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California Lemon Law
California Civil Code
Section 1793.22 , 1794
(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 toparticipate also. Nothing
in this subdivision prohibits any member of
anarbitration 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 thenature 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.
[EFFECTIVE 1/1/2001. Amended September 26,
2000 (Bill Number: SB 1718) (Chapter 679).]
[Previously Amended September 21, 1999 (Bill
Number: AB 1290) (Chapter 448).] [Previously
Amended July 12, 1999 (Bill Number: SB 966)
(Chapter 83).]
1794. (a) Any buyer of
consumer goods who is damaged by a failure
to comply with any obligation under this
chapter or under an implied
or express warranty or service contract may
bring an action for the
recovery of damages and other legal and
equitable relief.
(b) The measure of the buyer's damages in an
action under this
section shall include the rights of
replacement or reimbursement as
set forth in subdivision (d) of Section
1793.2, and the following:
(1) Where the buyer has rightfully rejected
or justifiably revoked
acceptance of the goods or has exercised any
right to cancel the
sale, Sections 2711, 2712, and 2713 of the
Commercial Code shall
apply.
(2) Where the buyer has accepted the goods,
Sections 2714 and 2715
of the Commercial Code shall apply, and the
measure of damages shall
include the cost of repairs necessary to make
the goods conform.
(c) If the buyer establishes that the failure
to comply was
willful, the judgment may include, in
addition to the amounts
recovered under subdivision (a), a civil
penalty which shall not
exceed two times the amount of actual
damages. This subdivision
shall not apply in any class action under
Section 382 of the Code of
Civil Procedure or under Section 1781, or
with respect to a claim
based solely on a breach of an implied
warranty.
(d) If the buyer prevails in an action under
this section, the
buyer shall be allowed by the court to
recover as part of the
judgment a sum equal to the aggregate amount
of costs and expenses,
including attorney's fees based on actual
time expended, determined
by the court to have been reasonably incurred
by the buyer in
connection with the commencement and
prosecution of such action.
(e) (1) Except as otherwise provided in this
subdivision, if the
buyer establishes a violation of paragraph
(2) of subdivision (d) of
Section 1793.2, the buyer shall recover
damages and reasonable
attorney's fees and costs, and may recover a
civil penalty of up to
two times the amount of damages.
(2) If the manufacturer maintains a qualified
third-party dispute
resolution process which substantially
complies with Section 1793.22,
the manufacturer shall not be liable for any
civil penalty pursuant
to this subdivision.
(3) After the occurrence of the events giving
rise to the
presumption established in subdivision (b) of
Section 1793.22, the
buyer may serve upon the manufacturer a
written notice requesting
that the manufacturer comply with paragraph
(2) of subdivision (d) of
Section 1793.2. If the buyer fails to serve
the notice, the
manufacturer shall not be liable for a civil
penalty pursuant to this
subdivision.
(4) If the buyer serves the notice described
in paragraph (3) and
the manufacturer complies with paragraph (2)
of subdivision (d) of
Section 1793.2 within 30 days of the service
of that notice, the
manufacturer shall not be liable for a civil
penalty pursuant to this
subdivision.
(5) If the buyer recovers a civil penalty
under subdivision (c),
the buyer may not also recover a civil
penalty under this subdivision
for the same violation.
source:
Center for Auto Safety http://www.autosafety.org/
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