Lemon Law for Used Cars in Alaska

Alaska's Lemon Law does not cover used vehicles. However, in 1995 the Alaska Attorney General's office issued a Business Advisory to used car dealers that outlined the responsibilities for used car dealers. They must:

• Make a reasonable inspection of each used car. If the initial inspection reveals that the car may have a defective or dangerous condition, or if the dealer has any other knowledge that the vehicle may be potentially defective or dangerous, the dealer must conduct an in-depth inspection.
• Give honest answers to customers' questions about the used car's condition, to tell the customer about anything that makes the car dangerous, even if the customer does not ask.
• Not misrepresent the condition of a car or engage in conduct that creates confusion or misunderstanding about the condition of a vehicle or the terms of sale.

In addition:

• Every used car sales is covered by the Uniform Commercial Code, which provides that there is an implied warranty by the dealer that the car is free of serious defects at the time of sale.
• It is illegal for a dealer to sell a car "as is" if the customer purchases a service contract for the car. A service contract comes with a four-year guarantee that the car is free of serious defects or dangerous conditions at the time of sale.
• It is legal for a dealer to sell a car "as is" if the customer does not purchase a service contract for the car.

According to the Business Advisory:

• Violation of the law may give the customer the right to back out of the purchase and obtain a refund for the purchase price, less a deduction for the customer's use of the vehicle.
• A dealer may offer to trade the defective car for another vehicle, but the customer is not required to accept the offer.
• The customer can sue under the Consumer Protection Act and obtain up to three times the amount of the actual damages from the dealers, as well as attorney's fees.

In addition, there are several other types of laws that can be used to help you in the event you discover that you've bought a used car lemon. First, the Federal Trade Commission (FTC) has what's called the Used Car Rule that requires dealers to provide consumers with a Buyer's Guide with warranty and other types of information. If the dealer has in any way failed to abide by the FTC Used Car Rule, you may have the basis for a legal claim.

Second, each state has what are called Unfair and Deceptive Acts and Practices (UDAP) laws. If the dealer has, for example, made verbal promises or didn't tell you about issues relating to your used car, you may have a cause of action. Third, Alaska's version of the Uniform Commercial Code may provide you with relief. Finally, the Truth in Lending Act and the Federal Odometer Act might also be valuable in obtaining lemon justice.