Nebraska Lemon Law

The Nebraska Lemon Law gives the buyer of a "lemon" the choice of using an informal arbitration instead of having to hire a lawyer to sue the manufacturer in court. It is written to help protect you when your repeated efforts to have the problem(s) fixed have failed. And it is much faster than the courts.

Arbitration is an informal process is used to resolve a warranty dispute without going to court. It is legally binding on the manufacturer. At an arbitration hearing, you and the manufacturer testify before an impartial arbitrator about the condition and repair history of the vehicle. The arbitrator will decide what is fair based on the facts of the case, usually in under 40 days. If you do not agree with the arbiter, then you can reject the finding and sue.

A "lemon" is a motor vehicle "which substantially impairs the use or market value and cannot be repaired after reasonable attempts." The lemon law does not apply to trailers or motor homes. The vehicle must be purchased in Nebraska, under warranty, and less than one year old. If you bought the car in another state, that state's laws apply to the purchase and any recourse you have to your fight to have repairs done. If you bought a car "as is" you have done just that. The lemon law does not protect you as you agreed at the time of purchase that the seller has no obligation to fix anything you find wrong once he has your money.

A vehicle is assumed to be a lemon if the vehicle has been sent to the dealer four or more times for repair of the same problem (a trip back to have a part replaced counts as 2 trips), or you has been without the use of the vehicle for 40 days. If you think the defect is life threatening, contact the DMV as an arbiter can decide that defect does not need four repair attempts before concluding the vehicle is a lemon.

Remember, a lemon law dispute is between you and the manufacturer, not the dealer. You must give the manufacturer written notification by certified mail, and the manufacturer must have an opportunity to fix the problem or replace the vehicle. You should send notification to the manufacturer after the third repair attempt or 30 days without use of the car.

If the vehicle is found to be a lemon by the arbiter, the manufacturer must pay you back the full purchase price for the vehicle including all sales tax, license and registration fees. It will also pay your reasonable attorney's fee. This is a good time to mention that you may want a lawyer at the arbitration. You need to present your best case because the manufacturer may very likely argue that the problem does not substantially impair the use or market value of the vehicle or that the problem is a result of your abuse, neglect, or you made unauthorized modifications to the vehicle. Make sure you get documentation. Keep all records of every repair even if the dealer claims he could find nothing wrong.