In states that use the Commercial Code’s statute of limitations, the discovery rule is reflected in the statute itself. The Commercial Code contains a four-year statute of limitations, which ordinarily runs from the time of sale. However, the rule is different if the action is based on a warranty that guarantees that the manufacturer will do something in the future.
Where a manufacturer promises to fix defects that appear after sale, that promise is not broken at the time of sale. It is not broken the first time a defect appears. It is broken when the manufacturer tries to fix the vehicle, but fails.
Thus, the four-year limit on filing a lawsuit does not begin to run until the consumer discovers the broken promise. That is, the statute of limitations does not begin to run until the consumer discovers-or reasonably should have discovered-that the manufacturer cannot or will not fulfill its obligations under warranty by successfully repairing the vehicle. Continue reading Chapter 11: Manufacturer Defenses (Page-07)
A statute of limitations limits the time in which anyone can bring a lawsuit. People cannot bring lawsuits based on things that supposedly occurred decades ago. As time passes, memories fade, documents are discarded, and witnesses move away or even die. As a practical matter, some sensible limit must be placed on the right to take legal action.
The time limit for bringing a lemon lawsuit varies from state to state. Some states, including California, use the general four-year statute of limitations found in the Commercial Code. Other state lemon laws contain their own special statutes of limitations. Continue reading Chapter 11: Manufacturer Defenses (Page-06)
Your owner’s manual describes the kind of maintenance your vehicle needs, and how often it should be performed. Whether you agree with the service intervals or not, it is best to stick to the manufacturer’s schedule as closely as possible. Otherwise, the manufacturer will try to blame your vehicle’s defects on the lack of maintenance.
Modifications and Alterations
Americans love to add things to their cars. They love to modify them in ways that suit their individuality. There is risk in this. Adding a radical camshaft to the engine so that you can burn rubber for two hundred feet is an unauthorized modification. If something goes wrong with the vehicle, the manufacturer will certainly try to blame it on the modification. Continue reading Chapter 11: Manufacturer Defenses (Page-05)
Similarly, if the engine in your Honda Accord fails during an impromptu 120 mph drag race with a Ford station wagon, it would be considered vehicle abuse. If you were to go for a weekend of off-road fun in your Cadillac DeVille, this also wouldn’t help you in a lemon law case.
Common sense is the rule. Vehicles are made for a purpose. Using them in a way that is inconsistent with this purpose may be considered abuse.
Keep in mind, however, that the alleged abuse must actually cause the defect in order to be a valid defense. For example, if the vehicle’s seat belts won’t stay latched, your off-road driving shouldn’t matter. Continue reading Chapter 11: Manufacturer Defenses (Page-04)
“No, Mr. Smith, I don’t think this is what the manufacturer had in mind for this vehicle.”
Vehicle Abuse
Suppose you have a Volkswagen Beetle. You decide to take a trip across country to visit friends. You need to take a few things with you, so you rent a two-ton trailer and hitch it to the back of the Beetle.
The answer is the paper trail. Our world thrives on paper, on records, on documents. Whenever a dispute arises, the person who has the best paper trail stands the best chance of winning.
When your vehicle is repaired, never leave without your copy of the repair order. Read it! If there is something you do not understand, ask about it. If something is missing, point it out to the service writer. For example, if you went along on a test drive to demonstrate an abnormal front-end vibration, and the technician said, “Yeah, I can feel that; that’s not right,” make sure the repair order reflects that the technician verified your complaint.
Most important of all, if anything in the repair order is even slightly inaccurate in any way, do not sign it! If you sign something without reading it, it will be presumed accurate, and you may lose the paper chase. Continue reading Chapter 11: Manufacturer Defenses (Page-02)
Lemon law statutes are now much stronger than they were even ten years ago. Still, not every consumer can successfully demand a refund under the lemon law, regardless of the nature of the defect.
The courts are well aware that some consumers are foolish enough to think they can blame their worn-out engine on a manufacturing defect or poor repairs at the dealership. Manufacturers have defenses against this sort of thing. Many of them are listed in your warranty. Continue reading Chapter 11: Manufacturer Defenses (Page-01)
Recent Comments