Oregon Lemon Law

Lemon Law Articles

Summary of The Oregon Lemon Law
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STANDARDS OF THE OREGON LEMON LAW The following is an brief explanation of most relevant provisions of the Oregon lemon law. The complete text of the lemon law can be found at Oregon Rev. Stat. §§ 646.315 to 646.375. VEHICLES COVERED BY THE OREGON LEMON LAW The Oregon lemon law covers any passenger motor vehicle sold in Oregon. The lemon law covers used vehicles. CONSUMERS COVERED BY THE OREGON LEMON LAW The Oregon lemon law covers any of the following consumers: 1. The purchaser or lessee, other than for purposes of resale, of a new motor vehicle normally used for personal, family or household purposes; 2. Any person to whom a new motor vehicle used for personal, family or household purposes is transferred for the same purposes during the duration of the express manufacturer vehicle warranty; and 3. Any other person entitled by the terms of the express warranty to enforce its obligations. PROBLEMS COVERED BY THE OREGON LEMON LAW The Oregon lemon law covers any defect or condition that (1) does not conform to the applicable manufacturers express warranty and (2) substantially impairs the use, market value or safety of the vehicle to the consumer. This is referred to as a nonconformity. The lemon law provides manufacturers with an affirmative defense if it can be shown that the alleged nonconformity does not substantially impair the use, market value or safety; or the nonconformity is the result of abuse, neglect or unauthorized modifications or alterations of the vehicle by the consumer. MANUFACTURERS DUTY TO REPURCHASE OR REPLACE A VEHICLE If a vehicle does not conform to the applicable manufacturers express warranty, the consumer must report the nonconformity for the purpose of repair or correction to the manufacturer, its agent or its authorized dealer, during the period of one year following the date of the motor vehicles original delivery to the consumer or during the period ending when the motor vehicle mileage reaches 12,000 miles, whichever period ends first. If the manufacturer or its agents or authorized dealers are unable to conform the vehicle to the applicable manufacturers express warranty by repairing or correcting any nonconformity after a reasonable number of attempts, the manufacturer must replace or repurchase the vehicle. REASONABLE NUMBER OF REPAIR ATTEMPTS The Oregon lemon law establishes a presumption that a reasonable number of repair attempts have been undertaken if, during the period of one year following the date of the motor vehicles original delivery to the consumer or during the period ending when the vehicle mileage reaches 12,000 miles, whichever period ends first, either of the following events has occurred: 1. The same nonconformity has been subject to repair or correction four or more times by the manufacturer or its agent or authorized dealer, but the nonconformity continues to exist; or 2. The motor vehicle is out of service by reason of repair or correction for a cumulative total of 30 or more business days. A repair or correction that .must take place. after the expiration of the 12 month/12,000 mile period shall be included in determining whether the presumption has been met. In addition, the 12 month/12,000 mile period and the 30.day period are extended by any period of time during which repair services are not available to the consumer because of a war, invasion, strike, fire, flood or other natural disaster. The lemon law states that the presumption shall not apply against a manufacturer unless the manufacturer has received prior written notification from or on behalf of the consumer and has had an opportunity to cure the alleged defect. NOTICE AND OPPORTUNITY TO REPAIR The remedies provided by the lemon law are not available to a consumer unless the manufacturer has received direct written notification from or on behalf of the consumer and has had an opportunity to correct the alleged defect. A request by the consumer to an informal dispute settlement procedure satisfies this notice requirement. DISPUTE RESOLUTION If the manufacturer has established or participates in an informal dispute settlement procedure that complies with 16 C.F.R. Part 703, and causes the consumer to be notified of the procedure, then the provisions requiring refund or replacement do not apply unless the consumer has first resorted to the informal dispute settlement procedure. TIME PERIOD FOR FILING CLAIMS An action must be commenced within one year following the earlier of (1) the period ending on the date on which the mileage on the vehicle reaches 12,000 miles, or (2) the period of one year following the date of the motor vehicles original delivery to the consumer. REMEDIES UNDER THE OREGON LEMON LAW REPURCHASE OF OWNED VEHICLES The Oregon lemon law provides that a manufacturer must pay the following amounts when it repurchases a vehicle under the lemon law: 1. The full purchase or lease price paid; and 2. Taxes, license fees, registration fees, and any similar collateral charges, excluding interest; 3. Less a reasonable allowance for the consumers use of the vehicle. Refunds must be made to the consumer and lienholder, if any, as their interests may appear. The reasonable allowance is that amount directly attributable to use by the consumer prior to the first report of the nonconformity to the manufacturer, agent or dealer, and during any subsequent period when the vehicle is not out of service by reason of repair. REPLACEMENT When replacing a motor vehicle under the Oregon lemon law, the manufacturer must provide a new motor vehicle. The reasonable allowance for use does not apply to a replacement.