A common misconception occurs when people buy cars where some folks assume if there's something wrong, they can take the car back for a refund. This is not the case. Both federal and some state laws provide for lemon laws, but some hoops need to be jumped through first by the consumer.
Federal Law
The Magnuson-Moss Warranty Act represents the federal law that applies to car purchases; any product sold over $25 must have a written warranty included. It also requires the warranty be provided for reading prior to purchase. If a product is defective, the maker has to provide a replacement or refund.
State Laws
Unlike federal law, under which a car maker can have various warranties on a car, state laws apply to the whole of a vehicle. However, the protection is typically limited. California allows 18 months or 18,000 miles of coverage. Pennsylvania and New Jersey cover refunds or replacements with legal costs.
Cooling Off Periods
The idea of driving off in a new car and returning it after some sort of cooling-off period is a myth. Many jurisdictions hold the purchase agreement as the transfer of ownership. Dealerships also make it a point to explain this fact to buyers. Reading through a contract is the best customer defense.
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