Oregon Lemon Laws

Oregon lemon laws are dealt with in Oregon Revised Statutes, Title 50, Chapter 646A, Section 646A.400 et seq. (Enforcement of Express Warranties on New Motor Vehicles).  A motor vehicle is defective if it does not conform to all applicable manufacturer’s express warranties.  The prescribed time limit for manufacturer repair is the period of one year 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 12,000 miles, whichever period ends earlier.  This time limit is prescribed in Section 646A.402.  During this time limit the consumer should report any nonconformity, defect, or condition to the manufacturer, its agent, or its authorized dealer.  The manufacturer, its agent, or its authorized dealer should repair or correct the nonconformity, defect, or condition at no charge to the consumer, within this time period.

Certain remedies are available to the consumer if the manufacturer, its agent, or authorized dealer is unable to repair or correct any nonconformity, defect, or condition which results in significant impairment of the motor vehicle, after a reasonable number of attempts.  The manufacturer should either replace the motor vehicle with a new motor vehicle, or accept return of the motor vehicle from the consumer and refund to the consumer.  The refund includes the full purchase or lease price paid including taxes, license and registration fees and any similar collateral charges excluding interest.  The consumer has the option to choose from either of the two remedies.  From the full purchase price, the manufacturer can deduct a reasonable allowance for the consumer’s use of the motor vehicle.  The remedies are enumerated under Section 646A.404.

ORS § 646A.402

Availability of remedy.
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, its agent or its authorized dealer, for the purpose of repair or correction, during the period of one year 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 12,000 miles, whichever period ends earlier; and
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ORS § 646A.404

Consumer’s remedies; manufacturer’s affirmative defenses.
(1) If the manufacturer or its agents or authorized dealers are unable to conform the motor vehicle to any applicable manufacturer’s express warranty by repairing or correcting any 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:
(a) Replace the motor vehicle with a new motor vehicle; or
(b) Accept return of the vehicle from the consumer and refund to the consumer the full purchase or lease price paid, including taxes, license and registration fees and any similar collateral charges excluding interest, less a reasonable allowance for the consumer’s use of the vehicle.(2) Refunds shall be made to the consumer and lienholder, if any, as their interests may appear. A reasonable allowance for use is that amount directly attributable to use by the consumer prior to the first report of the nonconformity to the manufacturer, agent or dealer and during any subsequent period when the vehicle is not out of service by reason of repair.


Inside Oregon Lemon Laws