Lemon Law for Commercial Drivers: What Owner-Operators Should Know

You may have heard that it’s harder for owner-operators to make lemon law claims. That can be true due to how lemon laws are structured more towards consumers, but a lemon law attorney can pursue a potential claim via state lemon laws and other means.

It’s important to note that an owner-operator’s vehicle can be a big rig used strictly for business, or a smaller vehicle used for both personal and commercial purposes. Attorneys understand vehicle classifications, state lemon law variations, and more factors that can impact legal options for a potential claim.

 

 

Quick Question & Answer: Should an owner-operator consult a lemon law attorney to make a claim for their defective truck? Yes, because state lemon laws often have limits based on a vehicle’s commercial use. For many owner-operators, an attorney will potentially pursue a claim under the Uniform Commercial Code (UCC) for breach of warranty or, in some cases, the federal Magnuson-Moss Warranty Act. An attorney may use a combination of these avenues for pursuing compensation.

Defining a Substantial Defect

The first avenue a lemon law attorney will pursue for an owner-operator’s claim is state lemon law. To qualify as a lemon, vehicles must exhibit a substantial defect that severely impacts its use, value or safety. The vehicle must be unfixable after the state’s prescribed number of repair attempts allotted to the manufacturer (often 3–4, although each state varies). Safety-related issues may require as few as 1–2 repair attempts.

It may be, however, that the larger commercial truck belonging to an owner-operator is excluded from state lemon law. There are exceptions to this, as we will explore.

Recourse Under State Lemon Law

Most often, these laws are written with consumers in mind, with the exception of a few states. Your state’s laws can vary; consult with your attorney regarding your specific situation. Let’s review several states’ laws to see what recourse an owner-operator may have when pursuing a claim:

1) California’s Song-Beverly Consumer Warranty Act protects owner-operators of certain-sized vehicles. They can own up to five registered commercial vehicles under 10,000 lbs Gross Vehicle Weight (GVW), such as business trucks and vans. This will mostly apply to lighter trucks, not big rigs.

The law covers new and used warranted vehicles. The vehicles must exhibit substantial defects impairing use, value, or safety. The reasonable repair attempts in California may differ for commercial vehicles versus the number for consumer vehicles. Compensation can include full refund, replacement, or cash settlement, minus usage offset fee.

2) Wisconsin’s lemon law covers new cars, trucks, motorhomes, and motorcycles. It covers vehicles used for commercial purposes. A vehicle qualifies as a lemon if defects can’t be fixed after four attempts or 30 cumulative out-of-service days.

Please note: Wisconsin’s lemon law does cover big rigs, including semi-trucks. But if the owner-operator accepts payments or an extended warranty from the manufacturer, they lose their lemon law claim rights.

Specifically, the Wisconsin Department of Transportation states in its Wisconsin Lemon Law Document from April 2024:

“Qualifying heavy-duty vehicles that have a gross vehicle weight rating or actual gross weight of more than 10,000 pounds, such as trucks and busses, are treated differently under the law. You can lose the benefits of the Lemon Law for heavy-duty vehicles if you enter a negotiated written settlement with the manufacturer.”

The above is a vital detail that owner operators may not be aware of, and could potentially complicate their pursuit of compensation.

3) Nebraska: The law specifically covers vehicles used for “business, family, or household use,” excluding motorhomes.

4) Connecticut: The law covers passenger/commercial vehicles. It excludes commercial vehicles with a gross vehicle weight rating (GVWR) of more than 10,000 pounds. It also doesn’t apply to vehicles purchased by a business with a fleet larger than five.

The Uniform Commercial Code (UCC)

Due to the fact that many states’ lemon laws either don’t cover commercial vehicles, or provide varying levels of coverage, (particularly restrictions due to vehicle weight), the lemon law attorney will likely pursue additional means to gain compensation for an owner operator’s defective vehicle. The Uniform Commercial Code (UCC) is an important set of state commercial laws that exist nationwide that can be used to protect owner operators. The attorney will review the specific version adopted by the state in question, to find means to pursue a claim.

Here’s why the UCC can be a major part of a claim an attorney makes for an owner-operator:

• It’s a set of laws that was adopted by all 50 statesthat covers sales of goods (and other commercial transactions).
• The part that the attorney will focus on relates to warranties.For truckers, that would include the implied warranty of merchantability. For example, if an owner-operator has a severely malfunctioning truck, the truck is supposed to operate as a truck should, and the UCC’s implied warranty of merchantability protects that owner. The truck has to be operational for its intended purpose, which is called the implied warranty of fitness, which means for the specific use that the buyer told the seller they needed the truck for (such as hauling freight), the vehicle needs to be capable of performing that function.
• The attorney can pursue repair costs, and a refund or replacement vehicle.The owner will provide evidence to the attorney via repair records and correspondence between themselves and the dealer and manufacturer. The attorney will review and organize this evidence, and could also bring in expert witnesses to strengthen the claim.

Key point: A UCC claim is not tied to a specific number of repair attempts, but to a breach of warranty, therefore UCC claims can potentially be resolved more quickly. A UCC claim is focused on the value of the vehicle, and how a business person’s livelihood is impacted by the malfunctioning vehicle.

Magnuson-Moss Warranty Act

Although not generally, the Magnuson-Moss Warranty Act may also be a part of the attorney’s pursuit of compensation for the owner-operator.

“The Act also prohibits these companies from disclaiming or modifying implied warranties with their written ones. This means consumers are always entitled to the basic protections of “implied warranties of merchantability;” that a good sold must do what that good is supposed to.”

Usually, the Magnuson-Moss Warranty Act provides protection to buyers of consumer goods. There are some potential uses by attorneys of the Magnuson-Moss Warranty Act, where they prove that a truck’s living space of the cab qualifies under consumer use (per the vehicle’s function as a dwelling during off hours). It’s advisable to present claims to an attorney to review, for possible applicability of the Act in owner-operator cases.

How a Lemon Law Attorney Can Help You?

As we’ve seen, specific state lemon laws, the weight of the commercial vehicle, and many other variables contribute to if and how an owner-operator can receive compensation for their substantially defective vehicle. Another key point is statutes of limitations. The attorney will know about how statutes of limitations apply, and it is always good advice to present a potential claim to a lemon law attorney as soon as possible.

One of the other key benefits you’ll receive from a lemon law attorney is the benefit of their negotiation skills. The attorney will provide the best opportunity to negotiate compensation, as they know which laws will apply to the claim and have the experience to know how to counter manufacturers and dealers who may try to avoid, minimize, or reject the claim.

Trust Allen Stewart, P.C. for Your Owner-Operator Defective Vehicle Claim

Owner-operators have a lot at stake when their vehicles become defective. At risk is their investment in the vehicle and their livelihoods. Allen Stewart, P.C. is well-acquainted with cases such as these, and has won many lemon law and breach of warranty cases across the country. We encourage owner-operators to contact us now (866-440-2460) to schedule a free consultation. Even if you don’t think you have a claim, have our attorneys review your evidence, and if the claim is valid, we can discuss next steps on how we can represent you.

With all the variables in the law, it literally pays to have an attorney review your claim. As experts in state lemon law, federal law and breach of warranty cases, you can count on Allen Stewart, P.C. to protect your rights.