Use, Value and Safety - The Three Essentials of the Lemon Law
In the Lemon Law, the concept of substantial impairment to the use, value or safety of your vehicle is one of the basic tests that determine the validity of a case. Obviously the consumer’s viewpoint of what is substantial and what the manufacturer considers substantial is very different. It is our business to ensure that when the consumer’s car engine dies on the freeway during rush hour it isn’t treated the same as a broken cup holder. In this engine dying on the freeway example all three criteria are substantially impaired. That’s an easy one.
It’s bad enough that your new car, motor home or boat loses 10% of its value immediately after you drive it away from the dealership. I want to put a number on this so you’ll really feel the pain. I know it’s mean; sorry about that. If you paid $50,000 dollars for your car it’s only worth $45,000 when you arrive home after you sign the contract. This being the case, anything that further impairs the value is going to get your attention big time.
Let’s take a quick look at use. You buy a car to get from one place to another as efficiently as the roads and highways permit. The engine should have sufficient strength to get you up your driveway without stalling. All of the essential components of the vehicle must do what their supposed to do. All of the bells and whistles bell and whistle. You can look at the moon when its there to be seen—if the moon roof doesn’t get stuck halfway. You can navigate around the world if the software doesn’t drop a digit and tell you you’re in Kansas with Dorothy and Toto instead of downtown Pasadena—where you really are. To put a point on it, a car’s purpose is first to provide safe, reliable transportation. If you can’t use it to get from home to work and back it doesn’t qualify as useful.
How about value? This is easy, although the manufacturers usually have a different yardstick. Who knew? You’ve had your new truck for a month and notice bubble spots appearing beneath the paint. They don’t have to be huge open flakes. You can see them and so can your friends and relatives. Maybe they are polite and don’t ask you why you don’t wash the truck. The basic fact is that if you decided you wanted to sell your new truck and buy something else, you’re going to take a serious hit on value. You ask for the Blue Book price and a potential buyer says, “Huh? Dude…what about these blotches in the paint?” What are you going to say? If you take it back to the dealer to be repainted, you know there is no way it is going to be like new. Acme Paint & Body, the dealership’s body shop hasn’t the tools, paints or environment to duplicate the paint job it was supposed to have received at the factory. You don’t want it. It’s not what you thought you were buying. It is substantially reduced in value.
Now let’s look at safety. It seems as though it should be fairly cut and dried. It’s not. Few things in the law are as simple as they should be. There ought to be an adrenaline test. For example, if your vehicle through a failure to do something it was designed to do—like stop quickly in a straight line—puts you in a situation where your heart rate shoots up like a loan shark’s interest rate, that situation should be declared unsafe. Okay, that’s bit whimsical and the manufacturer’s defense might argue that you shouldn’t have been looking at the pretty girl on the street corner. (For the guys, of course) However, if you are on the freeway and traffic suddenly begins to slow, and you hit the brakes and your foot goes to the floor, this is impaired safety. The same could be said of constant SRS (Safety Restraint System) problems. When the warning light comes on and the folks at the dealership tell you nothing is wrong and all they do is reset the computer, and you take it back for the same problem over and over, do you quit believing the warning? I don’t think so.
I am certain that everyone reading this article has had one or more of the categories described above. It’s one of the reasons why we are here. To the manufacturers there is no such thing as a problem that reduces the use, value or safety of a vehicle and they will keep asserting this even as you discover that your new truck is so underpowered it won’t tow your son’s Hot Wheels, and that the repair history (which the potential buyer insists on seeing) shows more visits to the dealer than people who bought the 7 series BMW. And of course safety: I suppose as you are extracted from your burning wreck by the “Jaws of Life” the manufacturer might admit that that little problem they have been having with the fuel system was at fault: Probably not. Remember the Ford Pinto?
This is what we do. We help you sort out what is substantial impairment of the use, value and safety of your vehicle. To paraphrase an old stockbroker advertisement, when we talk, manufacturers listen. If you have questions about how to determine substantial impairment, give us a call at (818) 244-3905 or visit our website at www.normantaylor.com.
Posted: September 15th, 2008 under Uncategorized.
Tags: defects, lemon law, Substantial Impairment
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