WORD: Lemon Law

And the WORD for Today is...

Lemon Law – refers to a law in place in most states to protect consumers from grossly unfair practices relating to the purchase of cars. Lemon laws basically say “you are protected from buying a car which was in bad condition when you bought it.” Each state which has enacted a lemon law decides what their law will cover. Generally, however, you are protected if you purchased a car which does not work properly and cannot be easily fixed. It may also apply to new as well as used cars.

The lemon law does not apply directly to real estate, but is still a term you should be familiar with as a consumer. Frequently a person’s financial problems are caused by lack of information in another area which has contributed to difficulty meeting their mortgage obligation. The lemon law is a state law which provides protection if you purchase an automobile which does not work properly and cannot be easily repaired. Paying for repairs on a car which is a “lemon” is likely to throw a curve ball into your finances. The lemon law provides an out; the dealership must repair or replace “lemons.” Therefore, the lemon law is related to your overall well-being. Lemon laws typically apply to new cars but may be applicable to used cars in some states.

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