Agricultural Economics Department


Date of this Version



Journal of Agricultural and Resource Economics, 20(1): 135-145 [1995]


Copyright 1995 Western Agricultural Economics Association. Used by permission.


Distinctive new provisions of tractor lemon laws which create obligations and provide penalties for defective self-propelled agricultural equipment are contrasted with provisions of automobile lemon laws. Lemon-law obligations involve both producers' guarantees to provide consumers with a serviceable vehicle and producers' promises to remedy defects. Due to fewer manufacturer obligations under the tractor lemon laws as opposed to automobile lemon laws, tractors may be expected to have more defects than automobiles. Yet the tractor lemon laws contain fewer penalties in the form of restitution remedies. The inconsistences of these obligations and penalties suggest tractor laws may be inefficient.