| New Jersey Lemon Law Frequently Asked Questions |
Find Out if You Have a Claim
Click here to submit a no obligation evaluation or call 609-714-2020.
|
What Is The New Jersey Lemon Law?
A "lemon" vehicle is one that exhibits a substantial problem or problems – one or more defects or conditions which substantially impairs the vehicle’s use, value or safety. New Jersey’s lawmakers decided that, since new vehicles were expensive to buy and lease, the public should be protected from lemon vehicles by having a right to sue the manufacturers of lemon vehicles for a refund of the vehicle’s purchase or lease price, less deductions for how many miles the defective vehicle had when the defect was first reported to the manufacturer or its authorized dealership and for wear and tear. To provide protections to certain vehicle owners, New Jersey's Lawmakers passed the New Jersey Lemon Law. Actually, there are 2 New Jersey Lemon Laws - one for new vehicles and one for used vehicles. These pages only discuss the New Jersey Lemon Law that applies to new vehicles; pages about the New Jersey Lemon Law that applies to used cars can be found elsewhere on this website (at the homepage). However, as discussed below, the New Jersey "New Car" Lemon Law may apply to certain used vehicles.
|
Who Must Comply With The New Jersey Lemon Law?
The New Jersey Lemon Law’s penalties apply only against manufacturers -- persons engaged in the business of manufacturing, assembling or distributing motor vehicles, who will, under normal business conditions during the year, manufacture, assemble or distribute to dealers at least 10 new motor vehicles. The New Jersey Lemon Law’s penalties do not apply to dealers -- persons who actively engaged in the business of buying, selling or exchanging motor vehicles at retail and who have established places of business.
Do I Qualify For Coverage Under The New Jersey Lemon Law?
To qualify for coverage under the New Jersey Lemon Law:
· The vehicle must be a passenger automobile (automobile used and designed for the transportation of passengers other than an omnibus or school bus) or motorcycle purchased or leased in New Jersey or registered by the New Jersey Motor Vehicle Commission. The living facilities of mobile homes are excluded from coverage under the New Jersey Lemon Law.
· The person seeking to apply the law must be a buyer or lessee, other than for purposes of resale or sublease, of such a vehicle or a person to whom the vehicle was transferred during the duration of a warranty applicable to the vehicle or any other person entitled by the warranty’s terms to enforce the warranty’s obligations.
These pages only discuss the New Jersey Lemon Law that applies to new vehicles; pages about the New Jersey Lemon Law that applies to used cars can be found elsewhere on this website (at the homepage).
Do Businesses Qualify For Coverage Under The New Jersey Lemon Law?
There is nothing in the New Jersey Lemon Law that forbids businesses from seeking relief under the New Jersey Lemon Law. The issue is probably one that would require determination by a court. However, to qualify for relief, the vehicle must be a “passenger automobile” as defined above.
Does My Vehicle Have To Be “New” For Me To Qualify For Coverage Under The New Jersey Lemon Law?
There is nothing in the New Jersey Lemon Law that forbids used car owners from seeking relief under the New Jersey Lemon Law. For example, if a new vehicle is transferred to another owner or lessee during the first 24,000 miles or 2 years following its initial purchase, the vehicle’s subsequent owner or lessee is also covered under the Lemon Law for that time period. Thus, technically speaking, the vehicle does not have to be “new” and you do not have to be the vehicle’s first purchaser to be covered by the New Jersey Lemon Law. However, the vehicle’s problems must occur during the first 24,000 miles of its operation or during the first 2 years following its original delivery date to the first purchaser, whichever first happens.
What Happens If The Lemon Vehicle Is Transferred During The Lemon Period?
If a new vehicle is transferred to another owner or lessee during the first 24,000 miles or 2 years following its initial purchase, the vehicle’s subsequent owner or lessee is also covered under the Lemon Law for that time period. Thus, technically speaking, the vehicle does not have to be “new” and you do not have to be the vehicle’s first purchaser to be covered by the New Jersey Lemon Law. However, the vehicle’s problems must occur during the first 24,000 miles of its operation or during the first 2 years following its original delivery date to the first purchaser, whichever first happens.
Is My Vehicle A Lemon Under The New Jersey Lemon Law?
To be a lemon under the New Jersey Lemon Law, a consumer must prove the following:
- During the first 24,000 miles of operation or 2 years following delivery, whichever comes first, the vehicle has a defect;
- The defect substantially impairs the vehicle’s use, value and/or safety, meaning the defect must not be of a trivial nature (which is subject to interpretation by a legal factfinder);
- During the first 24,000 miles of operation or 2 years following delivery, whichever comes first, the consumer must notify the vehicle’s manufacturer or its dealer of the defect; and
- The manufacturer or its dealer is unable to repair or correct a defect within a reasonable time. One could argue that if a manufacturer or its dealer refuses to fix the defect in a reasonable time – such as where they are simply unwilling to attempt to even fix the vehicle, the manufacturer is also liable for violating the New Jersey Lemon Law.
What Is The New Jersey Lemon Law “Presumption”?
A vehicle is presumed to be a “Lemon” if, within the first 24,000 miles of operation or during the period of two years following the date of original delivery of the vehicle to a consumer, whichever is the earlier date:
- Substantially the same defect has been subject to repair three or more times by the manufacturer or its dealer (other than a defect likely to cause death or serious bodily injury if the vehicle is driven) and the defect continues to exist; or
- The vehicle is out of service by reason of repair for one or more defects for a cumulative total of 20 or more calendar days or in the case of a motorhome, for 45 or more calendar days, since the original delivery of the vehicle and a defect continues to exist; or
- A defect likely to cause death or serious bodily injury if the vehicle is driven has been subject to examination or repair at least once by the manufacturer or its dealer and the defect continues to exist; and
- The manufacturer receives written notification, by or on behalf of the consumer, by certified mail return receipt requested, of a potential New Jersey Lemon Law claim and has had one opportunity to repair or correct the defect or condition within 10 calendar days following receipt of the notification. This notification must take place:
- any time after the vehicle has had substantially the same defect subject to repair two or more times, or has been out of service by reason of repair for a cumulative total of 20 or more calendar days;
- in the case of a motorhome, 45 or more calendar days; or
- for a defect which is likely to cause death or serious bodily injury if the vehicle is driven, the defect has been subject to examination or repair at least once by the manufacturer or its dealer, and the defect continues to exist.
The two-year term and the 20-day period or 45-day period for motorhomes for the New Jersey Lemon Law presumption is extended by any period of time during which repair services are not available to the consumer because of a war, invasion or strike, or a fire, flood, or other natural disaster.
In the case of a motorhome where two or more manufacturers contributed to the construction of the motorhome, it shall not be considered as any examination or repair attempt if the repair facility at which the consumer presented the vehicle is not authorized by the manufacturer to provide service on that vehicle.
It shall be considered as one examination or repair attempt for a motorhome if the same defect is addressed more than once due to the consumer's decision to continue traveling and to seek the repair of that same defect at another authorized repair facility, rather than wait for the repair to be completed at the initial authorized repair facility.
Days out of service for reason of repair for a motorhome shall be a cumulative total of 45 or more calendar days.
Your attorney can prepare and forward the manufacturer the written notice required for the presumption to apply under the New Jersey Lemon Law. If the notice is completed improperly, the mistake could affect your chance to claim the presumption. However, meeting the presumption is not a requirement under the New Jersey Lemon Law. This means your vehicle does not necessarily have to be out of service for 20 or more days or undergo a certain number of repairs to qualify as a Lemon. Further, even compliance with the presumption’s written notice requirement does not assure that you shall win your case.
When Is The New Jersey Lemon Law Excluded?
· The defect is the result of the buyer’s failing to maintain, abusing, neglecting, or performing unauthorized modifications or alterations to the vehicle.
· The defect does not substantially impair the vehicle’s use, value or safety.
· The vehicle is not a passenger vehicle, such as a bus or motorized bicycle.
· The vehicle’s defects involve a motor home’s living quarters.
· The vehicle was not purchased or leased new in New Jersey or is not registered in New Jersey.
What Must I Do Under The New Jersey Lemon Law?
During the first 24,000 miles of operation or 2 years following delivery, whichever happens first, the consumer must:
· Notify the manufacturer or its authorized dealership of the vehicle’s defects.
· If the manufacturer or its authorized dealership offers to make repairs to the vehicle, make arrangements to get the vehicle fixed by the manufacturer or its authorized dealer.
· If the manufacturer or its authorized dealerships are willing to make repair attempts to the vehicle, give the manufacturer or its authorized dealership a reasonable number of days or reasonable number of repair attempts to fix the vehicle.
· Properly maintain, store, use and care for the vehicle and avoid making unauthorized alterations or modifications to the vehicle that would void the vehicle’s warranty. It is best if you keep copies of all receipts for repairs or maintenance performed to the vehicle.
If you sue a manufacturer for relief under the New Jersey Lemon Law, within 10 days after filing the initial pleading with the court containing the New Jersey Lemon Law claim, counterclaim or defense, mail a copy of the initial or responsive pleading to the New Jersey Attorney General.
What Must The Manufacturer Do Under New Jersey’s Lemon Law?
- At the time of purchase in the State of New Jersey, the manufacturer through its dealer, or at the time of lease in the State of New Jersey, the lessor, must provide directly to the consumer:
- a written statement;
- that complies with the Division of Consumer Affairs regulations relating to the Lemon Law;
- presented in a conspicuous and understandable manner;
- on a separate piece of paper;
- printed in both the English and Spanish languages;
- providing information concerning a consumer's rights and remedies under the Lemon Law, including but not be limited to, a summary concerning:
- the miles of operation of a motor vehicle and time period within which the consumer may report a nonconformity and seek remedies;
- a manufacturer's obligations to a consumer based upon the manufacturer's or its dealer's inability to repair or correct a nonconformity; and
- any other New Jersey Lemon Law provisions that the director deems appropriate.
- During the first 24,000 miles of operation or 2 years following delivery, whichever happens first, the manufacturer make arrangements to fix the vehicle’s defects or to have its authorized dealership fix it.
- If covered by the manufacturer’s warranty, pay for repairs made to correct a vehicle’s defects during the vehicle’s first 12,000 miles of operation or first year following the date of the vehicle’s original delivery to the consumer.
- After each examination or repair attempt performed under the New Jersey Lemon Law, the manufacturer or its authorized dealership must give the buyer a repair invoice reflecting the repairs made or attempted on the vehicle. The invoice must include the following information:
- any diagnosis made;
- all work performed on the vehicle;
- a general description of the problem reported by the consumer or an identification of the problem reported by the consumer or an identification of the defect or condition;
- the amount charged for parts and the amount charged for labor, if paid for by the consumer;
- the date and the odometer reading when the vehicle was submitted for repair; and
- the date and odometer reading when the vehicle was made available to the consumer.
· If unable to fix the vehicle in a reasonable period of time, the manufacturer must accept the return of the vehicle from the buyer and provide the buyer with a full refund, less a deduction for the vehicle’s mileage when the buyer first reported the vehicle’s defects to the manufacturer or its authorized dealer. Instead of offering a refund, the manufacturer may offer the buyer a replacement vehicle. However, the buyer does not have to accept a replacement vehicle instead of a refund.
· If a vehicle is returned to the manufacturer under the New Jersey Lemon Law or under a similar law or as a result of a legal action or an informal dispute settlement procedure and if the vehicle is resold or released in New Jersey:
o the manufacturer must provide (through the selling dealer or lessor) a written statement on a separate piece of paper in 10 point bold face type stating: “IMPORTANT: THIS VEHICLE WAS RETURNED TO THE MANUFACTURER BECAUSE IT DID NOT CONFORM TO THE MANUFACTURER'S WARRANTY AND THE NONCONFORMITY WAS NOT CORRECTED WITHIN A REASONABLE TIME AS PROVIDED BY LAW;” and
o The dealer or lessor obtains from the consumer a signed receipt in a form approved by the New Jersey Division of Consumer Affairs certifying, in a conspicuous and understandable manner, that the written statement required under the New Jersey Lemon Law has been provided. The dealer or lessor may fulfill his obligation to obtain a signed receipt under this paragraph by making such a notation, in a conspicuous and understandable manner, on the vehicle buyer order form accompanying the sale or lease of that vehicle; and
o The dealer or lessor, in accordance with the New Jersey Motor Vehicle Code, , notifies the Director of the Division of Motor Vehicles in the Department of Law and Public Safety of the sale or transfer of ownership of the motor vehicle.
· The manufacturer must certify to the New Jersey Division of Consumer Affairs, within 1 year of discovery, any inherent design defect common to all vehicles of a particular make or model.
· The manufacturer must provide the New Jersey Division of Consumer Affairs information on the manufacturer’s private arbitration or private buyback programs.
How Do I Get A Refund Under The New Jersey Lemon Law?
There is no “magical” New Jersey Lemon Law fairy that gives out refunds or replacement vehicles to all deserving consumers. The New Jersey Lemon Law does not enforce itself. If the manufacturer or its authorized dealer is unable or unwilling to fix the vehicle within a reasonable period of time, the buyer can file a lawsuit against the manufacturer in the Superior Court of New Jersey. If the buyer wins the lawsuit, the buyer can recover money damages and reasonable attorney's fees, expert witness fees, certain repair and vehicle rental costs and certain court costs, including the fees for filing the lawsuit. There is also an administrative legal process that the consumer can use instead of filing the lawsuit. However, there may be dangers to using the administrative legal process, since by using it instead of a lawsuit, a consumer may not be able to get all the relief that may be due them under all the laws applicable to defective vehicles.
Should I File A Claim With The New Jersey Lemon Law Unit?
The New Jersey Division of Consumer Affairs established a New Jersey Lemon Law Unit for the handling of New Jersey Lemon Law claims. You are not required to file a claim with the New Jersey Lemon Law Unit. If you file a claim with the New Jersey Lemon Law Unit, you do not receive a trial by jury. However, if you or your attorney file a civil complaint in the Superior Court of New Jersey and properly demand a jury and your case is not dismissed before the jury decides the claim, a jury of your peers decides whether you win or lose your case. Under New Jersey Law, if citizens have a valid case, they have a right to have their civil complaint decided by a jury. A New Jersey Lemon Law Unit claim is decided by a single administrative law judge instead of by a jury of your peers. Who would you rather have decide your case? A judge without a jury or a judge with a jury of your peers? Another disadvantage to the New Jersey Lemon Law Unit is that, while you may have more than one claim against the manufacturer (and thus multiple ways of recovering damages), you may bring only one type of claim against the manufacturer in the New Jersey Lemon Law Unit proceeding. Usually, people who qualify for relief under the New Jersey Lemon Law also qualify for help under other laws. But the New Jersey Lemon Law Unit does not permit people to seek relief under laws other than the New Jersey Lemon Law, which often results in their weakening their changes to recover money damages for their defective vehicle. If you attempt to handle a claim by yourself through the New Jersey Lemon Law Unit, you may lose your claim by failing to follow the required procedures or by failing to present sufficient proofs at any hearing or by failing to pursue rights under laws other than the New Jersey Lemon Law. Usually manufacturers are represented by attorneys who are more familiar than you with such claims and quite often, consumers who represent themselves before the New Jersey Lemon Law Unit fail to prove their claim.
Do I Have To Start A New Jersey Lemon Law Claim With Arbitration Or Mediation Before Filing A Lawsuit?
Regardless of what the manufacturer’s warranty says, usually, people do not have to proceed to arbitration or mediation before filing a lawsuit against a manufacturer under the New Jersey Lemon Law. Under the New Jersey Lemon Law, if the manufacturer has its own dispute settlement or arbitration program, the buyer does not have to participate in it before filing a lawsuit against the manufacturer. Even if the buyer decides to participate in such a program, if dissatisfied with the result, the buyer may be able to file a lawsuit against the manufacturer. However, by deciding to proceed with an arbitration process before filing a lawsuit, many people waste much time and effort that could be better spent proceeding with a lawsuit. Often, Lemon Law dispute resolution programs increase rather than decrease the time it takes to resolve a case. There are some exceptions, such as if you signed an arbitration agreement. However before considering whether to begin a lawsuit or whether to begin any mediation or arbitration, you should speak to an attorney to have them review your claim and to determine exactly how you should proceed.
How Do I Prove My Case Under The New Jersey Lemon Law?
As soon as you notice that your vehicle has a defect, you must:
· Report the defect to the manufacturer or its authorized dealership immediately;
· Arrange for the vehicle to be repaired by the manufacturer or its authorized dealership; and
· When you get your vehicle repaired, before leaving the manufacturer’s dealership, ask for a repair invoice listing what was done to your vehicle or what the dealer found or failed to find.
· If you file a lawsuit, within 10 days of doing so, provide a copy to the New Jersey Attorney General. Your attorney can do this task for you.
· Properly maintain, store, use and care for the vehicle and avoid making unauthorized alterations or modifications to the vehicle that would void the vehicle’s warranty. It is best if you keep copies of all receipts for repairs or maintenance performed to the vehicle.
Assuming your vehicle qualifies as one covered under the New Jersey Lemon Law, you shall lose your case if the manufacturer proves one of the following:
· The vehicle has no defects that substantially impair its use, value or safety.
· The manufacturer or its dealerships successfully repaired the vehicle’s defects within a reasonable period of time.
· The vehicle’s defects are the result of the buyer’s abusing, neglecting, modifying or altering the vehicle.
Should I Try To Handle My New Jersey Lemon Law Case Without A Lawyer?
Since legal proceedings can be very complex, since all or most manufacturers use attorneys to defend New Jersey Lemon Law cases and since the New Jersey Lemon Law permits successful claimants to recover reasonable attorney’s fees and court costs from the manufacturer, there is little benefit to a consumer trying to handle a Lemon Law case without being represented by an attorney. Indeed, it is often quite easy for manufacturers’ attorneys to defeat consumers who try to handle New Jersey Lemon Law cases without an attorney. Also, if you try to represent yourself, you may fail to take an important step (miss a deadline, fail to complete crucial paperwork, etc.) and jeopardize your case.
Should I Wait To See If The Lemon Vehicle Is Fixed?
If your vehicle has been at the manufacturer’s dealership at least 20 or more cumulative days for repairs for the same problem or has been subject to repair 3 times for the same problem, you should not wait any longer to ask an attorney to evaluate your claim. Legal proceedings may take time to be concluded and thus, the longer you wait to find out you have a New Jersey Lemon Law case (or if you have a valid case, to stat the process), the longer you shall likely have to wait to conclude your case. Delay could hurt your New Jersey Lemon Law case.
If I Financed The Lemon Vehicle’s Purchase, Can I Stop Making Payments?
It is generally very, very risky for a consumer to decide to stop making payments on a vehicle simply because it doesn’t work well or even if it doesn’t work at all. Failing to make payments on a vehicle could result in: (1) the credit of everyone on the vehicle’s loan being damaged; (2) the vehicle being repossessed; (3) everyone on the vehicle’s loan being sued; (4) ultimately, in a money judgment being entered against you, which may even exceed the vehicle original price. Failing to make payments on the vehicle’s loan could make a bad situation much, much worse. When you are considering whether to pursue a New Jersey Lemon Law claim, always consult with an attorney before deciding to stop making payments on a vehicle loan.
What Will Happen If I Do Nothing With My Possible New Jersey Lemon Law Claim?
If you have a valid New Jersey Lemon Law claim and you do nothing to enforce your rights, you shall be stuck with your defective vehicle and the seller, manufacturer or warranty provider shall get the best of you. There are strict time limits for perfecting and filing New Jersey Lemon Law cases. Since the New Jersey Lemon Law is such a powerful weapon against manufacturers of Lemon vehicles, it is always best to seriously consider making a claim under the New Jersey Lemon Law before it is too late to do so. It can be very dangerous to read websites and conclude that a particular claim does or does not equal a valid New Jersey Lemon Law claim. Do not try to interpret the law by reading a website!
What If The Dealer Or Manufacturer Says I Don’t Have A New Jersey Lemon Law Case?
Ignore them and seek competent legal advice. Only attorneys licensed in New Jersey to practice law are permitted to give legal advice and only they are able to evaluate if you have a valid claim. Until you speak with an attorney who is knowledgeable about this area of the law, do not draw any conclusions, regardless of what you heard from non-attorneys or read on the web.
What If I Think My Facts Do Not Fit The Lemon Law?
You should always speak with an attorney before coming to any conclusions about your claim. Do not try to interpret the law by reading a website! However, even if the facts of your case do not fit the requirements of the Lemon Law, you may be entitled to sue the manufacturer or its selling dealer for a breach of your warranties under other state and federal laws.
Does The Law Office Of Paul Depetris Have Experience Handling New Jersey Lemon Law Disputes?
Yes. Paul DePetris has performed the following tasks:
· represented consumers, automobile purchasers and owners, new and used car dealers, banks and automotive lenders, boat purchasers and owners, watercraft purchasers and owners, marinas, junk yard dealers, home buyers, home sellers, home repair customers, home repair contractors, home inspectors, real estate brokers, real estate agents in New Jersey disputes.
· appeared in court in cases involving New Jersey Lemon Law disputes.
· mediated, arbitrated and tried New Jersey Lemon Law cases.
· settled New Jersey Lemon Law claims and cases, recovering hundreds of thousands of dollars in money and replacement vehicles for many clients.
· worked on New Jersey Lemon Law claims and cases involving many types of automobiles, such as those manufactured by General Motors, Chrysler, Ford, Fleetwood, Winnebago, Honda, Toyota, Hyundai, Kia, Nissan, Subaru, BMW, Porsche, Audi, Mercedes and Volkswagen.
Mr. DePetris has appeared before the Superior Court of New Jersey in the following counties:
Atlantic County
|
Bergen County
|
Burlington County
|
Camden County
|
Cape May County
|
Cumberland County
|
Essex County
|
Gloucester County
|
Hudson County
|
Mercer County
|
Middlesex County
|
Monmouth County
|
Morris County
|
Ocean County
|
Passaic County
|
Salem County
|
Somerset County
|
Sussex County
|
Warren County
|
|
Mr. DePetris has also appeared in federal courts - the District of New Jersey in Camden, Trenton and Newark and in the Eastern District of Pennsylvania.
Mr. DePetris has handled claims and cases for clients living in Atlantic County, Bergen County, Burlington County, Camden County, Essex County, Gloucester County, Mercer County, Middlesex County, Monmouth County, Morris County, Ocean County and Somerset County.
Mr. DePetris is also the author of the following publications: New Jersey Consumer Fraud Act & Forms (New Jersey Law Journal Books, 2007); Learned Professionals, Licensed Semiprofessionals and the Lemon Law: The Origins of the Licensed Professionals’ Doctrine (New Jersey Lawyer, Oct. 2008); and Liability For Consumer Fraud In Real Estate Transactions (New Jersey Law Journal, March 18, 2009). Mr. DePetris also gives seminars on the New Jersey Consumer Fraud Act.
How Do I Find Out If I Have A New Jersey Lemon Law Case?
For a no cost phone consultation about what the Firm might be able to do for you, call or write an email to Mr. DePetris at: 609-714-2020 or consumerlaw@newjerseylemon.com.
|
|
