Thursday, July 18, 2013

Varying state lemon laws


Every state has different laws as it relates to lemon laws and defective new vehicles. Some states' lemon law are more favorable to consumer than others. Unfortunately, in Texas, the lemon law has been heavily lobbied by care manufacturers and dealerships; and therefore, is not very favorable to consumers.

A sign that a state lemon law is helpful to consumers is if it contains an attorney fee shifting provision. An attorney fee shifting provision requires a manufacturer to pay for the consumer's attorney fees, in the event the consumer wins the case. Often times, after buying a vehicle (the second largest purchase behind a house), most consumers do not have excessive funds to hire an attorney to seek recourse against car manufacturers.

The Texas lemon law has a "pseudo" attorney fee shifting provision. The provision is triggered during the arbitration and only if the car manufacturers hire an attorney. Unfortunately, car manufacturers abuse this provision and never obtains an attorney, instead, they bring car experts who have received legal training to the arbitration instead. Hence, the "pseudo" attorney fee shifting provision is rendered useless and if often never triggered.

source: texaslemonlawblog.com