California’s Lemon Law: What Consumers Should Know After Buying a Lemon

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California’s Lemon Law WHAT CONSUMERS SHOULD KNOW AFTER BUYING A LEMON NEALEFHIMA.COM

Transcript of California’s Lemon Law: What Consumers Should Know After Buying a Lemon

Page 1: California’s Lemon Law: What Consumers Should Know After Buying a Lemon

California’s Lemon LawWHAT CONSUMERS SHOULD KNOW AFTER BUYING A LEMONNEALEFHIMA.COM

Page 2: California’s Lemon Law: What Consumers Should Know After Buying a Lemon

What is a Lemon?A lemon is a defective vehicle, especially one that cannot be repaired after several attempts. The defect is typically something covered by the manufacturer’s warranty, such as brakes, steering or air conditioner.

nealefhima.com/lemon-lawCall Now For A Free Consultation: 888-568-5405

Page 3: California’s Lemon Law: What Consumers Should Know After Buying a Lemon

California’s Lemon LawLemon laws are a common fixture of consumer protection laws in most states, but California’s is known as one of the best in the nation when it comes to protecting buyers from faulty vehicles. California’s lemon law, known as the Song-Beverly Consumer Warranty Act, provides consumers with the ability to seek the repurchase or replacement of a defective vehicle by a manufacturer.

nealefhima.com/lemon-lawCall Now For A Free Consultation: 888-568-5405

Page 4: California’s Lemon Law: What Consumers Should Know After Buying a Lemon

About the Song-Beverly Consumer Warranty ActIt was enacted in 1970 to hold manufacturers accountable for the repurchase or replacement of defective products.

It was amended in 2007 to include members of the Armed Forces living or stationed in California. They can file a claim under the law regardless of where they purchased the vehicle.

The Song-Beverly Consumer Warranty Act is a broad-reaching law, and it can even apply to several faulty products that are covered by warranty.

nealefhima.com/lemon-lawCall Now For A Free Consultation: 888-568-5405

Page 5: California’s Lemon Law: What Consumers Should Know After Buying a Lemon

What Does California’s Lemon Law Cover?Any defect that is covered by the warranty and has been subjected to a “reasonable” number of repair attempts. This includes:

Defective brakes Defective steering wheel Defective engine or engine

components Gas leaks Any other defect that compromises

the safety of occupants.

nealefhima.com/lemon-lawCall Now For A Free Consultation: 888-568-5405

Page 6: California’s Lemon Law: What Consumers Should Know After Buying a Lemon

Does Your Vehicle Meet the Criteria of the Lemon Law? The answer is “yes” if:

The vehicle is covered by the manufacturer’s warranty. The defect substantially reduces the value, use or safety of the vehicle. The manufacturer or its agent has made two or more attempts to repair a

serious safety defect. The manufacturer or its agent has made four or more attempts to repair

the same warranty problem. The vehicle has been out of service for more than 30 days. The consumer has notified the manufacturer in accordance with the terms

in the owner’s manual, if required by the warranty. If you want assistance in determining whether your vehicle might be a lemon, contact the lemon law attorneys at Neale & Fhima.

nealefhima.com/lemon-lawCall Now For A Free Consultation: 888-568-5405

Page 7: California’s Lemon Law: What Consumers Should Know After Buying a Lemon

What You’ll Get if Your Vehicle is a LemonThere are two “remedies” provided by the lemon law, one of which must be provided by the manufacturer to the consumer:

Repurchase: In a repurchase, the manufacturer gives the consumer compensation for the cost of the vehicle, including any shipping costs, taxes, DMV fees, finance charges and out-of-pocket charges. The amount given to a consumer might be impacted by what is known as “use reduction,” which subtracts the amount of use of the vehicle by the consumer prior to the defect. (See next slide to find out how the amount is determined.)

Replacement: The manufacturer can also replace the lemon with a new, similarly-equipped vehicle that is free of defects. Fees and taxes will also be covered by the manufacturer. While both consumer and manufacturer must agree to a replacement, the manufacturer has the option to choose a repurchase if that is the method of reimbursement they prefer.

nealefhima.com/lemon-lawCall Now For A Free Consultation: 888-568-5405

Page 8: California’s Lemon Law: What Consumers Should Know After Buying a Lemon

Calculating ‘Use Reduction’ of a LemonCalifornia’s lemon law says that the manufacturer does not have to compensate a consumer for use of the vehicle prior to the occurrence of the defect, which is determined by the first service repair attempt. The “use reduction” amount is calculated by dividing the odometer reading by 120,000, and then multiplying it by the purchase price. Here is the formula:

[Odometer at first repair attempt ÷ 120,000] × Purchase price = Use

Reduction

nealefhima.com/lemon-lawCall Now For A Free Consultation: 888-568-5405

Page 9: California’s Lemon Law: What Consumers Should Know After Buying a Lemon

What to do If You Purchased a Lemon

Find out more about what you should do after buying a lemon in California here.

Notify the manufacturer of the problem and seek a repair immediately.

Send any letters or notifications to manufacturers

through certified mail and keep receipts.

Keep records of everything related to

your vehicle, including bills, repairs and

correspondence with manufacturers.

Call a lemon law attorney for

assistance. Neale & Fhima have years of experience standing

up for consumers who have been sold lemons

by manufacturers.

nealefhima.com/lemon-lawCall Now For A Free Consultation: 888-568-5405

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Learn More About the Lemon LawAt Neale & Fhima, we have provided several resources that consumers might find helpful if they believe they have purchased a lemon.Determining if You Have a Lemon

The Lemon Law Claims Process

What Makes California’s Lemon Law Unique?

Lemon Law FAQs

nealefhima.com/lemon-lawCall Now For A Free Consultation: 888-568-5405

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Neale & Fhima Can HelpThe process of a filing a claim can be lengthy and complicated. Dealing with manufacturers and arbitrators can cause consumers headaches and lead to less-than-optimal results. For this reason, it is recommended that you contact a lawyer with lemon law experience. At Neale & Fhima, we have helped countless numbers of clients receive compensation for the lemons they’ve purchased, and we have dealt with virtually every vehicle manufacturer. We’ll make sure the process goes as smoothly as possible and see that you get the payment you deserve. Contact Neale & Fhima today for a free consultation.

nealefhima.com/lemon-lawCall Now For A Free Consultation: 888-568-5405

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How We Have Helped Our Clients“I had the privilege of working with Aaron Fhima on my lemon law case against BMW. After receiving a low ball offer from BMW, I contacted Aaron to see what could be done. He told me what steps needed to be taken to prosecute my case and how long the process would take. He took charge and got me four times more than what BMW offered me. Aaron took time out of his busy schedule to answer any questions I had at anytime of the day.

“I was impressed with his knowledge, dedication, and work-ethic, Aaron made me feel like I was his only client. He is my go to for any legal advice I need, willing to do the work to get the most possible for his clients.”

Ryan B.San Clemente, CA

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More Client Feedback“After Mercedes refused to buyback my car or offer me any type of acceptable settlement, Aaron took my case to trial and won, getting me all my money back. Aaron is an aggressive litigator and fought hard on my behalf.”

John F.San Diego, CA

“Great law firm. They applied immediate pressure onto the other side the moment they got my case, and got me a quick and great settlement.”

Celline H.Los Angeles, CA