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Monday, July 19th, 2010

CA Lemon Law: The Shaken Faith Doctrine

The CA lemon law protects consumers against vehicles with nonconformities that are covered under the warranty which substantially impair the use, value, or safety of the vehicle. What is a nonconformity substantially impairing the value of the vehicle?

1) A nonconformity may include a number of relatively minor defects whose cumulative total adds up to a substantial impairment. This is the “Shaken Faith” Doctrine first stated in the Zabriskie case. “For a majority of people the purchase of a new car is a major investment, rationalized by the peace of mind that flows from its dependability and safety. Once their faith is shaken, the vehicle loses not only its real value in their eyes, but becomes an instrument whose integrity is substantially impaired and whose operation is fraught with apprehension.”

2) A substantial nonconformity may include a failure or refusal to repair the goods under the warranty. In Durfee V. Rod Baxter Imports, the Minnesota Court held that the Saab owner that was plagued by a series of annoying minor defects and stalling, which were never repaired after a number of attempts, could revoke, “if repairs are not successfully undertaken within a reasonable time”, the consumer may elect to revoke.

Substantial Non Conformity and Lemon Laws often define what may be considered a substantial impairment. These definitions have been successfully used to flesh out the substantial impairment in the UCC.

The “Shaken Faith” Doctrine:

In addition to the question of substantial impairment, the severity of the defect can impact the question of how many repair attempts are reasonable. If a defect indicates that the particular item is of poor quality overall, or is so substantial that the dealer probably could not correct it to the satisfaction of a reasonable buyer, then the buyer need not permit further repair attempts.

Under the old Commercial Code, the seller is entitled to a reasonable opportunity to cure the defect before a buyer can revoke acceptance. However, when the buyer’s faith in the goods is so shaken that remedying the specific part or problem would not satisfy a reasonable buyer, the buyer may revoke acceptance, and get a refund without allowing any repair. Courts often call this the shaken faith doctrine.

Where a consumer has reasonably lost confidence in the performance of a vehicle, the shaken faith doctrine should allow the consumer to say, “Enough is enough,” and demand a replacement or refund under the California lemon law or other state lemon law without allowing any further repair attempts.

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Thursday, June 10th, 2010

Lemon Law and Consumer Protection: What About Europe?

Have you ever been to one of those parties where everyone feels it necessary to dump on the United States? It’s very annoying for sure. If you stay at the party long enough you’ll discover we are to blame for everything from global warming to the decline of literacy in the schools. If you listen to these people they’ll bend your ear endlessly about how wonderful things are in France, Germany and other European companies. For such people everything we do is hurtful and destructive.

I prefer to look at the positive side. Anyone who has had to take advantage of the California Lemon Law or any of the other state’s Lemon Law knows it can be a real life saver. Americans take consumer activism seriously. It has a lot to do with fair play. We hate to see corporate abuse. We really hate people taking advantage of our good nature. What do you think?
When you pay thirty to fifty thousand dollars for a new car and a year later you realize you’ve spent more time at the dealer’s repair shop than you have vacation days, you’re ready for it to stop. In the US we have the tools to deal with our lemon cars and trucks.

So what about Europe? There is no Lemon Law, not as we know it. Going around the world from continent to continent it gets worse. It is a fact; no other countries have any kind of comparable consumer protections. You get a car with repeated engine defects, you’re stuck with it. Do me a favor party people, look around, there’s a tremendous amount of wonderful things happening in this country. Try talking about them at your next party. It won’t hurt.

It is worth noting the ancient concept of Caveat Emptor (let the buyer beware) that rose in the 1600’s no longer exists in the US. We at Norman Taylor & Associates and at Lemon Law firms all across America care about the consumer. Like willful children who misbehave, car manufacturers must be reminded that not only should they make better cars, they should also not insist that we put up with them when we have the misfortune of buying one.

I’d be very pleased to hear what you think about this. I’m betting most folks think this is a fine place to live and our consumer protections are part of what makes it special.

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Tuesday, November 3rd, 2009

How Reliable Is Your Car?

“Reliability” is one of the most important qualities in a car. We depend on them to get us to work, get the kids to their various activities, shopping and many, many other aspects of our daily lives. For most families a car that will be there for you when you need it is a necessity. California lemon law and the lemon laws of other states recognize the importance of the automobile to our daily lives by providing remedies to buyers whose cars are substantially defective.

The highly-respected magazine, Consumer Reports, also takes heed of the importance of reliability by publishing an annual reliability survey based on actual experiences of car owners. Asian cars have for many years dominated the survey and 2009 in which they captured nine of the top ten spots was no exception. Mercury came in tenth. Combined with Ford’s sixteenth-place finish, this made Ford by far the best of the US automakers and also the only one that appears to be gaining on its international competition. Consumer Reports noted that it is the sole US automaker to achieve “world-class reliability.” By contrast, Chrysler’s three brands slipped further in the ratings, though the survey mostly reflects cars that were made before the new ownership team took over.

How well a brand or model did in a survey will not of course tell you whether or not you have a lemon. If your car is not performing, regardless of its reputation, don’t delay getting needed repairs. If it still isn’t fixed a qualified lemon law attorney can help you determine whether or not you have a case.

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Monday, September 21st, 2009

California’s Branded Lemons

For those with a conscious, not wanting to pass on the problems they have had with their lemon vehicle, there is good news.

The California legislature has provisions in the California Lemon Law that are imposed on any manufacturer who buys a vehicle from a consumer who has made a request that the vehicle be bought back after multiple warranty repair visits.

First and foremost is the requirement that the manufacturer list all the warranty based complaints made by the prior owner, and what was done to remedy the problems for the any subsequent purchaser. This puts the subsequent purchaser on notice that there was something wrong with the vehicle, at least at some point in time. It also gives the subsequent buyer the chance to have the vehicle inspected for himself to see, if their estimation the defect was actually remedied.

If the manufacturer reacquires a vehicle or assists a dealer in reacquiring a vehicle pursuant to the lemon law, the DMV registration must be branded “Lemon Law Buyback”. Further, the manufacturer must have a disclosure notice form for the subsequent purchaser to read and sign, which sets forth the problems experienced by the prior owner and detailing what was done to handle it.

So, not to worry. The legislature was quite concerned about protecting unsuspecting buyers of from used and irreparable motor vehicles that were being sold in the marketplace without proper notification. These notices serve the interests of consumers who have a right to information relevant to their buying decisions.

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Friday, September 18th, 2009

California Lemon Law Attorneys- Anyone Can Afford One.

The California Lemon Law was created to give consumers rights to a replacement or refund once they have given a manufacturer through it’s selling dealers a reasonable opportunity to repair defects that substantially impair the use value or safety of their vehicle.

But what about hiring an attorney to enforce your rights? Isn’t that expensive? An attorney who has experience representing consumers in lemon law knows he will be compensated by his client’s right under the law to recover attorneys fees as part of the recovery from the manufacturer. The law was designed recognizing that consumers have limited funds and sought to encourage consumers to pursue their rights, and to encourage attorneys to represent these consumers, by ensuring full compensation for time expended regardless of the consumer’s monetary recovery.

The California Supreme Court said: “… the primary financial benefit the Song-Beverly Act [lemon law] offers to consumers who sue thereunder to enforce their rights: their ability, if successful, to recover their ‘attorney’s fees based on actual time expended.’ Such fees generally comprise the lion’s share of the litigation costs, and the prospect of having to pay attorney fees even if one wins a lawsuit can serve as a powerful disincentive to the unfortunate purchaser of a malfunctioning automobile. By permitting prevailing buyers to recover their attorney fees in addition to costs and expenses, our Legislature has provided injured consumers strong encouragement to seek legal redress in a situation in which a lawsuit might not otherwise have been economically feasible.”

So don’t let the idea that hiring an attorney to represent your rights in the context of a Lemon Law claim back you down from going forward. This law was made for you if you own a “lemon.” Use it.

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Wednesday, September 9th, 2009

Lemon Law Replacement

Under California Lemon law the manufacturer has a duty to come to you and offer a buyback if you have given them a reasonable opportunity to repair your vehicle. But what if you basically like the year make and model and just want one that works?

If you are looking at a replacement, your new vehicle must be comparable to the vehicle being replaced. Ideally, it should be substantially identical in make, model and options. http://www.normantaylor.com/blog/uncategorized/lemon-law-replacement/The manufacturer must typically pay any sales tax and registration fees on your new vehicle.

If you have a loan, you can usually do what is called a “substitution of collateral.” You keep your existing loan, existing payments, and existing interest rate, with full credit for all payments you have made so far. You simply switch the lemon vehicle for the replacement vehicle to which the loan applies.

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Thursday, July 9th, 2009

Bankruptcy Court Ensures New GM Will Follow State Lemon Laws

A revision to the bankruptcy agreement under which a “new GM” will acquire most of the assets of the existing corporation has been amended to ensure that GM consumers will continue to have rights under state lemon laws.

Changes were made to the agreement at the urging of state attorneys general who felt that the agreement as initially written stripped the states of oversight in such maters as product liability and disputes with dealers as well as lemon law claims. The amendments to the agreement came out of legal objections filed by the National Association of Attorneys General with the bankruptcy court.

Concerning lemon law rights, a paragraph in the agreement now reads, “the purchaser has assumed the sellers’ obligations under state ‘lemon law’ statutes, which require a manufacturer to provide a consumer remedy when the manufacturer is unable to conform the vehicle to the warranty.

This is good news for GM car owners. Consumer advocates in many states have battled for years to build up protections to ensure that the warranty the manufacturer issues when you buy a car will be honored. Sweeping those protections aside for the roughly 20% market share that GM still holds would have been a major blow to all those who depend on their cars and rely on lemon laws to assist with these matters.

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