The federal Lemon Law (the Magnuson-Moss Warranty Act) provide for compensation to consumers of defective automobiles and
trucks and other vehicles and products including motorcycles, RV’s, boats, computers and other consumer appliances and products.
To qualify under the federal Lemon Law, you must generally have a product that suffered multiple repair attempts under the
manufacturer’s factory warranty. Lemon Law compensation can include a refund, replacement or cash compensation.
§ 2301. Definitions
For the purposes of this chapter:
(1) The term “consumer product” means
any tangible personal property which is distributed in commerce and which is
normally used for personal, family, or household purposes (including any such
property intended to be attached to or installed in any real property without
regard to whether it is so attached or installed).
(2) The term “Commission”
means the Federal Trade Commission.
(3) The term “consumer” means a buyer
(other than for purposes of resale) of any consumer product, any person to whom
such product is transferred during the duration of an implied or written
warranty (or service contract) applicable to the product, and any other person
who is entitled by the terms of such warranty (or service contract) or under
applicable State law to enforce against the warrantor (or service contractor)
the obligations of the warranty (or service contract).
(4) The term
“supplier” means any person engaged in the business of making a consumer product
directly or indirectly available to consumers.
(5) The term “warrantor”
means any supplier or other person who gives or offers to give a written
warranty or who is or may be obligated under an implied warranty.
term “written warranty” means?
(A) any written affirmation of fact or
written promise made in connection with the sale of a consumer product by a
supplier to a buyer which relates to the nature of the material or workmanship
and affirms or promises that such material or workmanship is defect free or will
meet a specified level of performance over a specified period of time, or
(B) any undertaking in writing in connection with the sale by a supplier of
a consumer product to refund, repair, replace, or take other remedial action
with respect to such product in the event that such product fails to meet the
specifications set forth in the undertaking,
which written affirmation,
promise, or undertaking becomes part of the basis of the bargain between a
supplier and a buyer for purposes other than resale of such product.
term “implied warranty” means an implied warranty arising under State law (as
modified by sections 2308 and 2304 (a) of this title) in connection with the
sale by a supplier of a consumer product.
(8) The term “service contract”
means a contract in writing to perform, over a fixed period of time or for a
specified duration, services relating to the maintenance or repair (or both) of
a consumer product.
(9) The term “reasonable and necessary maintenance”
consists of those operations
(A) which the consumer reasonably can be
expected to perform or have performed and
(B) which are necessary to keep
any consumer product performing its intended function and operating at a
reasonable level of performance.
(10) The term “remedy” means whichever of
the following actions the warrantor elects:
except that the warrantor may not elect refund unless (i)
the warrantor is unable to provide replacement and repair is not commercially
practicable or cannot be timely made, or (ii) the consumer is willing to accept
(11) The term “replacement” means furnishing a new consumer
product which is identical or reasonably equivalent to the warranted consumer
(12) The term “refund” means refunding the actual purchase price
(less reasonable depreciation based on actual use where permitted by rules of
(13) The term “distributed in commerce” means sold in
commerce, introduced or delivered for introduction into commerce, or held for
sale or distribution after introduction into commerce.
(14) The term
“commerce” means trade, traffic, commerce, or transportation?
(A) between a
place in a State and any place outside thereof, or
(B) which affects trade,
traffic, commerce, or transportation described in subparagraph (A).
term “State” means a State, the District of Columbia, the Commonwealth of Puerto
Rico, the Virgin Islands, Guam, the Canal Zone, or American Samoa. The term
“State law” includes a law of the United States applicable only to the District
of Columbia or only to a territory or possession of the United States; and the
term “Federal law” excludes any State law.
§ 2302. Rules governing contents of warranties
(a) Full and conspicuous disclosure of terms and conditions; additional
requirements for contents
In order to improve the adequacy of information
available to consumers, prevent deception, and improve competition in the
marketing of consumer products, any warrantor warranting a consumer product to a
consumer by means of a written warranty shall, to the extent required by rules
of the Commission, fully and conspicuously disclose in simple and readily
understood language the terms and conditions of such warranty. Such rules may
require inclusion in the written warranty of any of the following items among
(1) The clear identification of the names and addresses of the
(2) The identity of the party or parties to whom the warranty is
(3) The products or parts covered.
(4) A statement of what the
warrantor will do in the event of a defect, malfunction, or failure to conform
with such written warranty?at whose expense?and for what period of time.
A statement of what the consumer must do and expenses he must bear.
Exceptions and exclusions from the terms of the warranty.
step-by-step procedure which the consumer should take in order to obtain
performance of any obligation under the warranty, including the identification
of any person or class of persons authorized to perform the obligations set
forth in the warranty.
(8) Information respecting the availability of any
informal dispute settlement procedure offered by the warrantor and a recital,
where the warranty so provides, that the purchaser may be required to resort to
such procedure before pursuing any legal remedies in the courts.
brief, general description of the legal remedies available to the consumer.
(10) The time at which the warrantor will perform any obligations under the
(11) The period of time within which, after notice of a defect,
malfunction, or failure to conform with the warranty, the warrantor will perform
any obligations under the warranty.
(12) The characteristics or properties
of the products, or parts thereof, that are not covered by the warranty.
(13) The elements of the warranty in words or phrases which would not
mislead a reasonable, average consumer as to the nature or scope of the
(b) Availability of terms to consumer; manner and form for
presentation and display of information; duration; extension of period for
written warranty or service contract
(A) The Commission shall
prescribe rules requiring that the terms of any written warranty on a consumer
product be made available to the consumer (or prospective consumer) prior to the
sale of the product to him.
(B) The Commission may prescribe rules for
determining the manner and form in which information with respect to any written
warranty of a consumer product shall be clearly and conspicuously presented or
displayed so as not to mislead the reasonable, average consumer, when such
information is contained in advertising, labeling, point-of-sale material, or
other representations in writing.
(2) Nothing in this chapter (other than
paragraph (3) of this subsection) shall be deemed to authorize the Commission to
prescribe the duration of written warranties given or to require that a consumer
product or any of its components be warranted.
(3) The Commission may
prescribe rules for extending the period of time a written warranty or service
contract is in effect to correspond with any period of time in excess of a
reasonable period (not less than 10 days) during which the consumer is deprived
of the use of such consumer product by reason of failure of the product to
conform with the written warranty or by reason of the failure of the warrantor
(or service contractor) to carry out such warranty (or service contract) within
the period specified in the warranty (or service contract).
on conditions for written or implied warranty; waiver by Commission
warrantor of a consumer product may condition his written or implied warranty of
such product on the consumer’s using, in connection with such product, any
article or service (other than article or service provided without charge under
the terms of the warranty) which is identified by brand, trade, or corporate
name; except that the prohibition of this subsection may be waived by the
(1) the warrantor satisfies the Commission that the warranted
product will function properly only if the article or service so identified is
used in connection with the warranted product, and
(2) the Commission finds
that such a waiver is in the public interest.
The Commission shall identify
in the Federal Register, and permit public comment on, all applications for
waiver of the prohibition of this subsection, and shall publish in the Federal
Register its disposition of any such application, including the reasons
(d) Incorporation by reference of detailed substantive warranty
The Commission may by rule devise detailed substantive warranty
provisions which warrantors may incorporate by reference in their warranties.
(e) Applicability to consumer products costing more than $5
provisions of this section apply only to warranties which pertain to consumer
products actually costing the consumer more than $5.
§ 2303. Designation of written warranties
(a) Full (statement of duration) or limited warranty
warranting a consumer product by means of a written warranty shall clearly and
conspicuously designate such warranty in the following manner, unless exempted
from doing so by the Commission pursuant to subsection (c) of this section:
(1) If the written warranty meets the Federal minimum standards for warranty
set forth in section 2304 of this title, then it shall be conspicuously
designated a “full (statement of duration) warranty”.
(2) If the written
warranty does not meet the Federal minimum standards for warranty set forth in
section 2304 of this title, then it shall be conspicuously designated a “limited
(b) Applicability of requirements, standards, etc., to
representations or statements of customer satisfaction
This section and
sections 2302 and 2304 of this title shall not apply to statements or
representations which are similar to expressions of general policy concerning
customer satisfaction and which are not subject to any specific limitations.
(c) Exemptions by Commission
In addition to exercising the authority
pertaining to disclosure granted in section 2302 of this title, the Commission
may by rule determine when a written warranty does not have to be designated
either “full (statement of duration)” or “limited” in accordance with this
(d) Applicability to consumer products costing more than $10 and
not designated as full warranties
The provisions of subsections (a) and (c)
of this section apply only to warranties which pertain to consumer products
actually costing the consumer more than $10 and which are not designated “full
(statement of duration) warranties”.
§ 2304. Federal minimum standards for warranties
(a) Remedies under written warranty; duration of implied warranty; exclusion
or limitation on consequential damages for breach of written or implied
warranty; election of refund or replacement
In order for a warrantor
warranting a consumer product by means of a written warranty to meet the Federal
minimum standards for warranty?
(1) such warrantor must as a minimum remedy
such consumer product within a reasonable time and without charge, in the case
of a defect, malfunction, or failure to conform with such written warranty;
(2) notwithstanding section 2308 (b) of this title, such warrantor may not
impose any limitation on the duration of any implied warranty on the product;
(3) such warrantor may not exclude or limit consequential damages for breach
of any written or implied warranty on such product, unless such exclusion or
limitation conspicuously appears on the face of the warranty; and
(4) if the
product (or a component part thereof) contains a defect or malfunction after a
reasonable number of attempts by the warrantor to remedy defects or malfunctions
in such product, such warrantor must permit the consumer to elect either a
refund for, or replacement without charge of, such product or part (as the case
may be). The Commission may by rule specify for purposes of this paragraph, what
constitutes a reasonable number of attempts to remedy particular kinds of
defects or malfunctions under different circumstances. If the warrantor replaces
a component part of a consumer product, such replacement shall include
installing the part in the product without charge.
(b) Duties and conditions
imposed on consumer by warrantor
(1) In fulfilling the duties under
subsection (a) of this section respecting a written warranty, the warrantor
shall not impose any duty other than notification upon any consumer as a
condition of securing remedy of any consumer product which malfunctions, is
defective, or does not conform to the written warranty, unless the warrantor has
demonstrated in a rulemaking proceeding, or can demonstrate in an administrative
or judicial enforcement proceeding (including private enforcement), or in an
informal dispute settlement proceeding, that such a duty is reasonable.
Notwithstanding paragraph (1), a warrantor may require, as a condition to
replacement of, or refund for, any consumer product under subsection (a) of this
section, that such consumer product shall be made available to the warrantor
free and clear of liens and other encumbrances, except as otherwise provided by
rule or order of the Commission in cases in which such a requirement would not
(3) The Commission may, by rule define in detail the duties
set forth in subsection (a) of this section and the applicability of such duties
to warrantors of different categories of consumer products with “full (statement
of duration)” warranties.
(4) The duties under subsection (a) of this
section extend from the warrantor to each person who is a consumer with respect
to the consumer product.
(c) Waiver of standards
The performance of the
duties under subsection (a) of this section shall not be required of the
warrantor if he can show that the defect, malfunction, or failure of any
warranted consumer product to conform with a written warranty, was caused by
damage (not resulting from defect or malfunction) while in the possession of the
consumer, or unreasonable use (including failure to provide reasonable and
(d) Remedy without charge
For purposes of this
section and of section 2302 (c) of this title, the term “without charge” means
that the warrantor may not assess the consumer for any costs the warrantor or
his representatives incur in connection with the required remedy of a warranted
consumer product. An obligation under subsection (a)(1)(A) of this section to
remedy without charge does not necessarily require the warrantor to compensate
the consumer for incidental expenses; however, if any incidental expenses are
incurred because the remedy is not made within a reasonable time or because the
warrantor imposed an unreasonable duty upon the consumer as a condition of
securing remedy, then the consumer shall be entitled to recover reasonable
incidental expenses which are so incurred in any action against the warrantor.
(e) Incorporation of standards to products designated with full warranty for
purposes of judicial actions
If a supplier designates a warranty applicable
to a consumer product as a “full (statement of duration)” warranty, then the
warranty on such product shall, for purposes of any action under section 2310
(d) of this title or under any State law, be deemed to incorporate at least the
minimum requirements of this section and rules prescribed under this section.
§ 2305. Full and limited warranting of a consumer
Nothing in this chapter shall prohibit the selling of a consumer product
which has both full and limited warranties if such warranties are clearly and
§ 2306. Service contracts; rules for full, clear and conspicuous
disclosure of terms and conditions; addition to or in lieu of written
(a) The Commission may prescribe by rule the manner and form in which the
terms and conditions of service contracts shall be fully, clearly, and
(b) Nothing in this chapter shall be construed to
prevent a supplier or warrantor from entering into a service contract with the
consumer in addition to or in lieu of a written warranty if such contract fully,
clearly, and conspicuously discloses its terms and conditions in simple and
readily understood language.
§ 2307. Designation of representatives by warrantor to perform duties
under written or implied warranty
Nothing in this chapter shall be construed to prevent any warrantor from
designating representatives to perform duties under the written or implied
warranty: Provided, That such warrantor shall make reasonable arrangements for
compensation of such designated representatives, but no such designation shall
relieve the warrantor of his direct responsibilities to the consumer or make the
representative a cowarrantor.
§ 2308. Implied warranties
(a) Restrictions on disclaimers or modifications
No supplier may disclaim
or modify (except as provided in subsection (b) of this section) any implied
warranty to a consumer with respect to such consumer product if
supplier makes any written warranty to the consumer with respect to such
consumer Product, or
(2) at the time of sale, or within 90 days thereafter,
such supplier enters into a service contract with the consumer which applies to
such consumer product.
(b) Limitation on duration
For purposes of this
chapter (other than section 2304 (a)(2) of this title), implied warranties may
be limited in duration to the duration of a written warranty of reasonable
duration, if such limitation is conscionable and is set forth in clear and
unmistakable language and prominently displayed on the face of the warranty.
(c) Effectiveness of disclaimers, modifications, or limitations
disclaimer, modification, or limitation made in violation of this section shall
be ineffective for purposes of this chapter and State law.
§ 2309. Procedures applicable to promulgation of rules by
(a) Oral presentation
Any rule prescribed under this chapter shall be
prescribed in accordance with section 553 of title 5; except that the Commission
shall give interested persons an opportunity for oral presentations of data,
views, and arguments, in addition to written submissions. A transcript shall be
kept of any oral presentation. Any such rule shall be subject to judicial review
under section 57a (e) of this title in the same manner as rules prescribed under
section 57a (a)(1)(B) of this title, except that section 57a (e)(3)(B) of this
title shall not apply.
(b) Warranties and warranty practices involved in
sale of used motor vehicles
The Commission shall initiate within one year
after January 4, 1975, a rulemaking proceeding dealing with warranties and
warranty practices in connection with the sale of used motor vehicles; and, to
the extent necessary to supplement the protections offered the consumer by this
chapter, shall prescribe rules dealing with such warranties and practices. In
prescribing rules under this subsection, the Commission may exercise any
authority it may have under this chapter, or other law, and in addition it may
require disclosure that a used motor vehicle is sold without any warranty and
specify the form and content of such disclosure.
§ 2310. Remedies in consumer disputes
(a) Informal dispute settlement procedures; establishment; rules setting
forth minimum requirements; effect of compliance by warrantor; review of
informal procedures or implementation by Commission; application to existing
(1) Congress hereby declares it to be its policy to
encourage warrantors to establish procedures whereby consumer disputes are
fairly and expeditiously settled through informal dispute settlement mechanisms.
(2) The Commission shall prescribe rules setting forth minimum requirements
for any informal dispute settlement procedure which is incorporated into the
terms of a written warranty to which any provision of this chapter applies. Such
rules shall provide for participation in such procedure by independent or
(3) One or more warrantors may establish an informal
dispute settlement procedure which meets the requirements of the Commission’s
rules under paragraph (2). If?
(A) a warrantor establishes such a procedure,
(B) such procedure, and its implementation, meets the requirements of such
(C) he incorporates in a written warranty a requirement that the
consumer resort to such procedure before pursuing any legal remedy under this
section respecting such warranty,
(i) the consumer may not commence
a civil action (other than a class action) under subsection (d) of this section
unless he initially resorts to such procedure; and
(ii) a class of consumers
may not proceed in a class action under subsection (d) of this section except to
the extent the court determines necessary to establish the representative
capacity of the named plaintiffs, unless the named plaintiffs (upon notifying
the defendant that they are named plaintiffs in a class action with respect to a
warranty obligation) initially resort to such procedure. In the case of such a
class action which is brought in a district court of the United States, the
representative capacity of the named plaintiffs shall be established in the
application of rule 23 of the Federal Rules of Civil Procedure. In any civil
action arising out of a warranty obligation and relating to a matter considered
in such a procedure, any decision in such procedure shall be admissible in
(4) The Commission on its own initiative may, or upon written
complaint filed by any interested person shall, review the bona fide operation
of any dispute settlement procedure resort to which is stated in a written
warranty to be a prerequisite to pursuing a legal remedy under this section. If
the Commission finds that such procedure or its implementation fails to comply
with the requirements of the rules under paragraph (2), the Commission may take
appropriate remedial action under any authority it may have under this chapter
or any other provision of law.
(5) Until rules under paragraph (2) take
effect, this subsection shall not affect the validity of any informal dispute
settlement procedure respecting consumer warranties, but in any action under
subsection (d) of this section, the court may invalidate any such procedure if
it finds that such procedure is unfair.
(b) Prohibited acts
It shall be
a violation of section 45 (a)(1) of this title for any person to fail to comply
with any requirement imposed on such person by this chapter (or a rule
thereunder) or to violate any prohibition contained in this chapter (or a rule
(c) Injunction proceedings by Attorney General or Commission for deceptive warranty, noncompliance with requirements, or violating prohibitions; procedures; definitions
(1) The district courts of the United States shall have jurisdiction of any action brought by the Attorney General (in his capacity as such), or by the Commission by any of its attorneys designated by it for such purpose, to restrain
(A) any warrantor from making a deceptive warranty with respect to a consumer product, or
(B) any person from failing to comply with any requirement imposed on such person by or pursuant to this chapter or from violating any prohibition contained in this chapter. Upon proper showing that, weighing the equities and considering the Commission’s or Attorney General’s likelihood of ultimate success, such action would be in the public interest and after notice to the defendant, a temporary restraining order or preliminary injunction may be granted without bond. In the case of an action brought by the Commission, if a complaint under section 45 of this title is not filed within such period (not exceeding 10 days) as may be specified by the court after the issuance of the temporary restraining order or preliminary injunction, the order or injunction shall be dissolved by the court and be of no further force and effect. Any suit shall be brought in the district in which such person resides or transacts business. Whenever it appears to the court that the ends of justice require that other persons should be parties in the action, the court may cause them to be summoned whether or not they reside in the district in which the court is held, and to that end process may be served in any district.
(2) For the purposes of this subsection, the term “deceptive warranty” means
(A) a written warranty which
(i) contains an affirmation, promise, description, or representation which is either false or fraudulent, or which, in light of all of the circumstances, would mislead a reasonable individual exercising due care; or
(ii) fails to contain information which is necessary in light of all of the circumstances, to make the warranty not misleading to a reasonable individual exercising due care; or
(B) a written warranty created by the use of such terms as “guaranty” or “warranty”, if the terms and conditions of such warranty so limit its scope and application as to deceive a reasonable individual.
(d) Civil action by consumer for damages, etc.; jurisdiction; recovery of costs and expenses; cognizable claims
(1) Subject to subsections (a)(3) and (e) of this section, a consumer who is damaged by the failure of a supplier, warrantor, or service contractor to comply with any obligation under this chapter, or under a written warranty, implied warranty, or service contract, may bring suit for damages and other legal and equitable relief?
(A) in any court of competent jurisdiction in any State or the District of Columbia; or
(B) in an appropriate district court of the United States, subject to paragraph (3) of this subsection.
(2) If a consumer finally prevails in any action brought under paragraph (1) of this subsection, he may be allowed by the court to recover as part of the judgment a sum equal to the aggregate amount of cost and expenses (including attorneys’ fees based on actual time expended) determined by the court to have been reasonably incurred by the plaintiff for or in connection with the commencement and prosecution of such action, unless the court in its discretion shall determine that such an award of attorneys’ fees would be inappropriate.
(3) No claim shall be cognizable in a suit brought under paragraph (1)(B) of this subsection?
(A) if the amount in controversy of any individual claim is less than the sum or value of $25;
(B) if the amount in controversy is less than the sum or value of $50,000 (exclusive of interests and costs) computed on the basis of all claims to be determined in this suit; or
(C) if the action is brought as a class action, and the number of named plaintiffs is less than one hundred.
(e) Class actions; conditions; procedures applicable
No action (other than a class action or an action respecting a warranty to which subsection (a)(3) of this section applies) may be brought under subsection (d) of this section for failure to comply with any obligation under any written or implied warranty or service contract, and a class of consumers may not proceed in a class action under such subsection with respect to such a failure except to the extent the court determines necessary to establish the representative capacity of the named plaintiffs, unless the person obligated under the warranty or service contract is afforded a reasonable opportunity to cure such failure to comply. In the case of such a class action (other than a class action respecting a warranty to which subsection (a)(3) of this section applies) brought under subsection (d) of this section for breach of any written or implied warranty or service contract, such reasonable opportunity will be afforded by the named plaintiffs and they shall at that time notify the defendant that they are acting on behalf of the class. In the case of such a class action which is brought in a district court of the United States, the representative capacity of the named plaintiffs shall be established in the application of rule 23 of the Federal Rules of Civil Procedure.
(f) Warrantors subject to enforcement of remedies
For purposes of this section, only the warrantor actually making a written affirmation of fact, promise, or undertaking shall be deemed to have created a written warranty, and any rights arising thereunder may be enforced under this section only against such warrantor and no other person.
§ 2311. Applicability to other laws
(a) Federal Trade Commission Act and Federal Seed Act
(1) Nothing contained in this chapter shall be construed to repeal, invalidate, or supersede the Federal Trade Commission Act [15 U.S.C. 41 et seq.] or any statute defined therein as an Antitrust Act.
(2) Nothing in this chapter shall be construed to repeal, invalidate, or supersede the Federal Seed Act [7 U.S.C. 1551 et seq.] and nothing in this chapter shall apply to seed for planting.
(b) Rights, remedies, and liabilities
(1) Nothing in this chapter shall invalidate or restrict any right or remedy of any consumer under State law or any other Federal law.
(2) Nothing in this chapter (other than sections 2308 and 2304 (a)(2) and (4) of this title) shall
(A) affect the liability of, or impose liability on, any person for personal injury, or
(B) supersede any provision of State law regarding consequential damages for injury to the person or other injury.
(c) State warranty laws
(1) Except as provided in subsection (b) of this section and in paragraph (2) of this subsection, a State requirement?
(A) which relates to labeling or disclosure with respect to written warranties or performance thereunder;
(B) which is within the scope of an applicable requirement of sections 2302, 2303, and 2304 of this title (and rules implementing such sections), and
(C) which is not identical to a requirement of section 2302, 2303, or 2304 of this title (or a rule thereunder),
shall not be applicable to written warranties complying with such sections (or rules thereunder).
(2) If, upon application of an appropriate State agency, the Commission determines (pursuant to rules issued in accordance with section 2309 of this title) that any requirement of such State covering any transaction to which this chapter applies
(A) affords protection to consumers greater than the requirements of this chapter and
(B) does not unduly burden interstate commerce, then such State requirement shall be applicable (notwithstanding the provisions of paragraph (1) of this subsection) to the extent specified in such determination for so long as the State administers and enforces effectively any such greater requirement.
(d) Other Federal warranty laws
This chapter (other than section 2302 (c) of this title) shall be inapplicable to any written warranty the making or content of which is otherwise governed by Federal law. If only a portion of a written warranty is so governed by Federal law, the remaining portion shall be subject to this chapter.
§ 2312. Effective dates
(a) Effective date of chapter
Except as provided in subsection (b) of this section, this chapter shall take effect 6 months after January 4, 1975, but shall not apply to consumer products manufactured prior to such date.
(b) Effective date of section 2302 (a)
Section 2302 (a) of this title shall take effect 6 months after the final publication of rules respecting such section; except that the Commission, for good cause shown, may postpone the applicability of such sections until one year after such final publication in order to permit any designated classes of suppliers to bring their written warranties into compliance with rules promulgated pursuant to this chapter.
(c) Promulgation of rules
The Commission shall promulgate rules for initial implementation of this chapter as soon as possible after January 4, 1975, but in no event later than one year after such date.