U.S. Lemon Law News

February 2007

State law offers help for those squeezed by lemons

Holmen Courier — Holmen, WI, USA
2007-02-01

It is not unreasonable to expect a car fresh from the factory to run smoothly for the first few years of ownership.

Lawmakers expect the same, and that is why Wisconsin has a lemon law — to protect consumers from recurring problems with newer cars.

Wisconsin's lemon law provides that if you have a substantial defect or "nonconformity" — that is, any problem that substantially impairs the use, value or safety of the vehicle — you might have a lemon on your hands. It applies to all new motor vehicles that are still under warranty.

The law is applicable after you have attempted to have the nonconformity repaired four times without success or have been unable to enjoy full use of the vehicle for 30 days. Even if you were able to drive the vehicle, if you did so while the nonconformity continued to impair the use, it still may be a lemon. The 30 days do not have to be consecutive.

Like lemon laws in other states, Wisconsin's version was designed to protect consumers from being stuck with defective vehicles and to require manufacturers to honor their warranties. That is why the law generally places the onus on the manufacturer of the vehicle to take care of the problem quickly and satisfactorily.

If the vehicle is a lemon, and the consumer gives notice, manufacturers must either refund the cost of the vehicle or replace it with a new one. Keep in mind, however, that with refunds manufacturers may deduct a percentage for mileage during the time you enjoyed full use of the vehicle.

Penalties for noncompliant manufacturers are stiff, including double damages, attorneys' fees and double the collateral costs such as insurance to protect the vehicle during resolution of the claim, mileage for driving to the repair shop and interest paid on the vehicle loan while the claim was pending. That means a $25,000 lemon could result in a $50,000 judgment or more against the manufacturer for an aggrieved consumer.

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