STANDARDS OF THE OREGON LEMON LAW

The following is a brief explanation of most relevant provisions of the Oregon lemon
law.  The complete text of the lemon law can be found at Oregon Rev. Stat. §§ 646.315 to
646.375.
VEHICLES COVERED 
The Oregon lemon law covers any passenger motor vehicle sold in Oregon.  The lemon
law covers used vehicles.
CONSUMERS COVERED
The lemon law covers any of the following “consumers”:
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 the express
manufacturer vehicle warranty; and 
3.   Any other person entitled by the terms of the express warranty to enforce its
obligations.
VEHICLE CONVERTERS
The lemon law does not apply to vehicle converters.
PROBLEMS COVERED
The lemon law covers any defect or condition that (1) does not conform to the applicable
manufacturer’s express warranty and (2) substantially impairs the use, market value or
safety of the vehicle to the consumer. This is referred to as a nonconformity.
The lemon law provides manufacturers with an affirmative defense if it can be shown
that the alleged nonconformity does not substantially impair the use, market value or
safety; or the nonconformity is the result of abuse, neglect or unauthorized
modifications or alterations of the vehicle by the consumer. 
MANUFACTURER’S DUTY TO REPURCHASE OR REPLACE A VEHICLE
If a vehicle does not conform to the applicable manufacturer’s express warranty, the
consumer must report the nonconformity for the purpose of repair or correction to the
manufacturer, its agent or its authorized dealer, during the period of one year following
the date of the motor vehicle’s original delivery to the consumer or during the period
ending when the motor vehicle mileage reaches 12,000 miles, whichever period ends
first. 

If the manufacturer or its agents or authorized dealers are unable to conform the vehicle
to the applicable manufacturer’s express warranty by repairing or correcting any
nonconformity after a reasonable number of attempts, the manufacturer must replace
or repurchase the vehicle.
REASONABLE NUMBER OF REPAIR ATTEMPTS
The Oregon lemon law establishes a presumption that a reasonable number of repair
attempts have been undertaken if, during the period of one year following the date of the
motor vehicle’s original delivery to the consumer or during the period ending when the
vehicle mileage reaches 12,000 miles, whichever period ends first, either of the
following events has occurred:
1.   The same nonconformity has been subject to repair or correction four or more times
by the manufacturer or its agent or authorized dealer, but the nonconformity
continues to exist; or
2.   The motor vehicle is out of service by reason of repair or correction for a cumulative
total of 30 or more business days.
A repair or correction that “must take place” after the expiration of the 12 month/12,000
mile period shall be included in determining whether the presumption has been met. In
addition, the 12 month/12,000 mile period and the 30–day period are 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. 
The lemon law states that the presumption shall not apply against a manufacturer
unless the manufacturer has received prior written notification from or on behalf of the
consumer and has had an opportunity to cure the alleged defect.
NOTICE AND OPPORTUNITY TO REPAIR
The remedies provided by the lemon law are not available to a consumer unless the
manufacturer has received direct written notification from or on behalf of the consumer
followed by an opportunity to correct the alleged defect.  Oral notice does not satisfy the
statutory requirement.1   A request by the consumer to an informal dispute settlement
procedure such as BBB AUTO LINE satisfies this notice requirement.
DISPUTE RESOLUTION
If the manufacturer has established or participates in an informal dispute settlement
procedure that complies with 16 C.F.R. Part 703, and causes the consumer to be notified
of the procedure, then the provisions requiring refund or replacement do not apply
unless the consumer has first resorted to the informal dispute settlement procedure.

1  Liles v. Damon Corp., 210 Ore. App. 303 (Or. Ct. App. 2006).

TIME PERIOD FOR FILING CLAIMS
An action must be commenced within one year following the earlier of (1) the period
ending on the date on which the mileage on the vehicle reaches 12,000 miles, or (2) the
period of one year following the date of the motor vehicle’s original delivery to the
consumer.

REMEDIES UNDER THE OREGON LEMON LAW 

REPURCHASE OF OWNED VEHICLES
The Oregon lemon law provides that a manufacturer must pay the following amounts
when it repurchases a vehicle under the lemon law: 
1.   The full purchase or lease price paid; and
2.   Taxes, license fees, registration fees, and any similar collateral charges, excluding
interest;
3.   Less a reasonable allowance for the consumer’s use of the vehicle.
Refunds must be made to the consumer and lienholder, if any, as their interests may
appear.
The reasonable allowance 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.
REPLACEMENT
When replacing a motor vehicle under the Oregon lemon law, the manufacturer must
provide a new motor vehicle.  The reasonable allowance for use does not apply to a
replacement.