California Lemon Law

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Helpful Links

• Song-Beverly Consumer Warranty Act
• Disclosure Requirements for Lemon Law Buybacks
• Third-Party Dispute Resolution
• Tax Refunds for Lemon Law Buybacks
• Consumer Protections for Used Vehicles
• Arbitration Standards
• Summary
• Request Free Case Evaluation

Song-Beverly Consumer Warranty Act

Express Warranty Obligations

Under West’s Ann. Cal. Civ. Code § 1793.2, manufacturers must repair or replace defective goods—including motor vehicles—so that they conform to the express warranty within a reasonable time.

Replacement or Refund

If the manufacturer cannot repair a new motor vehicle to conform to the express warranty after a reasonable number of attempts, West’s Ann. Cal. Civ. Code § 1793.2(d)(2) requires the manufacturer to:

• Replace the vehicle, or
• Refund the purchase price, minus a reasonable amount for use

Presumption of Reasonable Repair Attempts

Under West’s Ann. Cal. Civ. Code § 1793.22(b), a reasonable number of attempts is presumed if, within 18 months or 18,000 miles of delivery, whichever occurs first:

• A defect likely to cause death or serious bodily injury persists after two or more repair attempts,

• The same defect persists after four or more repair attempts, or

The vehicle is out of service for repair for more than 30 cumulative days.

Notice Requirement

The buyer must notify the manufacturer directly of the need for repair only if the manufacturer explicitly discloses this requirement in the warranty or owner’s manual (West’s Ann. Cal. Civ. Code § 1793.22(b)).

Disclosure Requirements for Lemon Law Buybacks

Under West’s Ann. Cal. Civ. Code §§ 1793.23(c) and 1793.24:

• Vehicles reacquired due to warranty defects must be retitled with a “Lemon Law Buyback” notation.
  

Manufacturers must give subsequent buyers a written disclosure describing the vehicle’s defects and repair attempts.

Third-Party Dispute Resolution

Manufacturers may offer third-party dispute resolution programs certified by the Department of Consumer Affairs.

Under West’s Ann. Cal. Civ. Code § 1793.22(c)-(d):

Consumers must use these certified programs before asserting the statutory presumption of reasonable repair attempts in court.

Tax Refunds for Lemon Law Buybacks

Under Cal. Revenue and Taxation Code § 1655 (13CAADCS1655(b)(2)), manufacturers who refund the purchase price under the lemon law may claim a refund of the sales or use tax included in the restitution amount.

Consumer Protections for Used Vehicles

Under West’s Ann. Cal. Vehicle Code § 11713.18(a)(2)-(3):

A dealer may not advertise or sell a used vehicle as “certified” if the vehicle was reacquired under the lemon law or has a title branded “Lemon Law Buyback.”

Arbitration Standards

California regulations impose investigative duties on arbitration programs.

Under 16 CCR § 3396.1 and 16 CCR § 3398.5(c), arbitration programs must evaluate:

• The number of repair attempts

• Time the vehicle was out of service

• Whether the manufacturer had a reasonable opportunity to repair

Summary

California’s lemon law structure includes:

• Mandatory repair, replacement, or refund obligations

• Statutory presumptions for reasonable repair attempts

• Disclosure and retitling requirements for lemon law buybacks

• Restrictions on “certified” used vehicles

• Requirements for dispute-resolution procedures

• Tax refund eligibility for manufacturers repurchasing defective vehicles

• Regulatory standards governing arbitration programs

If you believe your vehicle may qualify as a lemon under California law, contact Auto Lemon Lawyer today for guidance.