California Lemon Law 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, either
(1) 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 or
(2) 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 paragraph (1)
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 paragraph (1). This
presumption shall be a reputable 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 used or bought for use primarily for personal, family, or household
purposes.
"New motor vehicle" also means a new motor vehicle
that is bought or used for business and personal, family, or household 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.
California Lemon Law 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
lien holder 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 re-titled 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
lien holder 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.
California Lemon Law 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 8 1/2 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.
California Lemon Law 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.
California Lemon Law 1793.26.
(a) Any automobile manufacturer, importer, or distributor
who reacquires, or who assists a dealer or lien holder 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 non-financial terms of the reacquisition.
(2) Including, in any release or other agreement, whether
prepared by the manufacturer, importer, distributor, dealer, or lien holder,
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 non-financial terms of the
reacquisition of the vehicle by the manufacturer, importer, distributor,
dealer, or lien holder.
(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.
