If the consumer opts for the alternative under subparagraph (a) of the second paragraph of this article, and replacement of the product is not possible, it may be replaced by another of a different kind, mark, or model. Provided, that any difference in price may result thereof shall be supplemented or reimbursed by the party that caused the damage, without prejudice to the provisions of the second, third and fourth paragraphs of this article.

On the other hand, Sections 4 to 7 of RA 10642 (the law relied upon by respondents) provide:

Section 4. Coverage — This Act shall cover brand-new motor vehicles purchased in the Philippines reported by a consumer to be in nonconformity with the vehicle’s manufacturer or distributor’s standards or specifications within twelve (12) months from the date of original delivery to the consumer, or up to twenty thousand (20,000) kilometers of operation after such delivery, whichever comes first. The following causes of nonconformity shall be excluded:

(d) Noncompliance by the consumer with the obligations under the warranty;

(e) Modifications not authorized by the manufacturer, distributor, authorized dealer, or retailer;

(f) Abuse or neglect of the brand-new motor vehicle; and

(g) Damage to the vehicle due to accident or force majeure.

Section 5. Repair Attempts — At any time within the Lemon Law rights period, and after at least four (4) separate repair attempts by the same manufacturer, distributor, authorized dealer, or retailer for the same complaint, if the nonconformity issue remains unresolved, the consumer may invoke his or her rights under this Act.

The repair may include the replacement of parts, components, or assemblies.

Section 6. Notice of Availment of Lemon Law Rights — Before availing of any remedy under this Act, and subject to compliance with the provisions of Section 5 hereof, the consumer shall, in writing, notify the manufacturer, distributor, authorized dealer, or retailer of the unresolved complaint and the consumer’s intention to invoke his or her rights under this Act within the Lemon Law rights period.

The warranty booklet issued by the manufacturer, distributor, authorized dealer, or retailer shall clearly state the manner and form of such notice to constitute a valid and legal notice to the manufacturer, distributor, authorized dealer, or retailer. It shall also clearly state the responsibility of the consumer under this section.

Section 7. Availment of Lemon Law Rights — Subsequent to filing the notice of availment referred to in the preceding section, the consumer shall bring the vehicle to the manufacturer, distributor, authorized dealer, or retailer from where the vehicle was purchased for a final attempt to address the complaint of the consumer to his or her satisfaction.

It shall be the duty of the manufacturer, distributor, authorized dealer, or retailer, upon receipt of the motor vehicle and the notice of nonconformity required under Section 6 hereof, to attend to the complaints of the consumer, including, as may be necessary, making the repairs and undertaking such actions to make the vehicle conform to the standards or specifications of the manufacturer, distributor, authorized dealer, or retailer for such vehicle.

In case the nonconformity issue remains unresolved despite the manufacturer, distributor, authorized dealer, or retailer’s efforts to repair the vehicle, pursuant to the consumer’s availment of his or her Lemon Law rights, the consumer may file a complaint before the DTI as provided under this Act. Provided, however, that if the vehicle is not returned for repair, based on the same complaint, within thirty (30) calendar days from the date of notice of release of the motor vehicle to the consumer following this repair attempt within the Lemon Law rights period, the repair is deemed successful. Provided, finally, that if the nonconformity issue still exists or persists after the thirty (30)-day period but still within the Lemon Law rights period, the consumer may be allowed to avail of the same remedies under Sections 5 and 6 hereof.

(To be continued)