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Oregon Lemon Law
Every year, thousands of Oregonians trade in their old model cars
for new ones. Most are happy with their new purchase, but for some,
it's a "sour" experience from the minute they take the wheel. Those
consumers, who discover all too soon that they have purchased an
automobile with major defects, are protected by Oregon's "lemon law."
Passed by the 1983 Legislature, the Oregon Lemon Law gives purchasers of "lemons"
the right to receive a new vehicle or a refund of the vehicle purchase
price less a reasonable allowance for use.
If you are planning on or have recently purchased a new car, protect
your investment by keeping copies of all repair bills, major and minor,
just in case you end up with a "lemon" a few months later.
If you suspect you own a "lemon" and want to take advantage of your
rights under the Oregon Lemon Law, there are four requirements that must be
met:
1) The passenger motor vehicle must have been purchased IN
OREGON on or after January 1, 1984. This law was amended in 1989 to
include motorcycles.
2) The purchaser, whether the original owner or subsequent buyer, must
have purchased the vehicle for person, family or household purposes
during the express warranty period.
3) The vehicle must be a "lemon." It qualifies as a "lemon" if the
manufacturer, its agents, or authorized dealers were unable to repair
the same defect after four or more attempts or if the vehicle is out of
service due to the defect for 30 or more business days.
The spirit of the law concerns a serious defect that substantially
impairs the use and market value of the vehicle and that occurs within
the first 12,000 miles or one year, whichever comes first.
You must also notify the manufacturer of the problem in writing so they have an opportunity to cure the defect.
4) If the manufacturer participates in a third party arbitration
program and notifies you of the procedure, then you are obligated to
try to solve your problem through the arbitration program to be
eligible for a refund or a replacement vehicle. If you cannot reach a
settlement in the arbitration, you may sue the manufacturer in court.
The court has the authority to award three times the amount of any
damages, not to exceed $50,000, if the court finds the manufacturer
acted in bad faith.
If the four requirements are met, you are entitled to
receive a new vehicle or a refund for the full purchase price including
taxes and license and registration fees, less a reasonable allowance
for the use of the vehicle. It is the manufacturer's choice whether you
get a refund or a replacement vehicle.
It is important to note that the law is designed to deal with major
defects that substantially impair the use and market value of the car.
It does not cover problems that are the result of abuse, neglect or
unauthorized modifications or alterations of the car by the consumer.
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