Why Is It Called Lemon Law?
- Marvin Harvey
What Are Lemon Laws? – Lemon laws are regulations that attempt to protect consumers in the event that they purchase a defective vehicle or other consumer products or services, referred to as lemons, that do not meet their purported quality or usefulness.
Where did the slang term lemon come from?
Origin of Lemon Law – The origin of the lemon law is an interesting story. According to the Online Etymology dictionary, the British used to use the term “lemon” to refer to both a fruit and to a product of substandard quality. America started using the term lemon in 1909 to refer to something worthless.
Fast forward to 1960, it became common to refer to worthless used cars as ‘lemons’. Today’s lemon laws are most enforced at the state level but have a federal act as a backbone for each one. This act is called the Magnuson-Moss Warranty Act, often dubbed the lemon law. The first lemon law in the country was passed in Connecticut by John J.
Woodcock III. According to his records, a resident of his district claimed to have bought an automobile for 7,000, but it turned out to be a ‘classic lemon.’ The warranty he bought with his car had loopholes which allowed the seller to get away with selling ‘lemons’ at ‘good’ car prices.
- Quickly after, dozens of people followed the original protest which got the first lemon law passed.
- The lemon law actually does not force a car to live up to a certain standard to be sold.
- Consumers can still be duped into buying a lemon.
- However, there are certain rules and standards that warranties must comply to if being sold alongside a used car.
This history of the lemon law is fairly intriguing. In class, we looked at the value distributions of good cars, medium cars, and lemons. However, in today’s society, the most thing to look for are the warranties. People are very quickly dissuaded from buying a used car if it is not backed by the lemon law.
And producers do not want to back their lemons with warranties because that would be incredibly unprofitable/cause legal issues. Even selling medium cars could be unprofitable when it comes to the industry standard warranty. It’s a very clever solution to the used car market and shows how much a seller actually values the car.
The Origin of “Lemon Law” is Murky https://web.archive.org/web/20130317083941/http://uscode.house.gov/download/pls/15C50.txt
What does it mean when a car is referred to as a lemon?
A ‘lemon’ is a term for a car with a significant defect or malfunction that makes it unsafe to drive, although the exact definition can vary from state to state.
Why is it called lemon law in Singapore?
Have you bought an item that stopped working soon after the purchase? If so, you may think that being resigned to the situation is your only option. However, consider using Singapore’s lemon law to get recourse from the seller. Lemon law is a consumer protection law that provides some remedies to buyers of defective products.
“Lemons” have been used to refer to defective cars since at least the 1960s, though the term may have been in use even earlier. Laws passed to protect buyers of these defective cars were called “lemon” laws, and the term has stuck since then. In Singapore, our lemon law takes the form of the Consumer Protection (Fair Trading) Act,
This article aims to help you understand:
What does the nickname lemon mean?
What does the name Lemon mean? – The name Lemon means “beloved man” or “beloved woman” (from Old English “leof” = beloved/dear + “mann” = man/person). Besides, Lemon means “lemon”. Watch out: in English slang “lemon” is used as a synonym for something that doesn’t work very well, a clunker.
What happens when your car turns out to be a lemon?
Getting a Refund or Replacement Car – If your car meets the lemon law requirements for your state, you have the right to obtain a refund or replacement car from the manufacturer. Although the process for getting this relief is different in each state, in all states, you must first notify the manufacturer of the defect.
Is lemon law an actual law?
CONSUMER GUIDES | CPFTA & LEMON LAW The Consumer Protection (Fair Trading) Act (CPFTA) The Consumer Protection (Fair Trading) Act (Cap.52A) or CPFTA was enacted to protect consumers against unfair practices and to give them additional rights in respect of goods that do not conform to contract.
- It is the result of years of advocacy by the Consumers Association of Singapore (CASE) because of our firm belief that we need a fair trading legislation to promote a fairer and more equitable marketplace.
- Such legislation would protect both consumers and businesses by making the playing field more level.
In 1979, the late Mr Ivan Baptist, then President of CASE, first urged the government to consider a fair trading legislation in Parliament. After several years of study on the feasibility of a fair trading legislation for Singapore, the CPFTA was finally passed in Parliament on 11 November 2003 and took effect on 1 March 2004.
- Through the years, CASE has worked closely with the Ministry of Trade and Industry to periodically revise and update the CPFTA to ensure that it remains relevant.
- Administering Agency of CPFTA In September 2016, the CPFTA was further amended to strengthen the existing measures that may be taken against errant suppliers who persist in unfair trading practices.
Under the amended CPFTA, SPRING Singapore was appointed as the administering agency with investigative and enforcement powers, which includes:
Gathering evidence against persistently errant suppliers; and Filing injunction applications with the Courts; and Enforcing compliance with injunction orders issued by the Courts.
With effect from 1 April 2018, the Competition and Consumer Commission of Singapore (CCCS) took over the administration of the CPFTA. CASE and the Singapore Tourism Board remain the first points of contact for local consumers and tourists respectively to handle complaints.
Errant suppliers who persist in unfair trade practices will be referred to CCCS for investigation. While the CPFTA gives consumers the right to seek recourse, consumers should still be vigilant in protecting their own interests by exercising due care when buying goods and services. Unfair Practices under CPFTA The following practices in relation to consumer transactions have been identified as unfair practices under Section 4 of the CPFTA.
These include suppliers who:
Do or say anything, or omit to do or say anything, if as a result a consumer might reasonably be deceived or misled; and/or Make a false claim; and/or Take advantage of a consumer if they know or ought reasonably to know that the consumer: Is not in a position to protect his own interests; and/or Is not reasonably able to understand the character, nature, language or effect of the transaction or any matter related to the transaction; and/or Commit any of the 24 unfair practices specified in the Second Schedule to the CPFTA
Subsidiary Regulations under CPFTA Throughout the years, there have been subsidiary regulations enacted under the CPFTA to complement and enhance consumer protection in Singapore. These include:
Consumer Protection (Fair Trading) (Cancellation Of Contracts) Regulations 2009 Consumer Protection (Fair Trading) (Motor Vehicle Dealer Deposits) Regulations 2009 Consumer Protection (Fair Trading) (Opt-Out Practices) Regulations 2009 Consumer Protection (Fair Trading) (Regulated Financial Products And Services) Regulations 2009 Consumer Protection (Fair Trading) (Notifiable Events) Regulations 2016
More information on the subsidiary regulations can be found here, Lemon Law The Lemon Law took effect on 1 September 2012. It is a law that protects consumers against goods that do not conform to contract or are not of satisfactory quality or performance standards at the time of delivery.
The Lemon Law covers all general consumer products purchased in Singapore (e.g. apparel, stationery, electronics, furniture, motorcars, etc). It does not apply to houses, land or rental/leased goods. Second-hand goods and vehicles are included but “satisfactory quality” would take into account their age at the time of delivery and the price paid. The Lemon Law does not apply to services. It does not apply to business-to-business and consumer-to-consumer transactions.
Consumers are not entitled to remedies under the Lemon Law if:
The consumer had damaged the item. The consumer had misused the item and caused the fault. The consumer had tried to repair the item himself or had someone else try to repair it, and in the process damaged it. The consumer had been told about the fault before he bought the item. The consumer had changed his mind and no longer wanted the item. The fault is due to wear and tear.
For more information on the CPFTA and the Lemon Law, download the Fair Trading & You Booklet here, Alternatively, you can purchase a copy of it from our CASE office for $3.21 (including GST)
Why lemon is kept under TYRE?
Crazy or Cautious? 5 Weird Car Traditions from Around the World Are you one of those people who thinks it’s bad luck to walk under a ladder? Or to see a black cat cross your path? Have you ever stopped to wonder where these superstitions originated from or what they really mean? Whether you’re the superstitious type or not, some of these weird traditions are age-old and practiced all over the world.
- And get this – they extend to cars and driving too! Check out 5 of the weirdest car traditions and superstitions from their country of origin.1.
- France When we think of France, we think of good wine, art and romance.
- Right? But legend has it that in this country’s past, friends would noisily serenade a just-married couple outside their home with pots and pans until the newlyweds invited them in for refreshments.
Today, this tradition has evolved to tying tins to the back of the wedding car (probably because of less-tolerant neighbours!). Who knew that this noisy and embarrassing practice had its roots in one of the most sophisticated countries of the world?! 2. Ancient Europe If you’re scared of ghosts then this is a car custom you probably follow. Or will now. According to Biblical folklore, if you don’t hold your breath when you drive past a cemetery, the evil spirits of the dead can enter your body. Scary, huh? Alternatively, the more scientific minds state that the tradition probably originated to prevent inhaling the bacteria prevalent in the air around cemeteries. 3. China When he said ‘Keep the change’, he didn’t mean keep it under the driver’s seat! But that’s exactly what some people do – it’s supposed to bring the driver luck. It does have the added benefit of just reaching under your seat when you need some loose change to help the needy, to buy something off a street vendor or even to pay the toll! Known as ‘Car Coining’, this tradition originated in China but is blindly followed by many all over the world. 4. India When life gives you lemons, make sure to save some for your car! That’s four lemons – one for each wheel. Why? An Indian tradition has drivers crushing lemons under the wheels of their new car to prevent accidents in the future. Of course, you could also try driving carefully to prevent accidents but hey, what the hell! 5. Unknown Origin Nobody really knows where this one originated but according to folklore, if you lift your feet while driving over railroad tracks, it will bring you good luck. And if you don’t, you will lose your sweetheart. Umm, ok! Believe it or not, this tradition is even documented in the, On a more serious note, if you really want to stay safe while driving, regular car maintenance and careful driving should do the trick! Have a car crazy superstition? Share in comments below. : Crazy or Cautious? 5 Weird Car Traditions from Around the World
What is the lemon theory?
Key Takeaways –
The lemons problem refers to the issues that arise regarding the value of an investment or product due to the asymmetric information available to the buyer and seller.The lemons problem theory was put forward by George A. Akerlof, an economist, who presented his ideas in a research paper titled, “The Market for “Lemons”: Quality Uncertainty and the Market Mechanism.”The use of “lemon” refers to a slang term for a vehicle that has many problems and defects that negatively impact its utility.The lemon theory posits that in the used car market, the seller has more information regarding the true value of the vehicle than the buyer. This results in the buyer not wanting to pay more than the average price of the car, even if it is of premium quality. This benefits the seller if the car is a lemon but is a disadvantage if the car is of good quality.The existence of asymmetrical information is not only apparent in the used car market, but many markets, such as consumer and business products, and investing.
Which economic problem do lemon laws tried to correct and/or avoid?
Key Takeaways –
Lemon laws have been enacted in every U.S. state and the District of Columbia as well as at the federal level to protect consumers from manufacturers who intentionally sell defective or poor quality products.The kinds of goods lemon laws cover and how far consumers are protected depends on the jurisdiction of the law, but the term “lemon law” originally referred to defective automobiles that were called lemons.Lemon laws are generally used to legally hold manufacturers to reasonable implementation of their warranties.