Many of our posts focus on personal vehicles because that is mainly how lemon laws apply. Most states cover personal cars and trucks (and sometimes motorcycles and other vehicles), and a few also cover used personal vehicles. It’s possible that you are a business person with company vehicles or a vehicle fleet, and you may wonder what lemon law coverage your state will provide, should you need it.
What we’ll see is that lemon law coverage for business vehicles varies by state and can be complex. Even if your state law has limits on business vehicles, an experienced lemon law attorney can often find a path forward, starting with a free consultation.
Why You Should Take Advantage of a Lemon Law Attorney’s Free Consultation
With the complexities involved in lemon law cases, it’s important to know first if your claim is valid per state lemon laws. The free consultation (866-440-2460) is your opportunity to present your evidence. Your attorney will review it and determine if your claim fits state lemon law requirements.
What are the Lemon Law Coverage Rules for Fleet Vehicles and Cars Used for Business?
Your attorney will know how the laws work in your state, but how some states approach lemon law coverage for business vehicles is via providing coverage for Class 1-3 trucks, which are classified by Gross Vehicle Weight Rating (GVWR). This is how much weight the vehicle is allowed to carry (fuel, cargo, passengers), up to 14,000 pounds for Class 3. In general, Class 1 are lighter-duty trucks and small minivans. Class 2 are generally ½- and ¾-ton pickups. Class 3 usually consists of heavy-duty pickups or small box trucks.
Another criterion used to determine coverage is the size of the business fleet. States can impose limits, such as the business fleet can be no larger than 5 or 10 vehicles.
For more information on arbitration and other frequently asked Breach of Warranty questions, click here.
Defining a Substantial Defect Under Lemon Law
While it’s important to verify if your state covers your type of business vehicle(s), the main premise of state lemon law is determining if the vehicle exhibits a substantial defect. Under lemon law definitions, this is a defect that severely impacts the use, value, or safety of the vehicle. It is unrepairable after the state’s allotted number of repair attempts to the manufacturer. Often this is 3–4 repair attempts; each state sets this number. It can be less if the issue is a safety hazard.
But What If Your State Doesn’t Provide Business Vehicle Coverage or Provides Limited Coverage?
Ultimately, there are some avenues to pursue, even if your state isn’t one of the ones that provides lemon law coverage for business vehicles. Your lemon law attorney may pursue your claim via the federal Magnuson-Moss Warranty Act, which can help protect you, as it can be used to hold manufacturers accountable to their own warranties. Magnuson-Moss is primarily a consumer-focused law, but your attorney may use it to pursue compensation for dual-use vehicles, not ones bought just for business, and likely not large trucks and machinery.
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How Attorneys Can Maximize Compensation in Business Lemon Law Cases
Here we’ll review a few examples of business lemon law claims. In the following examples, it’s important to note that these businesses followed the primary rule for most state lemon laws: the vehicle was purchased from an authorized, in-state dealership and remained under the manufacturer’s original warranty.
Case 1 involves a small landscaping business in California with three registered trucks. The owner was frustrated due to one truck’s recurring transmission failure. In California, the law covers vehicles registered to businesses with five or fewer vehicles.
A lemon law attorney pursued compensation for this business owner, despite the manufacturer accusing the owner of neglect of the vehicle. The attorney successfully argued that the vehicle met the ‘small business’ exception, forcing a buyback the manufacturer at first refused.
Case 2: A Georgia tech company bought a fleet of three minivans for its field engineers. They were excited to have the new vehicles until two exhibited “phantom braking” issues. The business owner was frightened by these braking problems and sought legal counsel to avoid a potential disaster.
Some states focus on the Gross Vehicle Weight Rating (GVWR) rather than who owns the fleet. These minivans fell within the state’s weight limit. The attorney argued that the defect posed a liability risk to the company. The attorney successfully leveraged state safety standards to secure a full refund.
Lemon laws are confusing. Read our guide to the lemon law complaint process.
Case 3: A Texas company provided a single car to an executive. He used it mostly for personal driving, with only occasional trips to job sites. In the first year, the car developed a serious electrical problem and spent more than 30 days in the shop for repairs. In Texas, if a vehicle is out of service for 30 or more cumulative days (they don’t have to be consecutive) due to the same warranty-covered defect within the first 24 months or 24,000 miles, it can be presumed a lemon. Importantly, this time only counts if the dealer did not provide a comparable loaner vehicle. In this case, no loaner was given.
The lemon law attorney carefully tracked all service records and repair orders to build a clear timeline. This paper trail led to a successful buyback from the manufacturer.
How a Lemon Law Attorney’s Experience and Skill Benefit You
The attorney needs to organize several points when pursuing a business vehicle lemon law case, in addition to the main focus, which is proving that the vehicle exhibits a substantial defect. These include:
- Ensuring that the state covers business vehicles.
- Noting weight class vehicle requirements and checking that the vehicle in question fits into a covered category.
- Checking if the state has specialized usage rules, such as only covering a company or fleet vehicle if it is used occasionally for business.
- The attorney will look for gaps in evidence, plan for adding expert testimony, and review Technical Service Bulletins (internal manufacturer-dealer communications), recalls, and consumer complaints to strengthen the case against the manufacturer.
While you are busy running your business, the lemon law attorney will be looking after your interests to put you in the best position to win compensation.
Protecting You Against Manufacturer Challenges
A crucial area where you receive value from a lemon law attorney is when a manufacturer ignores or tries to minimize your claim. The manufacturer may even try to blame you for the problem, saying that you subjected the vehicle to harsh conditions or neglected its maintenance. Your attorney not only fights back against these challenges but anticipates them and protects your rights.
Fighting for Maximum Compensation
The manufacturer is not motivated to make you a favorable settlement offer. In fact, its first offer is likely going to be low, as it will hope you’ll take it to end the matter. When you hire a lemon law attorney, you don’t have to worry about taking on the manufacturer. The attorney will dig in and push for compensation that aligns with the financial loss you have incurred.
Trust Allen Stewart, P.C. for Comprehensive Lemon Law Representation
Lemon law issues involving personal vehicles are stressful enough. A malfunctioning vehicle can be even more frustrating when it interferes with running a business. That’s why Allen Stewart, P.C.’s free consultation (866-440-2460) is so valuable. You can share your evidence with our attorneys. We’ll examine it, and if your case is valid, we can represent you against the manufacturer. Allen Stewart, P.C. has won many lemon law cases across the country, including many business vehicle claims. We are not intimidated by manufacturers and will fight for your right to just compensation.
Even with all the complexities we discussed, you may wonder if you need an attorney. Please know that the manufacturer will defend its position with its legal team. It’s vital that you are represented by our skilled and experienced attorneys. Plus, you do not have to pay us, as the manufacturer is obligated by law to pay your legal fees when you win your case.
Your business requires your attention; leave worries about whether your vehicle qualifies for lemon law protection to our attorneys. Take advantage of our free consultation to find out if you can gain compensation. It costs nothing to present your evidence to Allen Stewart, P.C. Call us now to schedule your case review (866-440-2460) or schedule your consultation online.