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TO: All Motor Vehicle Dealers
SUBJECT: Used Car Lemon Law
Effective November 1, 1984, new Section 198-b (commonly called the "Used Car Lemon Law") is added to the General
Business Law requiring a dealer to give a warranty upon the sale of a used passenger vehicle costing $1500 or more.
This new legislation does not diminish your responsibilities under Section 417 of the Vehicle and Traffic Law which
requires that all used motor vehicles sold by dealers be "in condition and repair to render under normal use, satisfactory
and adequate service upon the public highway at the time of delivery."
Highlights of this law are as follows:
* No dealer shall sell a used passenger vehicle costing $1500 or more without giving the consumer a written warranty. If
a dealer fails to give a written warranty, the dealer nevertheless shall be deemed to have given a warranty as a matter of
* The warranty shall apply for the following terms:
1. A vehicle having 36,000 miles or less shall be warranted, at minimum, for 60 days or 3,000 miles, whichever comes first.
2. A vehicle having more than 36,000 miles shall be warranted, at minimum for 30 days or 1,000 miles whichever comes
* Parts to be covered shall at least include the following:
3. Drive Axle
7. Alternator, generator, starter, ignition system (excluding battery)