California Lemon Law Blog

With millions of cars relied on by drivers across the country, we depend on our vehicles to function properly and get us to and from where we need to go without breaking down. If you’ve been experiencing a suspicious amount of problems with your vehicle, you may find yourself asking if you have a lemon. The California Department of Consumer Affairs website provides some helpful and important information regarding California lemon law questions and answers, and explains what consumers can do in relation to consumer rights. Here are just a few of the more common California Lemon Law Q & As to get you started:

Q: How do I know if California’s Lemon Law applies to my vehicle?
A: Cars, vans, pickup trucks, and SUVs, whether new or used and that came with the manufacturer’s new vehicle warranty, should qualify in addition to the drive train, chassis, and chassis cab of an RV. Many vehicles purchased or leased primarily for business-use, personal, family, or household purposes also qualify, as well as dealer-owned vehicles and demonstrators.

Q: What vehicles do not qualify under the California Lemon Law?
A: Vehicles that have been abused or are not registered under the California Vehicle Code because they are driven off-road do not qualify. After-market parts like those found in “van conversions” also do not apply under the California Lemon Law.

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A recent article from searchautoparts.com reported that more and more cases of auto insurance fraud have been committed across California, perhaps brought on by the downtrodden economy. In fact, the California Department of Insurance (CDOI) reported a 25 percent increase in the number of suspected vehicle arson fraud cases from 2007 to 2008 and a rise in auto theft fraud referrals as well.

A CDOI Commissioner stated, “Many Californians are facing a host of financial challenges in today’s economy, but I want to remind everybody that you will only compound your problems if you break the law and commit fraud in search of a quick fix…our enforcement experts are working hard to crack down on anyone attempting to skirt the law for financial gain.”

The CDOI Commissioner said that enforcement officers examine every case brought to the Department’s attention and that referrals have been received from local law enforcement agencies, directly from consumers, and from insurance companies. The department obtained almost 300 more suspected vehicle theft and vehicle arson cases statewide in 2008 than in 2007.

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We informed our readers when the Car Rebate Allowance System (CARS) program under the management of the National Highway Traffic Safety Administration (NHTSA) was launched, but no one could quite calculate its paramount affects. It didn’t even take a complete week for car dealerships to receive a flood of consumers that soaked up the $1 billion financial plan’s set-up for “clunkers” to be exchanged for vehicles with more fuel efficiency. Who could blame them? Having the chance to save money in the long run with a more environmentally friendly car by obtaining $3,500 or up to $4,500 rebates is quite irresistible.

Based on a recent report, in response to positive feedback of the program, on June 31, 2009, the House granted $2 billion more for CARS, giving more consumers the chance to join in. It’s not certain at this time how long the new funds will last, but while they do, it is bound to make lots of consumers happy now and for a good amount of time into the future.

From what we have seen up until this point in the year, auto sales in the United States have been extremely low; however, with the overwhelming response and utilization of the CARS program, auto sales have been the highest for 2009. Although this is an exciting fact that has been quite an asset to the auto industry, car fraud may be an issue for concern in some rebate sales and it is something that hopefully consumers can avoid experiencing.

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A story published by Reuters recently describes General Motors Corporation’s decision to accept liability for future product defects as one of several concessions the company has made to expedite approval for a quick sale from bankruptcy. GM also said that it would alter the terms of its proposed asset sale to assuage the concerns of over 20 suppliers who objected to specifically the original terms. They also discussed the future of a joint manufacturing plant with Toyota and GM said that it was actively working on a resolution with the other car-manufacturing giant.

General Motors addresses these and several other concerns as part of documents filed in the last week of June 2009 in a New York bankruptcy court. GM has been actively working with Obama administration officials to smooth over many of the problems that arose when the company filed bankruptcy. No fewer than nine state attorney generals had objected to GM’s proposed reorganization because the original terms would have left GM buyers without any protections against product defects under state laws. GM responded by saying that it would continue to honor lemon law claims in California and throughout the nation so that if consumers purchased a defective vehicle, they would be entitled to a replacement vehicle or a refund.

The outcry over the terms of the bankruptcy caused GM and Obama administration officials to rethink the reorganization of the company and reconsider liability for future product liability claims. In a prepared statement that was part of the bankruptcy court filing, GM said, "The purchaser will expressly assume all product liability claims arising from accidents or other ... incidents arising from the operation of GM vehicles subject to the closing."

GM proposed that a new company be created under the reorganization plan to purchase the company’s best and most economically viable assets, and that the sale would be concluded by August 2009.

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