Squeezing out repairs

As a result of the advancement of civilization and the demands of everyday labor and service, owning a motor vehicle has become less of a convenience and more of a necessity.

This necessity has resulted in many unscrupulous salespeople and manufacturers taking advantage of the vulnerable and ignorant layman by peddling defective, low-quality vehicles with a fresh paint job. These “lemons” are the modern-day snake oil, creating an industry where swindling consumers with charming words to induce them to purchase vehicles at a higher premium than their actual worth is rampant. This has been the cause of various cases of fraud, injury and death.

The Philippine Lemon Law provides recourse to consumers who experience persistent defects in a new motor vehicle within 12 months from the original delivery date or within the first 20,000 kilometers, whichever comes first. This defect or condition is referred to as a “nonconformity,” which substantially impairs the use, value, or safety of a brand new motor vehicle and which, in turn, prevents it from conforming to the manufacturer’s or distributor’s standards or specifications which ultimately cannot be repaired.

Nevertheless, the law calls for exceptions to the definition, namely, conditions resulting from (1) noncompliance by the consumer with the obligations under the warranty; (2) modifications not authorized by the manufacturer, distributor, authorized dealer, or retailer; (3) abuse or neglect of the brand new motor vehicle; and (4) damage to the vehicle due to accident or force majeure.

For a consumer to invoke their right under the Lemon Law, they must, within the Lemon Law rights period, provide the manufacturer, distributor, authorized dealer, or retailer an opportunity to attempt four separate repairs of the vehicle. Each repair must be completed within 15 days; otherwise, any delays will be added to the Lemon Law rights period.

Upon receiving the vehicle back, the consumer is given 15 days to evaluate the repair/s performed and the need, if any, for adjustments and/or additional modifications related to the same nonconformity. The continued existence of the nonconformity and return of the motor vehicle after the lapse of the 15-day evaluation period will be counted as the next repair attempt.

Upon compliance with the four separate attempts to repair the vehicle, if the nonconformity persists, the consumer shall, in writing, notify the manufacturer, distributor, authorized dealer, or retailer of the unresolved complaint and of the consumer’s intention to invoke his or her rights within the Lemon Law rights period. This notification will be sent through courier, personal delivery, or postal service with proof of service and receipt.

The consumer would then bring his vehicle to the manufacturer, distributor, authorized dealer, or retailer where the vehicle was purchased for a final attempt to address the consumer’s complaint to their satisfaction. If the vehicle is not returned for repair, based on the same complaint, within 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.

While the vehicle is undergoing repair, during the availment of the Lemon Law rights, the manufacturer, distributor, authorized dealer, or retailer should compensate the consumer for the non-usage of the vehicle, the amount of which should cover the transportation of the consumer from their residence to their regular workplace or destination and vice versa, equivalent to an air-conditioned taxi fare, as evidenced by an official receipt, or for such amount to be agreed upon by the parties, or a service vehicle at the option of the manufacturer, distributor, authorized distributor or retailer.

However, suppose the nonconformity remains despite the final attempt to repair it but still within the Lemon Law rights period. In that case, the consumer can avail once again of the four separate repair attempts or the option to give notice of availment of his or her rights under the Lemon Law.

For more of Dean Nilo Divina’s legal tidbits, please visit www.divinalaw.com. For comments and questions, please send an email to cad@divinalaw.com.