California Lemon Laws: Guide to the Song-Beverly Consumer Warranty Act
Motor Vehicle Defect and Lemon Law Consumer Rights Consumer Protection
Summary: Lemon laws are designed to protect consumers who buy vehicles under warranty. These laws make sure that manufacturers are held accountable for the costs of a defective vehicle.
Lemon laws are designed to protect consumers who buy
vehicles under warranty. These laws make sure that manufacturers are held
accountable for the costs of a defective vehicle. Lemon laws vary considerably
from state to state. California lemon law, for example, is one of the
strongest in the nation.
In California, vehicle manufacturers must abide by the
Song-Beverly Consumer Warranty Act. Found in Section 1790-1795.8 of the California Civil Code, the
Act applies not only to vehicles, but also to other consumer goods covered by written
or implied warranties. Its most common use, however, is in relation to new
vehicle purchases, which typically have stronger warranties than other products
and used vehicles.
Essentially, the Song-Beverly Consumer Warranty Act provides
consumers a legal path towards repayment or replacement if a product doesn’t
meet the promises given by the manufacturer. California’s lemon law is
extremely important for consumer protection, but it doesn’t apply to every
vehicle purchase. Let’s look at what is covered by the Song-Beverly Consumer
Warranty Act…
Types of Vehicles Covered
California's lemon law covers a variety of new and
used vehicles, including:
- Cars, vans, SUVs, and pickup trucks
- Drivetrain, chassis, and chassis cabs on
motorhomes
- Vehicles purchased for family or household
use
- Most vehicles leased or purchased
specifically for business purposes.
When Do Lemon Laws Apply?
In California, the Lemon Law applies for the full
duration of the manufacturer's warranty, unless the vehicle is expressly sold
'as is.' If a vehicle is sold ‘as is,’ the purchaser waives all implied
warranties. The time limit for filing a claim might occasionally extend past
the original warranty period, but a four-year statute of limitations applies to
all claims.
Lemon Law Presumption
California manufacturers are given the opportunity to
make a "reasonable number" of attempts at repairing malfunctioning
vehicles, but "reasonable" is not clearly defined in the law.
However, the state's Lemon Law Presumption includes guidelines that make it
easier to determine if a reasonable number of attempts have been made. For
example, if the defect is safety related, meaning that it is likely to
lead to death or extreme injury, the manufacturer must refund or replace the vehicle
following two attempts at repair.
Restitution Versus Replacement
If reasonable attempts at repair fail to resolve vehicle issues,
the manufacturer can choose to either replace the vehicle or offer the consumer
restitution (repayment). Any replacement vehicle must be
"substantially identical to the problematic vehicle." The replacement
vehicle must also be covered by express and implied warranties that ordinarily
cover the same make and model. The manufacturer must cover taxes, license and
registration, and other fees.
The Song-Beverly Consumer Warranty Act allows
consumers to choose restitution instead of repayment, and prevents
manufacturers from forcing consumers to accept replacement vehicles. If the
driver opts for restitution, the manufacturer must cover the actual amount paid
for the vehicle, plus the following expenses:
- Applicable taxes
- License and registration
- Reasonable repair
- Towing
- Rental car costs incurred due to the faulty
vehicle.
Mileage may be deducted from the restitution value, reflecting
the period between purchase and when the consumer first delivered the vehicle
to the manufacturer or an authorized service center for repair. That’s why it
is important to take your vehicle in for repair as soon as you discover a
defect.
Lemon Law Cases at Neale &
Fhima
If you suspect you've been sold a lemon, call Neale & Fhima at (949) 661-1007 to learn more about the Song-Beverly Consumer Warranty Act and to schedule a free case consultation.