In addition, the FTC has issued an interpretive rule that clarifies certain terms and explains some of the provisions of the Act. This section summarizes all the requirements under the Act and the Rules.

The Act and the Rules establish three basic requirements that may apply to a warrantor or a seller.

A. As a warrantor, you must designate, or title, your written warranty as either "full" or "limited."

B. As warrantor, you must state certain specified information about the coverage of your warranty in a single, clear and easy to read document.

C. As a warrantor or a seller, you must ensure that warranties are available where your warranted consumer products are sold so that consumers can read them before buying.

The laws define what a lemon car is and require that the manufacturer, not the dealer, takes care of the defects. If a number of attempts have been made to repair a defect that significantly impairs the use, value or safety of a car and the car continues to have this defect, the car is than considered to be a "lemon".

Most statutes set up a warranty rights period of either 12 to 24 months or 12,000 to 24,000 miles. The defect(s) must occur sometime during this period.