California State Statutes
Civil Code Section 1793.22 - 1793.26
Sale Warranties
Tanner Consumer Protection Act
Used Car Disclosures
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 one year
from delivery to the buyer or 12,000 miles on the odometer of the vehicle, whichever
occurs first, either
(1) 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 or
(2) 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 paragraph (1) 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 paragraph (1). This
presumption shall be a reputable 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 used or
bought for use primarily for personal, family, or household purposes.
"New motor vehicle" also means a new motor vehicle that is bought or used
for business and personal, family, or household 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.
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 lien holder 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 re-titled 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 lien holder 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.
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 1/2 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.
___________________________________________________________
|V.I.N. |Year | Make | Model |
|___________________________|________|__________|___________|
___________________________________________________________
| Problem(s) Reported by | Repairs Made, if any, to |
| Original Owner | Correct Reported Problem(s) |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|___________________________|_______________________________|
Signature of Manufacturer Date
_______________________________________________ ____________
Signature of Dealer(s) Date
_______________________________________________ ____________
_______________________________________________ ____________
_______________________________________________ ____________
Signature of Retail Buyer or Lessee Date
_______________________________________________ ____________
_______________________________________________ ____________
(c) The manufacturer shall provide an executed copy of the notice to the
manufacturer's transferee. Each transferee, including a dealer, to whom the motor
vehicle is transferred prior to its sale to a retail buyer or lessee shall be provided
an executed copy of the notice by the previous transferor.
1793.25.
(a) Notwithstanding Part 1 (commencing with Section 6001) of Division 2 of the
Revenue and Taxation Code, the State Board of Equalization shall reimburse the
manufacturer of a new motor vehicle for an amount equal to the sales tax which the
manufacturer pays to or for the buyer when providing a replacement vehicle pursuant to
subparagraph (A) of paragraph (2) of subdivision (d) of Section 1793.2 or includes in
making restitution to the buyer pursuant to subparagraph (B) of paragraph (2) of
subdivision (d) of Section 1793.2, when satisfactory proof is provided that the retailer
of the motor vehicle for which the manufacturer is making restitution has reported and
paid the sales tax on the gross receipts from the sale of that motor vehicle and the
manufacturer provides satisfactory proof that it has complied with subdivision (c) of
Section 1793.23. The State Board of Equalization may adopt rules and regulations to
carry out, facilitate compliance with, or prevent circumvention or evasion of, this
section.
(b) Nothing in this section shall in any way change the application of the
sales and use tax to the gross receipts and the sales price from the sale, and the
storage, use, or other consumption, in this state or tangible personal property pursuant
to Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code.
(c) The manufacturer's claim for reimbursement and the board's approval or
denial of the claim shall be subject to the provisions of Article 1 (commencing with
Section 6901) of Chapter 7 of Part 1 of Division 2 of the Revenue and Taxation Code,
except Sections 6902.1, 6903, 6907, and 6908 thereof, insofar as those provisions are
not inconsistent with this section.
1793.26.
(a) Any automobile manufacturer, importer, or distributor who reacquires, or
who assists a dealer or lien holder in reacquiring, a motor vehicle, whether by
judgment, decree, arbitration award, settlement agreement, or voluntary agreement, is
prohibited from doing either of the following:
(1) Requiring, as a condition of the reacquisition of the motor vehicle,
that a buyer or lessee who is a resident of this state agree not to disclose the
problems with the vehicle experienced by the buyer or lessee or the non-financial
terms of the reacquisition.
(2) Including, in any release or other agreement, whether prepared by the
manufacturer, importer, distributor, dealer, or lien holder, for signature by the
buyer or lessee, a confidentiality clause, gag clause, or similar clause prohibiting
the buyer or lessee from disclosing information to anyone about the problems with the
vehicle, or the non-financial terms of the reacquisition of the vehicle by the
manufacturer, importer, distributor, dealer, or lien holder.
(b) Any confidentiality clause, gag clause, or similar clause in such a
release or other agreement in violation of this section shall be null and void as
against the public policy of this state.
(c) Nothing in this section is intended to prevent any confidentiality
clause, gag clause, or similar clause regarding the financial terms
of the reacquisition of the vehicle.
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Avoid buying problem cars
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