According to Edmunds.com, a lemon---as it relates to transportation---is a vehicle that continues to have defects which substantially impact its safety, use or value. (ref 1) All 50 states use some form of "lemon law." (ref 1)
About the law
The State of California, in particular, protects its citizens through its lemon laws---the Song-Beverly Consumer Warranty Act and the Car Buyer's Bill of Rights FFVR 35. (refs 2 & 3). The Warranty Act ensures that the conditions of the warranty are satisfied. FFVR 35 addresses contract cancellations, certified vehicles, finance fees and credit score disclosures.
Private Sellers
According to the California Department of Motor Vehicles, the state's lemon laws do not apply to transactions between private parties. (ref 2) The DMV advises consumers having disputes with private sellers to contact an attorney, the Small Claims division of the local county court or the California Attorney General. (ref 2)
Licensed Dealers
Lemon laws in California apply only to new or used vehicles purchased from a licensed automobile dealer in the state.
Many provisions apply to both new and used vehicles, but there are some notable differences. For example, dealers unable to satisfy the warranty on a new vehicle must refund the purchase price minus a calculated fee based on the owner's usage; this fee does not apply when dealers buy back used vehicles.
In addition, two provisions apply only to used car purchases: consumers have an opportunity to obtain a two-day sales contract-cancellation option, and specific requirements exist for cars designated as "certified." (ref 2)
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