You may have recently received a letter from the manufacturer of your car or truck offering you a trade-in of your vehicle for one of the manufacturer’s new vehicles. While this may at first glance look like a good deal, if you look closely you’ll see the manufacturer is probably only offering you the opportunity to trade up to a newer model. Under this trade in offer you would have to pay off the balance of your existing loan or lease, plus pay the mileage deduction allowed under the California law. Continue reading
Tag Archives: Lemon Law legal
Automobile Manufacturers Share Repair Data – Right To Repair
The Automotive Aftermarket Industry Association (AAIA), the Coalition for Auto Repair Equality (CARE), and automobile manufacturers, are discussing an agreement that will give automobile owners the choice of where to take their vehicle for repair. The decision would be a victory for aftermarket groups who have been fighting for over a decade to ensure that vehicle repair is affordable and convenient for all Americans. Continue reading
How Long Does The California Lemon Law Process Take?
When a potential client comes into our California Lemon Law Offices for help with a vehicle that he or she believes is a lemon, one of the first questions asked is, “How long will it take to get rid of my lemon vehicle?”. Continue reading
New China Lemon Laws Affects Foreign Car Importers
On January 01, 2013, the Chinese government will be implementing new automotive recall laws to increase consumer protections against lemon automobiles. The laws are likely to created disputes within the market as new regulations increase the accountability of manufacturers when it comes to quality control and documentation. Continue reading
California Lemon Law For The Military
If you live in California, are in the military serving our country and think that you may have a lemon vehicle, there is a California lemon law bill which took effect January 1, 2008 that you should know about. California has been a leader in protecting consumers who bought lemon vehicles, but before 2008 the law stated that if you were to pursue a lemon law case, one of the stipulations was that the vehicle must have been bought in California. The new bill (SB234), sponsored by state Senator Ellen Corbett, extends the protection to all active duty military personnel stationed in California as long as the vehicle was purchased in the United States.
The law was inspired by the lemon problems of Lt. Nathan Kindig, serving in the United States Navy as a physician assistant. He was looking for a safe and reliable vehicle for his family to drive while he was stationed overseas in Iraq. Shortly after buying a 2004 Dodge Dakota, the vehicle started having problems with the engine overheating. After many repair attempts, the dealership labeled the vehicle as unrepairable, clearly making it a lemon. Because the vehicle was not purchased in California, Kindig could not pursue a buyback under the California lemon law. After hiring a lawyer and continuing to pay for a vehicle that could not be driven, the dealership agreed to repurchase the lemon on terms that would cost Kindig thousands of dollars, as Chrysler refused to use the traditional lemon law offset formula and demanded a specific offset amount.
California was the first state in the nation to specifically protect active duty military troops whose vehicles are “lemons”, regardless where their vehicles are purchased or registered. The bill attracted widespread bi-partisan support, and was passed unanimously in both houses of the California Assembly before the Governor signed it into law. Today, many states have adapted their lemon law statutes to include protection to help military members who have purchased defective vehicles which turn out to be lemons.
Unsolicited Lemon Law Firm Scam
In the last few weeks we have received several phone calls from owners or lessees of Volkswagen (VW) Routans informing us that they are receiving unsolicited letters from law firms alleging to be California lemon law lawyers. At least one of these firms is out-of-state.
We don’t know how these firms obtained VW’s sales list, but if you receive such an unsolicited letter be very careful. A reputable law firm will not represent a client without conducting a detailed interview, reviewing all the documents pertaining to the potential case, and answering your questions. One of these firms only requests that you sign and return their letter and they will represent you – without any further communications – not even a phone call – and without reviewing your case and documents. Another commits you to paying a large contingency fee percentage for lemon law attorney’s fees and costs once you sign their letter.
For your own protection, if you receive, or have received, one of these letters, please read the instructions or video on How to Choose a California Lemon Law Firm.
Please call our offices at 888-395-3666 if you have further questions or simply require more information about the California lemon law.
California Lemon Law Forced Arbitration Clauses
A recent survey done by the National Association of Consumer Advocates (NACA) shows that consumer lemon law rights are being stifled as companies try to increase the use of arbitration clauses. Out of 350 consumer attorneys surveyed, 84% said that there is an increase in instances where consumer claims could not be settled or a class action law suits could not be pursued due to an arbitration clause. Approximately 90% of the attorneys surveyed said that they have turned away cases because the underlying contract had an arbitration clause included in it.
Forced arbitration clauses are fast becoming a favorite weapon for businesses as a way of distancing themselves from liability. Clauses are often mislabeled and buried in mountains of paper work, making it easy for the unsuspecting consumer to miss it. Individuals almost always lose to businesses in arbitration. Arbitration is seen as a disadvantage to consumers because:
- It creates an uneven playing field in the favor of the automobile manufacturer. A consumer without legal representation will find it difficult to battle an automobile manufacturer that has experience in dealing with lemon law claims.
- There is limited recourse for the consumer once a decision is made. The outcome of an arbitration claim can often affect decisions made in future lawsuits.
- Businesses are repeated users of an arbitrator, so there is an incentive for an arbitrator to rule in favor of the business if he expects future retentions.
- There is a lack of transparency in the proceedings of the arbitration claim.
Consumer Groups Are Fighting Back
- The Consumer Financial Protection Bureau, created by Congress in the wake of the Wall Street meltdown, recently announced a public inquiry on forced arbitration.
- The National Association of Consumer Advocates (NACA) has launched a 50-state public education campaign aimed at teaching consumers about the dangers of forced arbitration.
- A Public Citizen coalition called Fair Arbitration NOW are petitioning lawmakers to pass an Arbitration Fairness Act.
In the meantime, it is important to recognize that automobile manufacturers will try to force arbitration. You should carefully read any contracts before signing and try to negotiate arbitration clauses out of the contract. If a company tries to force an arbitration clause on you, you may want to take your business elsewhere.
Lemon Law Protection For Small Business
A California Court of Appeal ruling last September may seem like a small victory for one business owner, but the courts decision is setting a precedence that will affect future decisions across the country when it comes to small business automobiles with a gross vehicle weight (GVWR) of 10,000 pounds.
Daniel Joyce, a licensed contractor from Petaluma first started having problems with his Ford F-250 shortly after purchasing it brand-new in 2006. Joyce decided to sue Ford, but the case was overturned saying that the truck was not covered by the lemon law because the GVWR was 10,000 pounds. After a four year battle, court finally issued a ruling siding with Joyce saying that it is the actual weight of the vehicle that counts. This decision is a victory for the consumer and could help other business owners who may be in a similar situation.
