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Oregon Automotive Lemon Laws 


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STANDARDS OF THE OREGON LEMON LAW

The following is an brief explanation of most relevant provisions of the Oregon lemon law. The complete text of the lemon law can be found at Oregon Rev. Stat. §§ 646.315 to 646.375.

VEHICLES COVERED BY THE OREGON LEMON LAW

The Oregon lemon law covers any passenger motor vehicle sold in Oregon. The lemon law covers used vehicles.

CONSUMERS COVERED BY THE OREGON LEMON LAW

The Oregon lemon law covers any of the following —consumers“:

  1. The purchaser or lessee, other than for purposes of resale, of a new motor vehicle normally used for personal, family or household purposes;

  2. Any person to whom a new motor vehicle used for personal, family or household purposes is transferred for the same purposes during the duration of the express manufacturer vehicle warranty; and

  3. Any other person entitled by the terms of the express warranty to enforce its obligations.

PROBLEMS COVERED BY THE OREGON LEMON LAW

The Oregon lemon law covers any defect or condition that (1) does not conform to the applicable manufacturer‘s express warranty and (2) substantially impairs the use, market value or safety of the vehicle to the consumer. This is referred to as a nonconformity.

The lemon law provides manufacturers with an affirmative defense if it can be shown that the alleged nonconformity does not substantially impair the use, market value or safety; or the nonconformity is the result of abuse, neglect or unauthorized modifications or alterations of the vehicle by the consumer.

MANUFACTURER‘S DUTY TO REPURCHASE OR REPLACE A VEHICLE

If a vehicle does not conform to the applicable manufacturer‘s express warranty, the consumer must report the nonconformity for the purpose of repair or correction to the manufacturer, its agent or its authorized dealer, during the period of one year following the date of the motor vehicle‘s original delivery to the consumer or during the period ending when the motor vehicle mileage reaches 12,000 miles, whichever period ends first.

If the manufacturer or its agents or authorized dealers are unable to conform the vehicle to the applicable manufacturer‘s express warranty by repairing or correcting any nonconformity after a reasonable number of attempts, the manufacturer must replace or repurchase the vehicle.

REASONABLE NUMBER OF REPAIR ATTEMPTS

The Oregon lemon law establishes a presumption that a reasonable number of repair attempts have been undertaken if, during the period of one year following the date of the motor vehicle‘s original delivery to the consumer or during the period ending when the vehicle mileage reaches 12,000 miles, whichever period ends first, either of the following events has occurred:

  1. The same nonconformity has been subject to repair or correction four or more times by the manufacturer or its agent or authorized dealer, but the nonconformity continues to exist; or

  2. The motor vehicle is out of service by reason of repair or correction for a cumulative total of 30 or more business days.

A repair or correction that —must take place“ after the expiration of the 12 month/12,000 mile period shall be included in determining whether the presumption has been met. In addition, the 12 month/12,000 mile period and the 30œday period are extended by any period of time during which repair services are not available to the consumer because of a war, invasion, strike, fire, flood or other natural disaster.

The lemon law states that the presumption shall not apply against a manufacturer unless the manufacturer has received prior written notification from or on behalf of the consumer and has had an opportunity to cure the alleged defect.

NOTICE AND OPPORTUNITY TO REPAIR

The remedies provided by the lemon law are not available to a consumer unless the manufacturer has received direct written notification from or on behalf of the consumer and has had an opportunity to correct the alleged defect. A request by the consumer to an informal dispute settlement procedure such as BBB AUTO LINE satisfies this notice requirement.

DISPUTE RESOLUTION

If the manufacturer has established or participates in an informal dispute settlement procedure that complies with 16 C.F.R. Part 703, and causes the consumer to be notified of the procedure, then the provisions requiring refund or replacement do not apply unless the consumer has first resorted to the informal dispute settlement procedure.

TIME PERIOD FOR FILING CLAIMS

An action must be commenced within one year following the earlier of (1) the period ending on the date on which the mileage on the vehicle reaches 12,000 miles, or (2) the period of one year following the date of the motor vehicle‘s original delivery to the consumer.

 

REMEDIES UNDER THE OREGON LEMON LAW REPURCHASE OF OWNED VEHICLES

The Oregon lemon law provides that a manufacturer must pay the following amounts when it repurchases a vehicle under the lemon law:

  1. The full purchase or lease price paid; and

  2. Taxes, license fees, registration fees, and any similar collateral charges, excluding interest;

  3. Less a reasonable allowance for the consumer‘s use of the vehicle.

Refunds must be made to the consumer and lienholder, if any, as their interests may appear.

The reasonable allowance is that amount directly attributable to use by the consumer prior to the first report of the nonconformity to the manufacturer, agent or dealer, and during any subsequent period when the vehicle is not out of service by reason of repair.

REPLACEMENT

When replacing a motor vehicle under the Oregon lemon law, the manufacturer must provide a new motor vehicle. The reasonable allowance for use does not apply to a replacement.

This information is not intended as legal advice. Please direct specific questions to your legal counsel.

 

OREGON LEMON LAW SUMMARY

EXECUTIVE SUMMARY
TIME PERIOD FOR FILING CLAIMS One year following the earlier of (1) 12,000 miles, or (2) one year
following original delivery to the consumer.
ELIGIBLE VEHICLE Any passenger motor vehicle sold in Oregon.
Covers used vehicles.
ELIGIBLE CONSUMER (1) Purchaser or lessee, other than for purposes of resale, of a new motor vehicle normally used for personal, family or household
purposes; (2) any person to whom a new motor vehicle used for
personal, family or household purposes is transferred for the same
purposes during the duration of the express manufacturer vehicle
warranty; and (3) any other person entitled by the terms of the
express warranty to enforce its obligations.
TIME PERIOD FOR FIRST Earlier of one year following original delivery to the consumer or
OCCURRENCE OR NOTICE 12,000 miles.
TIME PERIOD FOR REASONABLE Not specified.
NUMBER OF ATTEMPTS TO
REPAIR
PRESUMPTION Presumption: during earlier of one year following original delivery
OR DEFINITION to the consumer or 12,000 miles, either (1) four or more repair attempts or (2) out of service for 30 or more business days.
NOTICE TO MANUFACTURER For remedies to apply; direct written notification from or on behalf
of the consumer (including notice from dispute settlement
procedure).
FINAL OPPORTUNITY TO REPAIR For remedies to apply.
REASONABLE ALLOWANCE Refund only: use by the consumer prior to first report of
nonconformity and during any subsequent period when the vehicle is
not out of service by reason of repair.
DISPUTE RESOLUTION If manufacturer has an informal dispute settlement procedure that
complies with 16 C.F.R. Part 703, and manufacturer causes the
consumer to be notified of the procedure, then refund or replacement
does not apply unless the consumer has first resorted to the procedure.
DISCLOSURE TO SUBSEQUENT No.
PURCHASER
TITLE BRANDING No.

This information is not intended as legal advice. Please direct specific questions to your legal counsel.

OREGON LEMON LAW SUMMARY
1. Citation Oregon Rev. Stat. §§ 646.315 to 646.375.
2. Motor vehicle covered Covers any passenger motor vehicle sold in Oregon. Covers used vehicles.
3. Consumer covered (1) The purchaser or lessee, other than for purposes of resale, of a new motor vehicle normally used for personal, family or household purposes; (2) Any person to whom a new motor vehicle used for personal, family or household purposes is transferred for the same purposes during the duration of the express manufacturer vehicle warranty; and (3) Any other person entitled by the terms of the express warranty to enforce its obligations.
4. Nonconformity defined Not defined. Any defect or condition that (1) does not conform to the applicable manufacturer‘s express warranty and (2) substantially impairs the use, market value or safety of the vehicle to the consumer is referred to as a nonconformity.
5. Warranty defined Not defined.
6. Lemon law rights period Not defined.
7. Manufacturer‘s obligation to repair Not specified.
8. Manufacturer‘s obligation to repurchase or replace If a motor vehicle does not conform to the applicable manufacturer‘s express warranty, the consumer must report the nonconformity for the purpose of repair or correction to the manufacturer, its agent or its authorized dealer, during the period of one year following the date of the motor vehicle‘s original delivery to the consumer or during the period ending when the motor vehicle mileage reaches 12,000 miles, whichever period ends first. If the manufacturer or its agents or authorized dealers are unable to conform the vehicle to the applicable manufacturer‘s express warranty by repairing or correcting any nonconformity after a reasonable number of attempts, the manufacturer must replace or repurchase the vehicle.
9. Criteria for reasonable number of repair attempts Presumed if, during the period of one year following the date of the motor vehicle‘s original delivery to the consumer or during the period ending when the vehicle mileage reaches 12,000 miles, whichever period ends first, either of the following events has occurred: 1. The same nonconformity has been subject to repair or correction four or more times by the manufacturer or its agent or authorized dealer, but the nonconformity continues to exist; or 2. The motor vehicle is out of service by reason of repair or correction for a cumulative total of 30 or more business days. A repair or correction that must take place after the expiration of the 12 month/12,000 mile period will be included in determining whether the presumption has been met. The presumption does not apply against a manufacturer unless the manufacturer has received prior written notification from or on behalf of the consumer and has had an opportunity to cure the alleged defect.
10. Notice of nonconformity and final opportunity to repair The remedies provided by the lemon law are not available to a consumer unless the manufacturer has received direct written notification from or on behalf of the consumer and has had an opportunity to correct the alleged defect. A request by the consumer to an informal dispute settlement procedure such as BBB AUTO LINE satisfies this notice requirement.
 
11. Affirmative defenses It is an affirmative defense that (1) The alleged nonconformity does not substantially impair the use, market value or safety; or (2) The nonconformity is the result of abuse, neglect or unauthorized modifications or alterations of the vehicle by the consumer.
12. Refund Refund consists of: (1) The full purchase or lease price paid; and (2) Taxes, license fees, registration fees, and any similar collateral charges, excluding interest; (3) Less a reasonable allowance for the consumer‘s use of the vehicle.
13. Replacement Replacement is a new motor vehicle.
14. Reasonable allowance Applies to a refund only. A reasonable allowance for the consumer‘s use is that amount directly attributable to use by the consumer prior to the first report of the nonconformity to the manufacturer, agent or dealer, and during any subsequent period when the vehicle is not out of service by reason of repair.
15. Refund of sales tax Manufacturer refunds —taxes“ to the consumer. (Note that Oregon does not assess a sales tax.) No provision for the manufacturer to obtain a refund of sales tax from the state.
16. Enhanced damages In an action in court under the lemon law, the court must award up to three times the amount of damages, up to $50,000 over and above the lemon law remedy, if the court finds that the manufacturer did not act in good faith.
17. Attorney‘s fees The court may award reasonable attorney fees to the prevailing party in an appeal or action.
18. Statute of limitations An action must be commenced within one year following the earlier of (1) the period ending on the date on which the mileage on the vehicle reaches 12,000 miles, or (2) the period of one year following the date of the motor vehicle‘s original delivery to the consumer.
19. Manufacturer sponsored arbitration If the manufacturer has established or participates in an informal dispute settlement procedure that complies with 16 C.F.R. Part 703, and causes the consumer to be notified of the procedure, then the provisions requiring refund or replacement do not apply unless the consumer has first resorted to the informal dispute settlement procedure.
20. State-sponsored arbitration Not specified.
21. Dealer liability Nothing in the lemon law creates a cause of action by a consumer against a vehicle dealer. A manufacturer may not join a dealer in any proceeding under the lemon law, nor may the manufacturer try to collect from a dealer any damages assessed against the manufacturer in a proceeding brought under the lemon law.
22. Restrictions on resale of returned vehicles Not specified.
23. Point of sale notice of lemon law rights Not specified.
24. Limitation on waiver Not specified.

This information is not intended as legal advice. Please direct specific questions to your legal counsel.

 


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