History of California Lemon Law

Prior to enactment of the Lemon Laws automotive consumers had tiny protection when they bought a vehicle that later had repeated issues caused by manufacturing defects. The consumer was expected to return the vehicle to the repair shop to have the issue fixed under the manufacturer's automobile warranty. This was not only an inconvenience, but could even be hazardous if the issue was not properly fixed, thereby possibly affecting the safety, value, & use of the vehicle.


The Magnuson-Moss Warranty Act which was enacted by Congress in 1975, while much broader in its scope, is fundamentally the federal Lemon Law designed to protect consumers who bought defective vehicles. Each state now has its own version of the Lemon Laws for new vehicle purchases. Most states also cover leased vehicles & some also provide relief for purchasers of used vehicles subject to definite conditions. Lemon laws may also include mobile homes, motorcycles, & boats.

The Los angeles Song-Beverly Consumer Warranty Act was enacted in 1970 to protect consumers who bought or leased new automobiles which turned out to be "lemons" because of manufacturing defects. The Act said that if the manufacturer or its authorized dealer was unable to service or repair a new vehicle to meet the terms of the manufacturer's written warranty after a "reasonable number of repair attempts," the manufacturer was necessary replace the vehicle or return the acquisition cost to the buyer or lessee. Regrettably, the term "reasonable number of repair attempts" was poorly defined & left to the discretion of the manufacturer. Also, a manufacturer could refuse to repurchase the vehicle if it determined that the vehicle had been abused by the buyer after delivery, for example, if the terms of the maintenance & directions for proper use of the vehicle had not been followed.

California's Lemon Law puts Los angeles consumers among the most protected in the nation. But this has not always been true. The law has evolved & been amended over the years to include other categories of purchasers & lessors of motor vehicles thereby expanding consumer rights.


In 1987 the New york Arbitration Act was enacted to withdraw the power of states to need judicial resolution. This encouraged manufacturers & consumers to resolve their disputes by non-judicial means such as mediation & arbitration before resorting to court.

n 1982 New york assembly member, Sally Tanner, proposes new guidelines for California's Lemon Laws which took effect in January, 1983 & set clearer guidelines for what is a "reasonable number of repair attempts. The number of attempts was to be determined according to the nature of the issue & in particular as related to the safety of the vehicle. Further, the act was expanded to include the sale or lease of used vehicles which were still covered by the manufacturer's original new automobile warranty at the time of purchase. This law became the model for Lemon Law statutes in all 50 states.

The Consumer Notification Act was introduced in 1991 to protect consumers from purchasing or leasing vehicles that manufacturers had historicallyin the past repurchased as "lemons." Under this act, auto manufacturers were necessary to brand the titles of reacquired "lemons" & submit the vehicles' titles of those vehicles to the New york Department of Motor Vehicles. If the reacquired vehicle was to be resold, the necessary repairs first had to be made, & the manufacturer & its dealers had to disclose to the potential buyer or lessor that the vehicle had been repurchased under New york lemon laws & that the title was branded.

In 1992 the art of the Song-Beverly Consumer Warranty Act which pertains to motor vehicles, i.e., the New york Lemon Law, was renamed the "Tanner Consumer Protection Act" in honor of its author, New york assembly member, Sally Tanner.

In 1995 the New york legislature enacted additional enforcement provisions which provided for the suspension of the licenses of manufacturers who did not adhere to the provisions of the Act.

Prior to 1998 on the repurchase of a "lemon" manufacturers prohibited the disclosure of the terms of the buyback settlement agreement. In 1998 this was changed so that only the financial terms of the settlement could be prohibited from being disclosed.

 new major amendments, Assembly Bill 1290 & Senate Bill 1718, were passed in 1999 & 2000 providing additional protection for consumers. Under AB1290 of the definitions of ""reasonable of repair attempts," was expanded to apply its protections for 18 months or 18,000 miles in lieu of 12 months or 12,000 miles. SB 1718 further clarified the term "reasonable number of repair attempts," as applies to vehicle defects likely to cause death or serious bodily injury, by reducing the number of failed repair attempts from to. It also expanded Lemon Law protection to those vehicles bought or used primarily by a business, as long as the vehicle weight is less than ten,000 pounds & five or fewer vehicles are registered in the name of the business.

Current financial reform efforts hoped to further protect automobile consumers by regulating the finance & insurance practices of dealerships so us to prevent definite kinds of unfair & misleading practices. The National Automobile Dealers Association (NADA) successfully lobbied for its automobile dealers to be exempted from this financial regulation. Nevertheless, the new Consumer Financial Protection Agency will generate a powerful, independent consumer agency that will help to eliminate lots of of the tricks & traps of industry.