What is the Lemon Law?
Consumer Law and Lemon Law are often confused. Lemon Law Attorneys regularly give free advice to help determine if your claim is under the Lemon Law. If it is not it could be covered by the Magnuson-Moss Warranty Act as an alternative lemon law claim. It could also be an alternative based upon Missouri Consumer Protection law. But for now, in an effort to get this posted I am taking a shortcut and using a web definition of lemon law, instead of writing my own: Lemon Law A lemon law provides a remedy to buyers of cars (or other consumer goods) with defective merchandise that cannot be repaired after a reasonable number of attempts. The buyer can return the car and receive a refund of either the purchase price or a portion of it.
The Missouri Lemon Law enables consumers to get out of their car purchase contracts if the car they purchased meets the criteria set forth in the automobile lemon law statute. When you purchase a new car, you expect it to be in perfect working condition. However, sometimes things go wrong. When these things do go wrong , the dealer you purchased your car from often has the right to fix the problem before you fight back. If the dealer or manufacturer does not make it right, you may be able to bring a lemon law claim to recover your money.
Most Missouri customers do not know that the Missouri Automobile Lemon Law exists to protect them when they purchase a defective car. When you purchase a defective car you have already been through a "reasonable number of repair attempts." With the Missouri lemon law, a reasonable number of repair attempts are considered by many lemon lawyers to be four repair attempts for one same problem within one year or the first 12,000 miles. Unfortunately, there is no easy table that will tell you whether your car qualifies as a lemon or whether or not you qualify as a proper claimant under the Missouri automobile lemon law. Missouri lemon law requires that you notify the manufacturer in writing of the problem. Once a notice has been sent, a 30 day time period begins for the manufacturer to respond and cure the defect. If it does not, then the Missouri lemon law requires that the manufacturer buy your vehicle back at the original purchase price.
Missouri Lemon Law Criteria
In order for your vehicle to be considered a lemon under Missouri Lemon Law, it must meet the following conditions:
- The vehicle has suffered a defect in its manufacturer’s warranty.
- The defect adversely affects the vehicle’s use, safety, or value.
- The defect continues to affect the vehicle after at least three trips to the repair shop (or four in some cases).
- Additional attempts at repair have been made, but the defect remains unresolved or was not repaired within an hour, exposing the owner to a period of time in which they could have been on the road with a defective vehicle.
A Missouri car lemon law attorney can help you understand whether or not your vehicle meets all the conditions highlighted above. If you are experiencing problems with your vehicle, you may be able to get a full or partial refund if the vehicle qualifies as a lemon.
Steps to Follow When You Own a Lemon
If you suspect that your vehicle is a lemon, take the following steps: Document every occurrence of the problem with the vehicle. Make sure to note the date, time, and location of each occurrence. Document how you obtained the vehicle in the first place, including the name of the dealership and the names of any others you have dealt with. Keep a record of every repair attempt to fix the problem, noting the date, location, and whether the problem was fixed. Make copies of all repair orders and work orders. Ask anyone who has driven your vehicle if they have experienced the problem. Notify the manufacturer about the problem. You may contact them directly or through a letter from your attorney. If your vehicle is under warranty, the manufacturer may be required to repair the vehicle once they are notified. Send a copy of the manufacturer’s warranty to anyone who has worked on your vehicle as well as your attorney. Notify the dealer where you purchased the vehicle of the problems. You should also notify the dealer of any attempts to repair it. Also document the problems you experienced with the dealer and all attempts at resolution. This is sometimes known as "multiple maring" and can be extremely important to your case.
Lemon Law Legal Remedies
Missouri’s lemon law offers various potential remedies for consumers who purchase or lease a defective vehicle. These remedies are designed to provide relief for consumers whose vehicles have significant, unresolved issues after a reasonable number of attempts have been made to repair them. The options available to consumers under Missouri’s lemon law include vehicle replacement, refund, or cash settlement.
Vehicle Replacement: Lime Law provides for the replacement of a defective vehicle with a comparable new vehicle of the consumer’s choice if the dealership is unable to fix the vehicle after a reasonable number of repair attempts. In some situations, a brand-new vehicle may not be available. In such cases, it may be possible to replace the defective vehicle with a comparable, like-new vehicle with either 0 or very few miles on it. For example, it may be possible for the customer to obtain a new 2018 vehicle as a replacement for its defective 2017 vehicle, which had close to 0 miles on it. Once again, there are various factors the vehicle owner must consider here; some of which include the model, generally, of the original vehicle and also the model that is going to be used as a replacement vehicle.
Refund: Lemon law also allows for a full refund of the purchase price or lease price, minus a reasonable deterioration allowance for the depreciated value of the vehicle. "Reasonable" is a relative term, so each case would be thoroughly analyzed and the amount required for the deductible determined based on the terms and circumstances of the offer, as well as the context of the case. It is important to note that Missouri lemon law is applicable to the purchase of a new or used vehicle. This is great news for new and used car purchasers. Likewise, in Missouri, every time you have the desire to replace or obtain a refund for your defective vehicle the door is open for you to do so since lemon law doesn’t have any statute of limitations that can expire to stop you from doing so.
Cash Settlement: Missouri lemon law also offers consumers the option of a cash settlement in the form of an amount that is mutually agreed upon by all parties involved. The amount of cash a consumer may receive as part of a cash settlement depends on factors such as the make, model, and price of the vehicle, and the consumer’s documentation and evidence to support the claim. This type of remedy is not typically considered a desirable outcome by most consumers because they might believe that their cars may still need repairs that might not be covered. However, it is an option that consumers could explore with their counsel and see if it is worth the time, effort, and cost of litigation.
Missouri Lemon Law Arbitration
One alternative available to consumers under Missouri’s lemon law is the right to submit a dispute for arbitration. The law provides that, at any time after a vehicle’s in-service date, a consumer may submit a dispute to arbitration for a final resolution. The only restrictions are that the issues submitted must involve the specific defects or nonconformities giving rise to the repair attempts and replacement of the vehicle requested. Holographic claims are expressly not allowed. The process is governed by LR 220.5, which provides that consumers seeking an arbitration must submit a request on a form provided by the state. The manufacturer is required to send the consumer a consumer claim request form within ten days of the consumer submitting a form asking for an arbitration. A panel of one or three individuals with some background or experience in the automotive industry selected from a list of proposed arbitrators approved by the Administrator will hear arguments in the matter, usually on the telephone. Then, within five business days of the hearing, the panel must issue a written decision which in effect acts as a final order (unless the consumer can prove that it is against Missouri law or public policy). If the consumer wins , payment must be made within thirty days from the date of the decision. Arbitration has several advantages over other avenues such as litigation. First, the process is quick. The form request to initiate an arbitration is sent to the manufacturer, and as soon as they submit their form (which they have ten days to do) the file is assigned to an arbitrator (or panel of arbitrators, at the option of the Administrator). Then, these are ordinarily completed within 60 days. This means an arbitration will generally be quicker than even purchasing a lawsuit in terms of getting a resolution. The decision is also final and cannot be appealed except in very limited circumstances. Finally, there is no legal cost to the consumer for the process. The statute expressly provides that the manufacturer must pay the costs. Many manufacturers are unwilling to pay for arbitration and argue that if the arbitration goes against them the consumer is required to file a lawsuit in order to recover the damages. While I am aware that some manufacturers have taken this position, it is my belief that the consumer is not hampered by the arbitration process, at least where they can show that the arbitrators and administrator are approving such claims.
Retaining a Lemon Law Lawyer
While it is not legally required to hire an attorney to pursue a lemon law claim in Missouri, it is strongly advised. An attorney well experienced in auto and truck lemon law can truly be invaluable when dealing with the manufacturer and the process of arbitration or litigation. Filing an arbitration is free of charge, however, pursuing a court action can come with fees, questions, and requirements you may not know about nor may have the time to accomplish yourself. An experienced lemon law attorney, however, should be familiar with all aspects of the lemon law process and ready to take on any challenges presented by the manufacturer.
There are a number of factors that need to be taken into consideration when hiring a lemon law attorney: (The following information does not constitute legal advice. It is meant to be a general outline of how to choose a lemon law attorney. For more detailed information, please consult an attorney. We are not recommending any particular attorneys to you). One of the most common ways consumers hire an attorney is through outside references. If you have heard of an attorney through an online search or one of their ads, then chances are someone you know used them for a lemon law situation. Online ads and reviews are another way to find a highly rated attorney. Ask whoever it is that referred you to them what their experience was like. Some lemon law firms also offer free consultations. They will meet with you and determine the best course of action for you. This is a good way to find out if the firm is right for you, as you can get a feel for their system, how well you are received, how knowledgeable they are, and whether they will be able to help you with your car or truck lemon law claim.
Myths About the Missouri Lemon Law
There are several misconceptions about Missouri’s lemon law and individual rights under it. One misconception is that consumers can’t do anything if the manufacturer repurchased a lemon vehicle unless they file for arbitration. This is absolutely not true and I have seen way too many people lose out on cash and other things because they were told this and did nothing at all. If the manufacturer repurchased your lemon vehicle, they are required under Missouri lemon law to return the taxes to you for the sale of the vehicle. Many consumers don’t know this and simply never ask for the taxes back. They don’t know that it’s their right under Missouri lemon law.
Another misconception is that no one can ever make up their mind about whether or not they want a new, used, or rebuilt vehicle. While I agree that this is the preference, it is not the client’s choice. I have seen many manufacturers give people rebuilt vehicles instead of repurchasing the vehicle, especially when the vehicle is a lease and not financed through the manufacturer. These vehicles may be acceptable under the law because they are made of original equipment and should be the same as a new car, but I have had clients refuse rebuilt vehicles and ask only for a repurchase. It is their choice. Don’t agree to a rebuilt vehicle if you don’t want it. I recommend giving your own input and telling the manufacturer what is acceptable to you without agreeing to anything just to get your car back.
Finally, many people think that there is only one ways to "win" on their lemon claim. This is not true either. If you or your lawyer prevail on your lemon claim after an arbitration, your claim will be reviewed by the manufacturer and they may offer you a buyback of your vehicle rather than an arbitration award. This is called "settlement" and is provided for in the Missouri lemon law. A settlement is the same as an award of attorney’s fees and should be paid promptly. I have seen many lawyers hold on to the settlement for long periods of time. I was once hired to collect a settlement for a client that was owed for over a year by another lemon law lawyer. The other lawyer held on to the check for an unknown reason. The client not only received the check, but the lawyer also agreed to pay the most minimal of his fees in this case, despite Missouri lemon law indicating the fees should be hourly, but the plaintiff’s lawyers normally agree to a set fee for doing this type of work (which is typically less than their hourly fee). Make sure you discuss the terms of your fee agreement with your lemon law lawyer and that you are receiving the settlement you deserve.
Other Sources of Help
Consumers in Missouri who seek additional assistance and information about Lemon Law will find a range of resources. The Missouri Highway Patrol provides a guide for consumers entitled "Consumer Complaint Method." The guide outlines the steps you need to take to file a complaint with the Missouri Highway Patrol.
Missouri’s Better Business Bureau is another place an unsatisfied consumer can seek support.
Missouri consumers also have access to "ConsumerAffairs," a private portal that offers additional guidance on a variety of products and services. Although "ConsumerAffairs" has no official affiliation with the state (and should not be confused with the state), Missouri consumers may find valuable information, including lists of recalls and consumer rating columns, among other resources .
Notably, "ConsumerAffairs" is not "MIDLAND LEMON LAW," a related website operated by Lemon Law advocates in the Kansas City area. (MIDLAND LEMON LAW identifies more than 130 licensed lemon law attorneys in the states of Oklahoma, Texas, Kansas, Nebraska, Missouri, Arkansas, and Iowa.) To this end, the state of Missouri itself operates the "Consumer Complaints Division" of the Missouri Attorney General’s Office. The division accepts consumer complaints about fraudulent or deceptive business practices, including fraudulent automobile sales and deceptive practices involving automobile repairs.
Lastly, and in addition to a host of other lemon law resources, the Missouri attorney general’s Living Trusts Initiative offers information to consumers who need assistance and resources on issues including identity theft, smart borrowing, fraud protection, and reducing debt.