How does the lemon law process work in New Jersey?
New Jersey runs one of the most consumer-friendly lemon law programs in the U.S., with mandatory state-administered arbitration.
1. Governing Statute
N.J.S.A. 56:12-29 to 56:12-49 (Lemon Law) for new vehicles and N.J.S.A. 56:8-67 to 56:8-80 (Used Car Lemon Law). Administered by the Division of Consumer Affairs Lemon Law Unit.
2. Coverage
New Car Lemon Law covers new passenger vehicles, motorcycles, and authorized emergency vehicles registered in New Jersey. Demonstrators and leased vehicles included. Used Car Lemon Law covers used vehicles sold by a dealer for $3,000+ with under 100,000 miles, with statutory warranty periods scaling by mileage.
3. Lemon Presumption
Under N.J.S.A. 56:12-33, presumption applies if within 24 months from delivery or 24,000 miles, whichever first: (a) the same nonconformity has been subject to repair 3 or more times, (b) the nonconformity is a serious safety defect and has been subject to 1 repair attempt within the first 12 months, or (c) the vehicle is out of service for repair 20+ cumulative calendar days.
4. Notice to Manufacturer
The consumer must send the manufacturer written notice by certified mail of the defect and the need for final repair. The manufacturer has 10 days to provide a reasonable opportunity to inspect and repair (N.J.S.A. 56:12-32).
5. Manufacturer's Buy-Back / Replacement
Manufacturer must repurchase or replace. Refund includes full purchase price plus collateral charges minus a reasonable allowance for use (statutory formula: price x miles to first report / 100,000).
6. Arbitration
Consumer may file a complaint with the Division of Consumer Affairs Lemon Law Unit. Filing fee: $50. The Lemon Law Unit screens, then refers to the Office of Administrative Law for a hearing within 20 business days. The decision is binding on both parties; either may appeal to the Appellate Division.
7. Lawsuit & Fee-Shifting
A prevailing consumer in arbitration or court recovers reasonable attorney's fees, expert witness fees, and costs (N.J.S.A. 56:12-42). Parallel claims under Magnuson-Moss (15 U.S.C. § 2310(d)) and the NJ Consumer Fraud Act (N.J.S.A. 56:8-1) — which allows treble damages — are common.
This is legal information, not legal advice.
- Appellate Division appeal of binding lemon law arbitration
- Consumer Fraud Act treble damages potential
- Used car claim with disputed mileage at sale
- N.J.S.A. 56:12-29 to 56:12-49 (Lemon Law)
- N.J.S.A. 56:8-67 to 56:8-80 (Used Car Lemon Law)
- N.J.S.A. 56:8-1 (Consumer Fraud Act)
- 15 U.S.C. § 2301 (Magnuson-Moss)
- 16 CFR Part 703
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.