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Section 16

Warranties


16.1 "Lemon Law"

  1. 12 months/12,000 miles:
    1. A new vehicle which has the same defect four times or more, or is out of service a total of 30 days or more, during the first 12 months or 12,000 miles, is considered a “Lemon.” Under the Lemon Law, the buyer can return the vehicle to the dealer and get a 100% refund.
  2. Lemon Law Decal:
    1. Civil Code §1793.23 requires the manufacturer, prior to re-selling the Lemon Law vehicle, to place a decal on the left front door frame, or in an obvious area on a motorcycle, that states the vehicle title has been permanently stamped "Lemon Law Buyback."
  3. Disclosure Statements:
    1. Any person, including a dealer, who sells, leases, or transfers a Lemon Law vehicle with a title that states "Lemon Law Buyback", shall, prior to the sale, lease or ownership transfer provide the buyer 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'." [C.C. §1793.23]
    2. The dealer must also notify the buyer in writing of the following:
      1. The year, make, model and VIN.
      2. That the title is marked "Lemon Law Buyback.
      3. The nature of each nonconformity reported by the original vehicle buyer or lessee.
      4. Repairs, if any, made to the vehicle in an attempt to correct each nonconformity.
      5. The notification must be on white, 8.5X11 inch letter-size paper in black print no smaller than 10 point. The notification is not submitted as part of the registration application.
  4. Warranty Returns:
    1. A vehicle re-acquired prior to January 1, 1996, is referred to, and branded as, a "warranty return" on the California title. When selling one of these vehicles, a dealer must include the following statement on the dealer's letterhead and personally signed by the buyer:

      "This vehicle has been returned to the dealer or manufacturer due to a defect in the vehicle pursuant to consumer warranty laws."


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