California Consumer Warranty Protection
The Song-Beverly Consumer Warranty Act is discussed in this section
and covers not only lemon law cars and vehicles but other consumer
items as well.
California Civil Code 1790
Consumer Warranty Protection
1790. This chapter may be cited as the "Song-Beverly
Consumer Warranty Act."
1790.1. Any waiver by the buyer of consumer goods of the provisions
of this chapter, except as expressly provided in this chapter, shall
be deemed contrary to public policy and shall be unenforceable and
void.
(Added Ch. 1333, Stats. 1970.)
1790.3. The provisions of this chapter shall not affect the rights
and obligations of parties determined by reference to the Commercial
Code except that, where the provisions of the Commercial Code conflict
with the rights guaranteed to buyers of consumer goods under the
provisions of this chapter, the provisions of this chapter shall
prevail.
(Added Ch. 1333, Stats. 1970.)
1790.4. The remedies provided by this chapter are cumulative and
shall not be construed as restricting any remedy that is otherwise
available, and, in particular, shall not be construed to supplant
the provisions of the Unfair Practices Act.
(Amended Ch. 416, Stats. 1976.)
1791. As used in this chapter:
(a) "Consumer goods" means any new product or part thereof
that is used, bought, or leased for use primarily for personal,
family, or household purposes, except for clothing and consumables.
"Consumer goods" shall include new and used assistive
devices sold at retail.
(b) "Buyer" or "retail buyer" means any individual
who buys consumer goods from a person engaged in the business of
manufacturing, distributing, or selling consumer goods at retail.
As used in this subdivision, "person" means any individual,
partnership, corporation, limited liability company, association,
or other legal entity that engages in any of these businesses.
(c) "Clothing" means any wearing apparel, worn for any
purpose, including under and outer garments, shoes, and accessories
composed primarily of woven material, natural or synthetic yarn,
fiber, or leather or similar fabric.
(d) "Consumables" means any product that is intended for
consumption by individuals, or use by individuals for purposes of
personal care or in the performance of services ordinarily rendered
within the household, and that usually is consumed or expended in
the course of consumption or use.
(e) "Distributor" means any individual, partnership, corporation,
association, or other legal relationship that stands between the
manufacturer and the retail seller in purchases, consignments, or
contracts for sale of consumer goods.
(f) "Independent repair or service facility" or "independent
service dealer" means any individual, partnership, corporation,
association, or other legal entity, not an employee or subsidiary
of a manufacturer or distributor, that engages in the business of
servicing and repairing consumer goods.
(g) "Lease" means any contract for the lease or bailment
for the use of consumer goods by an individual, for a term exceeding
four months, primarily for personal, family, or household purposes,
whether or not it is agreed that the lessee bears the risk of the
consumer goods' depreciation.
(h) "Lessee" means an individual who leases consumer goods
under a lease.
(i) "Lessor" means a person who regularly leases consumer
goods under a lease.
(j) "Manufacturer" means any individual, partnership,
corporation, association, or other legal relationship that manufactures,
assembles, or produces consumer goods.
(k) "Place of business" means, for the purposes of any
retail seller that sells consumer goods by catalog or mail order,
the distribution point for consumer goods.
(l) "Retail seller," "seller," or "retailer"
means any individual, partnership, corporation, association, or
other legal relationship that engages in the business of selling
or leasing consumer goods to retail buyers.
(m) "Return to the retail seller" means, for the purposes
of any retail seller that sells consumer goods by catalog or mail
order, the retail seller's place of business, as defined in subdivision
(k).
(n) "Sale" means either of the following:
(1) The passing of title from the seller to the buyer for a price.
(2) A consignment for sale.
(o) "Service contract" means a contract in writing to
perform, over a fixed period of time or for a specified duration,
services relating to the maintenance or repair of a consumer product,
except that this term does not include a policy of automobile insurance,
as defined in Section 116 of the Insurance Code.
(p) "Assistive device" means any instrument, apparatus,
or contrivance, including any component or part thereof or accessory
thereto, that is used or intended to be used, to assist an individual
with a disability in the mitigation or treatment of an injury or
disease or to assist or affect or replace the structure or any function
of the body of an individual with a disability, except that this
term does not include prescriptive lenses and other ophthalmic goods
unless they are sold or dispensed to a blind person, as defined
in Section 19153 of the Welfare and Institutions Code and unless
they are intended to assist the limited vision of the person so
disabled.
(q) "Catalog or similar sale" means a sale in which neither
the seller nor any employee or agent of the seller nor any person
related to the seller nor any person with a financial interest in
the sale participates in the diagnosis of the buyer's condition
or in the selection or fitting of the device.
(r) "Home appliance" means any refrigerator, freezer,
range, microwave oven, washer, dryer, dishwasher, garbage disposal,
trash compactor, or room air-conditioner normally used or sold for
personal, family, or household purposes.
(s) "Home electronic product" means any television, radio,
antenna rotator, audio or video recorder or playback equipment,
video camera, video game, video monitor, computer equipment, telephone,
telecommunications equipment, electronic alarm system, electronic
appliance control system, or other kind of electronic product, if
it is normally used or sold for personal, family, or household purposes.
The term includes any electronic accessory that is normally used
or sold with a home electronic product for one of those purposes.
The term excludes any single product with a wholesale price to the
retail seller of less than fifty dollars ($50).
(t) "Member of the Armed Forces" means a person on full-time
active duty in the Army, Navy, Marine Corps, Air Force, National
Guard, or Coast Guard. Full-time active duty shall also include
active military service at a military service school designated
by law or the Adjutant General of the Military Department concerned.
This section shall become operative on January 1, 2008.
(Amended Sec. 1, Ch. 151, Stats. 2007. Effective January 1, 2008.)
1791.1. As used in this chapter:
(a) "Implied warranty of merchantability" or "implied
warranty that goods are merchantable" means that the consumer
goods meet each of the following:
(1) Pass without objection in the trade under the contract description.
(2) Are fit for the ordinary purposes for which such goods are used.
(3) Are adequately contained, packaged, and labeled.
(4) Conform to the promises or affirmations of fact made on the
container or label.
(b) "Implied warranty of fitness" means (1) that when
the retailer, distributor, or manufacturer has reason to know any
particular purpose for which the consumer goods are required, and
further, that the buyer is relying on the skill and judgment of
the seller to select and furnish suitable goods, then there is an
implied warranty that the goods shall be fit for such purpose and
(2) that when there is a sale of an assistive device sold at retail
in this state, then there is an implied warranty by the retailer
that the device is specifically fit for the particular needs of
the buyer.
(c) The duration of the implied warranty of merchantability and
where present the implied warranty of fitness shall be coextensive
in duration with an express warranty which accompanies the consumer
goods, provided the duration of the express warranty is reasonable;
but in no event shall such implied warranty have a duration of less
than 60 days nor more than one year following the sale of new consumer
goods to a retail buyer. Where no duration for an express warranty
is stated with respect to consumer goods, or parts thereof, the
duration of the implied warranty shall be the maximum period prescribed
above.
(d) Any buyer of consumer goods injured by a breach of the implied
warranty of merchantability and where applicable by a breach of
the implied warranty of fitness has the remedies provided in Chapter
6 (commencing with Section 2601) and Chapter 7 (commencing with
Section 2701) of Division 2 of the Commercial Code, and, in any
action brought under such provisions, Section 1794 of this chapter
shall apply.
(Amended Ch. 1023, Stats. 1979. Effective January 1, 1980.)
1791.2. (a) "Express warranty" means:
(1) A written statement arising out of a sale to the consumer of
a consumer good pursuant to which the manufacturer, distributor,
or retailer undertakes to preserve or maintain the utility or performance
of the consumer good or provide compensation if there is a failure
in utility or performance; or
(2) In the event of any sample or model, that the whole of the goods
conforms to such sample or model.
(b) It is not necessary to the creation of an express warranty that
formal words such as "warrant" or "guarantee"
be used, but if such words are used then an express warranty is
created. An affirmation merely of the value of the goods or a statement
purporting to be merely an opinion or commendation of the goods
does not create a warranty.
(c) Statements or representations such as expressions of general
policy concerning customer satisfaction which are not subject to
any limitation do not create an express warranty.
(Amended Ch. 991, Stats. 1978. Effective January 1, 1979.)
1791.3. As used in this chapter, a sale "as is" or "with
all faults" means that the manufacturer, distributor, and retailer
disclaim all implied warranties that would otherwise attach to the
sale of consumer goods under the provisions of this chapter.
(Added Ch. 1333, Stats. 1970.)
1792. Unless disclaimed in the manner prescribed by this chapter,
every sale of consumer goods that are sold at retail in this state
shall be accompanied by the manufacturer's and the retail seller's
implied warranty that the goods are merchantable. The retail seller
shall have a right of indemnity against the manufacturer in the
amount of any liability under this section.
(Amended Ch. 991, Stats. 1978. Effective January 1, 1979.)
1792.1. Every sale of consumer goods that are sold at retail in
this state by a manufacturer who has reason to know at the time
of the retail sale that the goods are required for a particular
purpose and that the buyer is relying on the manufacturer's skill
or judgment to select or furnish suitable goods shall be accompanied
by such manufacturer's implied warranty of fitness.
(Amended Ch. 991, Stats. 1978. Effective January 1, 1979.)
1792.2. (a) Every sale of consumer goods that are sold at retail
in this state by a retailer or distributor who has reason to know
at the time of the retail sale that the goods are required for a
particular purpose, and that the buyer is relying on the retailer's
or distributor's skill or judgment to select or furnish suitable
goods shall be accompanied by such retailer's or distributor's implied
warranty that the goods are fit for that purpose.
(b) Every sale of an assistive device sold at retail in this state
shall be accompanied by the retail seller's implied warranty that
the device is specifically fit for the particular needs of the buyer.
(Amended Ch. 1023, Stats. 1979. Effective January 1, 1980.)
1792.3. No implied warranty of merchantability and, where applicable,
no implied warranty of fitness shall be waived, except in the case
of a sale of consumer goods on an "as is" or "with
all faults" basis where the provisions of this chapter affecting
"as is" or "with all faults" sales are strictly
complied with.
(Added Ch. 1333, Stats. 1970.)
1792.4. (a) No sale of goods, governed by the provisions of this
chapter, on an "as is" or "with all faults"
basis, shall be effective to disclaim the implied warranty of merchantability
or, where applicable, the implied warranty of fitness, unless a
conspicuous writing is attached to the goods which clearly informs
the buyer, prior to the sale, in simple and concise language of
each of the following:
(1) The goods are being sold on as "as is" or "with
all faults" basis.
(2) The entire risk as to the quality and performance of the goods
is with the buyer.
(3) Should the goods prove defective following their purchase, the
buyer and not the manufacturer, distributor, or retailer assumes
the entire cost of all necessary servicing or repair.
(b) In the event of sale of consumer goods by means of a mail order
catalog, the catalog offering such goods shall contain the required
writing as to each item so offered in lieu of the requirement of
notification prior to the sale.
(Amended Ch. 1523, Stats. 1971. Operative January 1, 1972.)
1792.5. Every sale of goods that are governed by the provisions
of this chapter, on an "as is" or "with all faults"
basis, made in compliance with the provisions of this chapter, shall
constitute a waiver by the buyer of the implied warranty of merchantability
and, where applicable, of the implied warranty of fitness.
(Amended Ch. 1523, Stats. 1971. Operative January 1, 1972.)
1793. Except as provided in Section 1793.02, nothing in this chapter
shall affect the right of the manufacturer, distributor, or retailer
to make express warranties and with respect to consumer goods. However,
a manufacturer, distributor, or retailer, in transacting a sale
in which express warranties are given, may not limit, modify, or
disclaim the implied warranties guaranteed by this chapter to the
sale of consumer goods.
(Amended Ch. 1023, Stats. 1979. Effective January 1, 1980.)
1793.05. Vehicle manufacturers who alter new vehicles into housecars
shall, in addition to any new product warranty, assume any warranty
responsibility of the original vehicle manufacturer for any and
all components of the finished product which are, by virtue of any
act of the alterer, no longer covered by the warranty issued by
the original vehicle manufacturer.
(Added Ch. 873, Stats. 1977. Effective January 1, 1978.)
1793.1. (1) Every manufacturer, distributor, or retailer making
express warranties with respect to consumer goods shall fully set
forth those warranties in simple and readily understood language,
which shall clearly identify the party making the express warranties,
and which shall conform to the federal standards for disclosure
of warranty terms and conditions set forth in the federal Magnuson-Moss
Warranty-Federal Trade Commission Improvement Act (15 U.S.C. Sec.
2301 et seq.), and in the regulati/ns of the Federal Trade Commission
adopted pursuant to the provisions of that act. If the manufacturer,
distributor, or retailer provides a warranty or product registration
card or form, or an electronic online warranty or product registration
form, to be completed and returned by the consumer, the card or
form shall contain statements, each displayed in a clear and conspicuous
manner, that do all of the following:
(A) Informs the consumer that the card or form is for product registration.
(B) Informs the consumer that failure to complete and return the
card or form does not diminish his or her warranty rights.
(2) Every work order or repair invoice for warranty repairs or service
shall clearly and conspicuously incorporate in 10-point boldface
type the following statement either on the face of the work order
or repair invoice, or on the reverse side, or on an attachment to
the work order or repair invoice: "A buyer of this product
in California has the right to have this product serviced or repaired
during the warranty period. The warranty period will be extended
for the number of whole days that the product has been out of the
buyer's hands for warranty repairs. If a defect exists within the
warranty period, the warranty will not expire until the defect has
been fixed. The
warranty period will also be extended if the warranty repairs have
not been performed due to delays caused by circumstances beyond
the control of the buyer, or if the warranty repairs did not remedy
the defect and the buyer notifies the manufacturer or seller of
the failure of the repairs within 60 days after they were completed.
If, after a reasonable number of attempts, the defect has not been
fixed, the buyer may return this product for a replacement or a
refund subject, in either case, to deduction of a reasonable charge
for usage. This time extension does not affect the protections or
remedies the buyer has under other laws."
If the required notice is placed on the reverse side of the work
order or repair invoice, the face of the work order or repair invoice
shall include the following notice in 10-point boldface type: Notice
to Consumer: Please read important information on back.
A copy of the work order or repair invoice and any attachment thereto
shall be presented to the buyer at the time that warranty service
or repairs are made.
(b) No warranty or product registration card or form, or an electronic
online warranty or product registration form, may be labeled as
a warranty registration or a warranty confirmation.
(c) The requirements imposed by this section on the distribution
of any warranty or product registration card or form, or an electronic
online warranty or product registration form, shall become effective
on January 1, 2004.
(d) This section does not apply to any warranty or product registration
card
or form that was printed prior to January 1, 2004, and was shipped
or included with a product that was placed in the stream of commerce
prior to January 1, 2004.
(e) Every manufacturer, distributor, or retailer making express
warranties and who elects to maintain service and repair facilities
within this state pursuant to the provisions of this chapter shall
perform one or more of the following:
(1) At the time of sale, provide the buyer with the name and address
of each such service and repair facility within this state; or
(2) At the time of the sale, provide the buyer with the name and
address and telephone number of a service and repair facility central
directory within this state, or the toll-free telephone number of
a service and repair facility central directory outside this state.
It shall be the duty of the central directory to provide, upon inquiry,
the name and address of the authorized service and repair facility
nearest the buyer; or
(3) Maintain at the premises of retail sellers of the warrantor's
consumer goods a current listing of the warrantor's authorized service
and repair facilities, or retail sellers to whom the consumer goods
are to be returned for service and repair, whichever is applicable,
within this state. It shall be the duty of every retail seller provided
with that listing to provide, on inquiry, the name, address, and
telephone number of the nearest authorized service and repair facility,
or the retail seller to whom the consumer goods are to be returned
for service and repair, whichever is applicable.
(Amended Sec. 1, Ch. 306, Stats. 2002. Effective January 1, 2003.)
1793.2. (a) Every manufacturer of consumer goods sold in this state
and for which the manufacturer has made an express warranty shall:
(1) (A) Maintain in this state sufficient service and repair facilities
reasonably close to all areas where its consumer goods are sold
to carry out the terms of those warranties or designate and authorize
in this state as service and repair facilities independent repair
or service facilities reasonably close to all areas where its consumer
goods are sold to carry out the terms of the warranties.
(B) As a means of complying with this paragraph, a manufacturer
may enter into warranty service contracts with independent service
and repair facilities. The warranty service contracts may provide
for a fixed schedule of rates to be charged for warranty service
or warranty repair work. However, the rates fixed by those contracts
shall be in conformity with the requirements of subdivision (c)
of Section 1793.3. The rates established pursuant to subdivision
(c) of Section 1793.3, between the manufacturer and the independent
service and repair facility, do not preclude a good faith discount
that is reasonably related to reduced credit and general overhead
cost factors arising from the manufacturer's payment of warranty
charges direct to the independent service and repair facility. The
warranty service contracts authorized by this paragraph may not
be executed to cover a period of time in excess of one year, and
may be renewed only by a separate, new contract or letter of agreement
between the manufacturer and the independent service and repair
facility.
(2) In the event of a failure to comply with paragraph (1) of this
subdivision, be subject to Section 1793.5.
(3) Make available to authorized service and repair facilities sufficient
service literature and replacement parts to effect repairs during
the express warranty period.
(b) Where those service and repair facilities are maintained in
this state and service or repair of the goods is necessary because
they do not conform with the applicable express warranties, service
and repair shall be commenced within a reasonable time by the manufacturer
or its representative in this state. Unless the buyer agrees in
writing to the contrary, the goods shall be serviced or repaired
so as to conform to the applicable warranties within 30 days. Delay
caused by conditions beyond the control of the manufacturer or its
representatives shall serve to extend this 30-day requirement. Where
delay arises, conforming goods shall be tendered as soon as possible
following termination of the condition giving rise to the delay.
(c) The buyer shall deliver nonconforming goods to the manufacturer's
service and repair facility within this state, unless, due to reasons
of size and weight, or method of attachment, or method of installation,
or nature of the nonconformity, delivery cannot reasonably be accomplished.
If the buyer cannot return the nonconforming goods for any of these
reasons, he or she shall notify the manufacturer or its nearest
service and repair facility within the state. Written notice of
nonconformity to the manufacturer or its service and repair facility
shall constitute return of the goods for purposes of this section.
Upon receipt of that notice of nonconformity, the manufacturer shall,
at its option, service or repair the goods at the buyer's residence,
or pick up the goods for service and repair, or arrange for transporting
the goods to its service and repair facility. All reasonable costs
of transporting the goods when a buyer cannot return them for any
of the above reasons shall be at the manufacturer's expense. The
reasonable costs of transporting nonconforming goods after delivery
to the service and repair facility until return of the goods to
the buyer shall be at the manufacturer's expense.
(d) (1) Except as provided in paragraph (2), if the manufacturer
or its representative in this state does not service or repair the
goods to conform to the applicable express warranties after a reasonable
number of attempts, the manufacturer shall either replace the goods
or reimburse the buyer in an amount equal to the purchase price
paid by the buyer, less that amount directly attributable to use
by the buyer prior to the discovery of the nonconformity.
(2) If the manufacturer or its representative in this state is unable
to service or repair a new motor vehicle, as that term is defined
in paragraph (2) of subdivision (e) of Section 1793.22, to conform
to the applicable express warranties after a reasonable number of
attempts, the manufacturer shall either promptly replace the new
motor vehicle in accordance with subparagraph (A) or promptly make
restitution to the buyer in accordance with subparagraph (B). However,
the buyer shall be free to elect restitution in lieu of replacement,
and in no event shall the buyer be required by the manufacturer
to accept a replacement vehicle.
(A) In the case of replacement, the manufacturer shall replace the
buyer's vehicle with a new motor vehicle substantially identical
to the vehicle replaced. The replacement vehicle shall be accompanied
by all express and implied warranties that normally accompany new
motor vehicles of that specific kind. The manufacturer also shall
pay for, or to, the buyer the amount of any sales or use tax, license
fees, registration fees, and other official fees which the buyer
is obligated to pay in connection with the replacement, plus any
incidental damages to which the buyer is entitled under Section
1794, including, but not limited to, reasonable repair, towing,
and rental car costs actually incurred by the buyer.
(B) In the case of restitution, the manufacturer shall make restitution
in an amount equal to the actual price paid or payable by the buyer,
including any charges for transportation and manufacturer-installed
options, but excluding nonmanufacturer items installed by a dealer
or the buyer, and including any collateral charges such as sales
tax, license fees, registration fees, and other official fees, plus
any incidental damages to which the buyer is entitled under Section
1794, including, but not limited to, reasonable repair, towing,
and rental car costs actually incurred by the buyer.
(C) When the manufacturer replaces the new motor vehicle pursuant
to subparagraph (A), the buyer shall only be liable to pay the manufacturer
an amount directly attributable to use by the buyer of the replaced
vehicle prior to the time the buyer first delivered the vehicle
to the manufacturer or distributor, or its authorized service and
repair facility for correction of the problem that gave rise to
the nonconformity. When restitution is made pursuant to subparagraph
(B), the amount to be paid by the manufacturer to the buyer may
be reduced by the manufacturer by that amount directly attributable
to use by the buyer prior to the time the buyer first delivered
the vehicle to the manufacturer or distributor, or its authorized
service and repair facility for correction of the problem that gave
rise to the nonconformity. The amount directly attributable to use
by the buyer shall be determined by multiplying the actual price
of the new motor vehicle paid or payable by the buyer, including
any charges for transportation and manufacturer-installed options,
by a fraction having as its denominator 120,000 and having as its
numerator the number of miles traveled by the new motor vehicle
prior to the time the buyer first delivered the vehicle to the manufacturer
or distributor, or its authorized service and repair facility for
correction of the problem that gave rise to the nonconformity. Nothing
in this paragraph shall in any way limit the rights or remedies
available to the buyer under any other law.
(e) (1) If the goods cannot practicably be serviced or repaired
by the manufacturer or its representative to conform to the applicable
express warranties because of the method of installation or because
the goods have become so affixed to real property as to become a
part thereof, the manufacturer shall either replace and install
the goods or reimburse the buyer in an amount equal to the purchase
price paid by the buyer, including installation costs, less that
amount directly attributable to use by the buyer prior to the discovery
of the nonconformity.
(2) With respect to claims arising out of deficiencies in the construction
of a new residential dwelling, paragraph (1) shall not apply to
either of the following:
(A) A product that is not a manufactured product, as defined in
subdivision (g) of Section 896.
(B) A claim against a person or entity that is not the manufacturer
that originally made the express warranty for that manufactured
product.
(Amended Sec. 1, Ch. 331, Stats. 2004. Effective January 1, 2005.)
1793.22. (a) This section shall be known and may be cited as the
Tanner Consumer Protection Act.
(b) It shall be presumed that a reasonable number of attempts have
been made to conform a new motor vehicle to the applicable express
warranties if, within 18 months from delivery to the buyer or 18,000
miles on the odometer of the vehicle, whichever occurs first, one
or more of the following occurs:
(1) The same nonconformity results in a condition that is likely
to cause death or serious bodily injury if the vehicle is driven
and the nonconformity has been subject to repair two or more times
by the manufacturer or its agents, and the buyer or lessee has at
least once directly notified the manufacturer of the need for the
repair of the nonconformity.
(2) The same nonconformity has been subject to repair four or more
times by the manufacturer or its agents and the buyer has at least
once directly notified the manufacturer of the need for the repair
of the nonconformity.
(3) The vehicle is out of service by reason of repair of nonconformities
by the manufacturer or its agents for a cumulative total of more
than 30 calendar days since delivery of the vehicle to the buyer.
The 30-day limit shall be extended only if repairs cannot be performed
due to conditions beyond the control of the manufacturer or its
agents. The buyer shall be required to directly notify the manufacturer
pursuant to paragraphs (1) and (2) only if the manufacturer has
clearly and conspicuously disclosed to the buyer, with the warranty
or the owner's manual, the provisions of this section and that of
subdivision (d) of Section 1793.2, including the requirement that
the buyer must notify the manufacturer directly pursuant to paragraphs
(1) and (2). The notification, if required, shall be sent to the
address, if any, specified clearly and conspicuously by the manufacturer
in the warranty or owner's manual This presumption shall be a rebuttable
presumption affecting the burden of proof, and it may be asserted
by the buyer in any civil action, including an action in small claims
court, or other formal or informal proceeding.
(c) If a qualified third-party dispute resolution process exists,
and the buyer receives timely notification in writing of the availability
of that qualified third-party dispute resolution process with a
description of its operation and effect, the presumption in subdivision
(b) may not be asserted by the buyer until after the buyer has initially
resorted to the qualified third-party dispute resolution process
as required in subdivision (d). Notification of the availability
of the qualified third-party dispute resolution process is not timely
if the buyer suffers any prejudice resulting from any delay in giving
the notification. If a qualified third-party dispute resolution
process does not exist, or if the buyer is dissatisfied with that
third-party decision, or if the manufacturer or its agent neglects
to promptly fulfill the terms of the qualified third-party dispute
resolution process decision after the decision is accepted by the
buyer, the buyer may assert the presumption provided in subdivision
(b) in an action to enforce the buyer's rights under subdivision
(d) of Section 1793.2. The findings and decision of a qualified
third-party dispute resolution process shall be admissible in evidence
in the action without further foundation. Any period of limitation
of actions under any federal or California laws with respect to
any person shall be extended for a period equal to the number of
days between the date a complaint is filed with a third-party dispute
resolution process and the date of its decision or the date before
which the manufacturer or its agent is required by the decision
to fulfill its terms if the decision is accepted by the buyer, whichever
occurs later.
(d) A qualified third-party dispute resolution process shall be
one that does all of the following:
(1) Complies with the minimum requirements of the Federal Trade
Commission for informal dispute settlement procedures as set forth
in Part 703 of Title 16 of the Code of Federal Regulations, as those
regulations read on January 1, 1987.
(2) Renders decisions which are binding on the manufacturer if the
buyer elects to accept the decision.
(3) Prescribes a reasonable time, not to exceed 30 days after the
decision is accepted by the buyer, within which the manufacturer
or its agent must fulfill the terms of its decisions.
(4) Provides arbitrators who are assigned to decide disputes with
copies of, and instruction in, the provisions of the Federal Trade
Commission's regulations in Part 703 of Title 16 of the Code of
Federal Regulations as those regulations read on January 1, 1987,
Division 2 (commencing with Section 2101) of the Commercial Code,
and this chapter.
(5) Requires the manufacturer, when the process orders, under the
terms of this chapter, either that the nonconforming motor vehicle
be replaced if the buyer consents to this remedy or that restitution
be made to the buyer, to replace the motor vehicle or make restitution
in accordance with paragraph (2) of subdivision (d) of Section 1793.2.
(6) Provides, at the request of the arbitrator or a majority of
the arbitration panel, for an inspection and written report on the
condition of a nonconforming motor vehicle, at no cost to the buyer,
by an automobile expert who is independent of the manufacturer.
(7) Takes into account, in rendering decisions, all legal and equitable
factors, including, but not limited to, the written warranty, the
rights and remedies conferred in regulations of the Federal Trade
Commission contained in Part 703 of Title 16 of the Code of Federal
Regulations as those regulations read on January 1, 1987, Division
2 (commencing with Section 2101) of the Commercial Code, this chapter,
and any other equitable considerations appropriate in the circumstances.
Nothing in this chapter requires that, to be certified as a qualified
third-party dispute resolution process pursuant to this section,
decisions of the process must consider or provide remedies in the
form of awards of punitive damages or multiple damages, under subdivision
(c) of Section 1794, or of attorneys' fees under subdivision (d)
of Section 1794, or of consequential damages other than as provided
in subdivisions (a) and (b) of Section 1794, including, but not
limited to, reasonable repair, towing, and rental car costs actually
incurred by the buyer.
(8) Requires that no arbitrator deciding a dispute may be a party
to the dispute and that no other person, including an employee,
agent, or dealer for the manufacturer, may be allowed to participate
substantively in the merits of any dispute with the arbitrator unless
the buyer is allowed to participate also. Nothing in this subdivision
prohibits any member of an arbitration board from deciding a dispute.
(9) Obtains and maintains certification by the Department of Consumer
Affairs pursuant to Chapter 9 (commencing with Section 472) of Division
1 of the Business and Professions Code.
(e) For the purposes of subdivision (d) of Section 1793.2 and this
section, the following terms have the following meanings:
(1) "Nonconformity" means a nonconformity which substantially
impairs the use, value, or safety of the new motor vehicle to the
buyer or lessee.
(2) "New motor vehicle" means a new motor vehicle that
is bought or used primarily for personal, family, or household purposes.
"New motor vehicle" also means a new motor vehicle with
a gross vehicle weight under 10,000 pounds that is bought or used
primarily for business purposes by a person, including a partnership,
limited liability company, corporation, association, or any other
legal entity, to which not more than five motor vehicles are registered
in this state. "New motor vehicle" includes the chassis,
chassis cab, and that portion of a motor home devoted to its propulsion,
but does not include any portion designed, used, or maintained primarily
for human habitation, a dealer-owned vehicle and a "demonstrator"
or other motor vehicle sold with a manufacturer's new car warranty
but does not include a motorcycle or a motor vehicle which is not
registered under the Vehicle Code because it is to be operated or
used exclusively off the highways. A demonstrator is a vehicle assigned
by a dealer for the purpose of demonstrating qualities and characteristics
common to vehicles of the same or similar model and type.
(3) "Motor home" means a vehicular unit built on, or permanently
attached to, a self-propelled motor vehicle chassis, chassis cab,
or van, which becomes an integral part of the completed vehicle,
designed for human habitation for recreational or emergency occupancy.
(f) (1) Except as provided in paragraph (2), no person shall sell,
either at wholesale or retail, lease, or transfer a motor vehicle
transferred by a buyer or lessee to a manufacturer pursuant to paragraph
(2) of subdivision (d) of Section 1793.2 or a similar statute of
any other state, unless the nature of the nonconformity experienced
by the original buyer or lessee is clearly and conspicuously disclosed
to the prospective buyer, lessee, or transferee, the nonconformity
is corrected, and the manufacturer warrants to the new buyer, lessee,
or transferee in writing for a period of one year that the motor
vehicle is free of that nonconformity.
(2) Except for the requirement that the nature of the nonconformity
be disclosed to the transferee, paragraph (1) does not apply to
the transfer of a motor vehicle to an educational institution if
the purpose of the transfer is to make the motor vehicle available
for use in automotive repair courses.
(Amended Sec. 1, Ch. 679, Stats. 2000. Effective January 1, 2001.)
1793.23. (a) The Legislature finds and declares all of the following:
(1) That the expansion of state warranty laws covering new and used
cars has given important and valuable protection to consumers.
(2) That, in states without this valuable warranty protection, used
and irrepairable motor vehicles are being resold in the marketplace
without notice to the subsequent purchaser.
(3) That other states have addressed this problem by requiring notices
on the title of these vehicles or other notice procedures to warn
consumers that the motor vehicles were repurchased by a dealer or
manufacturer because the vehicle could not be repaired in a reasonable
length of time or a reasonable number of repair attempts or the
dealer or manufacturer was not willing to repair the vehicle.
(4) That these notices serve the interests of consumers who have
a right to information relevant to their buying decisions.
(5) That the disappearance of these notices upon the transfer of
title from another state to this state encourages the transport
of "lemons" to this state for sale to the drivers of this
state.
(b) This section and Section 1793.24 shall be known, and may be
cited as, the Automotive Consumer Notification Act.
(c) Any manufacturer who reacquires or assists a dealer or lienholder
to reacquire a motor vehicle registered in this state, any other
state, or a federally administered district shall, prior to any
sale, lease, or transfer of the vehicle in this state, or prior
to exporting the vehicle to another state for sale, lease, or transfer
if the vehicle was registered in this state and reacquired pursuant
to paragraph (2) of subdivision (d) of Section 1793.2, cause the
vehicle to be retitled in the name of the manufacturer, request
the Department of Motor Vehicles to inscribe the ownership certificate
with the notation "Lemon Law Buyback," and affix a decal
to the vehicle in accordance with Section 11713.12 of the Vehicle
Code if the manufacturer knew or should have known that the vehicle
is required by law to be replaced, accepted for restitution due
to the failure of the manufacturer to conform the vehicle to applicable
warranties pursuant to paragraph (2) of subdivision (d) of Section
1793.2, or accepted for restitution by the manufacturer due to the
failure of the manufacturer to conform the vehicle to warranties
required by any other applicable law of the state, any other state,
or federal law.
(d) Any manufacturer who reacquires or assists a dealer or lienholder
to reacquire a motor vehicle in response to a request by the buyer
or lessee that the vehicle be either replaced or accepted for restitution
because the vehicle did not conform to express warranties shall,
prior to the sale, lease, or other transfer of the vehicle, execute
and deliver to the subsequent transferee a notice and obtain the
transferee's written acknowledgment of a notice, as prescribed by
Section 1793.24.
(e) Any person, including any dealer, who acquires a motor vehicle
for resale and knows or should have known that the vehicle was reacquired
by the vehicle's manufacturer in response to a request by the last
retail owner or lessee of the vehicle that it be replaced or accepted
for restitution because the vehicle did not conform to express warranties
shall, prior to the sale, lease, or other transfer, execute and
deliver to the subsequent transferee a notice and obtain the transferee's
written acknowledgment of a notice, as prescribed by Section 1793.24.
(f) Any person, including any manufacturer or dealer, who sells,
leases, or transfers ownership of a motor vehicle when the vehicle's
ownership certificate is inscribed with the notation "Lemon
Law Buyback" shall, prior to the sale, lease, or ownership
transfer of the vehicle, provide the transferee with a disclosure
statement signed by the transferee that states:
"THIS VEHICLE WAS REPURCHASED BY ITS MANUFACTURER DUE TO A
DEFECT IN THE VEHICLE PURSUANT TO CONSUMER WARRANTY LAWS. THE TITLE
TO THIS VEHICLE HAS BEEN PERMANENTLY BRANDED WITH THE NOTATION "LEMON
LAW BUYBACK'."
(g) The disclosure requirements in subdivisions (d), (e), and (f)
are cumulative with all other consumer notice requirements and do
not relieve any person, including any dealer or manufacturer, from
complying with any other applicable law, including any requirement
of subdivision (f) of Section 1793.22.
(h) For purposes of this section, "dealer" means any person
engaged in the business of selling, offering for sale, or negotiating
the retail sale of, a used motor vehicle or selling motor vehicles
as a broker or agent for another, including the officers, agents,
and employees of the person and any combination or association of
dealers.
(Amended Sec. 7, Ch. 932, Stats. 1998. Effective January 1, 1999.)
1793.24. (a) The notice required in subdivisions (d) and (e) of
Section 1793.23 shall be prepared by the manufacturer of the reacquired
vehicle and shall disclose all of the following:
(1) Year, make, model, and vehicle identification number of the
vehicle.
(2) Whether the title to the vehicle has been inscribed with the
notation "Lemon Law Buyback."
(3) The nature of each nonconformity reported by the original buyer
or lessee of the vehicle.
(4) Repairs, if any, made to the vehicle in an attempt to correct
each nonconformity reported by the original buyer or lessee.
(b) The notice shall be on a form 8 /2 x 11 inches in size and printed
in no smaller than 10-point black type on a white background.
The form shall only contain the following information prior to it
being filled out by the manufacturer:
WARRANTY BUYBACK NOTICE
(Check One)
" This vehicle was repurchased by the vehicle's manufacturer
after the last retail owner or lessee requested its repurchase due
to the problem(s) listed below.
" THIS VEHICLE WAS REPURCHASED BY ITS MANUFACTURER DUE TO A
DEFECT IN THE VEHICLE PURSUANT TO CONSUMER WARRANTY LAWS. THE TITLE
TO THIS VEHICLE HAS BEEN PERMANENTLY BRANDED WITH THE NOTATION "LEMON
LAW BUYBACK." Under California law, the manufacturer must warrant
to you, for a one year period, that the vehicle is free of the problem(s)
listed below.
(Added Sec. 2, Ch. 503, Stats. 1995. Effective January 1, 1996.)
1793.26. (a) Any automobile manufacturer, importer,
(Amended Sec. 1, Ch. 679, Stats. 2000. Effective January 1, 2001.)
1793.3. If the manufacturer of consumer goods sold in this state
for which the manufacturer has made an express warranty does not
provide service and repair facilities within this state pursuant
to subdivision (a) of Section 1793.2 or does not make available
to authorized service and repair facilities service literature and
replacement parts sufficient to effect repair during the express
warranty period, the buyer of such manufacturer's nonconforming
goods may follow the course of action prescribed in either subdivision
(a), (b), or (c), below, as follows:
(a) Return the nonconforming consumer goods to the retail seller
thereof. The retail seller shall do one of the following:
(1) Service or repair the nonconforming goods to conform to the
applicable warranty.
(2) Direct the buyer to a reasonably close independent repair or
service facility willing to accept service or repair under this
section.
(3) Replace the nonconforming goods with goods that are identical
or reasonably equivalent to the warranted goods.
(4) Refund to the buyer the original purchase price less that amount
directly attributable to use by the buyer prior to the discovery
of the nonconformity.
(b) Return the nonconforming consumer goods to any retail seller
of like goods of the same manufacturer within this state who may
do one of the following:
(1) Service or repair the nonconforming goods to conform to the
applicable warranty.
(2) Direct the buyer to a reasonably close independent repair or
service facility willing to accept service or repair under this
section.
(3) Replace the nonconforming goods with goods that are identical
or reasonably equivalent to the warranted goods.
(4) Refund to the buyer the original purchase price less that amount
directly attributable to use by the buyer prior to the discovery
of the nonconformity.
(c) Secure the services of an independent repair or service facility
for the service or repair of the nonconforming consumer goods, when
service or repair of the goods can be economically accomplished.
In that event the manufacturer shall be liable to the buyer, or
to the independent repair or service facility upon an assignment
of the buyer's rights, for the actual and reasonable cost of service
and repair, including any cost for parts and any reasonable cost
of transporting the goods or parts, plus a reasonable profit. It
shall be a rebuttable presumption affecting the burden of producing
evidence that the reasonable cost of service or repair is an amount
equal to that which is charged by the independent service dealer
for like services or repairs rendered to service or repair customers
who are not entitled to warranty protection. Any waiver of the liability
of a manufacturer shall be void and unenforceable.
The course of action prescribed in this subdivision shall be available
to the buyer only after the buyer has followed the course of action
prescribed in either subdivision (a) or (b) and such course of action
has not furnished the buyer with appropriate relief. In no event,
shall the provisions of this subdivision be available to the buyer
with regard to consumer goods with a wholesale price to the retailer
of less than fifty dollars ($50). In no event shall the buyer be
responsible or liable for service or repair costs charged by the
independent repair or service facility which accepts service or
repair of nonconforming consumer goods under this section. Such
independent repair or service facility shall only be authorized
to hold the manufacturer liable for such costs.
(d) A retail seller to which any nonconforming consumer good is
returned pursuant to subdivision (a) or (b) shall have the option
of providing service or repair itself or directing the buyer to
a reasonably close independent repair or service facility willing
to accept service or repair under this section. In the event the
retail seller directs the buyer to an independent repair or service
facility, the manufacturer shall be liable for the reasonable cost
of repair services in the manner provided in subdivision (c).
(e) In the event a buyer is unable to return nonconforming goods
to the retailer due to reasons of size and weight, or method of
attachment, or method of installation, or nature of the nonconformity,
the buyer shall give notice of the nonconformity to the retailer.
Upon receipt of such notice of nonconformity the retailer shall,
at its option, service or repair the goods at the buyer's residence,
or pick up the goods for service or repair, or arrange for transporting
the goods to its place of business. The reasonable costs of transporting
the goods shall be at the retailer's expense. The retailer shall
be entitled to recover all such reasonable costs of transportation
from the manufacturer pursuant to Section 1793.5. The reasonable
costs of transporting nonconforming goods after delivery to the
retailer until return of the goods to the buyer, when incurred by
a retailer, shall be recoverable form the manufacturer pursuant
to Section 1793.5. Written notice of nonconformity to the retailer
shall constitute return of the goods for the purposes of subdivisions
(a) and (b).
(f) The manufacturer of consumer goods with a wholesale price to
the retailer of fifty dollars ($50) or more for which the manufacturer
has made express warranties shall provide written notice to the
buyer of the courses of action available to him under subdivision
(a), (b), or (c).
(Amended Ch. 547, Stats. 1986. Effective January 1, 1987.)
1793.4. Where an option is exercised in favor of service and repair
under Section 1793.3, such service and repair must be commenced
within a reasonable time, and, unless the buyer agrees in writing
to the contrary, goods conforming to the applicable express warranties
shall be tendered within 30 days. Delay caused by conditions beyond
the control of the retail seller or his representative shall serve
to extend this 30-day requirement. Where such a delay arises, conforming
goods shall be tendered as soon as possible following termination
of the condition giving rise to the delay.
(Amended Ch. 991, Stats. 1978. Effective January 1, 1979.)
1793.5. Every manufacturer making express warranties who does not
provide service and repair facilities within this state pursuant
to subdivision (a) of Section 1793.2 shall be liable as prescribed
in this section to every retail seller of such manufacturer's goods
who incurs obligations in giving effect to the express warranties
that accompany such manufacturer's consumer goods. The amount of
such liability shall be determined as follows:
(a) In the event of replacement, in an amount equal to the actual
cost to the retail seller of the replaced goods, and cost of transporting
the goods, if such costs are incurred plus a reasonable handling
charge.
(b) In the event of service and repair, in an amount equal to that
which would be received by the retail seller for like service rendered
to retail consumers who are not entitled to warranty protection,
including actual and reasonable costs of the service and repair
and the cost of transporting the goods, if such costs are incurred,
plus a reasonable profit.
(c) In the event of reimbursement under subdivision (a) of Section
1793.3, in an amount equal to that reimbursed to the buyer, plus
a reasonable handling charge.
(Amended Ch. 1523, Stats. 1971. Operative January 1, 1972.)
1793.6. Except as otherwise provided in the terms of a warranty
service contract, as specified in subdivision (a) of Section 1793.2,
entered into between a manufacturer and an independent service and
repair facility, every manufacturer making express warranties whose
consumer goods are sold in this state shall be liable as prescribed
in this section to every independent serviceman who performs services
or incurs obligations in giving effect to the express warranties
that accompany such manufacturer's consumer goods whether the independent
serviceman is acting as an authorized service and repair facility
designated by the manufacturer pursuant to paragraph (1) of subdivision
(a) of Section 1793.2 or is acting as an independent serviceman
pursuant to subdivisions (c) and (d) of Section 1793.3. The amount
of such liability shall be an amount equal to the actual and reasonable
costs of the service and repair, including any cost for parts and
any reasonable cost of transporting the goods or parts, plus a reasonable
profit. It shall be a rebuttable presumption affecting the burden
of producing evidence that the reasonable cost of service or repair
is an amount equal to that which is charged by the independent serviceman
for like services or repairs rendered to service or repair customers
who are not entitled to warranty protection. Any waiver of the liability
of a manufacturer shall be void and unenforceable.
(Added Ch. 416, Stats. 1976.)
1794. (a) Any buyer of consumer goods who is damaged by a failure
to comply with any obligation under this chapter or under an implied
or express warranty or service contract may bring an action for
the recovery of damages and other legal and equitable relief.
(b) The measure of the buyer's damages in an action under this section
shall include the rights of replacement or reimbursement as set
forth in subdivision (d) of Section 1793.2, and the following:
(1) Where the buyer has rightfully rejected or justifiably revoked
acceptance of the goods or has exercised any right to cancel the
sale, Sections 2711, 2712, and 2713 of the Commercial Code shall
apply.
(2) Where the buyer has accepted the goods, Sections 2714 and 2715
of the Commercial Code shall apply, and the measure of damages shall
include the cost of repairs necessary to make the goods conform.
(c) If the buyer establishes that the failure to comply was willful,
the judgment may include, in addition to the amounts recovered under
subdivision (a), a civil penalty which shall not exceed two times
the amount of actual damages. This subdivision shall not apply in
any class action under Section 382 of the Code of Civil Procedure
or under Section 1781, or with respect to a claim based solely on
a breach of an implied warranty.
(d) If the buyer prevails in an action under this section, the buyer
shall be allowed by the court to recover as part of the judgment
a sum equal to the aggregate amount of costs and expenses, including
attorney's fees based on actual time expended, determined by the
court to have been reasonably incurred by the buyer in connection
with the commencement and prosecution of such action.
(e) (1) Except as otherwise provided in this subdivision, if the
buyer establishes a violation of paragraph (2) of subdivision (d)
of Section 1793.2, the buyer shall recover damages and reasonable
attorney's fees and costs, and may recover a civil penalty of up
to two times the amount of damages.
(2) If the manufacturer maintains a qualified third-party dispute
resolution process which substantially complies with Section 1793.22,
the manufacturer shall not be liable for any civil penalty pursuant
to this subdivision.
(3) After the occurrence of the events giving rise to the presumption
established in subdivision (b) of Section 1793.22, the buyer may
serve upon the manufacturer a written notice requesting that the
manufacturer comply with paragraph (2) of subdivision (d) of Section
1793.2. If the buyer fails to serve the notice, the manufacturer
shall not be liable for a civil penalty pursuant to this subdivision.
(4) If the buyer serves the notice described in paragraph (3) and
the manufacturer complies with paragraph (2) of subdivision (d)
of Section 1793.2 within 30 days of the service of that notice,
the manufacturer shall not be liable for a civil penalty pursuant
to this subdivision.
(5) If the buyer recovers a civil penalty under subdivision (c),
the buyer may not also recover a civil penalty under this subdivision
for the same violation.
(Amended Ch. 1232, Stats. 1992. Effective January 1, 1993.)
1794.1. (a) Any retail seller of consumer goods injured by the
willful or repeated violation of the provisions of this chapter
may bring an action for the recovery of damages. Judgment may be
entered for three times the amount at which the actual damages are
assessed plus reasonable attorney fees.
(b) Any independent serviceman of consumer goods injured by the
willful or repeated violation of the provisions of this chapter
may bring an action for the recovery of damages. Judgment may be
entered for three times the amount at which the actual damages are
assessed plus reasonable attorney fees.
(Amended Ch. 416, Stats. 1976.)
1794.3. The provisions of this chapter shall not apply to any defect
or nonconformity in consumer goods caused by the unauthorized or
unreasonable use of the goods following sale.
(Amended Ch. 1523, Stats. 1971. Operative January 1, 1972.)
1794.4. (a) Nothing in this chapter shall be construed to prevent
the sale of a service contract to the buyer in addition to, or in
lieu of, an express warranty if that contract fully and conspicuously
discloses in simple and readily understood language the terms, conditions,
and exclusions of that contract, provided that nothing in this section
shall apply to a home protection contract issued by a home protection
company that is subject to Part 7 (commencing with Section 12740)
of Division 2 of the Insurance Code.
(b) Except as otherwise expressly provided in the service contract,
every service contract shall obligate the service contract seller
to provide to the buyer of the product all of the services and functional
parts that may be necessary to maintain proper operation of the
entire product under normal operation and service for the duration
of the service contract and without additional charge.
(c) The service contract shall contain all of the following items
of information:
(1) A clear description and identification of the covered product.
(2) The point in time or event when the term of the service contract
commences, and its duration measured by elapsed time or an objective
measure of use.
(3) If the enforceability of the service contract is limited to
the original buyer or is limited to persons other than every consumer
owner of the covered product during the term of the service contract,
a description of the limits on transfer or assignment of the service
contract.
(4) A statement of the general obligation of the service contract
seller in the same language set forth in subdivision (b), with equally
clear and conspicuous statements of the following:
(A) Any services, parts, characteristics, components, properties,
defects, malfunctions, causes, conditions, repairs, or remedies
that are excluded from the scope of the service contract;
(B) Any other limits on the application of the language in subdivision
(b) such as a limit on the total number of service calls;
(C) Any additional services that the service contract seller will
provide;
(D) Whether the obligation of the service contract seller includes
preventive maintenance and, if so, the nature and frequency of the
preventive maintenance that the service contractor will provide;
and
(E) Whether the buyer has an obligation to provide preventive maintenance
or perform any other obligations and, if so, the nature and frequency
of the preventive maintenance and of any other obligations, and
the consequences of any noncompliance.
(5) A step-by-step explanation of the procedure that the buyer should
follow in order to obtain performance of any obligation under the
service contract, including the following:
(A) The full legal and business name of the service contract seller;
(B) The mailing address of the service contract seller;
(C) The persons or class of persons that are authorized to perform
service;
(D) The name or title and address of any administrator, agent, employee,
or department of the service contract seller that is responsible
for the performance of any obligations;
(E) The method of giving notice to the service contract seller of
the need for service;
(F) Whether in-home service is provided or, if not, whether the
costs of transporting the product, for service or repairs will be
paid by the service contract seller;
(G) If the product must be transported to the service contract seller,
either the place where the product may be delivered for service
or repairs or a toll-free telephone number that the buyer may call
to obtain that information;
(H) All other steps that the buyer must take to obtain service;
and
(I) All fees, charges, and other costs that the buyer must pay to
obtain service.
(6) An explanation of the steps that the service contract seller
will take to carry out its obligations under the service contract.
(7) A description of any right to cancel the contract if the buyer
returns the product or the product is sold, lost, stolen, or destroyed,
or, if there is no right to cancel or the right to cancel is limited,
a statement of the fact.
(8) Information respecting the availability of any informal dispute
settlement process.
(9) A statement identifying the person who is financially and legally
obligated to perform the services specified in the service contract,
including the name and address of that person.
Nothing in this subdivision shall preclude a service contract seller
from designating an administrator that a service contractholder
may initially contact for performance of the obligations under the
service contract.
(d) Subdivisions (b) and (c) of this section are applicable to service
contracts on new or used home appliances and home electronic products
entered into on or after July 1, 1989. They are applicable to service
contracts on all other new or used products entered into on and
after July 1, 1991.
(e) This section shall remain in effect only until January 1, 2008,
and as of that date is repealed, unless a later enacted statute,
which that is enacted before January 1, 2008, deletes or extends
that date.
(Amended Sec. 65, Ch. 405, Stats. 2002. Effective January 1, 2003.)
NOTE: This section shall remain in effect only until January 1,
2008, and as of that date is repealed and the following section
becomes effective.
1794.4 (a) Nothing in this chapter shall be construed to prevent
the sale of a service contract to the buyer in addition to or in
lieu of an express warranty if that contract fully and conspicuously
discloses in simple and readily understood language the terms, conditions,
and exclusions of that contract, provided that nothing in this section
shall apply to a home protection contract issued by a home protection
company that is subject to Part 7 (commencing with Section 12740)
of Division 2 of the Insurance Code.
(b) Except as otherwise expressly provided in the service contract,
every service contract shall obligate the service contractor to
provide to the buyer of the product all of the services and functional
parts that may be necessary to maintain proper operation of the
entire product under normal operation and service for the duration
of the service contract and without additional charge.
(c) The service contract shall contain all of the following items
of information:
(1) A clear description and identification of the covered product.
(2) The point in time or event when the term of the service contract
commences, and its duration measured by elapsed time or an objective
measure of use.
(3) If the enforceability of the service contract is limited to
the original buyer or is limited to persons other than every consumer
owner of the covered product during the term of the service contract,
a description of the limits on transfer or assignment of the service
contract.
(4) A statement of the general obligation of the service contractor
in the same language set forth in subdivision (b), with equally
clear and conspicuous statements of
(A) Any services, parts, characteristics, components, properties,
defects, malfunctions, causes, conditions, repairs, or remedies
that are excluded from the scope of the service contract;
(B) Any other limits on the application of the language in subdivision
(b) such as a limit on the total number of service calls;
(C) Any additional services that the service contractor will provide;
(D) Whether the obligation of the service contractor includes preventive
maintenance and, if so, the nature and frequency of the preventive
maintenance that the service contractor will provide; and
(E) Whether the buyer has an obligation to provide preventive maintenance
or perform any other obligations and, if so, the nature and frequency
of the preventive maintenance and of any other obligations, and
the consequences of any noncompliance.
(5) A step-by-step explanation of the procedure that the buyer should
follow in order to obtain performance of any obligation under the
service contract including the following:
(A) The full legal and business name of the service contractor;
(B) The mailing address of the service contractor;
(C) The persons or class of persons that are authorized to perform
service;
(D) The name or title and address of any agent, employee, or department
of the service contractor that is responsible for the performance
of any obligations;
(E) The method of giving notice to the service contractor of the
need for service;
(F) Whether in-home service is provided or, if not, whether the
costs of transporting the product, for service or repairs will be
paid by the service contractor;
(G) If the product must be transported to the service contractor,
either the place where the product may be delivered for service
or repairs or a toll-free telephone number that the buyer may call
to obtain that information;
(H) All other steps that the buyer must take to obtain service;
and
(I) All fees, charges, and other costs that the buyer must pay to
obtain service.
(6) An explanation of the steps that the service contractor will
take to carry out its obligations under the service contract.
(7) A description of any right to cancel the contract if the buyer
returns the product or the product is sold, lost, stolen, or destroyed,
or, if there is no right to cancel or the right to cancel is limited,
a statement of the fact.
(8) Information respecting the availability of any informal dispute
settlement process.
(d) Subdivisions (b) and (c) of this section are applicable to service
contracts on new or used home appliances and home electronic products
entered into on or after July 1, 1989. They are applicable to service
contracts on all other new or used products entered into on and
after July 1, 1991.
(e) This section shall become operative on January 1, 2008.
(Amended Sec. 64, Ch. 405, Stats. 2002. Effective January 1, 2003.)
1794.41. (a) No service contract covering any motor vehicle, home
appliance or home electronic product purchased for use in this state
may be offered for sale or sold unless all of the following elements
exist:
(1) The contract shall contain the disclosures specified in Section
1794.4 and shall disclose in the manner described in that section
the buyer's cancellation and refund rights provided by this section.
(2) The contract shall be available for inspection by the buyer
prior to purchase and either the contract, or a brochure which specifically
describes the terms, conditions, and exclusions of the contract,
and the provisions of this section relating to contract delivery,
cancellation, and refund, shall be delivered to the buyer at or
before the time of purchase of the contract. Within 60 days after
the date of purchase, the contract itself shall be delivered to
the buyer. If a service contract for a home appliance or a home
electronic product is sold by means of a telephone solicitation,
the seller may elect to satisfy the requirements of this paragraph
by mailing or delivering the contract to the buyer not later than
30 days after the date of the sale of the contract.
(3) The contract is applicable only to items, costs, and time periods
not covered by the express warranty. However, a service contract
may run concurrently with or overlap an express warranty if (A)
the contract covers items or costs not covered by the express warranty
or (B) the contract provides relief to the purchaser not available
under the express warranty, such as automatic replacement of a product
where the express warranty only provides for repair.
(4) The contract shall be cancelable by the purchaser under the
following conditions:
(A) Unless the contract provides for a longer period, within the
first 60 days after receipt of the contract, or with respect to
a contract covering a used motor vehicle without manufacturer warranties,
a home appliance, or a home electronic product, within the first
30 days after receipt of the contract, the full amount paid shall
be refunded by the seller to the purchaser if the purchaser provides
a written notice of cancellation to the person specified in the
contract, and if no claims have been made against the contract.
If a claim has been made against the contract either within the
first 60 days after receipt of the contract, or with respect to
a used motor vehicle without manufacturer warranties, home appliance,
or home electronic product, within the first 30 days after receipt
of the contract, a pro rata refund, based on either elapsed time
or an objective measure of use, such as mileage or the retail value
of any service performed, at the seller's option as indicated in
the contract, shall be made by the seller to the purchaser if the
purchaser provides a written notice of cancellation to the person
specified in the contract.
(B) Unless the contract provides for a longer period for obtaining
a full refund, after the first 60 days after receipt of the contract,
or with respect to a contract covering a used motor vehicle without
manufacturer warranties, a home appliance, or a home electronic
product, after the first 30 days after the receipt of the contract,
a pro rata refund, based on either elapsed time or an objective
measure of use, such as mileage or the retail value of any service
performed, at the seller's option as indicated in the contract,
shall be made by the seller to the purchaser if the purchaser provides
a written notice of cancellation to the person specified in the
contract. In addition, the seller may assess a cancellation or administrative
fee, not to exceed 10 percent of the price of the service contract
or twenty-five dollars ($25), whichever is less.
(C) If the purchase of the service contract was financed, the seller
may make the refund payable to the purchaser, the assignee, or lender
of record, or both.
(b) Nothing in this section shall apply to a home protection plan
that is issued by a home protection company which is subject to
Part 7 (commencing with Section 12740) of Division 2 of the Insurance
Code.
(c) The amendments to this section made at the 1988 portion of the
1987--88 Regular Session of the Legislature that extend the application
of this section to service contracts on home appliances and home
electronic products shall become operative on July 1, 1989.
(d) If any provision of this section conflicts with any provision
of Part 8 (commencing with Section 12800) of Division 2 of the Insurance
Code, the provision of the Insurance Code shall apply instead of
this section.
(Amended Sec. 1, Ch. 439, Stats. 2003. Effective January 1, 2004.)
1794.5. The provisions of this chapter shall not preclude a manufacturer
making express warranties from suggesting methods of effecting service
and repair, in accordance with the terms and conditions of the express
warranties, other than those required by this chapter.
(Added Ch. 1333, Stats. 1970.)
1795. If express warranties are made by persons other than the
manufacturer of the goods, the obligation of the person making such
warranties shall be the same as that imposed on the manufacturer
under this chapter.
(Added Ch. 1333, Stats. 1970.)
1795.1. This chapter shall apply to any equipment or mechanical,
electrical, or thermal component of a system designed to heat, cool,
or otherwise condition air, but, with that exception, shall not
apply to the system as a whole where such a system becomes a fixed
part of a structure.
(Amended Ch. 728, Stats. 1983. Effective January 1, 1984.)
1795.4. For the purposes of this chapter only, the following rules
apply to leases of both new and used consumer goods:
(a) If express warranties are regularly furnished to purchasers
of substantially the same kind of goods, (1) those warranties will
be deemed to apply to the leased goods and (2) the lessor and lessee
shall each be deemed to be the first purchaser of the goods for
the purpose of any warranty provision limiting warranty benefits
to the original purchaser.
(b) The lessee of goods has the same rights under this chapter against
the manufacturer and any person making express warranties that the
lessee would have had under this chapter if the goods had been purchased
by the lessee, and the manufacturer and any person making express
warranties have the same duties and obligations under this chapter
with respect to the goods that such manufacturer and other person
would have had under this chapter if the goods had been sold to
the lessee.
(c) If a lessor leases goods to a lessee from the lessor's inventory,
the lessee has the same rights under this chapter against the lessor
that the lessee would have had if the goods had been purchased by
the lessee, and the lessor has the same duties and obligations under
this chapter with respect to the goods that the lessor would have
had under this chapter if the goods had been sold to the lessee.
For purposes of this section, "inventory" shall include
both goods in the lessor's possession prior to negotiation of the
lease and goods ordered from another party in order to lease those
goods to the lessee where the lessor is a dealer in goods of that
type.
(d) If a lessor leases goods to a lessee which the lessor acquires
other than from the lessor's inventory, the lessee has the same
rights under this chapter against the seller of the goods to the
lessor that the lessee would have had under this chapter if the
goods had been purchased by the lessee from the seller, and the
seller of the goods to the lessor has the same duties and obligations
under this chapter with respect to the goods that the seller would
have had under this chapter if the goods had been purchased by the
lessee from the seller.
(e) A lessor who re-leases goods to a new lessee and does not retake
possession of the goods prior to consummation of the re-lease may,
notwithstanding the provisions of Section 1793, disclaim as to that
lessee any and all warranties created by this chapter by conspicuously
disclosing in the lease that these warranties are disclaimed.
(f) A lessor who has obligations to the lessee with relation to
warranties in connection with a lease of goods and the seller of
goods to a lessor have the same rights and remedies against the
manufacturer and any person making express warranties that a seller
of the goods would have had if the seller had sold the goods to
the lessee.
(Added Ch. 1169, Stats. 1984. Effective January 1, 1985.)
1795.5. Notwithstanding the provisions of subdivision (a) of Section
1791 defining consumer goods to mean "new" goods, the
obligation of a distributor or retail seller of used consumer goods
in a sale in which an express warranty is given shall be the same
as that imposed on manufacturers under this chapter except:
(a) It shall be the obligation of the distributor or retail seller
making express warranties with respect to used consumer goods (and
not the original manufacturer, distributor, or retail seller making
express warranties with respect to such goods when new) to maintain
sufficient service and repair facilities within this state to carry
out the terms of such express warranties.
(b) The provisions of Section 1793.5 shall not apply to the sale
of used consumer goods sold in this state.
(c) The duration of the implied warranty of merchantability and
where present the implied warranty of fitness with respect to used
consumer goods sold in this state, where the sale is accompanied
by an express warranty, shall be coextensive in duration with an
express warranty which accompanies the consumer goods, provided
the duration of the express warranty is reasonable, but in no event
shall such implied warranties have a duration of less than 30 days
nor more than three months following the sale of used consumer goods
to a retail buyer. Where no duration for an express warranty is
stated with respect to such goods, or parts thereof, the duration
of the implied warranties shall be the maximum period prescribed
above.
(d) The obligation of the distributor or retail seller who makes
express warranties with respect to used goods that are sold in this
state, shall extend to the sale of all such used goods, regardless
of when such goods may have been manufactured.
(Amended Ch. 728, Stats. 1983. Effective January 1, 1984.)
1795.6. (a) Every warranty period relating to an implied or express
warranty accompanying a sale or consignment for sale of consumer
goods selling for fifty dollars ($50) or more shall automatically
be tolled for the period from the date upon which the buyer either
(1) delivers nonconforming goods to the manufacturer or seller for
warranty repairs or service or (2), pursuant to subdivision (c)
of Section 1793.2 or Section 1793.22, notifies the manufacturer
or seller of the nonconformity of the goods up to, and including,
the date upon which (1) the repaired or serviced goods are delivered
to the buyer, (2) the buyer is notified the goods are repaired or
serviced and are available for the buyer's possession or (3) the
buyer is notified that repairs or service is completed, if repairs
or service is made at the buyer's residence.
(b) Notwithstanding the date or conditions set for the expiration
of the warranty period, such warranty period shall not be deemed
expired if either or both of the following situations occur: (1)
after the buyer has satisfied the requirements of subdivision (a),
the warranty repairs or service has not been performed due to delays
caused by circumstances beyond the control of the buyer or (2) the
warranty repairs or service performed upon the nonconforming goods
did not remedy the nonconformity for which such repairs or service
was performed and the buyer notified the manufacturer or seller
of this failure within 60 days after the repairs or service was
completed. When the warranty repairs or service has been performed
so as to remedy the nonconformity, the warranty period shall expire
in accordance with its terms, including any extension to the warranty
period for warranty repairs or service.
(c) For purposes of this section only, "manufacturer"
includes the manufacturer's service or repair facility.
(d) Every manufacturer or seller of consumer goods selling for fifty
dollars ($50) or more shall provide a receipt to the buyer showing
the date of purchase. Every manufacturer or seller performing warranty
repairs or service on the goods shall provide to the buyer a work
order or receipt with the date of return and either the date the
buyer was notified that the goods were repaired or serviced or,
where applicable, the date the goods were shipped or delivered to
the buyer.
(Amended Ch. 1232, Stats. 1992. Effective January 1, 1993.)
1795.7. Whenever a warranty, express or implied, is tolled pursuant
to Section 1795.6 as a result of repairs or service performed by
any retail seller, the warranty shall be extended with regard to
the liability of the manufacturer to a retail seller pursuant to
law. In such event, the manufacturer shall be liable in accordance
with the provisions of Section 1793.5 for the period that an express
warranty has been extended by virtue of Section 1795.6 to every
retail seller who incurs obligations in giving effect to such express
warranty. The manufacturer shall also be liable to every retail
seller for the period that an implied warranty has been extended
by virtue of Section 1795.6, in the same manner as he would be liable
under Section 1793.5 for an express warranty. If a manufacturer
provides for warranty repairs and service through its own service
and repair facilities and through independent repair facilities
in the state, its exclusive liability pursuant to this section shall
be to such facilities.
(Added Ch. 844, Stats. 1974. Operative July 1, 1975.)
1795.8. Notwithstanding any other provision of law, this chapter
shall apply to a purchase in the United States of a motor vehicle,
as defined in paragraph (2) of subdivision (e) of Section 1793.22,
with a manufacturer's express warranty by a member of the Armed
Forces regardless of in which state his or her motor vehicle is
purchased or registered, if both of the following apply:
(a) The member of the Armed Forces purchases a motor vehicle, as
defined in paragraph (2) of subdivision (e) of Section 1793.22,
with a manufacturer's express warranty from a manufacturer who sells
motor vehicles in this state or from an agent or representative
of that manufacturer.
(b) The member of the Armed Forces was stationed in or a resident
of this state at the time he or she purchased the motor vehicle
or at the time he or she filed an action pursuant to this chapter.
(Added Sec. 2, Ch. 151, Stats. 2007. Effective January 1, 2008.)
For more info see: http://www.dmv.ca.gov/pubs/vctop/appndxa/tocs/cctc.htm
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the information factually correct, there may be mistakes we have
either overlooked or the legal codes may have changed. See the official
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