The Lemon Law Blog

We have talked to many people who have purchased extended warranties for their cars, trucks and RVs. Extended warranties, which are really service contracts, fall into two categories--the good and the bad. The good are those products backed by manufacturers--the GM Protection Plan, the Ford ESP and EXP, the Chrysler Protection Plan and Toyota ExtraCare plan. The bad are all the rest--those plans backed by companies you have never heard of. These companies exist to deny claims. When your car needs an expensive repair, these companies will be sure to blame your lack of maintenance and see the problem as pre-existing your purchase of the vehicle which the fine print excludes from coverage. Plus, the extended warranties do not cover the parts of the car that most often fail--the electronics. Dealers love to sell these warranties because they are so profitable. Bottom line--we do not recommend any extended warranty unless backed by a manufacturer.

When shopping for any extended warranty, the buyer should negotiate the price. There are no standard prices. Check the Internet for dealers offering the extended warranties at favorable prices.

Finally, it is important to know that extended warranties do not give the buyer lemon law rights. The California Supreme Court decided this issue a few years ago (Gavaldon v DaimlerChrysler).

Posted by Mark F. Anderson | Permalink | Email This Post

Posted In: Buying New Cars

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A class action against Autowest Dodge and its parent AutoNation was certified as a class action last week in San Francisco Superior Court. We are the attorneys representing the class. The case involves the failure of the dealer to disclose the itemization of capitalized cost in the precise manner required by law. The class also claims the dealer altered the leases after the consumer signed it and left the dealership.

The unauthorized alteration of documents after they are signed is a kind of forgery. Leases are filled out at the dealership in triplicate, or even quadruplicate. The consumer of course thinks the forms are identical. What a shock it is for consumers to discover the bank got more information that they did.

Some consumers did not keep their leases or cannot find them to compare the documents to those produced by the dealer and/or the bank. While this case can be proved otherwise, consumers are well advised to keep all such documents as a routine matter, even after the lease has expired.

Posted by Nancy Barron | Permalink | Email This Post

Posted In: Dealer Fraud

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California car owners' have a fine advocate in the person of Rosemary Shahan, the executive director of Consumers for Automobile Reliability and Safety (CARS), Davis, California. CARS
is an effective voice for the public interest, working to expose illegal practices, improve the California lemon law, improve auto safety technology,and ensure that unsafe, seriously defective vehicles are recalled and fixed before people are hurt. Ms Shahan is CARS’ founder and executive director, and was recently re-elected to a second three-year term on the Board of Directors of the Consumer Federation of
America, the nation’s largest consumer organization. CARS has won numerous awards in recognition of its work in the public interest.
CARS is totally independent and deserves your support. Please consider sending a contribution to CARS, 1303 J Street, Ste 270, Sacramento, CA 95814. CARS website is at www.carconsumers.com.

Posted by Mark F. Anderson | Permalink | Email This Post

Posted In: Lemon Law Advocates

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That the California Lemon Law covers cars and trucks has become common knowledge. What is less known,however, is that the law covers boats, trailers, motorhomes, computers, and motorcycles. In fact, the law covers just about all items bought primarily for personal,family or household use. Kemnitzer, Anderson, Barron & Ogilvie LLP has represented buyers of of defective personal computers and personal watercraft (“Jet Skis”). A KABO attorney represented the owner of a defective Steinway piano. Business vehicles that weigh less than 10,000 lb. are also covered by the California Lemon Law as long as the owner has no more than five registered vehicles (thus excluding fleet owners).

Posted by Mark F. Anderson | Permalink | Email This Post

Posted In: Lemon Law 101

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In March 2007, we filed a class action against Michelin and Honda alleging that the run-flat tire and wheel assemblies on the Honda Odyssey Touring model and the Acura RL with the technology package are defective. The complaint filed in the federal district court in Los Angles states that the replacement tires are not generally available, that the tires wear prematurely, and the cost of replacement tires is excessive. Owners are reporting that Honda and Michelin dealers are charging $180 per tire and $60 per tire for labor. Some owners have had to wait days for a replacement tire. More details on the case and the Michelin PAX tire and wheel were reported in the New York Times on March 11, 2007. The article is entitled "Run-Flat Tires: Are they Solving a Problem or Creating Several?"

Posted by Mark F. Anderson | Permalink | Email This Post

Posted In: Auto Class Actions

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What if a member of the Armed Forces stationed in California has a lemon law problem? What if his or her vehicle was purchased in some other state? Does he or she have lemon law protection? As the law is today, the California lemon law would not apply to the vehicle. However, a bill in the Legislature sponsored by CARS, a leading consumer advocate organization, would change that. Under pending Senate Bill 234, authored by Senator Ellen Corbett, military personnel stationed here will have the benefit of the California lemon law. Kemnitzer, Anderson, Barron & Ogilvie LLP supports this bill.

Posted by Mark F. Anderson | Permalink | Email This Post

Posted In: Pending Lemon Law Legislation

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The Center for Auto Safety, Washington, D.C., provides consumers a voice for auto safety in Washington and to help lemon car owners fight back across the country. CAS has a small budget but a big impact on the auto industry. With less than half what General Motors spends on a TV commercial,CAS has taken on the auto giants and won for consumers.

Examples of CAS’ work: recalls of the Ford Pinto with the exploding gas tanks, recalls of the GM pickups with side saddle gas tanks that caused gas-fed fires, and improved safety standards before the National Highway Safety Administration, the federal safety agency. CAS is led by its executive director, Clarence Ditlow. Clarence is often quoted by the national media on auto safety matters. The CAS website, www.autosafety.org, has a great deal of information on auto safety. If you wish to contribute to CAS, please go to the website for more information.

Posted by Mark F. Anderson | Permalink | Email This Post

Posted In: Lemon Law Advocates

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