Lemon Law - Oregon
Lemon Law - "Lemon
law" is that body of state law which defines an automobile
owners rights when the manufacturer is not able to repair the
automobile within the limits specified. In
such cases, the automobile is referred to as a "lemon",
and is subject to the conditions of the state lemon law.
Your Lemon Law:
These pages are created to inform and educate the public about lemon
law and under the lemon law in your state. They are not and
should not be considered legal opinions or advice as to whether you
have rights under lemon law or whether you should pursue "a
lemon law case". If after reading this information,
you believe you qualify, you should seek the advice and counsel of
an attorney specializing in lemon law in your state. Remember
that each state's lemon laws vary.
As used in ORS 646.315 to 646.375:
(a) The purchaser or lessee,
other than for purposes of resale, of a new motor vehicle normally
used for personal, family or household purposes;
(b) 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 an express
warranty applicable to such motor vehicle; and
(c) Any other person
entitled by the terms of such warranty to enforce the obligations of
vehicle" means a passenger motor vehicle as defined in ORS
801.360 that is sold in this state.
646.325 Availability of remedy.
The remedy under the provisions of
ORS 646.315 to 646.375 is available to a consumer if:
(1) A new motor vehicle does
not conform to applicable manufacturer's express warranties;
(2) The consumer reports
each nonconformity to the manufacturer, its agent or its authorized
dealer, for the purpose of repair or correction, during the period
of one year following the date of original delivery of the motor
vehicle to the consumer or during the period ending on the date on
which the mileage on the motor vehicle reaches 12,000 miles,
whichever period ends earlier; and
(3) The manufacturer has
received direct written notification from or on behalf of the
consumer and has had an opportunity to correct the alleged defect.
"Notification" under this subsection includes, but is not
limited to, a request by the consumer for an informal dispute
settlement procedure under ORS 646.355.
646.335 Consumer's remedies;
manufacturer's affirmative defenses.
(1) If the manufacturer or
its agents or authorized dealers are unable to conform the motor
vehicle to any applicable manufacturer's express warranty by
repairing or correcting any defect or condition that substantially
impairs the use, market value or safety of the motor vehicle to the
consumer after a reasonable number of attempts, the manufacturer
(a) Replace the motor
vehicle with a new motor vehicle; or
(b) Accept return of the
vehicle from the consumer and refund to the consumer the full
purchase or lease price paid, including taxes, license and
registration fees and any similar collateral charges excluding
interest, less a reasonable allowance for the consumer's use of the
(2) Refunds shall be made to
the consumer and lien holder, if any, as their interests may appear.
A reasonable allowance for 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
(3) It shall be an
affirmative defense to any claim under ORS 646.315 to 646.375:
(a) That an alleged
nonconformity does not substantially impair such use, market value
or safety; or
(b) That a nonconformity is
the result of abuse, neglect or unauthorized modifications or
alterations of the motor vehicle by the consumer.
646.345 Presumption of
reasonable attempt to conform.
Extension of time for repairs;
notice to manufacturer.
(1) It shall be presumed
that a reasonable number of attempts have been undertaken to conform
a motor vehicle to the applicable manufacturer's express warranties
if, during the period of one year following the date of original
delivery of the motor vehicle to a consumer or during the period
ending on the date on which the mileage on the motor vehicle reaches
12,000 miles, whichever period ends earlier:
(a) The same nonconformity
has been subject to repair or correction four or more times by the
manufacturer or its agent or authorized dealer, but such
nonconformity continues to exist; or
(b) The vehicle is out of
service by reason of repair or correction for a cumulative total of
30 or more business days.
(2) A repair or correction
for purposes of subsection (1) of this section includes a repair
that must take place after the expiration of the earlier of either
(3) The period ending on the
date on which the mileage on the motor vehicle reaches 12,000 miles,
the one-year period and the 30-day period shall be 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
(4) In no event shall the
presumption described in subsection (1) of this section apply
against a manufacturer unless the manufacturer has received prior
direct written notification from or on behalf of the consumer and
has had an opportunity to cure the defect alleged.
646.355 Use of informal dispute
Condition for remedy; binding
effect on manufacturer.
If the manufacturer has established
or participates in an informal dispute settlement procedure that
substantially complies with the provisions of Title 16, Code of
Federal Regulations, Part 703, as from time to time amended, and
causes the consumer to be notified of the procedure, ORS 646.335
concerning refunds or replacement shall not apply to any consumer
who has not first resorted to the procedure. A decision resulting
from arbitration pursuant to the informal dispute settlement
procedure shall be binding on the manufacturer.
646.357 Informal dispute
Record keeping; review by
Department of Justice.
A manufacturer which has
established or participates in an informal dispute settlement
procedure shall keep records of all cases submitted to the procedure
under ORS 646.355 and shall make the records available to the
Department of Justice if the department requests them. The
department may review all case records kept under this section to
determine whether or not the arbitrators are complying with the
provisions of ORS 646.315 to 646.375 in reaching their decisions.
646.359 Judicial review;
damages; attorney fees.
(1) If a consumer appeals to
a court from a decision resulting from the informal dispute
settlement procedure established by ORS 646.355 because the consumer
was not granted one of the remedies specified in ORS 646.335 (1),
and the consumer is granted one of the specified remedies by the
court, the consumer shall also be awarded up to three times the
amount of any damages if the court finds that the manufacturer did
not act in good faith in the dispute settlement procedure.
(2) If a consumer brings an
action under ORS 646.315 to 646.375 against a manufacturer who has
not established informal dispute settlement procedures and the
consumer is granted one of the remedies specified in ORS 646.335
(1), the consumer shall also be awarded three times the amount of
(3) The court may award
reasonable attorney fees to the prevailing party in an appeal or
action under this section.
646.361 Limitations on actions
(1) Nothing in ORS 646.315
to 646.375 creates a cause of action by a consumer against a vehicle
(2) A manufacturer may not
join a dealer as a party in any proceeding brought under ORS 646.315
to 646.375, nor may the manufacturer try to collect from a dealer
any damages assessed against the manufacturer in a proceeding
brought under ORS 646.315 to 646.375.
646.365 Limitation on
commencement of action.
Any action brought under ORS
646.315 to 646.375 shall be commenced within one year following
whichever period ends earlier:
(1) The period ending on the
date on which the mileage on the motor vehicle reaches 12,000 miles;
(2) The period of one year
following the date of the original delivery of the motor vehicle to
646.375 Other Remedies
Other Remedies supplementary to
existing statutory or common law remedies; election of remedies.
Nothing in ORS 646.315 to 646.375
is intended in any way to limit the rights or remedies that are
otherwise available to a consumer under any other law. However, if
the consumer elects to pursue any other remedy in state or federal
court, the remedy available under ORS 646.315 to 646.375 shall not
be available insofar as it would result in recovery in excess of the
recovery authorized by ORS 646.335 without proof of fault resulting
in damages in excess of such recovery.