Alaska Lemon Law
The motor vehicle of today is an expensive and complicated device. Most Alaskans have become dependent on the availability of a motor vehicle to conduct their daily affairs. Unfortunately, some new cars prove less than dependable. They turn out to be lemons. When this happens, the consumer is faced with a problem that is not easily resolved. The Legislature, recognizing the dilemma faced by many new car buyers, enacted a law which has commonly become known as the "Alaska Lemon Law."
What are the Benefits of the Alaska Lemon Law?
- The Alaska Lemon Law (AS 45.45.300) provides protection to buyers to new motor vehicles. If a new vehicle turns out to be defective and has not been properly repaired after a reasonable number of attempts, the law requires a refund or replacement vehicle.
- Only a small percentage of new vehicles will be declared lemons. However, all new vehicle buye will benefit from this law. The manufacturer and the dealer now have a stronger economic incentive to deliver the vehicle free from defects, and if problems develop, to correct them quickly and accurately.
- The Alaska lemon law encourages the vehicle manufacturers to establish third party arbitration programs. These programs must meet specific standards and must have the approval of the Attorney General. Any decisions ordered by the arbitration’s are binding on the manufacturer but not on the consumer.
- This Alaska lemon law spells out clearly the owner’s, dealer’s and manufacturer’s responsibilities. It does not limit other rights and remedies that may be available to the owner of a motor vehicle under other provisions of Alaskan law.
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