Tenessee's lemon law protects car buyers whose deal turns sour.
Buying a car is a major expenditure for most people, often representing months of income and years of saving or investment to pay for maintenance, fuel and licensing. To protect car buyers, Tennessee is among the states that has a lemon law. This law provides consumers with an option for a refund or exchange if a car fails to provide reliable transportation.
Coverage
The Tennessee state legislature passed the current lemon law in 1986, and only vehicles purchased in 1987 or later are eligible for coverage. Tennessee's lemon law applies only to vehicles that are bought new. It extends for at least one year, or six months beyond the expiration of the manufacturer's original warranty.
Eligibility
Cars are eligible for lemon law protection if they meet one of several criteria. A car must have a problem that substantially impairs it. This may mean that it is unsafe to drive or has a very low resale value because of the defect.
The owner must give the car dealer at least four opportunities to repair the problem. Once a vehicle fails to function normally after four repair attempts for the same problem, it qualifies for lemon law protection. A car also can become eligible for lemon law protection is if it is inoperable for at least 30 days because it needs repairs.
Procedure
To receive a refund or exchange under the lemon law, a car buyer must take a series of steps. Consumers should be able to present all receipts and records from repair attempts, along with any warranty information, work orders or other written information on the repair process.
Drivers wishing to receive a refund under the lemon law must notify the car's manufacturer of their intent by sending a letter through certified mail. The automaker then has 10 days to take action. If the automaker offers a mediation or dispute settlement procedure, the car owner must go through this process. If not, or if the procedure still fails to produce a satisfactory arrangement, the car buyer may contact an attorney and file a motion in state court to rule on the dispute under the provisions of the lemon law.
Refunds
Tennessee courts may require an automaker to offer a replacement vehicle of comparable value to a car buyer who wins a lemon law case. The court may also require the automaker to offer the owner a refund. The refund is based on the purchase price of the vehicle, along with the cost of repair attempts and attorney fees or court costs. The automaker may, however, withhold a reasonable allowance for use while the car was still operable.
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