Defective vehicles

Dear Atty. Joji,

My wife and I recently bought a brand-new motorcycle using our 13th-month pay, which we intended to use as our daily transportation to work. However, after a week of using the motorcycle, we noticed jerky movements at times, especially when it changed gears. Considering it is brand-new, can we return the vehicle and request a replacement?

Caleb

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Dear Caleb,

In a recently decided case, the Supreme Court held that buyers of defective brand-new motor vehicles may enforce their rights under any available law. In the case of Department of Trade and Industry v. Toyota Balintawak Inc. and Toyota Motor Phils. Corp., G.R. No. 254978-79, 11 October 2023, buyers of “lemons” or brand-new motor vehicles with factory defects are not prevented from invoking the Philippine Lemon Law, RA 7394 (the Consumer Act), or pursuing other legal remedies to obtain a refund or a replacement unit.

It’s however noteworthy that in order for the vehicle be qualified for replacement or refund, certain requirements must be followed under the respective laws. Section 4 of the Lemon Law provides:

 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 12 months from the date of original delivery to the consumer, or up to 20,000 kilometers of operation after such delivery, whichever comes first. The following causes of nonconformity shall be excluded:

(a) Noncompliance by the consumer of the obligations under the warranty;

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

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

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

On the other hand, Article 100 of the Consumer Act provides that: “If the imperfection is not corrected within 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;

c) a proportionate price reduction.

Nonetheless, the Supreme Court in that case emphasizes that there is nothing that prevents a consumer from availing of the remedies under RA 7394 [Consumer Act] or any other law for that matter even if the subject of the complaint is a brand new vehicle. RA 10642 [Lemon Law] is an alternative remedy granted to the consumer and the consumer is free to choose to enforce his or her rights under RA 7394 or any other law.

Hope this helps.

Atty. Joji Alonso