Lemon Law Basics in Ohio
In the realm of consumer protection, Ohio’s Lemon Law plays a vital role, particularly when it comes to used vehicles purchased from dealerships. Ohio Revised Code Section 1345.71 et. seq. exists to protect consumers from significant vehicle defects, encouraging them to hold manufacturers accountable for issues affecting their safety and use. So, how does this apply to you as an Ohio consumer?
The fair and equitable Ohio Lemon Law applies to used cars sold in the state from a dealership, meaning you are protected even if you did not purchase the car directly from the manufacturer. As a broad-strokes consumer protection law, Ohio’s Lemon Law safeguards the average consumer against misleading or erroneous warranty documents while providing a means for the consumer to get their money back if the warranty is not honored.
As you may know , Ohio’s Lemon Law provides protection for new car purchases. This extended version of the state’s Lemon Law covers most auto dealerships found throughout the state including: Franchises, Independent Dealerships, Used Car Dealerships, and Repo Dealers, so long as the buyer played some part in the transaction. This may come into play in the case of someone receiving a transferred title from a family member who had issues with their vehicle. The law also protects the purchasers of leased or financed vehicles, so long as the transaction was completed with an Ohio dealership.
Clearly, Ohio’s Lemon Law provides ample protection for consumers purchasing used cars from dealerships. However, there are instances where used vehicles that were sold "as-is" would have been covered by Ohio’s Lemon Law, but either the dealership or consumer did not fulfill the requirements to partake in the benefits. In instances such as these, the consumer may be entitled to a substantial sum.
Lemon Law Coverage in Ohio for Pre-Owned Cars
The scope of Ohio’s Lemon Law as it applies to used cars from a dealership is fairly straightforward, but it does hold certain restrictions. Ohio Revised Code § 1345.71(A)(2) extends the Lemon Law to both new and used motor vehicles, however, it specifically states that the transaction must be from a "dealership", which is defined as a "person, partnership, corporation, business trust, and any other business entity" and "whose business is the retail sale or lease of motor vehicles." This provision means that the Ohio Lemon Law will not apply to a good faith transfer of a used car from a private seller despite the car having defects that would make it eligible for Lemon Law relief had the good faith transfer occurred through a dealership. The law also extends to "motor homes" sold to consumers.
The Ohio Lemon Law has certain additional restrictions for used cars:
The reason the Lemon Law put so much emphasis on whether the dealer was an authorized warranty agent for the manufacturer is to curtail liability for cars sold at auction, and then later sold to a consumer. Since the dealer who sold the car to the consumer is only entitled to the limited protections and remediations set forth in the UCC, the Ohio Lemon Law wanted to clarify that it did not want to extend protection to dealers who are not authorized to provide warranty service for the manufacturer.
Buyer Rights When Purchasing a Used Car
It’s important that you are aware of your rights and responsibilities under the lemon law to be protected, and that you are fully aware of what your rights are with used cars purchased from Ohio dealerships.
Under Ohio law in general, all written and spoken promises of the dealer that are part of the basis of the bargain must be honored by the dealer. When you buy a used car, the implications of this are significant. As a used car buyer, you have the right to a car that is reasonably free from defects that materially impairs its use, safety or value. A vehicle is also considered defective if it becomes defective within a warranty period and the dealer fails to repair the vehicle within a reasonable number of repair attempts.
The most important point here is that Ohio lemon law protections do apply to used cars purchased from a dealership – but only if the following elements are present:
Used Car Warranties under Lemon Law For the purposes of Ohio lemon law, a vehicle is presumed to have a defect that substantially impairs the use, value or safety of the vehicle if: These requirements are additive. This means that if a defect that substantially impairs the value, use or safety of the car exists, then the following requirements must also be found to exist: You don’t know if an issue goes beyond normal wear and tear until you can have it looked at by the dealership where you bought the vehicle, or by a mechanic of your choice. Until the problem is assessed, you really don’t know if it is a lemon or not. Ohio lemon law will apply to a used car if you attempt to have the defect repaired and the dealership fails to repair the defect after a reasonable number of attempts. You may also be entitled to replacement of the vehicle, or to a refund for the price of the vehicle, less any allowance for your use of the vehicle. Even if the dealer refuses to replace the vehicle, you may still be able to go to court.
If You Have a Lemon, What to Do Next
If you believe that your used car purchased at an Ohio dealership qualifies as a lemon under Ohio lemon law, immediately send a written notice to the dealership. The Ohio lemon law provides a private cause of action for any person who suffers loss or injury due to a violation of the Ohio Lemon Law, including reasonable attorney’s fees, and any consequential and incidental damages as the court may award. As such, if a manufacturer fails to honor the warranty for a lemon purchased from an Ohio dealership or if the dealership refuses to accept the return of the vehicle, the consumer may commence an action in court for breach of warranty.
The specific procedure and steps an Ohio dealership must take if confronted with a lemon complaint filed by a consumer are provided by Ohio Revised Code Section 1345.73. In short, if a consumer claims that the vehicle is a lemon, the dealership must do the following: (1) Respond to the consumer’s written demand for relief within ten days of receiving that demand; describing with reasonable specificity the proposed remedy to be afforded to the consumer in the alleged lemon claim; and (2) Within a reasonable time of filing a lemon claim, if the consumer still owns and has possession and control of the alleged lemon, any object of the alleged lemon, part, or subsystem involved in the consumer’s lemon claim, make that object, part, or subsystem reasonably available to the dealer for inspection and testing. Beyond this, the Ohio lemon law allows a dealership to provide more than the minimum relief afforded in Section 1345.73 to a consumer claiming that the vehicle is a lemon.
If you are not satisfied with the response of the dealership to your written demand for relief, or if the dealership refuses to provide you with relief, contact the Ohio Secretary of State for further action.
How Dealers Respond to a Lemon Law Concern
The reality is that used car dealerships do have an obligation to help consumers with Lemon Law issues. Unfortunately, they all don’t comply with Ohio’s law, but the good news is that you have options if your dealer refuses to help you.
So, how do dealerships handle Lemon Law claims on used cars? The biggest issue we see is the unwillingness of a dealer to help, once they find out there is a problem. We feel it is the duty for any dealership to be your first line of defense. Not having had the vehicle very long and not putting many miles on it, you should be able to return the vehicle to the dealer in exchange for something that does not have such issues. My firm sees cases all the time where a dealer sells a used vehicle, knowing the issues it has, then refuses to take it back— forcing the customer to go through the court process to get their money back or a comparable vehicle.
It is true that a dealer does not have to accept a return on a vehicle. A big misconception is that a dealer is solely responsible to fix all the problems with a vehicle. In short, this isn’t the case.
First, you have the option to ensure the dealer who sold you the vehicle can fix it. You may also allocate the repairs to the manufacturer. This means, if you have a specific issue with your vehicle, such as its transmission, you can ask a judge to force a manufacturer to return the car or buy back the car from you at the value of what you paid. The manufacturer has an obligation to fix the defect with the vehicle , even if its outside of the warranty period; however, it will force a dealer to take the car back.
You can get a new vehicle, just not necessarily from the dealer. If the manufacturer decides to take the defective vehicle back, a judge may order the manufacturer to give you a replacement vehicle of the same or similar make and model. More often than not, the manufacturer will offer you a new vehicle of the same make and model that you bought.
When you have a Lemon Law complaint, you might think you have to immediately go file a civil suit with the court to get the ball rolling with your case. This is not true. You do have this as an option; however, we always recommend to our clients that filing a complaint with the Ohio Attorney General’s Office is a great way to get the ball rolling with your case, since the client does not have to do anything, really. The Ohio Attorney General’s Office will open an investigation into your case and will send a demand for compensation to the manufacturer and/or dealer. It takes a little longer; however, many of our clients like the idea of not having to lift a finger, other than provide necessary information when asked. The Ohio Attorney General’s Office is the clients first step, but does not preclude you from filing a lawsuit if this process does not work for you.
If you are rebuffed by your dealer, ask the Attorney General’s Office to step in, and if need be, consult with a Lemon Law attorney. There is no reason to be stuck with a lemon!
Seeking Help and Staying Informed
In such cases, all Ohioans have the right to take their complaint to Ohio’s Consumer Protection Agency, where a mediator will attempt to settle your problem. If a satisfactory result is not achieved, you will receive help drafting a formal complaint that can be submitted to the Ohio Lemon Law Unit. Other advice from this agency: Copy all the documents you send and receive from the manufacturer. Step-by-step instructions on how to obtain a new vehicle from the manufacturer can be found here.
If you are uncomfortable with this process (or it is not satisfactory), you also have the option to enlist the help of a lemon law attorney who can work on your behalf. Legal aid organizations like the Ohio Legal Aid Society or other programs in the community you belong to may offer free legal advice.
Final Thoughts and Important Takeaways
In this article, we have examined the important aspects of Ohio’s Lemon Law as it applies to used cars sold by dealerships. There are a number of things that are important to keep in mind when you are a used car buyer. While many people have an understanding of the main focus of the lemon law is on new vehicles, they often overlook the application of the law to vehicles that are purchased from an Ohio dealership.
The protection that the law affords to used car buyers is significant and should not be overlooked. Protecting your rights in the event a vehicle you purchase from a dealer is defective is critical to maximizing your investment. An understanding of the law , what steps must be followed, and time limits for doing so is crucial to ensuring that you are able to obtain the relief that the law provides to you.
Lemon law for used cars provides consumers with significant protection against defective goods and should not be overlooked. The value in knowing and understanding the rights you have under the law is critical to making the most of that investment.