This was a period of time when Americans were reluctant to go to the dealers garages and preferred to go to oil & lube services only.

At that time Lee Iacocca the CEO of Chrysler Corp identified immediately the problem of mistrust of American consumers in American made cars, Chrysler launched a campaign on national TV promising to provide a bumper-to-bumper warranty coverage for 50,000 miles or five years, which ever comes first! Then GM came with the answer of 60,000 miles or 6 years, which ever comes first! Chrysler returned with the final stroke of 70,000 miles or 7 years which ever comes first.

Few months later I went to the Buick main dealer garage in long Island, I was seating in the waiting room, next to me was a very nervous guy, I asked him why was he so upset with the garage, he explained to me that even though he had this bumper-to-bumper warranty It doesn't cover labor and the damn car is more than a week in the garage and they don't seems to be able to find what is the problem with the car...

The Magnuson-Moss Warranty Act is Known as the "Lemon Law"

The Magnuson-Moss Warranty Act is a United States federal law codified at 15 USC 50. Enacted in 1975, it is the federal statute that governs warranties on consumer products.

The Act was sponsored by Senators Warren G. Magnuson of Washington and Frank Moss of Utah, both Democrats.

State Lemon Laws have some differences like coverage of motorcycles and used vehicles, but there are some basic guidelines that they do share. (See 50 state by state Lemon Law Summaries at: http://autopedia.com/html/HotLinks_Lemon2.html).

In passing the Magnuson-Moss Warranty Act, Congress specified a number of requirements that warrantors must meet. Congress also directed the FTC to adopt rules to cover other requirements.

The FTC adopted three Rules under the Act, the Rule on Disclosure of Written Consumer Product Warranty Terms and Conditions (the Disclosure Rule), the Rule on Pre-Sale Availability of Written Warranty Terms (the Pre-Sale Availability Rule), and the Rule on Informal Dispute Settlement Procedures (the Dispute Resolution Rule).