What is a Lemon Car Under New Jersey Lemon Law?

New Jersey Lemon Law covers new passenger vehicles, combination vehicles, SUVs, trucks, business vehicles, RVs, and motorcycles that are purchased, leased, or registered in New Jersey.  In order to be considered a “lemon,” the vehicle must meet the following requirements: 

• Does not conform to the manufacturer’s express warranty
• Has substantial defects affecting the use, safety or value of the vehicle
• Has manufacturer’s defects that occurred during the first two years from the original owner’s delivery date or the first 18,000 miles on the odometer (whichever period ends first)
• Has been taken in three times for the same problem or if it has been out of service for 20 days due to a series of unrelated problems
• Defects were not caused by an accident, vandalism, abuse, or neglect
• Cannot have problems associated with any modifications that you made

Pursuing a NY Lemon Law Claim

If the manufacturer doesn’t accept your Lemon Law claim, and will not refund your money or replace your vehicle, you have three choices: use the Division of Consumer Affairs’ Automotive Dispute Resolution Program; use the manufacturer’s dispute settlement program; or go to court.

It is generally in your best interests to have an attorney represent you. After all, vehicle manufacturers have teams of lawyers that do nothing but fight Lemon Law claims. As you consider your options, imagine the difference between going up against a team of lawyers on your own, versus having a Lemon Law attorney speak on your behalf. Also keep in mind that being represented by a Lemon Law attorney won’t cost you a dime; the law says that the car manufacturer has to pay your attorney’s fees in successful New Jersey Lemon Law claims. This is true even if you participate in the Division of Consumer Affairs’ Automotive Dispute Resolution Program, since the decision is binding to both parties and the manufacturer will be represented by a legal team.

If you choose to go it alone and participate in the Division of Consumer Affairs’ Automotive Dispute Resolution Program, you can download a form available through the Attorney General’s website [link to http://www.state.nj.us/lps/ca/ocp/lemonc.pdf] and send the completed form and copies of all of your documentation to state officials. If your application is accepted, you will be asked to send a $50 filing fee.

The Dispute Resolution Program allows you to have your case heard by an administrative law judge in the Office of Administrative Law. Once your application is accepted, your hearing will be scheduled within 20 days. Likewise, a decision will be issued within 20 days of your hearing. The director of the Division of Consumer Affairs can accept, modify, or reject the decision. If no action is taken by the director, the decision of the administrative law judge becomes final.

The Arbitration Hearing

A hearing is similar to a trial. Both you and a representative from the manufacturer speak before the judge. Typically, you will speak first. The attorneys for the manufacturer can question you; when the attorneys for the manufacturer speak, you can question them. Remember that NJ Lemon Law provides for attorney’s fees for consumers in administrative law hearings, so you can hire a lawyer and expect that the manufacturer will have to pay the bill if you succeed.

While the hearing is less formal than an actual court proceeding, you need to come prepared to present your case. You will need the records that outline all of the work done on your car and all of the diagnosed problems. It is also important that you have your records in chronological order and ready to present to the panel in an organized fashion.

You must prove to the judge that the claims you are making are true. It is absolutely vital that you bring proof of each and every point you plan on making. A “he-said-she-said” argument will never result in a ruling in your favor.

Pursuing Lemon Law Litigation in Court

If you decide to hire a lemon attorney, it’s likely that your case will proceed to court. The litigation process is usually divided into several stages, and your lawyer will do most of the heavy lifting for you.

Pre-Litigation

To avoid the delays and expenses associated with litigation, lawyers usually try to resolve most cases before going to trial. If a consumer doesn’t have an attorney, most manufacturers don’t resolve consumer complaints in the hope that the consumer won’t pursue his or her case. Once you hire a lemon lawyer, however, manufacturers understand that they will ultimately be responsible for your attorney’s fees, and so many settle cases before litigation even begins.

If a Settlement is Not Reached

If no satisfactory settlement is reached, litigation will begin. » Read more