Oregon Lemon Law (646A.400 - 646A.418)

Oregon consumers with lemon vehicles may be protected under either the Oregon Lemon Law, the Magnuson-Moss Warranty Act (the federal lemon law), or both. Remedies may include refund, replacement or cash compensation such as diminished value and/or incidental and consequential damages. Attorneys’ fees also available meaning qualified consumers may receive Oregon lemon law attorney representation at no cost.

And even if a vehicle doesn’t qualify under either of these lemon laws, the Truth In Lending Act and/or other related car buying laws may provide an avenue to recover cash damages that can help you trade out or pay for repairs.

Connect here for a free, no obligation Oregon Lemon Law case review. In most instances to qualify under a lemon law your vehicle must only have an unreasonable repair history under the warranty, including (but not limited to) 3-4 repair attempts for the same problem, 6 repairs total on the vehicle, or 30 days out of service by reason of repair.

• O.R.S. 646A.400. Definitions
• O.R.S. 646A.402. Availability of remedy
• O.R.S. 646A.404. Remedies and affirmative defenses
• O.R.S. 646A.405. Manufacturer’s action under ORS 646A.404; notice to buyer of action O.R.S. 646A.406. Time to conform or repair
• O.R.S. 646A.408. Informal dispute settlement procedure binding
• O.R.S. 646A.410. Informal dispute settlement procedure record-keeping
• O.R.S. 646A.412. Court action
• O.R.S. 646A.414. Limitations on actions against dealers
• O.R.S. 646A.416. Limitation on commencement of action
• O.R.S. 646A.418. Remedies in addition to existing statutory or common law remedies

As used in ORS 646A.400 to 646A.418:

1. “Collateral charge” means a charge, fee or cost to the consumer related to the sale or lease of a motor vehicle, such as:
   1. A sales, property or use tax;
   2. A license, registration or title fee;
   3. A finance charge;
   4. A prepayment penalty;
   5. A charge for undercoating, rust-proofing or factory or dealer installed options; and
   6. The cost of an aftermarket item purchased within 20 days after delivery of the motor vehicle.
2. “Consumer” means:
   1. The purchaser or lessee, other than for purposes of resale, of a new motor vehicle normally used for personal, family or household purposes;
   2. 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
   3. Any other person entitled by the terms of such warranty to enforce the obligations of the warranty.
3. 1. “Motor home” means a motor vehicle that is a new or demonstrator vehicular unit built on, or permanently attached to, a self-propelled motor vehicle chassis, chassis cab or van that becomes an integral part of the completed vehicle, and that is designed to provide temporary living quarters for recreational, camping or travel use.
   2. “Motor home” does not include a trailer, camper, van or vehicle manufactured by an entity that primarily manufactures motor vehicles other than motor homes as defined in this subsection.
   3. “Motor home” does not include “living facility components,” which means those items designed, used or maintained primarily for the living quarters portion of the motor home, including but not limited to the flooring, plumbing fixtures, appliances, water heater, fabrics, door and furniture hardware, lighting fixtures, generators, roof heating and air conditioning units, cabinets, countertops, furniture and audio-visual equipment.
4. “Motor vehicle” means a passenger motor vehicle as defined in ORS 801.360 that is purchased in this state or is purchased outside this state but registered in this state.

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The remedy under the provisions of ORS 646A.400 to 646A.418 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, the manufacturer’s agent or the manufacturer’s authorized dealer, for the purpose of repair or correction, during the two-year period 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 24,000 miles, whichever period ends first; 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 646A.408.

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1. If the manufacturer or agents or authorized dealers of the manufacturer are unable to conform the motor vehicle to an applicable manufacturer’s express warranty by repairing or correcting a 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 shall:
   1. Replace the motor vehicle with a new motor vehicle; or
   2. Accept return of the vehicle from the consumer and refund to the consumer the full purchase or lease price and collateral charges paid, less a reasonable allowance for the consumer’s use of the motor vehicle. In lieu of refunding, as part of the collateral charges paid, the cost of an aftermarket item purchased within 20 days after delivery of the motor vehicle, the manufacturer may remove the aftermarket item from the motor vehicle, if the aftermarket item can be removed from the motor vehicle without damage, and return the aftermarket item to the consumer.
2. Refunds must be made to the consumer and lienholder, if any, as the interests of the consumer and lienholder may appear.
3. 1. As used in this section, “reasonable allowance for the consumer’s use of the motor vehicle” means:
      1. For a motor vehicle that is not a motorcycle or a motor home, an amount of money equivalent to the motor vehicle mileage as described in paragraph (b) of this subsection, multiplied by the combined amount of the cash price or lease price of the motor vehicle and the amount of any collateral charges paid by the consumer, and divided by 120,000.
      2. For a motorcycle, an amount of money equivalent to the motor vehicle mileage as described in paragraph (b) of this subsection, multiplied by the combined amount of the cash price or lease price of the motorcycle and the amount of any collateral charges paid by the consumer, and divided by 25,000.
      3. For a motor home, an amount of money equivalent to the motor vehicle mileage as described in paragraph (b) of this subsection, multiplied by the combined amount of the cash price or lease price of the motor home and the amount of any collateral charges paid by the consumer, and divided by 90,000.
   2. The motor vehicle mileage for the purposes of the calculation described in paragraph (a) of this subsection is the motor vehicle’s mileage at the time the manufacturer takes an action described in subsection (1) of this section, less 10 miles for mileage that the motor vehicle traveled during any period in which the consumer did not have use of the motor vehicle because the manufacturer or an agent or authorized dealer of the manufacturer was repairing the motor vehicle.
4. It is an affirmative defense to a claim under ORS 646A.400 to 646A.418 that:
   1. An alleged nonconformity does not substantially impair such use, market value or safety; or
   2. A nonconformity is the result of abuse, neglect or unauthorized modifications or alterations of the motor vehicle.

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1. A manufacturer that takes an action with respect to a motor vehicle under ORS 646A.404 (1)(a) or (b) shall request the Department of Transportation to:
   1. Title the motor vehicle in the manufacturer’s name; and
   2. Inscribe on the certificate of title for the motor vehicle and in the department’s records concerning the motor vehicle the notation “Lemon Law Buyback.”
2. A person that acquires a motor vehicle in order to sell, lease or otherwise transfer the motor vehicle and that knows or should have known that the manufacturer took an action with respect to the motor vehicle under ORS 646A.404 (1)(a) or (b) or that the certificate of title for the motor vehicle is inscribed with the notation specified in subsection (1) of this section, before selling, leasing or otherwise transferring the motor vehicle shall:
   1. Provide the buyer, lessee or transferee with a notice that states:

      This vehicle was repurchased by its manufacturer in accordance with Oregon’s consumer warranty law because of a defect in the vehicle. The title to this vehicle has been permanently inscribed with the notation “Lemon Law Buyback.”

   2. Obtain the signature of the buyer, lessee or transferee on the notice in a space provided for that purpose under a statement in which the buyer, lessee or transferee acknowledges receiving and understanding the notice.
3. Failure to comply with the requirements of subsection (1) or (2) of this section is an unlawful practice under ORS 646.608 and a person that fails to comply with the requirements is subject to the causes of action and remedies provided in ORS 646.632 and 646.638.
4. The Director of Transportation may adopt rules to prescribe the form and content of the notice required under this section and to require the disclosure of other information the director deems necessary to inform a buyer, lessee or transferee of the condition of a motor vehicle that is subject to the provisions of this section or information that is otherwise material to a sale, lease or transfer of the motor vehicle.

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1. It is 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 two-year period 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 24,000 miles, whichever period ends first:
   1. The manufacturer or an agent or authorized dealer of the manufacturer has subjected the nonconformity to repair or correction three or more times and has had an opportunity to cure the defect alleged, but the nonconformity continues to exist;
   2. The motor vehicle is out of service by reason of repair or correction for a cumulative total of 30 or more calendar days or 60 or more calendar days if the vehicle is a motor home; or
   3. The manufacturer or an agent or authorized dealer of the manufacturer has subjected a nonconformity that is likely to cause death or serious bodily injury to repair or correction at least one time and has made a final attempt to repair or correct the nonconformity, but the nonconformity continues to exist.
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 period.
3. The period ending on the date on which the mileage on the motor vehicle reaches 24,000 miles, the two-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 natural disaster.
4. The presumption described in subsection (1) of this section does not 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.

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If a manufacturer, for the purpose of settling disputes that arise under ORS 646A.400 to 646A.418, establishes or participates in an informal dispute settlement procedure that substantially complies with the provisions of 16 C.F.R. part 703, as in effect on June 23, 2009, and causes a consumer to be notified of the procedure, ORS 646A.404 does not apply to a consumer who has not first resorted to the procedure. A decision resulting from arbitration pursuant to the informal dispute settlement procedure is binding on the manufacturer but is not binding on the consumer.

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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 646A.408 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 646A.400 to 646A.418 in reaching their decisions.

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1. If a consumer brings an action in court under ORS 646A.400 to 646A.418 against a manufacturer and the consumer is granted one of the remedies specified in ORS 646A.404 (1) by the court, the consumer shall also be awarded up to three times the amount of any damages, not to exceed $50,000 over and above the amount due the consumer under ORS 646A.404 (1), if the court finds that the manufacturer did not act in good faith.
2. Except as provided in subsection (3) of this section, the court may award reasonable attorney fees, fees for expert witnesses and costs to a consumer who prevails in an appeal or action under ORS 646A.400 to 646A.418. If a court finds that a consumer brought an action under ORS 646A.400 to 646A.418 in bad faith or solely for the purposes of harassment, the court may award a prevailing manufacturer reasonable attorney fees.
3. The court may award reasonable attorney fees, fees for expert witnesses and costs to the prevailing party in an appeal or action under ORS 646A.400 to 646A.418 that involves a motor home.

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1. Except as provided in ORS 646A.405, nothing in ORS 646A.400 to 646A.418 creates a cause of action by a consumer against a vehicle dealer.
2. A manufacturer may not join a dealer as a party in a proceeding brought under ORS 646A.400 to 646A.418, nor may the manufacturer try to collect from a dealer damages assessed against the manufacturer in a proceeding brought under ORS 646A.400 to 646A.418.

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An action brought under ORS 646A.400 to 646A.418 must be commenced within one year after whichever of the following periods ends earlier:

1. The period ending on the date on which the mileage on the motor vehicle reaches 24,000 miles;
2. The two-year period following the date of the original delivery of the motor vehicle to the consumer; or
3. The period that ends after an extension of time provided under ORS 646A.406 (3).

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Nothing in ORS 646A.400 to 646A.418 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 646A.400 to 646A.418 shall not be available insofar as it would result in recovery in excess of the recovery authorized by ORS 646A.404 without proof of fault resulting in damages in excess of such recovery.

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