Lemon Law for California

New vehicles may contain hidden mechanical flaws or defects in workmanship, caused by design flaws or by an error during the automotive factory build process. These errors can range from parts being installed incorrectly to a tool that was used to build the car not being removed or a batch of materials with structural or chemical flaws.

Consumer protection legislation typically labels vehicles as “lemons” if the same problem recurs despite multiple repair attempts (such as three times in a row over a short period, where previous attempts have not fixed the problem) or where defects have caused a new vehicle to be out of service for a prolonged period (typically thirty days or longer) for repairs.

The primary objective of these lemon laws is to force manufacturers to buy back defective vehicles or exchange them. Depending on the jurisdiction, a process similar to vehicle title branding may also be used to warn subsequent purchasers of the history of a problem vehicle. This portion of a vehicle’s history is, however, often not retained with the vehicle title when exporting vehicles to another jurisdiction.

If you purchased a used car there are two situations in which you may be qualified for cash or other lemon law benefits:

Situation #1: You may be entitled to compensation for breach of warranty if you had one of the following warranties:

 Any warranty left from the manufacturer when you purchased your vehicle (for example, almost all vehicles sold with fewer than 36,000 miles will have this. But if the warranty is longer, you may have even more time).

 Your vehicle was “Certified” by the Manufacturer (in which case it came with a short Manufacturer’s Warranty, typically 1 year).

 You purchased an Extended Warranty backed by the Manufacturer (typically 5 years or longer).

Normally, these types of cases fall outside the scope of the state lemon law but are covered under special federal lemon laws.

Situation #2: When No Manufacturer’s Warranty Exists If you do not have a manufacturer’s warranty of any kind you may be entitled to compensation for violations of consumer protection laws that fall outside of the lemon laws. The following is a list of some of the problems and/or issues which may be present in your vehicle.

 Prior history of mechanical problems known to the seller: Laundered Lemon.

 Previously salvaged or wrecked.

 Fraudulently rolled back odometer.

 Rental car, police car, taxi, or similar.

 Stolen, stripped and rebuilt.

 Involved in a flood.

Lemon Laws vary from state to state, so accurate information on the scope and restrictions of Lemon Laws in a particular state should be obtained from an attorney practicing in that state.

Dealers and manufacturers are often reluctant to pay on a lemon law claim, even if it is justified. Here are some common explanations that dealers and manufacturers offer for why they refuse to either replace your defective vehicle or refund your purchase price.

Lemon laws were introduced to simplify the process of a consumer getting relief after he or she buys a habitually defective vehicle from an auto manufacturer. Prior to the passage of such laws, consumers were essentially at the mercy of the manufacturers, who simply do not want to refund money or offer replacement vehicles for those that are defective.

The lemon laws in all 50 states make it clear that the consumer has the right to request a refund or a replacement vehicle should their auto qualify as defective under their state’s lemon law statute. And yet, time and again, manufacturers and dealers offer excuses and explanations as to why they cannot or will not offer relief.

Here are some of the most common reasons offered to consumers as to why a refund or replacement cannot be offered:

-The defect is not significant - The defect need only “substantially affect” the value, use or safety of the vehicle. It need not be a “significant’ defect; even something small can affect one of those three things. Whether or not a defect affects safety, value or use isn’t really a dealer call, anyway. These things are best determined by either arbitration boards or judges.  

-Abuse or neglect - As far as we know, all 50 states have clauses in their refund or replacement that void the law if the vehicle has been subject to abuse, neglect or unauthorized modification by the owner. Again, that shouldn’t really be a judgment call by the dealer, although abuse and neglect are pretty easy to prove. 

Still, this accusation probably works a good portion of the time. Don’t fall for it. If you haven’t abused or neglected the vehicle, you have a valid claim. 

One of the key documentation elements to a Lemon Law case is the “repair order” and “invoice.”  Most states’ Lemon Laws use the number of times you visited the dealer to get a particular defect corrected in determining whether a vehicle qualifies as a “lemon.” 

Dealers can create a problem by what is known as the “open” repair order. An example of this is when a customer has a “repair order” written (and gets a signed copy of it) and the dealer calls and says “we had to order a part, come on by and pick up your car, we are going to hold the repair order ticket open until the part comes in.” This is where you say “no”. If the car is available to drive, but parts are on order, then you need have the dealer close out that repair order and give you an invoice when you pick up the vehicle. You are entitled to a closed repair invoice that accurately reflects what the dealership did to diagnose your written complaint, what parts are on order, the “date in/date out” as well as “miles in/miles out”, giving you a record of that repair visit. 

By following the information outlined above, you will avoid having two repair attempts by the dealer turning into one, because they otherwise were going to “hold open” the repair order and only give you one invoice after parts had come in, and repairs were completed. 

Many vehicle problems can be identified and repaired by your franchised dealership right from the start, or by the 2nd visit. Sometimes a visit with the Service Manager at the 2nd visit can result in a potential repeated problem being resolved right away. Other times vehicles have a chronic problem (or problems) that despite repeated visits to the dealership (not to mention countless days in the shop) turn out to be “lemons.” It’s when despite your best efforts the vehicle just turns out to be chronically defective, and needs to be repurchased or replaced. 

Sometimes the old adage “what you do say can hurt you” can be an accurate statement when it comes to Lemon Law claim.  Consumers are not generally versed in law, civil litigation, speaking with automobile manufacturers or their “customer assistance centers,” or Lemon Laws. The consumer should consider getting professional advice from an experienced Lemon Law attorney that knows and understands the Lemon Law.

Lemon laws don’t work on the basis of being “in effect.” You can avail yourself of the lemon laws of your state so long as you qualify for the statutory requirements, which vary from state to state.

Obviously, it won’t work to drive a car with a manufacturing defect for an excessive period of time without complaining about it and then decide after such a long time that you want to have your money returned. So long as you diligently pursue attempting to have the defect repaired by an authorized dealer, and the manufacturer cannot make the repair, then you have a right to demand compliance with the lemon laws. Contact a local attorney familiar with the lemon laws of your state to find out whether your situation qualifies.

You cannot sue under the lemon laws, because typically the lemon laws are meant to return a consumer to the condition that he or she was in before buying the vehicle containing manufacturing defects. In your situation, you seem to be describing a matter of a failure to disclose information, or misrepresentation. Those are entirely different legal bases. Call your local county bar association for a referral to attorney who can advise you on this matter. Remember, however, that it will be the local dealer’s word against yours, and you may have a difficult time proving your case if there isn’t anything in writing.

At the federal level, the Magnuson-Moss Warranty Act applies. Each state has established “lemon law” statutes, generally enforced through the consumer protection division of the Attorney General’s office.

When dealing with lemon laws, the basic questions that an Attorney needs to have answered are:

• Whether you bought the vehicle new or used

• When it was purchased

• The year, model, and manufacturer

• The defect(s) that you are complaining of

• How many repair attempts you’ve attempted on the vehicle

Consumers who bring substantial documentation and evidence to the arbitration hearing tend to do better than those with little evidence to support their claims. The types of documentation that can help include:
• brochures and ads about the vehicle (an arbitration panel is likely to make the manufacturer live up to its claims)
• vehicle service records showing how often you took the car into the shop, and
• any other documents showing your attempts to get the dealer to repair your car, including old calendars and phone records.
It is important to take the arbitration seriously and be as prepared as possible. Although usually you can appeal a bad arbitration decision in court, the decision can greatly influence your case. For example, the manufacturer may be able to use the arbitration decision as evidence against you.
This whole process can take a long time. Most lemon laws allow you to keep using your car while pursuing a claim. But be careful: Never use your car if doing so poses a safety risk. Even if you can drive your car safely, some courts may view your case less favorably if they know that you were able to keep driving your car.

So, here are some things that you’ll need to consider when you’re shopping around for a good attorney to handle your lemon law case. For instance, you will want to get a consultation to figure out exactly what type of lemon case you have. After that, you can follow the tips I’m listing below to help you to find the right lemon law attorney to handle your case.

EXPERIENCE
You should make sure that the firm or lawyer that you choose has experience in handling your specific type of case. The law has become very specialized in lemon cases and you will need a law firm that is not new to this area. Otherwise they may not know how to get the best results for you. However, you should be wary of any law firms which use the term “experts” or “specialists” because they’re not legally allowed to use those terms.

NUMBER OF ATTORNEYS
You should also ask how many lawyers in that firm are not only licensed in your state, but how many of those lawyers can actually handle your lemon law or other type of case. Just like in any other type of company, people get sick or leave for whatever reason. Since your case will likely take many months to resolve, you want to be sure there is another attorney in the firm who can take over if your own lawyer can’t continue for any reason.

ATTENTION
You also want to make sure that you can meet your attorney before he or she represents you. Just like a doctor, a lawyer is a professional that you trust a very important part of your life to. Because of this, you should be wary of any firm which will not allow you to meet your attorney or those who give you the run-around. You should always know what is going on in your case.

LOCATION
You should also make sure that your lawyer is at least located in the same State where your case will be handled. In general, lawyers must be licensed in the State in which they are doing their legal work in order to practice. If the lawyer is not located in your state, he/she may have problems effectively representing your interests.
If your lawyer is forced to travel great distances to appear on your behalf, or if he/she is hiring someone else to make any court appearances on their behalf, you should consider whether this will influence his/her judgment when he/she confers with you about any settlement offer made by the opposing side.

REPUTATION
Believe it or not, a lawyer’s reputation is one of the most important things you need to consider when you make a decision. How other lawyers feel about his/her performance and more importantly how former clients feel will give you a good idea what that lawyer can do for you. Most lawyers will freely and willingly give you information about their reputation if asked and some will even provide you with proof of their track records if you request it. Also, if you know someone who has had to deal with a lemon case, you can ask them how their lawyer was with them. All of these things can help you in choosing your next lawyer.

COST
One thing you should consider is the cost of all this. Not all states will allow you to recover the whole amount of the lawyers fees under the state lemon laws, this is why I highly suggest you take the time to research the laws in your state. However, the Magnuson-Moss Warranty Act is a federal law that may allow you to recover the cost of hiring a attorney. If your state laws don’t allow recovery of fees, or even if they do, you will still want to be sure that the cost of the lawyer is affordable because there is no guarantee that you will win your case once it gets to court. You need to be sure that you can afford the lawyer that you get. Since some will require a retainer, it is best to ask about this up front. For those that do not, know that you will either have to pay the fees along the way or out of the award at the end.

Now, here’s the thing. If the attorney is any good and confident in their ability to win your case for you, they should be willing to take your case on a contingent fee basis. Which means if they don’t win your case for you it won’t cost you anything. The worst case scenario should be that you have to pay a down payment and make payments along the way. One other thing, make sure that if the fees are on a contingent basis that they are set fees and not a blanket percentage of your eventual award.

Personally, if I had to go thru all this again I’d only choose a confident lemon law lawyer who would take my case on a contingent fee basis. This is my own personal opinion though, you should always be sure to do the research required to know your rights, that way you can make your own decision based on your best interests.

So, now that we’ve covered all that, here are some quick questions that you should ask your lawyer before hiring them or even considering them. Check for quick and concise answers and ask them to put all in writing before you make any final decisions.
1. How many cases like this have you handled before and what was the result of those cases?
2. What are the resources that you and/or your firm have at your disposal?
3. Are you going to try to settle out of court or do you push for court trial?
4. What are any and all of the upfront fees? If there are none, how much of the settlement do you take upon trial end?
5. What type of billing procedures does your firm require, and do I get a detailed report in writing?
6. If you will be itemizing the costs, can I get a detailed and itemized written report of the costs each week?
7. Do you have a working knowledge of lemon laws in my state?

These are just some of the questions that you should ask before hiring your lawyer. You also want to be sure that they can provide you with details on what you have that will make your case for you. You don’t want a lawyer that just wants to make a few bucks, you want proof that you have a case that you can win, otherwise, you will not only be stuck with a car you can’t use, but you might end up having to make payments to a lawyer as well. With that in mind, lets look at…