What is the Wisconsin Lemon Law?
The Wisconsin Lemon Law is a statutory form of recovery which became effective on November 3, 1983. It can apply to new vehicles, used vehicles purchased within the written warranty period and leased vehicles.
A vehicle is a "lemon" if it has a condition that substantially impairs its use, value or safety and the vehicle is out of service 30 days (for all defects) or subject to repair 4 times for the same defect and the defect continues, or cannot be repaired at all. This condition is called a nonconformity.
In order to qualify as a "lemon", the nonconformity must occur and be reported to the manufacturer or authorized dealer within the earlier of one year after the date of delivery or before the expiration of the warranty period.
What nonconformities do not give rise to a claim under the Lemon Law?
Some nonconformities do not give rise to a lemon law claim. Nonconformities that do not impair the use, value or safety of the vehicle do not give rise to a lemon law claim. Also, nonconformities which are not covered by the manufacturer's warranty do not give rise to a lemon law claim ( for example, defects or nonconformities caused by an aftermarket item). Characteristics of a particular vehicle such as heavy steering on a vehicle without power steering or poor acceleration of a vehicle with a small engine, also do not give rise to a lemon law claim. Defects or nonconformities due to incorrect operation, abuse, neglect or unauthorized modification or alteration of a vehicle also do not give rise to a lemon law claim.
How do you make a claim under the Lemon Law?
You must first contact the manufacturer, in writing, and indicate that you believe the vehicle is a lemon and demand relief specifically referring to Wisconsin's Lemon Law. The manufacturer then has 30 days to either provide a refund or a comparable new vehicle.
If the manufacturer does not provide the appropriate relief then you need to determine if you want to submit to arbitration. If the manufacturer has a arbitration program that complies with Wisconsin Department of Transportation rules, you must submit the dispute to arbitration before starting a lawsuit. You are not bound to accept the decision at arbitration but the manufacturer is. If you are not happy with the outcome of the arbitration you can then file a lawsuit.
If the manufacturer does not have an arbitration program that complies with Wisconsin Department of Transportation rules, it is up to you whether or not you want to go through arbitration. Again, the arbitration decision is not binding on you unless you agree to binding arbitration. If arbitration is not mandatory, you may proceed to file a lawsuit without this step.
Are you limited to filing a claim only under the Lemon Law?
No. If you have a vehicle that is defective you can try to file a claim under the Lemon Law. However, if your vehicle does not qualify, or if you are unsure if your vehicle qualifies, you may be able to file a claim for misrepresentation, breach of warranty, or breach of contract. Depending on the circumstances, there may be other claims that would apply as well.
What type of relief are you entitled to under the Lemon Law?
The available relief varies. However, you may be entitled to a refund of your purchase price and collateral costs (minus a reasonable allowance for use), or a comparable new vehicle plus your collateral costs. Collateral costs include such things as expenses incurred in connection with the repair of the nonconformity and alternate transportation costs.
If the manufacturer does not respond to your request for relief within thirty days, and you go to court and you win, you may be entitled to double damages, costs of the lawsuit and reasonable attorney fees, plus any equitable relief the court deems appropriate.