Ohio’s Lemon Law
O.R.C. 1345.71

OHIO’S LEMON LAW

In 1987, Ohio enacted the "Lemon Law" which applies to new motor vehicles. Under the Lemon Law, the consumer who has purchased a "lemon" is entitled to demand a replacement vehicle or a refund of the entire purchase price. The law requires the manufacturers to honor the express warranties on new motor vehicles during the first year or the first 18,000 miles, whichever comes first. Most vehicles will be covered by the lemon law. However, check with your consumer attorney if you have an unusual vehicle or use the vehicle in a peculiar way.

Question: I have leased what I believe to be a lemon. Does the lemon law apply to me?

Yes, under the recent amendment to the law, the definition of consumer under the law includes, "any lessee of a motor vehicle in a contractual arrangement under which a charge is made for the use of the vehicle at a periodic rate for a term of thirty days or more, and title to the vehicle is in the name of a person other than the use." 1999 H.B. 21, eff. 9-15-99

There are five definitions of a "lemon" under Ohio law. These five definitions are contained in four "black letter" laws and one "catch-all" provision. The four "black letter" law are given below and apply during the first 12 months or 18,000 miles, whichever comes first.

1. Substantially the same nonconformity has been subject to repair three or more time and continues to exist;
2. The vehicle is out of service by reason of repair for a cumulative total of thirty (30) or more calendar days;
3. There have been eight (8) or more attempts to repair any nonconformity that substantially impairs the use and value of the motor vehicle to the consumer;
4. There has been at least on attempt to repair a nonconformity that results in a condition that is likely to cause death or serious bodily injury if the vehicle is driven, and the nonconformity continues to exist.

The catch-all definition of a lemon requires the manufacturer live up to its warranty for however long that warranty may be. During this time you must give the dealer a reasonable number of chances to repair the vehicle and the defect must be cured within this "reasonable number of repair attempts."

You should consult an attorney if you feel that you may have a lemon. There is no clear rule, besides those given above, to determine when and if a cause of action has arisen. The Ohio legislature amended O.R.C. 1345.75, effective September 15, 1999 to allow a lemon law case to be brought within five (5) years of the date of the original delivery of the vehicle. Prior to the change, a case must have been brought within two (2) years of the expiration of the express warranty terms.

Question: I have financed my first new car and now I think it’s a lemon. If the dealer replaces my car who pays off the loan?

In this case you should contact your bank or finance company before agreeing to let the manufacturer replace your vehicle. You should be very wary of a replacement vehicle if your credit situation is less than ideal because the financier is under no obligation to finance the replacement vehicle. Many consumer attorneys can get your finance company to simply transfer the balance, but if the finance company is stubborn the lien will persist until the old vehicle is paid off. If this is the case you should demand a refund and have the check made out to you and the finance company. The finance company will deduct the amount of the loan and return any left over balance to you.

Question: I am a good consumer and I know my rights, I demanded a refund of my purchase price, consulted a consumer attorney and prepared for a lawsuit. The manufacturer wants to go to arbitration instead. Can they do that?

Thanks to the Magnuson Moss Warranty Act and the amended Lemon Law, manufacturers are allowed to set up arbitration programs with the Ohio Attorney General. You will be required to submit to arbitration before filing suit. Your consumer attorney should be diligent however, because if you were not given a warning, in writing, at the time you purchased the vehicle that the arbitration proceedings existed you may be able to avoid them. Your consumer attorney should also be aware of when the manufacturer applied with the Attorney General for the arbitration process. If your purchase was before the arbitration process was approved you may be able to avoid arbitration.

Should the manufacturer fail to comply with the requirements of the Lemon Law the consumer can file a lawsuit. The law provides for enforcement of the requirements of O.R.C. 1345.75 and allows the consumer to recover "reasonable" attorney fees and court costs. Competent consumer counsel may allege unfair or deceptive acts or practices in violation of the Ohio Consumer Sales Practices Act. Other laws which may help the consumer include the Magnuson Moss Warranty Act, The Uniform Commercial Code, the Retail Installment Sales Act and the Federal Truth in Lending Act.

If you have any questions regarding Ohio’s Lemon Law contact Attorney Charles M. Rowland II by email.