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In American English, a lemon is a vehicle that turns out to have several manufacturing issues affecting its safety, value or utility. Any vehicle with such severe issues may be termed a lemon, and by extension, so may any product with flaws too great or severe to serve its purpose.
The concept of describing a highly flawed item as a "lemon" predates its use in describing cars and can be traced back to the beginning of the 20th century as a British and American slang term. "To hand someone a lemon" in British slang dated 1906 was "to pass off a sub-standard article as a good one"; in 1909, American English slang use of "lemon" represented "worthless thing, disappointment, booby prize". [1]
Its first attribution to mean a problematic car was in a Volkswagen advertisement created by Julian Koenig and Helmut Krone as part of an advertisement campaign managed by William Bernbach, all advertising executives with the firm Doyle Dane Bernbach in 1960, which was a follow-up to their Think Small advertising campaign for VW. [2]
Economist George Akerlof in his 1970 paper "The Market for Lemons: Quality Uncertainty and the Market Mechanism" [3] identified the severe lemon problems that may afflict markets characterized by asymmetrical information. [4]
New vehicles may contain flaws or defects in workmanship, caused by design flaws or by an error during the automotive factory build process. These errors can range from parts being installed incorrectly to a tool that was used to build the car not being removed or a batch of materials with structural or chemical flaws. The idiom "Friday afternoon car" was used to describe new cars that had been delivered with numerous faults or suffered from an excessive number of warranty claims early in their lives – based on the premise that assembly line workers were far more likely to make errors at the times when they were perceived to be least interested in the standard of their workmanship.
Consumer protection legislation typically labels vehicles as "lemons" if the same problem recurs despite multiple repair attempts (such as three times in a row over a short period, where previous attempts have not corrected the problem) or where defects have caused a new vehicle to be out of service for a prolonged period (typically 30 days or longer) for repairs.
Lemon laws primarily serve to force manufacturers to buy back defective vehicles or exchange them. Depending on the jurisdiction, a process similar to vehicle title branding may also be used to warn subsequent purchasers of the history of a problem vehicle. While this portion of a vehicle's history is usually not retained with the title when exporting it to another jurisdiction, at least one jurisdiction (California) has started compelling manufacturers to brand the titles of any previously reacquired vehicles that they import or export from the jurisdiction.
The Magnuson–Moss Warranty Act is a United States federal law enacted in 1975 to protect consumers from deceptive warranty practices. The Act was sponsored by Senator Warren G. Magnuson of Washington with co-sponsors Senator Frank Moss of Utah, and U.S. Representative John E. Moss of California. The purpose of the Act was to make product warranties more easily understood and enforceable, and to provide the Federal Trade Commission with a means of better protecting consumers. The Act does not force a manufacturer to include a warranty with its products but if there is one it must be in writing and comply with the rules of the Magnuson-Moss Warranty Act. [5]
While used cars may be plagued with the same problems that beset new vehicles, used vehicles may also have been abused, improperly maintained or poorly repaired, been unprofessionally rebuilt after a collision or tampered with in some manner to conceal high mileage, mechanical defects, corrosion or other damage.
One form of lemon is called a cut and shut or clipping, a form of body collision "repair" based on buying a wrecked car and sawing off the wrecked section to replace it with a matching section from another (similar) car. If improperly repaired, these vehicles may be inherently dangerous; at high speeds, or in an accident, the car may come apart due to the weaknesses of the welds or pins connecting the two segments of the vehicle or mismatches of segments. [6] [7] In the UK cut and shut cars are treated like any car that has had major repair work resulting in what is essentially a new car. They must first be inspected for road-worthiness, be assigned a new registration number and pass the standard MOT test. If this is successful, they will be given a "Q" registration, meaning they are a kit, or composite car, and not an original unit from the manufacturer. [8] In some states of the USA, the sale of cut and shut vehicles is illegal. Cars created using two or more large sections of previous ones are sometimes called "zipper cars".
Product liability is the area of law in which manufacturers, distributors, suppliers, retailers, and others who make products available to the public are held responsible for the injuries those products cause. Although the word "product" has broad connotations, product liability as an area of law is traditionally limited to products in the form of tangible personal property.
"The Market for 'Lemons': Quality Uncertainty and the Market Mechanism" is a widely cited seminal paper in the field of economics which explores the concept of asymmetric information in markets. The paper was written in 1970 by George Akerlof and published in the Quarterly Journal of Economics. The paper's findings have since been applied to many other types of markets. However, Akerlof's research focused solely on the market for used cars.
An extended warranty, sometimes called a service agreement, a service contract, or a maintenance agreement, is a prolonged warranty offered to consumers in addition to the standard warranty on new items. The extended warranty may be offered by the warranty administrator, the retailer or the manufacturer. Extended warranties cost extra and for a percentage of the item's retail price. Occasionally, some extended warranties that are purchased for multiple years state in writing that during the first year, the consumer must still deal with the manufacturer in the occurrence of malfunction. Thus, what is often promoted as a five-year extended guarantee, for example, is actually only a four-year guarantee.
In law, a warranty is an expressed or implied promise or assurance of some kind. The term's meaning varies across legal subjects. In property law, it refers to a covenant by the grantor of a deed. In insurance law, it refers to a promise by the purchaser of an insurance about the thing or person to be insured.
A service plan is a contract to purchasers of products for an additional fee. While service plans resemble extended warranties, there are several important differences between the two, often cited by retailers that sell them.
Lemon laws are laws that provide a remedy for purchasers of cars and other consumer goods in order to compensate for products that repeatedly fail to meet standards of quality and performance. Although many types of products can be defective, the term "lemon" is mostly used to describe defective motor vehicles, such as cars, trucks, and motorcycles. Lemon laws originated to protect car buyers since vehicles that constantly have issues create risks and huge headaches.
The Magnuson–Moss Warranty Act is a United States federal law. Enacted in 1975, the federal statute governs warranties on consumer products. The law does not require any product to have a warranty, but if it does have a warranty, the warranty must comply with this law. The law was created to fix problems as a result of manufacturers using disclaimers on warranties in an unfair or misleading manner.
The Center for Auto Safety is a Washington, D.C.-based 501(c)(3) consumer advocacy non-profit group focused on the United States automotive industry. Founded in 1970 by Consumers Union and Ralph Nader, the group focuses its efforts on enacting reform though public advocacy and pressuring the National Highway Traffic Safety Administration and automakers through litigation. For decades, it was led by Executive Director Clarence Ditlow, who died in late 2016 from cancer. Ditlow was widely admired in the auto safety community, although he also had detractors among auto manufacturers. The Center for Auto Safety is currently led by Executive Director Jason Levine.
Vehicle title branding is the use of a permanent designation on a vehicle's title, registration or permit documents to indicate that a vehicle has been written off due to collision, fire or flood damage or has been sold for scrap.
An automobile repair shop is an establishment where automobiles are repaired by auto mechanics and technicians. The customer interface is typically a service advisor, traditionally called a service writer.
Redhibition is a civil action available under Louisiana law against the seller and/or manufacturer of a defective product, similar to the lemon laws more familiar to common law jurisdictions in other U.S. states. Redhibition is one of many laws that are unique to Louisiana among U.S. states because of its tradition in French and Spanish civil law.
In Henningsen v. Bloomfield Motors, Inc., 32 N.J. 358, 161 A.2d 69, the New Jersey Supreme Court held that an automobile manufacturer's attempt to use an express warranty that disclaimed an implied warranty of merchantability was invalid.
An authorized service provider (ASP) or Authorized Repair Provider (ARP) is defined in New York General Business Law § 399-nn is defined to mean "An individual or business who has an arrangement with the original equipment manufacturer under which the original equipment manufacturer grants to the individual or business a license to use a trade name, service mark, or other proprietary identifier for the purposes of offering the services of diagnosis, maintenance or repair of digital electronic equipment under the name of the original equipment manufacturer, or other arrangement with the original equipment manufacturer to offer such services on behalf or the original equipment manufacturer."
The Motor Vehicle Owners' Right to Repair Act, sometimes also referred to as Right to Repair, is a name for several related proposed bills in the United States Congress and several state legislatures which would require automobile manufacturers to provide the same information to independent repair shops as they do for dealer shops.
Think Small was one of the most famous ads in the advertising campaign for the Volkswagen Beetle, art-directed by Helmut Krone. The copy for Think Small was written by Julian Koenig at the Doyle Dane Bernbach (DDB) agency in 1959. Doyle Dane Bernbach's Volkswagen Beetle campaign was ranked as the best advertising campaign of the twentieth century by Ad Age, in a survey of North American advertisements. Koenig was followed by many other writers during Krone's art-directorship of the first 100 ads of the campaign, most notably Bob Levenson. The campaign has been considered so successful that it "did much more than boost sales and build a lifetime of brand loyalty [...] The ad, and the work of the ad agency behind it, changed the very nature of advertising—from the way it's created to what you see as a consumer today."
A defeat device is any motor vehicle hardware, software, or design that interferes with or disables emissions controls under real-world driving conditions, even if the vehicle passes formal emissions testing. The term appears in the US Clean Air Act and European Union regulations, to describe anything that prevents an emissions control system from working, and applies as well to power plants or other air pollution sources, as to automobiles.
Increases in the use of autonomous car technologies are causing incremental shifts in the responsibility of driving, with the primary motivation of reducing the frequency of traffic collisions. Liability for incidents involving self-driving cars is a developing area of law and policy that will determine who is liable when a car causes physical damage to persons or property. As autonomous cars shift the responsibility of driving from humans to autonomous car technology, there is a need for existing liability laws to evolve to reasonably identify the appropriate remedies for damage and injury. As higher levels of autonomy are commercially introduced, the insurance industry stands to see higher proportions of commercial and product liability lines, while personal automobile insurance shrinks.
Greenman v. Yuba Power Products, Inc, was a California torts case in which the Supreme Court of California dealt with the torts regarding product liability and warranty breaches. The primary legal issue of the case was to determine whether a manufacturer is strictly liable in tort when an article he places on the market proves to have a defect that causes injury to a human being. The case was originally heard in a San Diego district court where the verdict was against the manufacturer. This verdict was appealed by the manufacturer to the Supreme Court of California which was presided by Gibson, C. J., Schauer, J., McComb, J., Peters, J., Tobriner, J., and Peek, J., and the opinion was delivered by Judge Roger J Traynor.
Small—On Safety: The Designed-In Dangers of the Volkswagen is a nonfiction book written by the Center for Auto Safety, with an introduction by Ralph Nader. The book looks at the deficiencies in the safety aspects of the vehicles sold by Volkswagen. It was published on September 11, 1972 by Grossman Publishers. The book is based on a study released in September 1971 by the Center entitled The Volkswagen: An Assessment of Distinctive Hazards. The book concluded that "the Volkswagen Beetle is the most hazardous car currently in use in significant numbers in the United States" and that "the VW microbus or van is so unsafe that it should be removed from the roads entirely."
Right to repair is a legal right for owners of devices and equipment to freely modify and repair products such as automobiles, electronics, and farm equipment. This right is framed in opposition to restrictions such as requirements to use only the manufacturer's maintenance services, restrictions on access to tools and components, and software barriers.
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