The Lemon Law in Massachusetts is more favorable to consumers than similar statutes in other states, but there is a catch that’s often overlooked. The Mass law provides that a vehicle is a lemon if the same problem is repaired 3 or more times or if it sits in the shop for 15 business days or more in the first 15,000 miles or 1 year since purchase.  Here’s the formula:

MA Lemon =  3 repairs/15 business days in repair in the shorter of 1 yr/15,000 miles + notice + final repair

But here’s the catch. The law requires the consumer to give the manufacturer one last shot at fixing the car once it hits the 3 repairs/15 days out requirement. The notice must be sent by certified mail, return receipt requested.   It must describe the problem and demand relief. Frequently, the notice will also state that the consumer demands relief under MGL 93A, which provides for treble damages and attorney’s fee.  The manufacturer than has 7 business days from its receipt of the notice to make the car right - this is called the MA Lemon Law Final Repair Attempt.  If the car still malfunctions after the last repair opportunity, it’s a lemon.

Here’s the rub, though, and this often comes up in cases. If you fail to send the notice, or if you send it incorrectly, or if you take your car in for repair before the manufacturer receives the notice, your MA lemon law case doesn’t accrue. In other words, to count as a MA Lemon Law Final Repair, the manufacturer must receive the notice before your visit to the dealer. Otherwise, the clock will start ticking once again, and the repair will not count a final repair.

NYT’s Wheels blog reports that Toyota has begun a program to buy back 813,000 defective 1995-200 Tacoma trucks and could cost almost $100 million.  These trucks have frames so badly rusted that they cannot be repaired.  

The warranty is automatically extended on these lemon cars to 15 years (from the time they were new) and unlimited mileage.  On the buybacks, Toyota will pay 1.5 times the suggested retail price for a vehicle in excellent condition as calculated by Kelley Blue Book.

According to the Wheels blog

The program is good for consumers because Toyota is willing not just to buy back vehicles, but to pay much more than book value, said Clarence Ditlow, the executive director of the Center for Auto Safety. “Traditionally, when manufacturers have bought back older vehicles they have used the Kelley Blue Book straight price,” Mr. Ditlow said. “Taking care of customers is how Toyota gets to No. 1.”

“These vehicles may not have been properly treated in the plant with the undercoating that they use,” said Sam Butto, a Toyota spokesman.

Mr. Butto said he was not sure how much the program would cost, but it is “among the most aggressive programs we have put together in trying to take care of our customers.”

On behalf of all lemon owners we applaud Toyota for its efforts. In the days when corporations are sqeezing the little guy, it’s remarkable that a company would choose to do a recall so comprehensive. Good for you, Toyota.

I recently got a call from a consumer whose pricey vehicle was drinking oil at an alarming clip. He inquired whether we would be able to take the case based on the theory that excessive oil consumption in his vehicle is a defect in manufacture. 

It seemed to him like a no-brainer, but things aren’t always what they seem. That’s because in most states, to qualify for lemon law, the defect must be more than minor or annoying.  Instead, it must substantially affect the use, safety or value of the vehicle in question.

Like all things in life, car defects fall on a spectrum, from minor to significant.  On the minor end of the spectrum, I’d put various squeaks, rattles, noises, and cosmetic defects.  While annoying, these will usually not qualify under lemon law, unless they are symptomatic of a larger mechanical problem. On the other end of the spectrum lie various water leaks, fluid leaks, transmission malfunctions, engine failures, electrical screwups etc etc. Then there is everything in the middle. 

So the bottom line is this: to qualify as a true lemon vehicle, the car must have something seriously wrong it.  But what of the fellow with the leaking luxury mobile? We took the case. It turned out there was an oil leak in the engine after all, and we’ll be litigating the case in New Jersey in the coming months

The Consumerist recently wrote about Chrysler’s cute new undertaking to get serious about quality.  That’s all news to us and to Consumerist too.  Pretty soon, each of Chrysler’s top 300 executives will get on the phone and call a customer who recently bought a Chrysler, Dodge or Jeep vehicle and ask a simple question: “Having any problems?”  Cars.com’s Kicking Tires blog wrote about the same topic as well, though the Consumerist’ sceptical tone is more along the lines of my personal opinion.

I could give them a few numbers to some of my lemon law clients, but my hunch is that they won’t have any problems finding dissatisfied customers.  It’s sort of like shooting fish in a barrel, I suppose. 

Get this, though… the execs are going to call one customer a day every day until Chrysler chairman and chief executive officer Bob Nardelli (freshly dumped by Home Depot) is satisfied that if his customers have troubles, their problems will be fixed. Nardelli, by the way, is going to make the calls, too.

I say, dude, you’ve got to be kidding me. How about you start with designing and manufacturing quality products, instituting strict quality controls, training mechanics to fix problems, and just generally, why don’t you start making good, reliable transportation.  That would be where I’d begin.  Forcing your execs to talk to customers is just a PR gimmick, nothing more! 

Who would have thought, but in New Jersey, televisions, iPods and other consumer electronic products may soon get the same consumer protections that car buyers get with the state’s automotive lemon law, under a bill approved and passed by the Assembly Consumer Affairs Committee.

Under the law, a lemon gadget manufacturer would have to replace electronic devices that cannot be repaired within 3 attempts with a device of equal value and condition or give a full refund of the total purchase price.  The bill applies to items valued at more than $250.   Violators would be subject to fines under the New Jersey’s Consumer Fraud Act. A first offense would carry with it fines up to $10,000. All subsequent offenses would carry a penalty of up to $20,000.

We are glad to hear that the lemon law in Jersey is being extended.  But how about other stuff? What about lemon dishwashers? Lemon fridges? The list goes on and on, so stay tuned for more…..