Administrative lemon law hearing – The Office of Administrative Law (OAL) conducts hearings in certain new and used car lemon law cases. An Administrative Law Judge hears contested cases, such as certain new and used lemon law disputes, under rules established by law and by the OAL. The Administrative Law Judge provides a neutral forum where the evidence of all parties is presented. The Administrative Law Judge is not permitted to give legal advice to consumers involved in contested cases. After hearing a lemon case, the Administrative Law Judge prepares an initial decision that is sent to the Division of Consumer Affairs within the time frame set by law. The Director of the Division of Consumer Affairs may affirm, modify or reject the Administrative Law Judge’s decision and the Director is empowered to make a final decision in the matter. If the Director of the Division of Consumer Affairs fails to either adopt, reject or modify the initial decision within forty-five days (and unless the period is extended as provided by law), the Administrative Law Judge’s initial decision becomes the final decision for the case. At that point, it may be possible for a party to the case to take an appeal to a higher court. During the administrative hearing, consumers are entitled to be represented by an attorney. In most administrative lemon law hearings involving manufacturers, the manufacturers are represented by an attorney and often, the manufacturer has at least one expert witness appear to dispute a consumer’s lemon law claims.
Administrative law judge (ALJ) – A judge that sits in the Office of Administrative Law (OAL). An Administrative Law Judge hears contested cases, such as certain new and used lemon law disputes, under rules established by statute and by the OAL. The Administrative Law Judge provides a neutral forum where the evidence of all parties is presented. The Administrative Law Judge is not permitted to give legal advice to consumers involved in contested cases. After hearing a lemon case, the Administrative Law Judge prepares an initial decision that is sent to the Division of Consumer Affairs within the time frame set by law. The Director of the Division of Consumer Affairs may affirm, modify or reject the Administrative Law Judge’s decision and the Director is empowered to make a final decision in the matter. If the Director of the Division of Consumer Affairs fails to either adopt, reject or modify the initial decision within forty-five days (and unless the period is extended as provided by law), the Administrative Law Judge’s initial decision becomes the final decision for the case. At that point, it may be possible for a party to the case to take an appeal to a higher court.
Arbitration -- Under the New Jersey New Car 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, New Car Lemon Law dispute resolution programs increase rather than decrease the time it takes to resolve a case.
Better Business Bureau Autoline – Founded in 1978, it is an auto warranty dispute resolution program. Some automotive manufacturers are members of the program, which attempts to resolve some but not all types of lemon disputes. For, many auto warranty disputes do not qualify for the program. The program’s proceedings are governed by over fifteen different rules and involve telephone conferences facilitated by BBB staff and arbitrations of disputes not resolved by agreement. When pursuing BBB claims, consumers are entitled to be represented by an attorney.
Breach of contract – a breach of warranty is a type of legal claim against a person or business for their failure to honor an oral or written contract.
Breach of warranty – a breach of warranty is a type of legal claim against a person or business for their failure to honor an express or implied warranty. A common type of breach of warranty claim involves a product’s manufacturer or the selling dealer who provided a warranty with the product or for which a warranty arose by law is unable or unwilling to provide goods that conform to the warranty.
Consumer -- A term used in the Magnuson Moss Warranty Act. A buyer (other than for purposes of resale) of the vehicle or other consumer product, a person to whom the vehicle or product was transferred during the duration of an implied or written warranty (or service contract) applicable to the vehicle or product, or any other person 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).
Consumer (New Car Lemon Law) -- a buyer or lessee, other than for purposes of resale or sublease, of a motor vehicle; a person to whom a motor vehicle is transferred during the duration of a warranty applicable to the motor vehicle; or any other person entitled by the terms of the warranty to enforce the obligations of the warranty.
Consumer product – A term used in the Magnuson Moss Warranty Act. A consumer product is a new or used piece of merchandise that is distributed in commerce and normally used for personal, family, or household purposes, such as vehicles, mobile homes, computers, appliances, agricultural products, heating and air conditioning systems, plumbing components, etc.
Covered item -- Includes the following components of a used motor vehicle: Engine--all internal lubricated parts, timing chains, gears and cover, timing belt, pulleys and cover, oil pump and gears, water pump, valve covers, oil pan, manifolds, flywheel, harmonic balancer, engine mounts, seals and gaskets, and turbo-charger housing; however, housing, engine block and cylinder heads are covered items only if damaged by the failure of an internal lubricated part. Transmission Automatic/Transfer Case--all internal lubricated parts, torque converter, vacuum modulator, transmission mounts, seals and gaskets. Transmission Manual/Transfer Case--all internal lubricated parts, transmission mounts, seals and gaskets, but excluding a manual clutch, pressure plate, throw-out bearings, clutch master or slave cylinders. Front-Wheel Drive--all internal lubricated parts, axle shafts, constant velocity joints, front hub bearings, seals and gaskets, Rear-Wheel Drive--all internal lubricated parts, propeller shafts, supports and U-joints, axle shafts and bearings, seals and gaskets.
Dealer (New Car Lemon Law) -- A person who is actively engaged in the business of buying, selling or exchanging motor vehicles at retail and who has an established place of business.
Dealer (Used Car Lemon Law) -- A person, including a business, selling or offering for sale a used motor vehicle after selling or offering for sale 3 or more used motor vehicles in the previous 12 month period. The term also applies to a lessor who is a dealer and who sells or offers for sale a used passenger motor vehicle, subject to a motor vehicle lease agreement which was in effect for more than 90 days, to a consumer who is not the lessee, or a family member or employee of the lessee upon the termination of the lease agreement.
Deduction for personal use (Used Car Lemon Law) -- The mileage allowance set by the federal Internal Revenue Service for business usage of a motor vehicle in effect on the date a used motor vehicle is repurchased by a dealer in accordance with N.J.S.A. 56:8-71, multiplied by the total number of miles a used motor vehicle is driven by a consumer from the date of purchase of that vehicle until the time of its repurchase.
Defect – Under the New Car Lemon Law, the term “defect” means a problem that substantially impairs the vehicle’s use, value or safety to the purchaser and that is not of a trivial nature (which is subject to interpretation by a legal factfinder) and which is unable to be fixed by the manufacturer’s authorized dealer after a reasonable number of repair attempts; or which causes the vehicle to be out of service for 20 or more cumulative days.
Deficiency action -- A type of legal claim. Most deficiency actions arise when a purchaser of a product finances the purchase of the product and thereafter fails to make payments on the loan when they are due to the lender. If someone is in default of a loan and the loan is secured by collateral, such as a vehicle, the lender may have the right to declare the loan in default, repossess the product, sell it at an auction (where the lender usually sells for the product that is far less than its original purchase price) and then sues the borrower for the difference. Such a lawsuit often includes attorney’s fees, costs of sale, towing costs and lawsuit costs and it is therefore common for a lender to seek a sum of money much higher than the product’s original purchase price. 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. Always consult with an attorney before deciding to stop making payments on a vehicle loan.
Director -- The Director of the Division of Consumer Affairs in the Department of Law and Public Safety, or their designee.
Division -- The Division of Consumer Affairs in the Department of Law and Public Safety.
Excessive wear and tear -- Wear or damage to a used motor vehicle beyond that expected to be incurred in normal circumstances.
Lease agreement -- A contract or other written agreement in the form of a lease for the use of a motor vehicle by a person for a period of time exceeding 60 days, whether or not the lessee has the option to purchase or otherwise become the owner of the motor vehicle at the expiration of the lease.
Lemon -- A "lemon" vehicle or product is one that exhibits a substantial problem or problems following repair attempts made to it. For new vehicles, contrary to much misinformation spread amongst consumers, a 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.
Lemon law – A law that provides relief to the purchasers of certain defective vehicles or other products, frequently after the vehicle has undergone a number of unsuccessful repair attempts or been at a repair shop for a certain number of days undergoing repairs or waiting to be repaired. New Jersey’s lawmakers decided that the public should be protected from lemon vehicles by having a right to sue the manufacturers of lemon vehicles (new car purchasers) or dealers of used cars (used car purchasers) or the manufacturers of lemon motorized wheelchairs or scooters (wheelchair purchasers) 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. The New Jersey New Car 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 New Car 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.
Lemon Law Unit (LLU)– A department of the New Jersey Office of Attorney General, Department of Law and Public Safety, Division of Consumer Affairs. The Lemon Law Unit does not provide consumers with legal representation and does not handle all types of warranty disputes involving vehicles.
Lemon lawyer – An attorney that handles lemon law claims. In New Jersey, it is unethical for a lawyer to claim that he is an “expert” in handling lemon law claims, since there is no certification program currently offered by New Jersey’s Supreme Courts for lemon attorneys.
Lessee -- a person who leases a motor vehicle pursuant to a lease agreement .
Lessor -- a person who holds title to a motor vehicle leased to a lessee under a lease agreement or who holds the lessor's rights under such an agreement.
Lien – a security interest in a motor vehicle.
Lienholder -- means a person with a security interest in a motor vehicle pursuant to a lien.
Magnuson-Moss Warranty-Federal Trade Commission Improvement Act – Also known as the Magnuson Moss Warranty Act, it is a federal law designed to help in the enforcement of breach of warranty claims. The Federal Government decided that, since warranties were difficult to enforce, it should be easier for the public to enforce certain warranties and service contracts by having a right to sue those who give and then fail to honor warranties or service contracts for money damages, attorney’s fees and court costs.
Manufacturer – Under the New Jersey New Car Lemon Law, manufacturers are persons or businesses 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 New Car Lemon Law’s penalties apply only against manufacturers and 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.
Manufacturer's informal dispute settlement procedure -- An arbitration process or procedure by which the manufacturer attempts to resolve disputes with consumers regarding motor vehicle nonconformities and repairs that arise during the vehicle's warranty period. It is not a mandatory procedure and participation in the procedure may serve merely to delay a consumer’s recovery or the resolution of a claim.
Manufacturer's warranty or warranty -- Any warranty, whether express or implied of the manufacturer, of a new motor vehicle of its condition and fitness for use, including any terms or conditions precedent to the enforcement of obligations under the warranty.
Material defect (Used Car Lemon Law) -- A malfunction of a used motor vehicle, subject to a warranty, which substantially impairs its use, value or safety.
Motor vehicle -- A passenger automobile or motorcycle as defined in N.J.S.A. 39:1-1 which is purchased or leased in the State of New Jersey or which is registered by the Division of Motor Vehicles in the Department of Law and Public Safety, except the living facilities of motor homes.
New Car Lemon Law -- A law that provides relief to the purchasers of certain defective vehicles frequently after the vehicle has undergone a number of unsuccessful repair attempts by the manufacturer’s dealership or been at the manufacturer’s dealership for a certain number of days undergoing repairs or waiting to be repaired. A vehicle does not necessarily have to be out of service for 20 or more days or undergo a certain number of repairs for the owner to have a valid Used Car Lemon Law claim. The New Car Lemon Law also requires manufacturers to handle certain repairs and other functions according to the Law’s requirements or face penalties. New Jersey’s lawmakers decided that, since New Cars 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. The New Jersey New Car 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 New Car 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. The New Jersey New Car 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 New Car 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.
Nonconformity -- a defect or condition which substantially impairs the use, value or safety of a motor vehicle.
Office of Administrative Law (OAL) – An agency of the executive branch established in1979 to act as an independent reviewer of certain disputes arising from agency actions and to act as an independent reviewer court for agency compliance with rulemaking procedures. The Office of Administrative Law’s director, who is also New Jersey’s Chief Administrative Law Judge, presides over the Office of Administrative Law and reports directly to the Governor. The Office of Administrative Law is responsible for handling certain types of administrative hearings, including lemon law disputes that qualify as contested cases. However, the Office of Administrative Law does not provide consumers with legal representation and does not hear all types of warranty disputes involving vehicles. If a New Jersey agency determines that a new or used car lemon law dispute meets the requirements for a contested case, a state agency transmits the contested case to the OAL. Consumers do not apply directly to the OAL for a hearing. An administrative law judge (ALJ) hears the contested case under rules established by statute and by the OAL. The ALJ provides a neutral forum where the evidence of all parties is presented. The ALJ, as a full time officer of the OAL, is not permitted to hold other employment. He or she is appointed by the Governor and confirmed by the New Jersey Senate for a one-year term. After this initial term, the Governor may reappoint the ALJ to a four-year term. Any subsequent reappointment is to a five-year term and requires Senate confirmation.
Reasonable allowance for vehicle use -- the mileage at the time the consumer first presents the motor vehicle to the dealer or manufacturer for correction of a nonconformity times the purchase price, or the lease price if applicable, of the vehicle, divided by one hundred thousand miles.
Repair insurance -- a contract in writing to refund, repair, replace, maintain or take other action with respect to a used motor vehicle for any period of time or any specified mileage and provided at an extra charge beyond the price of the used motor vehicle.
Revocation of acceptance – A buyer’s rejection of a vehicle or product. Under the New Jersey Uniform Commercial Code, in certain situations, a buyer of a defective vehicle or product, including items that do not meet the terms of any warranties issued with the vehicle or product (or arising as a matter of law), may revoke acceptance of the vehicle or product due to defects. Before filing a lawsuit or demanding arbitration, you may have to make a specific and proper revocation of acceptance demand for the seller of a product or issuer of a warranty or service contract associated with a product to provide you legal relief. To make certain that the demand takes the correct form, you should have an attorney prepare this demand for you.
Service contract -- a contract in writing to refund, repair, replace, maintain or take other action with respect to a used motor vehicle for any period of time or any specific mileage or provided at an extra charge beyond the price of the used motor vehicle.
Used Car Lemon Law -- A law that provides relief to the purchasers of certain defective used vehicles, frequently after the vehicle has undergone a number of unsuccessful repair attempts or been at a repair shop for a certain number of days undergoing repairs or waiting to be repaired. A vehicle does not necessarily have to be out of service for 20 or more days or undergo a certain number of repairs for the owner to have a valid Used Car Lemon Law claim. The Used Car Lemon Law also requires dealers to handle the sale of used vehicles and other functions according to the Law’s requirements or face penalties. New Jersey’s lawmakers decided that, when buying certain used cars, the public should be protected from lemon vehicles by having a right to recover from the selling dealers a refund of the vehicle’s purchase price, less a deduction for sales taxes, title and registration fees or other similar government charges, a reasonable allowance for any excessive wear and tear and a deduction for personal use. Under New Jersey’s Used Car Lemon Law, used car dealers must provide buyers of certain used vehicles purchased after July 3, 1996 with warranties. In addition, the New Jersey Used Car Lemon Law prohibits used car dealers from engaging in certain types of conduct regardless of whether the purchaser is entitled to a warranty.
Used motor vehicle -- A passenger motor vehicle, excluding motorcycles, motor homes and off-road vehicles, title to, or possession of which has been transferred from the person who first acquired it from the manufacturer or dealer, and so used as to become what is commonly known as "secondhand," within the ordinary meaning thereof but does not mean a passenger motor vehicle, subject to a motor vehicle lease agreement which was in effect for more than 90 days, which is sold by the lessor to the lessee, or to a family member or employee of the lessee upon the termination of the lease agreement.
Warranty -- Any undertaking in connection with the sale of a vehicle, to refund, repair, replace, maintain or take other action with respect to the vehicle and which is provided at no extra charge beyond the price of the vehicle. New cars are normally sold with written warranties. Some used cars are supposed to be sold with written warranties.
Wheelchair Lemon Law -- A "lemon" vehicle is one that exhibits a substantial problem or problems following repair attempts made to it. Motorized wheelchairs and scooters can cost up to $20,000.00. Accordingly, New Jersey’s lawmakers decided that the public should be protected from lemon motorized wheelchairs and scooters by having a right to sue the vehicle’s manufacturer for a refund of the vehicle’s purchase or lease price, less a reasonable use allowance deduction. Under New Jersey’s Wheelchair Lemon Law, manufacturers must provide the buyers of wheelchairs and scooters a minimum warranty of 1 year beginning from the time of delivery for defects or conditions impairing the vehicle’s value and follow other requirements of the Wheelchair Lemon Law.
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