What is a lemon law?

A lemon law is a state law that gives buyers remedies, such as a replacement vehicle or a refund, when a new vehicle has a serious defect the manufacturer cannot fix after a reasonable number of repair attempts or days out of service. Each state sets its own rules for what qualifies, the time or mileage limits and the process, which may include arbitration. Some states also cover used cars or leased vehicles. Check your state attorney general's website for your state's law.