State of New Hampshire
Office of Attorney General
Lemon Law
New cars and other new motor vehicles are covered by manufacturers' warranties. These
warranties must follow the rules set by the federal Magnuson-Moss Warranty Act and the Uniform
Commercial Code (UCC) (refer to the section on WARRANTIES for more information). The
manufacturer's warranty is provided at no extra cost to the buyer. Sometimes, despite the best
efforts of a dealer's service department, a defect cannot be satisfactorily fixed. These
un-fixable vehicles are popularly referred to as "lemons." New Hampshire's "lemon
law" provides a method for the "lemon" owner to satisfactorily resolve the problem.
New Hampshire's "Lemon Law" (RSA 357-D) applies only to new vehicles purchased from
New Hampshire dealerships. New Hampshire consumers who find themselves with a defective new vehicle
which the dealer has been unable to repair may turn to the Motor Vehicle Arbitration Board (MVAB).
The MVAB will decide whether the motor vehicle is so impaired by its defect that the manufacturer
should take the vehicle back. The MVAB, a five-person panel of consumers, auto dealers and certified
mechanics, has been in existence since January 1, 1992. The MVAB reviews consumer complaints about
defective vehicles and holds evidentiary hearings which typically include inspecting and/or test
driving the vehicle. If a majority of the panel members find that the vehicle is substantially
impaired due to defects covered by the manufacturer's warranty, the board will order the
manufacturer to either buy the "lemon" back from the consumer or, at the consumer's
option, trade the "lemon" for another vehicle of equal value. The MVAB can also award
"damages" which can include license and registration fees as well as the finance charges
(interest) for the loan to purchase the defective vehicle. Either the consumer or manufacturer can
appeal MVAB decisions to the Superior Court.
A vehicle is considered to be a "lemon" if:
- the new vehicle is substantially impaired in use, value, or safety due to a defect covered by
the manufacturer's warranty that the manufacturer or its authorized representative has not
fixed.
In order to qualify for arbitration, a consumer must ordinarily show either:
- the manufacturer or its representative has made at least three unsuccessful attempts to fix
the motor vehicle; or
- the motor vehicle has been out of service for 30 or more business days (cumulative) due to
defects or nonconformities covered by the warranty. NOTE: In some cases involving extensive or
dangerous defects, the MVAB may decide to hear a case with fewer repair attempts or days out of
service.
New Hampshire's "Lemon Law" (RSA 357-D) requires that manufacturers of new motor
vehicles provide purchasers with a notice of their rights to arbitration under New Hampshire law,
including a "demand for arbitration" form. Furthermore, New Hampshire dealerships are
required to post a notice of consumer rights under this statute in all new car showrooms.
NOTE: New Hampshire's "Lemon Law" applies only to "new" motor vehicles,
described in the statute as vehicles still under manufacturer's original warranty. Low mileage
used cars may, under some circumstances, qualify for arbitration and relief under the "lemon
law" for defects in systems covered by a warranty. Older used cars, which are out of warranty
when purchased do not generally fall within the protection of the New Hampshire "Lemon
Law".
EXAMPLE: In 1995, Joe Smiley buys a used 1993 Tomoto Tomatovan with only 25,000 miles on the
odometer. The vehicle is still covered by the manufacturer's 50,000 mile drive train warranty.
If Joe experiences recurrent transmission problems with the vehicle during the remaining warranty
period, he would probably qualify for a hearing before the MVAB under the NH "Lemon
Law". If, on the other hand, Joe had bought his van with 60,000 miles on the odometer and all
original manufacturer's warranties had expired, he probably would not qualify for assistance
under the NH "Lemon Law."
Manufacturers' Warranties
New Hampshire's "Lemon Law" also requires that any motor vehicle sold in New
Hampshire conform to the applicable manufacturer's warranty and that manufacturers promptly
correct defects covered by the warranty. This requirement is complemented by RSA 382-A:2-329 which
requires automobile manufacturers to maintain in-state service agents and to provide parts needed
for repairs within 30 days or less.
What To Do, Where To Go If You Have A Problem
Better Business Bureau
for mediation and arbitration assistance
if your car's problem does not fall under
New Hampshire's "Lemon Law"
Better Business Bureau
410 South Main St.
Concord, NH 03301
224-1991, 228-3789, 228-3844
1-800-955-5100
New Hampshire Motor Vehicle Arbitration Board
for arbitration if your car's problem falls under the
New Hampshire "Lemon Law"
MVAB
10 Hazen Dr.
Concord, NH 03301
271-6383
New Hampshire Consumer Protection & Antitrust Bureau
NH Consumer Protection & Antitrust Bureau
33 Capitol St.
Concord, NH 03301
271-3641
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