Nearly everyone has heard the term "Lemon Law" and most people know that it pertains to dealers and manufacturers selling defective cars to the public. Thankfully there are a few statutes that protect you if you are sold a "lemon" car. One of them was constructed in 1975 as the Magnuson-Moss Warranty Act which was designed to prevent deception, improve the accuracy of information given to the buyer and improve competition in the marketplace.
What does the act apply to?
The Magnuson-Moss Warranty Act applies to any item or consumer product that is worth more than $15, stating that it has to be accompanied by a warranty with readily understandable language for the consumer. The seller must provide the buyer with detailed information about the warranty and its coverage. It was originally intended to give consumers more information about what they were buying to ensure better customer satisfaction. It also holds the seller to the standard of product of which they are selling.
What does it not apply to?
The act does not require companies to provide a warranty. If a warranty is offered by the seller then in must comply with the Magnuson-Moss Warranty Act but it is not, by law, required to do so. Congress wanted to give buyers an option to shop around for the best products and warranties so that it would create competition and spread economic growth. Manufacturer's have the option to not provide a warranty but since most competitors will offer one as an incentive, it would be unwise not to.
The act also does not apply to resale items. Most vehicles that are resold are sold "as is"; however, a dealer or manufacturer cannot knowingly sell the consumer a defective vehicle without disclosing it first. The consumer will be covered under the San Diego, CA lemon law if it can be proven that the dealer knew about the defect but did not share that information with the buyer. If the consumer agrees to buy the defective vehicle "as is" then the seller is covered legally.
About the Author
Ryan is an avid blogger and writer living in San Diego, CA.