Lemon Law Blog

While Pennsylvania has always had a lemon law for new cars, Philadelphia has now instituted a lemon law for used cars sold in the city. Mayor Nutter has signed Phladelphia’s first Used Car Lemon Law Bill, sponsored by Councilman Darrell L. Clarke.  The Used Car Lemon Law ensures that purchasers of used cars in Philadelphia have the opportunity to have the car inspected by a licensed mechanic with 72 hours of purchase.  If a major structural defect is found, the consumer has the right to have to return the car for repair or a full refund.

Here are the details:

**A purchaser of a used car may return their vehicle within 72 hours after purchase if it is unable to pass safety or emissions inspections or found by a certified inspection mechanic to have an undisclosed major structural defect (The mechanic MUST put his findings in writing.)

**Upon return of the car, the dealer has 10 days to either fix the car, entirely at their own expense, or refund the consumer’s money.

**Dealer must also provide a copy of any written warranty to the purchaser within 15 days of payment for the warranty, and shall perform all repairs covered under the warranty promptly. At the time of purchase, the delaer MUST disclose in lareg capital letters whether the warranty is provided by the dealer, the manufacturer or a third-party warranty.

**If you purchased a used car and feel the dealer is not upholding their responsibilities, contact the Philadelphia Office of Consumer Affairs at 215-686-7598. They will take complaints and determine their merit.  Repeat offenders face possible suspension or revocation of their Automotbile Sales License and/or Business Privilege License.

Kudos to Mayor Nutter, Councilman Clark and Lance Haver at the Consumer Affairs Office for making this happen.

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Strapped for cash?  Who isn’t?  Unemployment is up. News reports continue to flood in about how poor the economy is. As gas prices soar higher, the money in our wallets seems to dwindle. Our homes are not worth what they were and neither are our stock portfolios. So, how would $2,000, $3,000 or even $5000 sound?  In a non-taxable check, and you don’t have to do much to get it.  You may be entitled to a large sum of money and the answer may be right in front of your nose…in your driveway to be exact (and no, we are not talking about selling your car). If you have read it before on the blog, it bears repeating, because consumers who call into the 1 800 LEMON LAW hotline can’t beleive it.  This is a Federal law which applies to every state we work in:  Pennsylvania, New Jersey, Delaware, Maryland, Massachusetts, Ohio, Washington DC, Vermont, Rhode Island and New Hampshire.

It’s a little known Federal law called the Magnuson Moss Warranty Act, that’s not discussed by car dealerships when you purchase your car.  It’s a statute that is not heavily promoted or publicized but it applies to cars, or any products that cost over $25 and are covered by a manufacturers warranty.  What is says is that if you find that you have to get your car repaired three or more times for the same thing, it means that the warranty has not proven to efficient or very effective.  And for that reason, you could be entitled to monies that reflect the diminished value of the car as a result of the problem. So, that darn window motor that’s been replaced, the air conditioner that hasn’t been blowing cool air,  the water leak in the trunk that was finally fixed after four tries, or that nav system that’s gone through quite a few upgrades could mean thousands in your pocket PLUS
**You get to keep your car
**Your warranty remains completely in effect and they still have to fix your car.
**Your car is NOT branded in any way (like the lemon law), so know one can look up a carfax report and determine that you received this money.
**You do NOT need to  disclose that you received this money when selling or trading your car. 
**Like the Lemon Law, the Magnuson Moss provides a provision which entitles consumers to completely FREE LEGAL HELP, so they are on equal footing with the manufacturers.
 
And unlike the lemon law, this law can also apply to used cars, motorcycles(when state laws do not apply), and some seacraft too (like jet skis and sea doos). You read this right–This is free money and it applies to any car or truck which has repeated problems under an original or extended manufacturers warranty (normally three times in for the same problem) .

If you’d like to see if you are entitled to this money, click here or call us at 1-800 LEMON LAW (1-800-536-6652). Also, this past Spring, CBS3 consumer reporter Jim Donovan put together a great story on this which you can view by clicking here.

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6ABC consumer reporter Nydia Han put together a fantastic piece last night on buying a used car.  With gas prices soaring, people are looking at saving money by buying pre-owned, but you need to do your homework to make sure your dream car wasn’t previously someone else’s nightmare.  In the story, Nydia mentioned several great resources on lemon law.com, including our Lemon Dodger worksheet, which provides a list of questions you need to ask prior to purchase. Check out the story by clicking here .

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On Your Side: Car Issues by Jim Donovan

PHILADELPHIA (CBS 3) ― Are you having mechanical problems with your car? While state lemon laws can help, some Federal laws are designed to protect you too. In fact the Magnuson-Moss Act may be your best bet.

Jan Jeffries bought a certified pre-owned Jaguar about a year ago. Almost immediately he had problems. The anti-lock brakes were malfunctioning and needed repeated repairs. While Jan’s mechanical problems weren’t covered by state lemon law, he was entitled to compensation under the Federal Magnuson-Moss act.

“If the vehicle is under warranty and you’ve had problems with it, subject to repair, and it has not been resolved, you have federal, Manguson-Moss warranty rights.” says attorney Craig Kimmel. The Magnuson-Moss Act applies to vehicles under their original or extended manufacturers warranty, and the car must be in the shop for 3 or more times for the same problem. Kimmel says, “We’re talking brakes, transmission, suspension, head lights, water leak, paint defect, any of these problems and more, those issues the consumer should step up and force the manufacturer to comply with the warranty and if they can’t, call a lawyer.”

That’s what Jan Jeffries did. He says, “I got $6,000 from Jaguar as compensation for what would ultimately be reduced value of the vehicle.”

The Magnuson-Moss Warranty Act

The Magnuson-Moss Warranty Act is a Federal Law that protects the buyer of any product which costs more than $25 and comes with an express written warranty. This law applies to any product that you buy that does not perform as it should.

Your car is a major investment, rationalized by the peace of mind that flows from its expected dependability and safety. Accordingly, you are entitled to expect an automobile properly constructed and regulated to provide reasonably safe, trouble-free, and dependable transportation - regardless of the exact make and model you bought. Unfortunately, sometimes these principles do not hold true and defects arise in automobiles. Although one defect is not actionable, repeated defects are as there exists a generally accepted rule that unsuccessful repair efforts render the warrantor liable. Simply put, there comes a time when “enough is enough” - when after having to take your car into the shop for repairs an inordinate number of times and experiencing all of the attendant inconvenience, you are entitled to say, ‘That’s all,’ and revoke, notwithstanding the seller’s repeated good faith efforts to fix the car. The rationale behind these basic principles is clear: once your faith in the vehicle is shaken, the vehicle loses its real value to you and becomes an instrument whose integrity is impaired and whose operation is fraught with apprehension. The question thus becomes when is “enough”?

As you know, enough is never enough from your warrantor’s point of view and you should simply continue to have your defective vehicle repaired - time and time again. However, you are not required to allow a warrantor to tinker with your vehicle indefinitely in the hope that it may eventually be fixed. Rather, you are entitled to expect your vehicle to be repaired within a reasonable opportunity. To this end, both the federal Moss Warranty Act, and the various state “lemon laws,” require repairs to your vehicle be performed within a reasonable opportunity.

Under the Magnuson-Moss Warranty Act, a warrantor should perform adequate repairs in at least two, and possibly three, attempts to correct a particular defect. Further, the Magnuson-Moss Warranty Act’s reasonableness requirement applies to your vehicle as a whole rather than to each individual defect that arises. Although most of the Lemon Laws vary from state to state, each individual law usually require a warrantor to cure a specific defect within four to five attempts or the automobile as a whole within thirty days. If the warrantor fails to meet this obligation, most of the lemon laws provide for a full refund or new replacement vehicle. Further, this reasonable number of attempts/reasonable opportunity standard, whether it be that of the Magnuson-Moss Warranty Act or that of the Lemon Laws, is akin to strict liability - once this threshold has been met, the continued existence of a defect is irrelevant and you are still entitled to relief.

One of the most important parts of the Magnuson-Moss Warranty Act is its fee shifting provision. This provision provides that you may recover the attorney fees incurred in the prosecution of your case if you are successful - independent of how much you actually win. That rational behind this fee shifting provision is to twofold: (1) to ensure you will be able to vindicate your rights without having to expend large sums on attorney’s fees and (2) because automobile manufacturers are able to write off all expenses of defense as a legitimate business expense, whereas you, the average consumer, obviously does not have that kind of economic staying power. Most of the Lemon Laws contain similar fee shifting provisions.

You may also derive additional warranty rights from the Uniform Commercial Code; however, the Code does not allow you in most states to recover your attorney fees and is also not as consumer friendly as the Magnuson-Moss Warranty Act or the various state lemon laws.

RELATED LINKS:

PA LEMON LAW

NJ LEMON LAW

DE LEMON LAW

(© MMVIII, CBS Broadcasting Inc. All Rights Reserved.)

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At 1-800-LEMON LAW, we receive countless calls from folks who purchased a used car and ended up being taken for a ride. Sometimes the car has a salvage title, or it will not pass inspection, or it just falls apart. Many times, these distressed drivers have little or no protection under the State and Federal Laws we work with. Now, Mayor Nutter’s consumer advocate Lance Haver is working hard to change that in Philadelphia.

This past Monday, The Philadelphia City Council has approved a lemon law bill for used cars, and if that bill becomes law, drivers will have 72 hours to get their car checked out by a mechanic following the purchase. If the car is not drivable, the dealer will either have to fix the problem or allow the consumer to return the car for a full refund.

This is a bill whose time has come, according to Kimmel & Silverman Founding Attorney Craig Thor Kimmel. “In Philadelphia, used car sales occur with greater frequency than in less populated areas for the simple fact that insurance on a used car in the city is cheaper than insurance on a new car. Often people who buy used must rely entirely on what they are told from their salesperson, as there is little or no warranty remaining. In the case of new cars, repairs are covered under warranty for free but sadly, that is not often the case for used cars. Avoiding an unreliable car and its high repair bills is critical. This type of consumer protection would certainly be welcomed.”

As you know, the Pennsylvania Lemon Law currently does not apply to used cars. However, if you are under a manufacturer’s warranty and you have been back three or more times, you could be entitled to monetary damages under a Federal law known as the Magnuson Moss Warranty Act. Like the Lemon Law, representation under this Law is completely cost-free. For more information, call us at 1-800 LEMON LAW or visit www.lemonlaw.com.

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Attention viewers in Philadelphia and the Delaware Valley: You see the advetorials in the Philadelphia Inquirer and receive the solicitations in the mail.  It’s a once-in-a-lifetime event at a local dealership, with pricing and financing deals that are so unbelievable, they can’t even print the terms. Sounds a like a great deal, right?  STOP.  Before you grab your checkbook and head to the dealer, watch “All That & More” today at 4pm on NBC10.  K&S Lemon Law Attorney Craig Kimmel has some words of wisdom to make sure you are not taken for a ride.  

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