A lemon law is a statute that obliges the manufacturer of the new vehicle that has a non-conformity (a persistent condition or fault that can cause the decrease in its value, use or safety) to provide a refund or a new replacement. Each state has its own lemon law and lemon laws in America can vary. The father of lemon law statutes is the Magnuson-Moss Act. Enacted in 1975, it has become a landmark publication. It was aimed at promoting consumer rights to protect buyers against acquiring continually defective vehicles. It is an effective tool to counter deceptive warranty practices. It is applicable to goods with a price tag of over $25 bought after 4 July 1975 (the date the legislation came into force) with a major emphasis on automobiles.

The Act is centered on the express warranty that the manufacturer supplies the customer with. It facilitates bringing in warranty suits as it envisages the award of the attorney's fees. What is an express warrant? It is an oral or written confirmation by the manufacturer to remedy any defects or replace the vehicle if he fails to meet the specifications set forth within a stated period time, which is often referred to as a warranty period.

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