What is the 'lemon law' and what remedies are typically available to a consumer?

All 50 states have lemon laws protecting consumers who purchase new vehicles with substantial defects, though the specific terms vary. The federal Magnuson-Moss Warranty Act also provides additional protections. A 'lemon' is generally a vehicle with a defect that substantially impairs its use, value, or safety and that the manufacturer or dealer has been unable to fix after a reasonable number of repair attempts (commonly three to four for the same issue, or the vehicle is out of service for a cumulative 30 or more business days within the warranty period). Qualifying consumers can seek a full refund of the purchase price plus taxes and fees, or a comparable replacement vehicle at no charge. Manufacturers often fight these claims, and many states have mandatory arbitration programs before litigation.