California Lemon Law Statutes
1793.22.
(a) This section shall be known and may be cited as the Tanner Consumer Protection Act.
(b) It shall be presumed that a reasonable number of attempts have been made to conform
a new motor vehicle to the applicable express warranties if, within 18 months from
delivery to the buyer or 18,000 miles on the odometer of the vehicle, whichever occurs
first, one or more of the following occurs:
(1) The same nonconformity results in a condition that is likely to cause death or
serious bodily injury if the vehicle is driven and the nonconformity has been subject to
repair two or more times by the manufacturer or its agents, and the buyer or lessee has at
least once directly notified the manufacturer of the need for the repair of the
nonconformity.
(2) The same nonconformity has been subject to repair four or more times by the
manufacturer or its agents and the buyer has at least once directly notified the
manufacturer of the need for the repair of the nonconformity. (
3) The vehicle is out of service by reason of repair of nonconformities by the
manufacturer or its agents for a cumulative total of more than 30 calendar days since
delivery of the vehicle to the buyer. The 30-day limit shall be extended only if repairs
cannot be performed due to conditions beyond the control of the manufacturer or its
agents. The buyer shall be required to directly notify the manufacturer pursuant to
paragraphs (1) and (2) only if the manufacturer has clearly and conspicuously disclosed to
the buyer, with the warranty or the owner's manual, the provisions of this section and
that of subdivision (d) of Section 1793.2, including the requirement that the buyer must
notify the manufacturer directly pursuant to paragraphs (1) and (2). The notification, if
required, shall be sent to the address, if any, specified clearly and conspicuously by the
manufacturer in the warranty or owner's manual. This presumption shall be a rebuttable
presumption affecting the burden of proof, and it may be asserted by the buyer in any
civil action, including an action in small claims court, or other formal or informal
proceeding.
(c) If a qualified third-party dispute resolution process exists, and the buyer
receives timely notification in writing of the availability of that qualified third-party
dispute resolution process with a description of its operation and effect, the presumption
in subdivision (b) may not be asserted by the buyer until after the buyer has initially
resorted to the qualified third-party dispute resolution process as required in
subdivision (d). Notification of the availability of the qualified third-party dispute
resolution process is not timely if the buyer suffers any prejudice resulting from any
delay in giving the notification. If a qualified third-party dispute resolution process
does not exist, or if the buyer is dissatisfied with that third-party decision, or if the
manufacturer or its agent neglects to promptly fulfill the terms of the qualified
third-party dispute resolution process decision after the decision is accepted by the
buyer, the buyer may assert the presumption provided in subdivision (b) in an action to
enforce the buyer's rights under subdivision (d) of Section 1793.2. The findings and
decision of a qualified third-party dispute resolution process shall be admissible in
evidence in the action without further foundation. Any period of limitation of actions
under any federal or California laws with respect to any person shall be extended for a
period equal to the number of days between the date a complaint is filed with a
third-party dispute resolution process and the date of its decision or the date before
which the manufacturer or its agent is required by the decision to fulfill its terms if
the decision is accepted by the buyer, whichever occurs later.
(d) A qualified third-party dispute resolution process shall be one that does all of
the following:
(1) Complies with the minimum requirements of the Federal Trade Commission for informal
dispute settlement procedures as set forth in Part 703 of Title 16 of the Code of Federal
Regulations, as those regulations read on January 1, 1987.
(2) Renders decisions which are binding on the manufacturer if the buyer elects to
accept the decision.
(3) Prescribes a reasonable time, not to exceed 30 days after the decision is accepted
by the buyer, within which the manufacturer or its agent must fulfill the terms of its
decisions.
(4) Provides arbitrators who are assigned to decide disputes with copies of, and
instruction in, the provisions of the Federal Trade Commission's regulations in Part 703
of Title 16 of the Code of Federal Regulations as those regulations read on January 1,
1987, Division 2 (commencing with Section 2101) of the Commercial Code, and this chapter.
(5) Requires the manufacturer, when the process orders, under the terms of this
chapter, either that the nonconforming motor vehicle be replaced if the buyer consents to
this remedy or that restitution be made to the buyer, to replace the motor vehicle or make
restitution in accordance with paragraph (2) of subdivision (d) of Section 1793.2.
(6) Provides, at the request of the arbitrator or a majority of the arbitration panel,
for an inspection and written report on the condition of a nonconforming motor vehicle, at
no cost to the buyer, by an automobile expert who is independent of the manufacturer.
(7) Takes into account, in rendering decisions, all legal and equitable factors,
including, but not limited to, the written warranty, the rights and remedies conferred in
regulations of the Federal Trade Commission contained in Part 703 of Title 16 of the Code
of Federal Regulations as those regulations read on January 1, 1987, Division 2
(commencing with Section 2101) of the Commercial Code, this chapter, and any other
equitable considerations appropriate in the circumstances. Nothing in this chapter
requires that, to be certified as a qualified third-party dispute resolution process
pursuant to this section, decisions of the process must consider or provide remedies in
the form of awards of punitive damages or multiple damages, under subdivision (c) of
Section 1794, or of attorneys' fees under subdivision (d) of Section 1794, or of
consequential damages other than as provided in subdivisions (a) and (b) of Section 1794,
including, but not limited to, reasonable repair, towing, and rental car costs actually
incurred by the buyer.
(8) Requires that no arbitrator deciding a dispute may be a party to the dispute and
that no other person, including an employee, agent, or dealer for the manufacturer, may be
allowed to participate substantively in the merits of any dispute with the arbitrator
unless the buyer is allowed to participate also. Nothing in this subdivision prohibits any
member of an arbitration board from deciding a dispute.
(9) Obtains and maintains certification by the Department of Consumer Affairs pursuant
to Chapter 9 (commencing with Section 472) of Division 1 of the Business and Professions
Code.
(e) For the purposes of subdivision (d) of Section 1793.2 and this section, the
following terms have the following meanings:
(1) "Nonconformity" means a nonconformity which substantially impairs the
use, value, or safety of the new motor vehicle to the buyer or lessee.
(2) "New motor vehicle" means a new motor vehicle that is bought or used
primarily for personal, family, or household purposes. "New motor vehicle" also
means a new motor vehicle with a gross vehicle weight under 10,000 pounds that is bought
or used primarily for business purposes by a person, including a partnership, limited
liability company, corporation, association, or any other legal entity, to which not more
than five motor vehicles are registered in this state. "New motor vehicle"
includes the chassis, chassis cab, and that portion of a motor home devoted to its
propulsion, but does not include any portion designed, used, or maintained primarily for
human habitation, a dealer-owned vehicle and a "demonstrator" or other motor
vehicle sold with a manufacturer's new car warranty but does not include a motorcycle or a
motor vehicle which is not registered under the Vehicle Code because it is to be operated
or used exclusively off the highways. A demonstrator is a vehicle assigned by a dealer for
the purpose of demonstrating qualities and characteristics common to vehicles of the same
or similar model and type.
(3) "Motor home" means a vehicular unit built on, or permanently attached to,
a self-propelled motor vehicle chassis, chassis cab, or van, which becomes an integral
part of the completed vehicle, designed for human habitation for recreational or emergency
occupancy.
(f)
(1) Except as provided in paragraph (2), no person shall sell, either at wholesale or
retail, lease, or transfer a motor vehicle transferred by a buyer or lessee to a
manufacturer pursuant to paragraph (2) of subdivision (d) of Section 1793.2 or a similar
statute of any other state, unless the nature of the nonconformity experienced by the
original buyer or lessee is clearly and conspicuously disclosed to the prospective buyer,
lessee, or transferee, the nonconformity is corrected, and the manufacturer warrants to
the new buyer, lessee, or transferee in writing for a period of one year that the motor
vehicle is free of that nonconformity.
(2) Except for the requirement that the nature of the nonconformity be disclosed to the
transferee, paragraph (1) does not apply to the transfer of a motor vehicle to an
educational institution if the purpose of the transfer is to make the motor vehicle
available for use in automotive repair courses.
1793.23.
(a) The Legislature finds and declares all of the following: (1) That the expansion of
state warranty laws covering new and used cars has given important and valuable protection
to consumers. (2) That, in states without this valuable warranty protection, used and
irrepairable motor vehicles are being resold in the marketplace without notice to the
subsequent purchaser. (3) That other states have addressed this problem by requiring
notices on the title of these vehicles or other notice procedures to warn consumers that
the motor vehicles were repurchased by a dealer or manufacturer because the vehicle could
not be repaired in a reasonable length of time or a reasonable number of repair attempts
or the dealer or manufacturer was not willing to repair the vehicle. (4) That these
notices serve the interests of consumers who have a right to information relevant to their
buying decisions. (5) That the disappearance of these notices upon the transfer of title
from another state to this state encourages the transport of "lemons" to this
state for sale to the drivers of this state.
(b) This section and Section 1793.24 shall be known, and may be cited as, the
Automotive Consumer Notification Act.
(c) Any manufacturer who reacquires or assists a dealer or lienholder to reacquire a
motor vehicle registered in this state, any other state, or a federally administered
district shall, prior to any sale, lease, or transfer of the vehicle in this state, or
prior to exporting the vehicle to another state for sale, lease, or transfer if the
vehicle was registered in this state and reacquired pursuant to paragraph (2) of
subdivision (d) of Section 1793.2, cause the vehicle to be retitled in the name of the
manufacturer, request the Department of Motor Vehicles to inscribe the ownership
certificate with the notation "Lemon Law Buyback," and affix a decal to the
vehicle in accordance with Section 11713.12 of the Vehicle Code if the manufacturer knew
or should have known that the vehicle is required by law to be replaced, accepted for
restitution due to the failure of the manufacturer to conform the vehicle to applicable
warranties pursuant to paragraph (2) of subdivision (d) of Section 1793.2, or accepted for
restitution by the manufacturer due to the failure of the manufacturer to conform the
vehicle to warranties required by any other applicable law of the state, any other state,
or federal law.
(d) Any manufacturer who reacquires or assists a dealer or lienholder to reacquire a
motor vehicle in response to a request by the buyer or lessee that the vehicle be either
replaced or accepted for restitution because the vehicle did not conform to express
warranties shall, prior to the sale, lease, or other transfer of the vehicle, execute and
deliver to the subsequent transferee a notice and obtain the transferee's written
acknowledgment of a notice, as prescribed by Section 1793.24.
(e) Any person, including any dealer, who acquires a motor vehicle for resale and knows
or should have known that the vehicle was reacquired by the vehicle's manufacturer in
response to a request by the last retail owner or lessee of the vehicle that it be
replaced or accepted for restitution because the vehicle did not conform to express
warranties shall, prior to the sale, lease, or other transfer, execute and deliver to the
subsequent transferee a notice and obtain the transferee's written acknowledgment of a
notice, as prescribed by Section 1793.24.
(f) Any person, including any manufacturer or dealer, who sells, leases, or transfers
ownership of a motor vehicle when the vehicle's ownership certificate is inscribed with
the notation "Lemon Law Buyback" shall, prior to the sale, lease, or ownership
transfer of the vehicle, provide the transferee with a disclosure statement signed by the
transferee that states: "THIS VEHICLE WAS REPURCHASED BY ITS MANUFACTURER DUE TO A
DEFECT IN THE VEHICLE PURSUANT TO CONSUMER WARRANTY LAWS. THE TITLE TO THIS VEHICLE HAS
BEEN PERMANENTLY BRANDED WITH THE NOTATION "LEMON LAW BUYBACK'."
(g) The disclosure requirements in subdivisions (d), (e), and (f) are cumulative with
all other consumer notice requirements and do not relieve any person, including any dealer
or manufacturer, from complying with any other applicable law, including any requirement
of subdivision (f) of Section 1793.22.
(h) For purposes of this section, "dealer" means any person engaged in the
business of selling, offering for sale, or negotiating the retail sale of, a used motor
vehicle or selling motor vehicles as a broker or agent for another, including the
officers, agents, and employees of the person and any combination or association of
dealers.
1793.24.
(a) The notice required in subdivisions (d) and (e) of Section 1793.23 shall be
prepared by the manufacturer of the reacquired vehicle and shall disclose all of the
following:
(1) Year, make, model, and vehicle identification number of the vehicle.
(2) Whether the title to the vehicle has been inscribed with the notation "Lemon
Law Buyback."
(3) The nature of each nonconformity reported by the original buyer or lessee of the
vehicle.
(4) Repairs, if any, made to the vehicle in an attempt to correct each nonconformity
reported by the original buyer or lessee.
(b) The notice shall be on a form 81/2 x 11 inches in size and printed in no smaller
than 10-point black type on a white background. The form shall only contain the following
information prior to it being filled out by the manufacturer: WARRANTY BUYBACK NOTICE
(Check One) /__/ This vehicle was repurchased by the vehicle's manufacturer after the last
retail owner or lessee requested its repurchase due to the problem(s) listed below. /__/
THIS VEHICLE WAS REPURCHASED BY ITS MANUFACTURER DUE TO A DEFECT IN THE VEHICLE PURSUANT
TO CONSUMER WARRANTY LAWS. THE TITLE TO THIS VEHICLE HAS BEEN PERMANENTLY BRANDED WITH THE
NOTATION "LEMON LAW BUYBACK." Under California law, the manufacturer must
warrant to you, for a one year period, that the vehicle is free of the problem (s) listed
below. ___________________________________________________________ |V.I.N. |Year | Make |
Model | |__________________________|________|__________|____________|
___________________________________________________________ | Problem(s) Reported by |
Repairs Made, if any, to | | Original Owner | Correct Reported Problem(s) | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
|___________________________|_______________________________| Signature of Manufacturer
Date _______________________________________________ ____________ Signature of Dealer(s)
Date _______________________________________________ ____________
_______________________________________________ ____________
_______________________________________________ ____________ Signature of Retail Buyer or
Lessee Date _______________________________________________ ____________
_______________________________________________ ____________
(c) The manufacturer shall provide an executed copy of the notice to the manufacturer's
transferee. Each transferee, including a dealer, to whom the motor vehicle is transferred
prior to its sale to a retail buyer or lessee shall be provided an executed copy of the
notice by the previous transferor.
1793.25.
(a) Notwithstanding Part 1 (commencing with Section 6001) of Division 2 of the Revenue
and Taxation Code, the State Board of Equalization shall reimburse the manufacturer of a
new motor vehicle for an amount equal to the sales tax which the manufacturer pays to or
for the buyer when providing a replacement vehicle pursuant to subparagraph (A) of
paragraph (2) of subdivision (d) of Section 1793.2 or includes in making restitution to
the buyer pursuant to subparagraph (B) of paragraph (2) of subdivision (d) of Section
1793.2, when satisfactory proof is provided that the retailer of the motor vehicle for
which the manufacturer is making restitution has reported and paid the sales tax on the
gross receipts from the sale of that motor vehicle and the manufacturer provides
satisfactory proof that it has complied with subdivision (c) of Section 1793.23. The State
Board of Equalization may adopt rules and regulations to carry out, facilitate compliance
with, or prevent circumvention or evasion of, this section.
(b) Nothing in this section shall in any way change the application of the sales and
use tax to the gross receipts and the sales price from the sale, and the storage, use, or
other consumption, in this state or tangible personal property pursuant to Part 1
(commencing with Section 6001) of Division 2 of the Revenue and Taxation Code.
(c) The manufacturer's claim for reimbursement and the board's approval or denial of
the claim shall be subject to the provisions of Article 1 (commencing with Section 6901)
of Chapter 7 of Part 1 of Division 2 of the Revenue and Taxation Code, except Sections
6902.1, 6903, 6907, and 6908 thereof, insofar as those provisions are not inconsistent
with this section.
1793.26.
(a) Any automobile manufacturer, importer, distributor, dealer, or lienholder who
reacquires, or who assists in reacquiring, a motor vehicle, whether by judgment, decree,
arbitration award, settlement agreement, or voluntary agreement, is prohibited from doing
either of the following:
(1) Requiring, as a condition of the reacquisition of the motor vehicle, that a buyer
or lessee who is a resident of this state agree not to disclose the problems with the
vehicle experienced by the buyer or lessee or the nonfinancial terms of the reacquisition.
(2) Including, in any release or other agreement, whether prepared by the manufacturer,
importer, distributor, dealer, or lienholder, for signature by the buyer or lessee, a
confidentiality clause, gag clause, or similar clause prohibiting the buyer or lessee from
disclosing information to anyone about the problems with the vehicle, or the nonfinancial
terms of the reacquisition of the vehicle by the manufacturer, importer, distributor,
dealer, or lienholder.
(b) Any confidentiality clause, gag clause, or similar clause in such a release or
other agreement in violation of this section shall be null and void as against the public
policy of this state.
(c) Nothing in this section is intended to prevent any confidentiality clause, gag
clause, or similar clause regarding the financial terms of the reacquisition of the
vehicle.
|
