Wednesday, February 28, 2007 Carmakers, dealers who violate sales warranties face imprisonment
BUYERS of defective vehicles are given ample protection under a newly approved Senate bill in terms of repair or replacement in compliance with the terms stated in the warranties provided by car manufacturers and dealers.
Under Senate Bill (SB) 2464, otherwise known as the "Lemon Act of 2007," the car makers of dealers can be penalized with two to six years of imprisonment or a fine of not less than P200,000 or both, if they renege on their obligations as stipulated in the warranty.
Minority Leader Aquilino Pimentel Jr. said the measure was approved by the Senate in response to widespread complaints by car owners against carmakers and dealers for refusing to abide by the warranties.
Pimentel said victims of false or fraudulent car warranties should not be helpless in seeking legal remedies and damages.
"Not only do these poor-quality vehicles shortchange their buyers or owners, they also endanger the lives and limbs of the drivers and passengers," he said
Pimentel said he expects the House of Representatives to approve its version of the Lemon Act. Final approval of the measure is expected when Congress resumes sessions after the mid-term elections in June.
The bill defines warranty as the obligation of the manufacturer in relation to materials, workmanship and fitness of a motor vehicle for ordinary use or reasonable intended purposes throughout the duration of the lemon law rights period.
The lemon rights period shall mean "the period ending 18 months after the date of the original delivery to the consumer of a new motor vehicle." This is the period when the consumer can report any non-conformity to the manufacturer and pursue any rights provided under the proposed act.
SB 2464 provides that "if a motor vehicle does not conform to all warranties and the consumer reports the non-conformity, the manufacturer, its agents, its authorized dealer if the seller in case of second-hand motor vehicles, during the warranty period, shall make such repairs, free of an charges, as are necessary to make the vehicles conform to such warranties, notwithstanding the fact that such repairs are made after the expiration of the manufacturer's or sellers warranty period."
The bill also provides that if the manufacturer and the agent or seller, in case of second-hand vehicles, does not repair or correct defects, after a reasonable number of attempts within the lemon rights period, the manufacturer of seller shall replace the motor vehicle with a comparable car.
It also states that the manufacturer or seller of the motor vehicle may accept the return of the vehicle and refund the buyer the full purchase price, including all collateral and incidental charges less the reasonable allowance for the buyer's use of the vehicle up to the date of the first notice of non-conformity that is given to the manufacturer, agent or dealer. (CPB/Sunnex)
