The Lemon Law
We invest a significant amount of time and money finding a perfect vehicle for our essential needs, be it an everyday commuter, a family van or perhaps, a truck for business use. However, no matter how we arm ourselves with knowledge, there is still that chance that we will end up buying a “lemon” or an inherently defective vehicle.
Just recently, the “Lemon Law” to protect new vehicle owners from factory defects was signed by the president. This is a welcome development for the motoring public as this law promotes full protection to the rights of consumers in the sale of motor vehicles against business and trade practices which are deceptive, unfair or otherwise inimical to consumers and the public interest.
Under this Law, an acquisition of a brandnew vehicle shall be subject to a warranty against defects within a year after purchase. The customer will be entitled to secure a refund or replacement of the unit if repeated repairs prove futile. The vehicle manufacturer, distributor or authorized retailer is required to undertake repairs on the defective vehicle. The repairs will cover all components of the vehicle. All defects that occur within a year from delivery of vehicle to the owner or up to 20,000 kilometers of mileage would be covered by the law.
The law assigns the Department of Trade and Industry as the governing and implementing body and has jurisdiction over all disputes that arise between the car owner and the manufacturer, distributor or dealer. The bill provides for mediation and arbitration as options for the DTI to resolve the disputes.
What would not be covered by the law are defects that occur as a result of non-compliance by the consumer of his obligations under the warranty; modifications not authorized by the manufacturer, distributor, authorized dealer or retailer; abuse or neglect of the vehicle; and damage to the vehicle due to an accident or force majeure.
While the vehicle is under repair, the bill also requires the manufacturer, distributor or dealer a reasonable customer compensation package for non-usage of his car either by providing a transportation allowance that would cover taxi fare or a service vehicle.
For more details about this law, go to www.gov.ph under Republic Act No. 10642.
- Latest
