AB 200

Currently the law governing repair, replacement, and refund under a motor

vehicle warranty, commonly referred to as the "lemon law," provides remedies for a

person who purchases, receives, or leases (consumer) a motor vehicle that is under

an express warranty and that has a nonconformity. A "nonconformity" is defined as

a condition or defect that substantially impairs the use, value, or safety of the motor

vehicle and that is covered by an express warranty, but does not include a condition

or defect that is the result of abuse, neglect, or unauthorized modification or

alteration of the motor vehicle by the consumer.

Under current law, if a consumer reports a nonconformity to the manufacturer

or manufacturer's agent such as the importer or distributor (manufacturer), the

lessor of the motor vehicle (lessor) if the consumer is leasing the vehicle, or any of the

manufacturer's authorized motor vehicle dealers (authorized dealers) and if the

consumer makes the motor vehicle available for repair before the warranty expires

or within one year after first delivery of the motor vehicle to a consumer, whichever

is sooner, the consumer is entitled to have the nonconformity repaired. If, after a

reasonable attempt to repair, the nonconformity is not repaired, the manufacturer

must provide the consumer with a comparable new motor vehicle or a refund, at the

consumer's option. "Reasonable attempt to repair" is defined as any of the following

occurring within the warranty period or within one year after first delivery of the

motor vehicle to a consumer, whichever is sooner: 1) the same nonconformity is

subject to repair by the manufacturer, lessor, or authorized dealer at least four times

and the nonconformity continues; or 2) the motor vehicle is out of service for an

aggregate of at least 30 days because of nonconformities. To receive a comparable

new motor vehicle or a refund, the consumer must offer to transfer title of the vehicle

with the nonconformity to the manufacturer and, within 30 days after this offer, the

manufacturer must provide the consumer with the comparable new motor vehicle or

refund. When the manufacturer provides the new motor vehicle or refund, the

consumer must return the vehicle with the nonconformity to the manufacturer along

with necessary vehicle title documents. If another person is in possession of the

vehicle's certificate of title, that person must provide the certificate to the

manufacturer or to the consumer. In addition to the new replacement vehicle or

refund, the consumer may bring a civil action to recover damages caused by a lemon

law violation. If the consumer prevails, the court must award the consumer twice

the amount of any pecuniary loss, along with costs and reasonable attorney fees.

This bill creates a definition of "out of service," which affects whether a

"reasonable attempt to repair" has been made under item 2), above. Under the bill,

"out of service" means that a motor vehicle is unable to be used by the consumer for

the vehicle's intended purpose as a result of any of the following: 1) the vehicle is in

the possession of the manufacturer, lessor, or authorized dealer for the purpose of

performing or attempting repairs to correct a nonconformity; or 2) the vehicle is in