Question

Michael Schumacher is a renowned race car driver and drove a certain Ferrari sports car in a grand prix. After winning, Ferrari decided to sell the car used by Schumacher to Manny Revillame, which after several days of used exhibited damage to its engine. If after 4 attempts to fix the car and following the procedure for the availment of the lemon law rights, the Ferrari refused to replace the same, can Mr. Revillame file a complaint with DTI?

Answer 1

Lemon Law

One of the government's jobs is to protect consumers from fraud and defective products. To protect consumers from defective cars, states have enacted "lemon laws." These laws give car buyers the right to receive a refund or new car, if the new car they purchased has serious defects or mechanical problems. Typically, the car dealer or manufacturer must be given an opportunity to fix the problems before a buyer's rights under lemon laws take effect. FindLaw's Lemon Law Basics section provides information about state and federal car buyer protections and the basics of how state laws govern car repairs. In this section, you can also find car buying tools and resources as well state-specific lemon law information. Finally, you can find a guide to finding and hiring an attorney if you believe you bought a lemon.

What Qualifies as a Lemon

While consumers may find themselves stuck with just about any product that is defective, and considered in their minds to be lemons, in most states, actual lemon laws apply to new car purchases. A car qualifies as a lemon under the law only if it exhibits a problem considered to be a substantial defect.

What is a Substantial Defect

A substantial defect is a flaw or problem that impairs the vehicle’s normal use, safety, or value. A substantial defect is not a minor issue, like a broken knob, faulty radio, or anything that can be fixed with a simple repair. Substantial defects are those which make the car inoperative or unsafe. Just what is considered a substantial defect varies in each state.

Reasonable Number of Attempts to Repair

Before being required to replace the auto, or provide a full refund, the manufacturer or dealer must be allowed a certain number of attempts at repairing the defect, free of charge to the consumer. Here, lemon laws strive to ensure consumers don’t have to put up with endless “attempts to repair” the vehicle, and long periods in which the car is in the repair shop. While specifics vary slightly by state, these guidelines define when a car must be replaced or refunded as a lemon:

• Safety Defects – the car remains unfixed after one repair attempt
• Other Serious Defects – the car remains unfixed after three or four repair attempts
• Time in Shop – the car is in the repair shop for substantial defects more than a specified number of days within a one-year period

Success in Using State Lemon Laws

Success in using state lemon laws depends on three things: keeping good records, providing the right notice, and using arbitration programs where required. The purchase of any item amounts to a contract between two or more parties. As with any contract, it is important to document not only the purchase transaction, but any problems that occur. When it comes to dealing with auto manufacturers and dealers, it’s even more important, as they are in the big leagues when it comes to sales and unhappy buyers. In many cases, auto manufacturers will do just about whatever it takes to win.

So, Mr Revillame can and should file a complaint with DTI.