Background on the Texas Lemon Law

The Texas' Lemon Law was enacted by the Texas Legislature in 1983. A court challenge stalled enforcement of the law, but in 1985, a federal appeals court upheld its validity. In Texas, the Lemon Law is administered by the Texas Department of Transportation's Motor Vehicle Division and its Motor Vehicle Board.
Through mediation and formal hearings allowed under the law, the Motor Vehicle Division has helped resolve many complaints. From 1988 to 1997, the division processed 12,282 complaints. In 1997, the division received 1,291 written complaints and held 182 hearings on complaints that were not resolved informally. In about half the cases heard in 1997, consumers received either replacement, repurchase or repair of their vehicles, or some other appropriate relief.
In 1991, the Legislature changed the Lemon Law to benefit more consumers. The time period for filing a complaint and the definition of a "lemon" were expanded, and consumers may now be reimbursed for certain incidental expenses. Now, a disclosure notice accompanying any vehicle repurchased or replaced under the Lemon Law is also required.