The California Lemon Laws state that if a beneficiary has to repair his new or used automobile, truck, van, R.V or motorcycle, boat or any consumer goods during the warranty period and after giving the dealer a reasonable number of attempts to repair the vehicle, the product is considered a "lemon".
An automobile or consumer product, as presented in the California Lemon Laws, is said to be a lemon if the same problem occurs three or more times in a row, over a small period of time within the warranty period. The plaintiff or the owner is entitled to a refund or get a substitute under the California Lemon Laws. The law refers not only to purchased, but to lease products also.
There are many ways of receiving compensation and it is not compulsory for the beneficiary to directly sue the manufacturer. The California Lemon Laws state that if the automobile is purchased after 1986 then there is a provision called the arbitration procedure. In this case, a company called the "better business bureau" auto line department decides upon the outcome of the case after assigning an arbitrator to listen to the both sides of the story and the judge's decision is binding for the manufacturer but not for the aggrieved party. In other words the owner of the vehicle can reject the decision of the arbitrator and sue the manufacturer in court.
The California Lemon Laws stipulate that the compensation received is must be equal to the cost of the vehicle but the plaintiff can also choose a replacement vehicle of the same make and reject the refund.
Although lemon laws vary from state to state, the main purpose of these laws is to protect the beneficiaries from goods and vehicles that have an inherent defect.