Office of the Maine Attorney General

Maine Lemon Law

The Maine Lemon Law protects consumers whose vehicles have defects while under an express warranty. If your vehicle is a “lemon” and you have complied with the law’s requirements, then the manufacturer must provide you with a replacement vehicle or a refund. If they don't, then you can compel arbitration. If you win the arbitration and the manufacturer still does not comply, then you can sue in a separate court action and obtain additional relief. However, the law has very specific requirements that must be met. For more information, please email lemon.law@maine.gov or call 207-626-8848.

Maine Lemon Law downloadables

What Is Covered by the Maine Lemon Law?

The Maine Lemon Law applies to any new or used car, motorcycle, van, truck, or RV that a consumer[i] has bought or leased in Maine and that is still covered by an express warranty. If the vehicle has a defect covered by an express warranty and you report the defect within three years from the date of original delivery of the vehicle or 18,000 miles of operation, whichever comes first, then the manufacturer must attempt to repair the defect. If the manufacturer does not repair the defect and the defect substantially impairs the use, safety, or value of the vehicle, then you are entitled to a replacement vehicle or a refund.

[i] For the purpose of the Maine Lemon Law, a consumer is any purchaser or lessee of a motor vehicle or any person to whom a motor vehicle is transferred during the term of an express warranty applicable to the vehicle or who is otherwise entitled to enforce the warranty according to its terms. However, a business or commercial enterprise that registers 3 or more vehicles is not a consumer. 10 M.R.S.A. § 1161(1).

What Problems Are Not Covered by the Lemon Law?

The Maine Lemon Law does not provide protection for vehicle defects that:

  1. Are not covered by an express warranty;
  2. Do not objectively and substantially impair the vehicle’s use, value, or safety;
  3. Are caused by owner or lessee negligence;
  4. Result from an accident or vandalism; or
  5. Result from the unauthorized repair or alteration of the vehicle by a person other than the manufacturer, its agents, or authorized dealers.
What Is Substantial Impairment?

The replacement vehicle or refund remedy of the Maine Lemon Law is available only for those defects that substantially impair the use, safety, or value of a vehicle. The law does not list which specific defects meet this requirement. Therefore, you must be able to demonstrate how the use, safety, or value of their vehicle is substantially impaired by the defect. Although a defect may be annoying or disappointing, the law requires more. Some defects may be obviously substantial, such as one that makes the vehicle unsafe to operate or unmarketable. Minor defects that do not have a substantial impact on the use, safety, or value of the vehicle are insufficient.

How Many Repair Attempts Must Be Allowed?

The Maine Lemon Law gives the manufacturer, its agent, or authorized dealer a “reasonable number of attempts” to repair the defect. Depending on the nature of the defect, this may be a single repair attempt, but generally[i] there is a presumption that three attempts to repair is a reasonable number. Although you must allow the manufacturer an opportunity to repair—unless the manufacturer agrees that the defect is not repairable—the law does not require you to wait an unreasonable amount of time for your vehicle to be repaired.

[i] Exceptions are (1) a serious failure of either the braking or steering system, as to which a single repair attempt is reasonable, and (2) any number of repair attempts resulting in the vehicle being out of service for 15 or more business days. Title 10, section 1163(3).

The “Final Opportunity to Repair”

If the manufacturer or authorized dealer has not been able to repair the defect after a reasonable number of attempts or refuses to attempt to repair the defect, then you must send written notice to the manufacturer of your request for a replacement or refund.[i] A form letter for this notice to the manufacturer is available as a downloadable Word document. This notice is essential because it triggers the manufacturer’s final opportunity to repair the vehicle, which lasts for 7 business days. If after 7 business days the vehicle is still not repaired, then you may request arbitration by applying to the State Lemon Law Arbitration Program. If you have not provided this notice, then your application to the State Lemon Law Arbitration Program will not be accepted.

Communications and Records

You should keep complete records of all contacts with the manufacturer and dealer regarding a defect and any attempt to repair the defect. Whether you use the form letter in this chapter or a different letter to provide notice, you should keep a copy of the notice for your records, including proof of mailing or transmittal. Upon your request, the manufacturer or dealer must provide copies of all repair records for the vehicle and all reports relating to the vehicle, including reports concerning inspection, diagnosis, or test-drives and any technical reports, bulletins, or notices issued by the manufacturer regarding the specific make and model of the vehicle.[ii]

[i] This notice is not required if the manufacturer failed to clearly and conspicuously disclose in its warranty statement or owner’s manual (i) that notice is required to be eligible for a refund or replacement and (ii) the name and address to which you must send notice. 10 M.R.S.A. § 1163(6).

[ii] 10 M.R.S.A. § 1169(9).

Maine Lemon Law Remedies – Replacement Vehicle or Refund

If your vehicle is a lemon and it cannot be repaired, then the manufacturer must either offer a replacement vehicle or accept a return of the defective vehicle and issue a refund to you. It is the manufacturer’s choice whether to offer a replacement vehicle; the Maine Lemon Law does not require a manufacturer to provide a replacement. If a manufacturer offers a replacement vehicle, it must be a comparable vehicle. Comparable does not mean identical. You are free to reject a manufacturer’s offer of a replacement vehicle, in which case you must receive a refund.

Refunds under the Maine Lemon Law

If the manufacturer does not offer a replacement vehicle, or if you have rejected the manufacturer’s replacement vehicle, then you will receive a refund.

Under the Maine Lemon Law, the amount of a refund is the full contracted price of the vehicle, less a deduction based on use. If the vehicle was leased, the refund to you includes any down payment, any trade-in allowance, and the total of lease payments made. If the vehicle purchase was financed, then the refund includes any down payment, any trade-in allowance, the total of loan payments made (including interest), and sufficient funds to pay off the balance of the loan.

A refund must also include the amount of all collateral charges, such as sales tax, registration fees, and other government charges, plus any reasonable costs incurred for towing and storage of the vehicle and for procuring alternative transportation while the vehicle could not be driven. Attorneys’ fees, lost time, and lost wages are not included in a refund.

The manufacturer may reduce the amount of a refund by a “reasonable allowance for use.” However, this reduction can never be more than 10% of the purchase price of the vehicle.

State Lemon Law Arbitration

If a manufacturer is required to provide a replacement vehicle or refund under the Maine Lemon Law and has failed or refused to do so, you may apply to the State Lemon Law Arbitration Program, which is a free dispute resolution process in which a State arbitrator determines whether you are entitled to relief under the Maine Lemon Law. To be accepted for arbitration, you must have followed all the steps required by law, as outlined in this Chapter.

The purpose of the arbitration is to determine whether you qualify for relief under the Maine Lemon Law. During the arbitration, you and the manufacturer will present evidence to the arbitrator, after which the arbitrator will issue a written decision. The arbitrator’s decision is issued within 45 days of the acceptance of your application for arbitration.

If the arbitrator determines that a defect in your vehicle meets the requirements of the Maine Lemon Law, you will be awarded a replacement vehicle or a refund. If the arbitrator decides that your vehicle does not meet the requirements of the Maine Lemon Law, you will not be awarded any relief.

Appeals and Lawsuits After State Lemon Law Arbitration

If you are dissatisfied with the arbitrator’s decision, there are two options for continuing to seek relief:

  1. Within 21 days of the decision, you can file an appeal in the Superior Court of the county where the sale occurred, or
  2. You can file a new lawsuit asserting claims under the Maine Lemon Law or any other applicable law.

Either option represents a “second bite at the apple” because the Court will hear the entire case anew and is not bound by the arbitrator’s decision. Consumers considering seeking further relief in court should consult an attorney. Unlike State Lemon Law Arbitration, appeals and lawsuits are not free and can take a long time to resolve, and the legal principles and rules governing them can be complex and confusing.

If you win the arbitration, then the manufacturer has 21 days to either abide by the decision or file an appeal in the Superior Court.[i] If the manufacturer loses the appeal, then the Court must award you their reasonable attorneys’ fees and costs.[ii] If the manufacturer’s appeal is frivolous or lacks a reasonable basis, the Court must also double the total amount awarded to you in the arbitration.

If the manufacturer fails to file an appeal and does not abide by the arbitration decision within 21 days, then you may file a lawsuit to enforce the decision. In that lawsuit, the Court must award you no less than twice the actual award to you, unless the manufacturer can prove that its failure to appeal or comply was beyond its control or show that it was the result of a written agreement with you.

Consumers who are entitled to relief under the Maine Lemon Law, and especially consumers who have won their arbitration, are in a very strong legal position and should scrutinize any compromise offer by a manufacturer to resolve the claim.

[i] 10 M.R.S.A. § 1169(4).

[ii] 10 M.R.S.A. § 1169(5).

Additional Resources and Help

For information on the Maine Lemon Law and State Lemon Law Arbitration, email us at lemon.law@maine.gov or call 207-626-8848.

To inquire whether your car has a serious defect or has been recalled, contact: