Lemon Law Presentation - YouTube

Welcome to the Office of Consumer Affairs and Business Regulations

presentation on the Massachusetts lemon laws, know your rights car buying and

selling. There are five regulatory agencies under the Consumer Affairs

umbrella. Consumer Affairs operates a hotline to provide information and

answer questions about a variety of topics including the lemon laws. During

this presentation we will discuss the lemon laws and the vehicles that these

laws cover. We will also provide details about our new and used vehicles

arbitration program and we will discuss our offices initiatives in several areas

including curb stoning. There are three specific lemon laws in Massachusetts, the

new and leased vehicle lemon law, the used Vehicle Warranty law, and the lemon

aid law. These laws cover new vehicles that are bought or leased, used vehicles

that have less than 125,000 miles on the odometer at the time of sale, and

vehicles that fail inspection within seven days from the date of sale,

irrespective of mileage. The lemon laws do not cover used motorcycles, or used

vehicles that were leased, vehicles used primarily for business purposes, auto

homes, vehicles that are built primarily for off-road use, or boats. The warranty

for vehicles that are bought or leased new is one-year or 15,000 miles. Vehicles

that are bought with less than 125,000 miles have a warranty of at least 30

days or 1,250 miles. What defects are covered? For new vehicles the lemon laws

cover any defects that substantially impair the use, safety, or market value.

For used vehicles the lemon laws cover defects that impair the use or safety.

The lemon laws also cover vehicles that fail inspection within the first seven

days from the date of sale. If the cost of repairs exceed 10 percent of the

purchase price.

When you find a defect that is covered during your vehicle's warranty period or

term of protection your first step is to inform the selling dealer and let them

try to fix it. If the dealer or manufacturer does not fix the defect

within the time that the law deems reasonable you are entitled to a refund.

For used vehicles this means three repair attempts for the same problem or

11 business days for any combination of problems. For new vehicles this means

three repair attempts for the same problem or 15 business days for any

combination of problems. There is one extra step for new vehicles, you need to

give the manufacturer and not the selling dealer 7 more business days to

fix the problem after the initial criteria are met. If the dealer or

manufacturer refuses to buy back the vehicle you can try to get your money

back by applying to our Office's arbitration program. If your case is

eligible and accepted for arbitration a hearing will be scheduled within three

to five weeks of the date of acceptance. The arbitrator is legally authorized to

decide whether or not the dealer or manufacturer has to buy the car back

from you. Up till now we've been discussing vehicles that are bought from

a new or used car dealer, the law also covers private party sales. Private

sellers are bound by the lemon-aid law. If the vehicle fails inspection within

seven days from the date of sale and if the cost of repairs exceed 10% of the

purchase price the buyer can void the sale as long as they take the remaining

steps within 14 days. The remaining steps include obtaining a written statement

from the inspection station that failed the vehicle, notifying the seller of

their intention to return the vehicle, and delivering the vehicle to the seller.

Private sellers are also bound by the used Vehicle Warranty law. They are

required to disclose defects that impair the safety or substantially impair the

use. Failure to disclose such defects will entitle the buyer to rescind the

sale within 30 days. Now let's talk about some of the documents that are required

when buying or selling a car. A certificate of title for a motor vehicle

is a legal document issued by the MA RMV to certify the vehicle's

ownership. If you have a car loan, the title also indicates the lien holder

that financed the purchase of the vehicle. A bill of sale is required

whether or not the car is bought from a dealer or a private seller. Dealers are

required to include certain information on the bill of sale which is called a

motor vehicle purchase contract. Always look for any additional fees listed on

your purchase documents. An example of a common fee is a documentation fee or

dock fee. Consumer Affairs has undertaken several initiatives to protect dealers,

private sellers, and consumers in the purchase and sales of motor vehicles. One

of these efforts is directed towards the prevention of curb stoning, the illegal

sale of cars by unlicensed dealers in locations other than licensed

dealerships. Check out our blog at http://blog.mass.gov/consumer/ to read about

hot topics in the automotive industry and to learn how to protect yourself

from scams and pitfalls of car buying.

The Office of Consumer Affairs and Business Regulation will be

administering a new customized wheelchair arbitration program which is

similar to the lemon law arbitration program. This new wheelchair lemon law

program will be for consumers who have problems with their new wheelchairs and

who have paid some or all of the cost out of pocket.

Stay an educated consumer. Please feel free to follow us on our social media

channels. We also maintain a blog of informative consumer alerts that you can

share with your family and friends. Thank you for listening to our presentation on

the motor-vehicle lemon laws in Massachusetts. You can find more

informative consumer presentations on other topics on our website. If you have

a group that you would like one of our educational outreach team members to

speak to, please contact our office.