Lemon vehicle, refund or replace?

Dear Atty. Angela,
I bought a brand-new and top-of-the-line sedan from a known vehicle brand. However, only a week from purchase, I noticed a strange knocking and rattling sound from under the vehicle’s hood. I immediately brought it to the dealership and requested for a refund. The manager refused the refund and instead guaranteed to fix the problem.
After road tests, their technicians found that the vehicle’s rack and pinion mechanism was defective. They assured replacement, but despite this, the knocking and rattling sound persisted. They replaced the defective part five times in the three years I had to come back for repair. In a final vehicle test drive, the knocking and rattling sound was still unresolved. Can I make the dealership liable for a full refund?
Dino
Dear Dino,
Yes, you may file a case against the dealership before the Department of Trade and Industry Consumer Assistance and Protection Division on the basis of “Product Imperfection.” Under the Consumer Act, a supplier is made liable for product imperfections.
“ARTICLE 100. Liability for Product and Service Imperfection. — The suppliers of durable or non-durable consumer products are jointly liable for imperfections in quality that render the products unfit or inadequate for consumption for which they are designed or decrease their value. If the imperfection is not corrected within thirty (30) days, the consumer may alternatively demand at his option: a) The replacement of the product by another of the same kind, in a perfect state of use; b) the immediate reimbursement of the amount paid, with monetary updating, without prejudice to any losses and damages; and c) a proportionate price reduction.”
In the case of Mazda Quezon Avenue v. Caruncho, G.R. 232688 (2021), the Supreme Court held that it was confirmed that the vehicle had a defective rack and pinion mechanism and was changed several times but the problem remained unresolved. The rack and pinion mechanism is an integral part of the vehicle and is used for maneuvering; its defect affected the vehicle’s roadworthiness, making it unfit for its intended use. As such, there is a finding of product imperfection.
In your case, if there is a finding that there is indeed a recurring defect, the dealership will be liable to replace the car with another brand-new unit or reimburse the total purchase amount.
Atty. Angela Antonio
