Laws in The United States
Five years after Akerlof's paper was published, The United States enacted a federal "lemon law" (the Magnuson-Moss Warranty Act) that protects citizens of all states. There are also state laws regarding "lemons" which vary by state and may not necessarily cover used or leased vehicles. The rights afforded to consumers by "lemon laws" may exceed the warranties expressed in purchase contracts. These state laws provide remedies to consumers for automobiles that repeatedly fail to meet certain standards of quality and performance. "Lemon law" is the common nickname for these laws, but each state has different names for the laws and acts, which may also cover more than just automobiles. In California and federal law, "Lemon Laws" cover anything mechanical.
The federal "lemon law" also provides the warrantor may be obligated to pay your attorney fees if you prevail in a lemon law suit, as do most state lemon laws. If a car has to be repaired for the same defect four or more times and the problem is still occurring, the car may be deemed to be "a lemon." The defect must substantially hinder the vehicle's use, value or safety. Purchasers who knowingly purchase a car in "as is" condition accept the defects and void their rights under the "lemon law".
Read more about this topic: The Market For Lemons
Famous quotes containing the words united states, laws, united and/or states:
“The United States never lost a war or won a conference.”
—Will Rogers (1879–1935)
“The process of discovery is very simple. An unwearied and systematic application of known laws to nature causes the unknown to reveal themselves.”
—Henry David Thoreau (1817–1862)
“So here they are, the dog-faced soldiers, the regulars, the fifty-cents-a-day professionals riding the outposts of the nation, from Fort Reno to Fort Apache, from Sheridan to Stark. They were all the same. Men in dirty-shirt blue and only a cold page in the history books to mark their passing. But wherever they rode and whatever they fought for, that place became the United States.”
—Frank S. Nugent (1908–1965)
“The one who first states a case seems right, until the other comes and cross-examines.”
—Bible: Hebrew, Proverbs 18:17.