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Oregon Lemon Law / Breach of Warranty

Oregon Lemon Law

Consumers who have purchased or leased a new automobile with major defects are protected by Oregon's lemon law. Passed in 1983, this law gives owners of "lemons" the remedy of a new vehicle or a refund of the vehicle purchase price, less a reasonable allowance for the use of the vehicle.
What constitutes a "lemon"? According to the law, four requirements that must be met:

  1. The motor vehicle must have been purchased in Oregon.
  2. The purchaser (original owner or subsequent buyer) must have purchased the vehicle for personal, family or household purposes during the express warranty period.
  3. The vehicle must have returned to the dealer four or more times for the same defect, OR the vehicle was out of service at the dealer due to the defect for 30 or more days, for a serious defect that substantially impairs the use and market value of the vehicle.
  4. The defect was first reported to the dealer within the first 12,000 miles or one year from purchase.

If you are entitled to receive a new vehicle or a refund for the full purchase price, there will be a deduction for the miles on the vehicle, or what the statute calls "a reasonable allowance for the use of the vehicle".

It is important to note that the law is designed to address major defects that substantially impair the use and market value of the vehicle. It does not cover problems that are the result of accidents, abuse, neglect or unauthorized modifications or alterations of your car.

Contact us to see if you have a valid claim!


Breach of Warranty

If your case does not qualify for the Lemon Law, you may still have a Breach of Warranty claim. Your vehicle came with a basic warranty, which is a promise by the manufacturer that it will repair certain defects in your car, or that your car will be of a certain quality, for a specified period of time. If you purchased a manufacturer’s extended warranty, the promise (and potential basis for a lawsuit) is extended accordingly. The defect must be covered under the warranty to qualify for a breach of warranty. Typically, the remedy is a partial refund.

As in a lemon law case, you must first give the seller a reasonable opportunity to fix the defect. Not every problem or defect will qualify as a "breach of warranty." It depends on the terms of the warranty and the severity of the problem. Also, warranties have time limits.

Contact us to find out if you have a valid claim!

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