The New Car Lemon Law (N.J.S.A. 56:12-29 et seq.) provides purchasers and lessees of new vehicles and motorcycles the right to demand a refund or replacement of any new vehicle deemed to be a lemon. Failure to comply with the provisions of the New Car Lemon Law is deemed an unlawful practice under the New Jersey Consumer Fraud Act (N.J.S.A. 56:8-2 et seq.).

Under the law, vehicles are covered for up to two (2) years or 24,000 miles, whichever occurs first, from the time of delivery. A new vehicle is deemed to be a “lemon” if it suffers from a “nonconformity,” which substantially impairs the use, value, or safety of the vehicle, and the manufacturer fails to correct this nonconformity.

There is a presumption that a purchaser has a right to a refund or replacement in the following three circumstances:

1. When there is a “nonconformity,” which continues to exist after three or more repair attempts.
2. When there is a nonconformity, which is likely to cause death or serious bodily injury, which continues to exist after one repair attempt.
3. When the vehicle has been out of service due to repairs for a total of 20 cumulative calendar days during the Lemon Law warranty period, and the nonconformity continues to exist.

N.J.S.A. 56:12-34 provides that “at the time of purchase in the State of New Jersey, the manufacturer, or, in the case of an authorized emergency vehicle, the manufacturer, co‑manufacturer, or post-manufacturing modifier, through its dealer or distributor, or at the time of lease in the State of New Jersey, the lessor, shall provide directly to the consumer a written statement prescribed by the director, presented in a conspicuous and understandable manner on a separate piece of paper and printed in both the English and Spanish languages.”

The New Jersey Division of Consumer Affairs promulgated regulations setting forth rules for advising purchasers of their rights under the Lemon Law and specifying the form of notice that must be given. The two-page long notice in English and Spanish must be on a separate sheet of paper and not combined with the Retail Order Form (or any other document) and must be in at least 10-point, bold-faced type. A record that the customer received this notice must also be kept by the dealership. A copy of the notice with a signature where the customer acknowledged receipt meets this requirement.

The New Car Lemon Law Notice (SKU: 150B) can be ordered by calling NJ CAR Services (609) 883-5056, x402 and from various Dealer Management Systems (DMS). The form can also be ordered on the NJ CAR Services website (njcarservices.com).

Greyson Hannigan is NJ CAR’s Director of Legal & Regulatory Affairs. He can be reached at ghannigan@njcar.org.