- The Vermont lemon laws are contained in Title 9, Chapter 115 of the Vermont statutes, Sections 4170 -- 4181. The statutes defines new motor vehicles as those that have been sold to a dealer or lessor by a manufacturer, that have not been used except for demonstration purposes and for which the original title has not been issued (except for titles to a lessor from a dealer). Because used cars do not fit this description, they are not covered by Vermont lemon laws.
- The Federal Trade Commission's Used Car Rule applies to dealers that sell more than five used vehicles in a 12-month period. Buyers in Vermont who purchase a vehicle that has been used for purposes other than moving or test driving from such a dealer, fall under the protections of this rule. It does not, however, apply to financial institutions, leased vehicles or employers who sell vehicles to their employees. The primary requirement of the Used Car Rule is that buyers be given adequate information about the vehicle prior to purchase. Compliance is achieved by providing a buyer's guide.
- To be adequate under the federal Used Car Rule, a buyer's guide must include the vehicle make, model, model year and vehicle identification number (VIN). It must state whether the vehicle is being sold under warranty (and if so, what part of any repair costs the dealer pays) or "as is." It further must advise the buyer of the mechanical and electrical systems of the vehicle and any major problems that should be expected. The guide must be located in a conspicuous place in or on the vehicle, and it must inform the buyer of his right to have the vehicle inspected by an independent mechanic prior to buying.
- Whether or not a used vehicle is sold with an express warranty, Vermont law requires the dealer to honor implied warranties. This means that, even though not stated, the dealer, in selling the vehicle, promises that it is fit for ordinary use, is reasonably safe, free of major defects and of the approximate quality of similar cars in the same price range. Even a car sold "as is" in Vermont must adhere to these implied warranties.
- The Magnuson-Moss Warranty Act of 1975 is a federal law that requires dealers to honor express or implied warranties. The buyer of a used vehicle in Vermont that does not conform to the implied or express warranties under which it was sold, has a claim against the dealer under this law. The potential of a claim is often used to resolve disputes informally through mediation or other alternative resolution methods. If a resolution cannot be reached informally, a complaint can be filed in state court in the county where the buyer resides or where the vehicle was purchased. A class action suit under Magnuson-Moss can be brought in federal court.
