given 20 days to repair the defect, in which case the dealer must perform the necessary repairs at no cost to you. The law does not require you to give the dealer or manufacturer more than five chances to repair the defect. You must also have the vehicle down for 45 days or more for repairs, be unable to drive the vehicle for 25 days or more because it’s in the shop, or have the same defect requiring repairs, not covered by the warranty, or any one of a number of other defects that stayed unrepaired for the first 12 months you had the vehicle. If the manufacturer or dealer refuses to repair the defective vehicle or fails to bear their burden of proof, you can take them to arbitration and possibly to district court. You have the right to request a hearing with the division of motor vehicle inspections, but that is only an option when the vehicle manufacturer offers you that as a remedy. Otherwise, you must file a hearing request with the good faith unit. The good faith unit will attempt to arrange an informal arbitration between you and the manufacturer to resolve your lemon law claim. If that fails, the good faith unit will release your claim and allow you to file in district court. Sometimes the dealer, manufacturer or their designated repair facility pushes back on the number of attempts you must request for repairs before the vehicle is out of service long enough or has the same defect concentrating in one area, to constitute lemon law protection. The manufacturer or dealer attempts at repairs do not count against the 30-day time limit if the vehicle cannot be driven, the repair facility isn’t authorized, the work order is handwritten or if the dealer attempts to reintroduce the car to you without fixing the defect. The dealer might also try to blame the repairs on aftermarket components, but that would also not be in your best interest.
What to do with a lemon
If you suspect your car is a lemon, the first step you should take is to thoroughly document every issue the vehicle is experiencing. Make sure to keep a log of each time you had to bring your vehicle in for repairs at the dealership. If the same part continues failing after initial repairs, take note of that, including what part failed, when, and how long the repairs took. Gather together all repair invoices and bills. Even if the problems are intermittent, they should still be noted, and if the car has been repaired multiple times, be sure to note the outcomes of those repairs. Log your communications with the dealer and manufacturer as well. The key to obtaining a lemon law remedy in Louisiana is documentation. You will need to demonstrate that the defect impaired the vehicle’s use, value, or safety, and that the problem is not caused by negligence, abuse, or any alteration or modification of the vehicle not intended by the manufacturer. You also must show that the vehicle was purchased within the warrant period. If you have leased a vehicle, you should check your lease agreement to determine whether the Lemon Law applies to your situation. If the manufacturer does not buy back the vehicle, an attorney can help you understand what remedies might be available outside of the Louisiana Lemon Law. If an issue persists after the initial repair attempts, notify the manufacturer in writing by certified mail, return receipt requested, to give the manufacturer a chance to fix the defect again. The written notice should include your contact information and state that you believe you have a lemon and wish to have the situation corrected. If you are able, you should include copies of your repair invoices. Be sure to keep the original documents for your records. Nonetheless, even if you are unable to provide supporting documentation or send notification by certified mail, you may still be able to pursue a lemon law buyback.
Understanding your rights and remedies
Understanding Your Rights and Remedies: Louisiana’s lemon law embraces a well-established approach of awarding a refund of the product’s purchase price and applicable taxes as the remedy for a violation of the lemon law, together with reasonable attorney’s fees and costs.
In pertinent part, the Louisiana lemon law reads:
C. The manufacturer or automobile dealer shall have the opportunity to repair the nonconformity complained of within a reasonable number of attempts, including but not limited to the following:
(1) Replacing the motor vehicle.
(2) Accepting return of the motor vehicle and refunding the full purchase price including any amounts actually paid for the motor vehicle by the consumer in terms of money, credit, and trade-in allowance, if any, less an allowance for the manufacturer’s or dealer’s use of the vehicle not to exceed the following:
(a) Ten percent of the first twenty-five thousand dollars of the purchase price for each full month that the motor vehicle is out of service for repair due to the nonconformity in the first twelve months or twelve thousand miles, whichever occurs first.
(b) Fourteen percent of the first twenty-five thousand dollars of the purchase price for each full month that the motor vehicle is out of service for repair due to the nonconformity in excess of twelve thousand miles or twelve months, whichever occurs first.
(c) Five percent of the purchase price for the second twenty-five thousand dollars of the purchase price for each full month that the motor vehicle is out of service for repair due to the nonconformity after the twelve months or twelve thousand miles, whichever occurs first, up to the present mileage or until the amount of nonconformity is under warranty, whichever is greater.
(3) Accepting return of the motor vehicle and refunding to the consumer only the part of the purchase price attributable to the nonconformity if the defect does not reduce the value of the motor vehicle, when:
(a) The defect is not contained in the express warranty; or
(b) Other nonconformities combine with the defect to reduce the value of the motor vehicle as provided in Paragraph (2) of this Subsection; or
(c) The manufacturer prevails in establishing that the nonconformity does not result from a defect in material or workmanship.
The general rule is that you get your money back, but the uncompensated parts of the deal often require further explanation.
The manufacturer is entitled to a deduction for the use of the vehicle without a claim against the manufacturer for that use. If the car was worth more at trade-in than when new, the manufacturer is entitled to a deduction for that difference that offsets the vehicle’s loss in value. If the lemon was paid off in installments, the consumer does not receive a full refund of the purchase price since the manufacturer must refund all sums actually paid, i.e., return all money paid and give a credit for all other consideration given.
Finally, if the plea was based on a defect in the express warranty and the manufacturer is able to defeat the claim, the manufacturer is entitled to have an offset for all amounts that consumer was compensated for the defect in the express warranty.
Pursuing a lemon law claim in Louisiana
Filing a claim under the Louisiana Lemon Law can be a complex and frustrating process if you are unfamiliar with the necessary procedures. A Louisiana lemon law claim must first be presented to the manufacturer of the motor vehicle and afforded the opportunity to resolve the matter before proceeding with a lawsuit. Under the Louisiana Lemon Law, Louisiana Revised Statutes 51:1968(A) and 51:1969, an action can only be initiated by a buyer against a manufacturer of a new motor vehicle. The new motor vehicle is then to be brought to the attention of the manufacturer and the manufacturer given the opportunity to repair it under the guidance of the Louisiana Lemon Law.
Specifically, Louisiana Revised Statute 51:1969 provides as follows:
(A)(1) No action may be maintained in the courts of this state for any reason against a manufacturer unless the buyer shall have first placed the manufacturer on notice of the defect or condition, and have given the manufacturer an opportunity to remedy the defect or condition, whether the manufacturer or its agent or authorized service representative has repaired the vehicle under warranty , or not.
- (2) At the time of the original purchase of the new motor vehicle, the manufacturer shall furnish the buyer a copy of this Part, along with the name, address, and telephone number of its authorized agent or service representative to whom it has delegated performance of obligations under this Part.
- (3) The claim shall be described in sufficient detail to identify the make, model, and year of the new motor vehicle involved. The claim shall also describe the nature of any purported defect or condition, including the date it was discovered.
- (4) Such notice shall not be necessary to a buyer if the manufacturer has actually performed repairs or services on the vehicle as to the same or similar claim involved in the buyer’s action.
It is important to follow the proper procedure in notifying a manufacturer and a manufacturer is entitled to have the first opportunity to attempt to correct the problem with the new car prior to a buyer bringing a lawsuit against it. If the buyer does not follow the proper procedure in bringing the claim, the manufacturer may use this against the consumer as a defense to resist their claim.
FAQs
Many consumers who believe they have a lemon vehicle have questions about how lemon law claims work. This FAQ addresses some of the most common lemon law questions asked by our clients.
ANSWER: No, there is the Lemon Law Rights Period which is 1 year or 12,000 miles whichever comes first. After that period, Louisiana’s lemon law statute does not apply. You would still have warranty protection on the vehicle and possibly a federal Magnuson-Moss Warranty Act claim.
ANSWER: Yes, but you must prove that the defect existed while the warranty was in effect or occurred during the warranty period. Under the Louisiana Lemon Law statute, we have had vehicles like Harley Davidson motorcycles that were repurchased because they were defective.
ANSWER: No, Arbitration is voluntary and you cannot be forced into going to arbitration at this time. In fact, this firm does not participate in the arbitration program.
ANSWER: Yes, the arbitrator can award you an additional 5% on top of the amount of the repurchase or replacement should the manufacture misconduct in the process of the arbitration. However, it is important to note that the additional 5% award is by discretion of the arbitrator. An arbitrator is never required to award the additional 5%. Some arbitrators choose to award the 5% simply because the case is straight forward, while others may choose not to award it even if the evidence clearly indicates that the manufacturer was in bad faith.
ANSWER: No, every Lemon Law claim is different. Often times where your lemon law claim is filed impacts the length of time a lemon law claim lasts. In Louisiana, it shouldn’t take more than 6 to 8 months. In other states like Mississippi, these claims can take longer. In addition, it is up to the consumer to decide on how long they want their lemon law claim to last. Your lemon law attorney will inform you of the pros and cons of prolonging the lemon law claim.
ANSWER: No, a Louisiana Lemon Law consumer cannot be retaliated against for filing a lemon law claim. Unfortunately, sometimes Lemon Law consumers find themselves involved in a civil suit because the manufacture retaliated against the consumer. In that case, it is up to the court to decide whether the consumer was retaliated against or not.
Tips for Louisiana vehicle purchasers
One of the best ways to ensure that you have a good chance of avoiding defects and the lemon law provisions that go along with them is to protect yourself ahead of time and do your homework. A vehicle buyer can usually avoid lemon issues by doing the following before you purchase a car:
- Check out the Consumer Affairs division of the Attorney General’s website. Both the Louisiana Lemon Law and Louisiana "Used Motor Vehicles Lemon Law" are available here.
- Get a used vehicle inspection by a mechanic you trust for a vehicle in Louisiana. Don’t just trust the seller’s word for it that everything is in perfect condition. They may have missed something, or they may not have clean hands at all.
- Verify and take note of the warranty terms on your new or used vehicle. If it is under warranty, make sure you understand what is covered and what is not, and understand how long your warranty lasts. If necessary, get everything in writing from the dealer and understand which types of repairs require their permission and approval.
- Read all manuals and warnings thoroughly, and use common sense in addition to the information received from the dealer and manuals. Some things are obvious , such as making sure the engine is working properly and the tires are aired up, but it’s important to be vigilant in all other areas, such as leaking oil or coolant, and ask questions if necessary.
- Check recalls for any vehicle you’re considering purchasing. Use the VIN or license plate number of the vehicle you’re considering to see if it has been recalled. Call the manufacturer on the specific recall and find out about parts availability if you come across a vehicle with an open or outstanding recall.
- Verify the identity of the seller. Make sure you’re actually dealing with the business you believe you’re dealing with and that there isn’t a prepaid or predatory & illegal dealer being used as a front to sell the vehicle that you’re really dealing with a different dealer altogether.
If you are diligent before entering into a vehicle sale contract, however, you can avoid becoming a victim of lemon issues and the Louisiana Lemon Law. But if you find yourself suffering, make sure to consider your options under the Louisiana Lemon Law before filing a claim for damages.
