Lemon laws are state statutes requiring manufacturers to replace or refund new vehicles with substantial, unfixable defects. Most are triggered after a set number of failed repair attempts or a defined number of days out of service within the warranty period.
Dealers need to understand lemon law obligations as they are often the first point of contact for customers with recurring warranty issues. Proper documentation of every repair attempt and timely escalation to the manufacturer are both legal requirements and best practices for managing potential exposure.