May
13
2008
In the past six years, more than 36,000 cars have been branded as lemons in California. The Lemon Law generated nearly $1 billion in relief to their owners, according to the state Department of Consumer Affairs.
The Lemon Law is stronger than when it took effect in January 1983, [lemon law author Assemblywoman Sally] Tanner said. It originally said an owner was entitled to a replacement or refund if the car wasn’t fixed after a ‘reasonable number of repair attempts’ in the first 12 months or 12,000 miles.
Usually 3 failed repair attempts are required, however 2 failed repair attempts are sufficient if the problem is severe or life threatening, or 30 days or more at the dealership for random repairs.
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[ To Learn more our services and areas of practice, please visit our website at www.LemonLawIntel.com ]
May
13
2008
In July 2007, the California Legislature approved and the Governor signed a bill to extend the protection of the California Lemon Law to members of the Armed Forces stationed in California regardless of where they bought their lemon car or truck. California is the only state that has extended its lemon law to military personnel who bought their vehicle outside of the state in which they are stationed.
The problem was that military personnel stuck with a lemon vehicle were not exactly free to go to their home state where they bought their vehicle to hire an attorney and prosecute a lemon law case. State Senator Ellen Corbett carried the bill that will become effective January 1, 2008. The bill was sponsored by Rosemary Shahan of the non-profit advocate group, CARS.
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[ To Learn more our services and areas of practice, please visit our website at www.LemonLawIntel.com ]
May
13
2008
Car dealers in California increasingly have arbitration clauses buried in their sales contracts that preclude buyers from going to court. Under these clauses, any disputes are channeled to arbitration forums, principally the National Arbitration Forum (NAF) and the arbitrator’s findings are binding. If the consumer loses, he or she cannot reject the award and go to court.
This system is not to be confused with such organizations as the Better Business Bureau that provides arbitration in lemon law cases. Under the BBB rules, if the consumer does not like the results, he or she may still file a lawsuit. In that way, the consumer does not give up the right to hire a lawyer and have the case heard by a jury.
That consumers who sign the contracts with binding arbitration clauses unwittingly are foregoing their right to a jury trial is bad enough, but the NAF and similar arbitration forums are, to put it mildly, unfair to consumers. A California law requires these forums to information on who wins these proceedings. The nonprofit group Public Citizen analyzed the NAF data and found that California consumers lost 94% of some 19,000 cases! One arbitrator handled 68 cases in a single day. There is no in-person hearing. Arbitrators who rule for consumers are soon dropped by NAF.
Consumer horror stories involving NAF are common. Mother Jones magazine covered this story in some depth in an article in November 2007.
Other arbitration forums such as the American Arbitration Association are almost as bad for consumers as NAF. Taking a dispute to AAA is quite expensive (especially when it comes to paying the arbitrator). The arbitrators favor the big corporations knowing they won’t be chosen for future arbitrations (more fees) if they rule for the consumers.
The car dealers want no part of arbitration when it comes to fighting with the manufacturers over their franchise rights. In 2002, the dealers succeeded in getting Congress to enact a law banning binding arbitration clauses in the dealers’ sales and service contracts with the auto manufacturers!
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[ To Learn more our services and areas of practice, please visit our website at www.LemonLawIntel.com ]
May
13
2008
Is your new dream car spending more time at the dealer’s repair shop than it spends with you? Does you car emit smoke in a rainbow of colors, drip multiple fluids, or make wheezing noises while stopped at an intersection? Do the neighbours complain that they hear your new car coming long before they see it? If you’ve detected a faint whiff of citrus when approaching your garage, then you could have a lemon on your hands. But wait! Hold the sugar and ice cubes: In California, you won’t be forced to make lemonade.
What, Exactly, Is a Lemon?
In California, a problem car’s owner can be entitled to a comparable replacement, or a refund of the purchase price (prorated based on the miles driven). In order to qualify as a lemon:
The car must still be under warranty. The owner must have taken the car in for repair of the same problem four or more times through an authorized dealer. The car must have been inoperable for a total of 30 days (not necessarily consecutive)
The problem or defect must also substantially impair the use, value, or safety of the vehicle. To qualify, cars must be either purchased or leased in California for personal, family, or business use.
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