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MAIN TOPICS

1. WARRANTY-CALIFORNIA'S LEMON LAW
2. AUTO SALES - REES-LEVERING AUTO SALES FINANCE ACT
3. AUTO LEASES - VEHICLE LEASING ACT
4. USED CARS
5. AUTO REPAIR - THE AUTO REPAIR ACT
6. SERVICE CONTRACTS
7. SELF HELP
8. ABOUT OUR LEMON LAW FIRM
9. CONTACT US

INDIVIDUAL WEB PAGES

1. WARRANTY
   1. HOW CALIFORNIA'S LEMON LAW PROTECTS CONSUMERS
      1. What is an Express Warranty
      2. What Makes a Product a Lemon - Rule of Thumb
      3. 5 Elements of a Lemon Law Case
   2. HOW THE LEMON LAW GIVES SPECIAL "LEMON" PRESUMPTION TO CAR BUYERS
      1. Vehicle Presumed "Lemon" if Repairs/Days Out Service Required in 18 months/18,000 miles Exceed:
         1. Two Defects Which Could Cause Death/Great Bodily Injury and Manufacture Directly Notified One Time
         2. Four Defects and Manufacture Directly Notified One Time
         3. Thirty or More Total Days
   3. GIVING THE MANUFACTURER NOTICE
      1. 1st Notice-When and Where to Directly Notify Manufacturer of Defects
      2. 2nd Notice-When and Where to Request Non-Binding Arbitration
      3. Non-Binding Arbitration
      4. When Arbitration is not Required
   4. THE ARBITRATION PROCESS
      1. What is the Arbitration Process
      2. How long the Arbitration Process Takes
      3. Manufacturer Bound by Decision
      4. Buyer/Consumer has Right to Reject Decision
   5. WHAT THE LEMON LAW AWARDS CONSUMERS WHO WIN
      1. Civil Penalty-Up to Twice Actual Damages
      2. Attorney Fees/Court Costs
      3. Restitution or Replace-Consumers Choice
      4. Manufacturer is entitled to usage offset
   6. WHAT BUYERS CAN WIN
      1. Civil Penalty-Up to Twice Actual Damages
      2. Attorney Fees/Court Costs
      3. Restitution or Replace-Consumers Choice
   7. USAGE OFFSET
      1. Rationale for Usage Offset
      2. Offset Formula
   8. PREPARING YOUR LEMON LAW CASE
   9. CLEARING UP COMMON MISCONCEPTIONS
   
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2. AUTO SALES
   1. INTRODUCTION TO REES-LEVERING AUTO SALES FINANCE ACT
      1. Act Covers Vehicles Bought on Payments
      2. View Typical Conditional Sales Contract
   2. THE AUTO SALES FINANCE ACT REQUIRES ITEMIZED CHARGES
   3. THE FEDERAL TRUTH IN LENDING ACT REQUIREMENTS
      1. Simple Interest compared to the "Rule of 78's"
      2. Loan Calculator
   4. RECISSION BY THE DEALER
      1. Dealer's Right to Rescind when Financing is Unavailable
   5. USED CAR CANCELLATION OPTION
      1. No Cooling Off Period
         1. EXCEPTION-Cancellation Option for Used Cars
   6. LATE PAYMENTS, EXTENSION, REPOSSESSION, REINSTATEMENT
      1. Late Payment/Returned Check Fees
      2. Extensions granted on Payments
      3. Simple Interest compared to the "Rule of 78's"
      4. Repossession and Reinstatement
      5. How Co-Signers are Affected
   7. ADDITIONAL INFORMATION ABOUT THE AUTO SALES FINANCE ACT
      1. Lender is Liable for Claim by Buyer Against Dealer
      2. Buyer has Wide Choice of Counties in Which to File Suit
      3. Prevailing Party is Entitled to Attorney's Fees
      4. Payments with Options compared to Payments WITHOUT Options must be disclosed
   8. SAMPLE AUTO SALES & FINANCE CONTRACT
   9. AUTO LOAN CALCULATOR
   
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3. AUTO LEASES
   1. INTRODUCTION TO CALIFORNIA'S VEHICLE LEASING ACT
      1. See Sample Lease Contract
   2. FEDERAL TRUTH IN LEASING ACT - PART 1
      1. Gross Capitalized Costs-California Specifically Requires Itemization
      2. Introduction to Regulation M of the Federal Truth in Leasing Act
         1. Amount Due at Lease Signing
         2. Capitalized Cost Reduction
   3. FEDERAL TRUTH IN LEASING ACT - PART 2 - CALCULATING YOUR MONTHLY PAYMENT
      1. How Payments are Split in to Rent and Depreciation
      2. Lease Calculator
   4. FEDERAL TRUTH IN LEASING ACT - PART 3 - ISSUES THAT COME UP AT END OF THE LEASE
      1. Excess Wear and Use
         1. Mileage
         2. Other Excess Wear and Use
      2. Open End Leases
         1. Lessee Risks Paying for Additional Depreciation at the End of Lease
         2. Costs is a Maximum of Three Times the Monthly Payment
   5. EARLY LEASE TERMINATION
      1. California Requires the "Constant Yield" Method and Specifically Forbids the "Rule of 78's"
      2. Adjusted Capitalized Cost - (Accrued Depreciation + Realized Value)
         1. Determining Realized Value
      3. Insurance Gap Liability - When the Vehicle is a Total Loss Due to Accident or Theft
   6. ADDITIONAL INFORMATION ABOUT THE VEHICLE LEASING ACT
      1. Subsequent Assignees are Liable for Claim by Lessees Against Lessor
      2. Prevailing Party is Entitled to Attorney's Fees
      3. Restrictions on Advertising
      4. Lessees Have Same Warranty Rights as Buyers
   7. SAMPLE VEHICLE LEASE
   8. LEASE CALCULATOR
   
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4. USED CARS
   1. SOME BASIC DISCLOSURES A USED CAR DEALER MUST MAKE
      1. Vehicle must be listed as "Used" in any advertising or contract
      2. Any "Lemon Law" buy back must be disclosed in writing and signed by buyer
      3. A Notice that buyer has a Right to Have a Used Vehicle Inspected must be Clearly Posted
      4. Advertising Used Vehicles
         1. Adverstising must clearly list vehicle by Year, Make, Model, License or V.I.N. #
         2. Advertised vehicle must be at Dealership at the Time Ad is Published
         3. All Vehicles for Sale must be Clearly Listed in Dealer Showroom or Office
   2. THE FEDERAL TRADE COMMISSION BUYER'S GUIDE AND WARRANTY DISCLOSURES
      1. Any Warranty Must Be Disclosed
      2. Vehicle Sold "As Is - No Warranty" must be disclosed
   3. IMPLIED WARRANTIES
      1. Implied Warranty of Merchantability
      2. Implied Warranty of Fitness
   4. LIMITS OF "AS IS" - PT. 1 - NOT A LICENSE TO STEAL
      1. Used Vehicles must comply with Smog Laws
      2. Used Vehicles must comply with Safety Standards
      3. Odometer Must be Working
   5. LIMITS OF "AS IS" - PT. 2 - FRAUD & MISREPRESENTATION IS PROHIBITED
      1. Intentional Misrepresentation
         1. Misrepresenting the Facts
         2. Fraud by Concealment
            1. Active Concealment
            2. Failure to Disclosure When there is a Duty to Disclose
         3. Making a Promise with out the Intention of Performing it
   6. LIMITS OF "AS IS" - PT. 3 - NEGLIGENT MISREPRESENTATION AND BUYER'S REMEDIES
      1. Negligent (Unintentional) Misrepresesntation
      2. What Fraud Is Not
      3. Burden of Proof - Clear and Convincing Evidence Required
      4. Determining Fraud Damages
         1. Out of Pocket Lossess
         2. Benefit of the Bargain
   7. SAMPLE FEDERAL TRADE COMMISSION BUYER'S GUIDE
   
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5. AUTO REPAIR
   1. INTRODUCTION TO AUTO REPAIR ACT
      1. Licensing Requirements
         1. General Repair Shops
         2. Smog Stations
   2. ESTIMATES - WHEN YOUR CAR IS FIRST BROUGHT IN
      1. Initial Written Estimate must be Prepared
         1. Customer Signature Required
         2. Required Even if there is "No Charge" for the Initial Inspection
      2. Exception - Unusual Circumstances
         1. Car Dropped off While Shop Closed
         2. Car Towed In and Customer not There
      3. "Tear Downs" - Specific Procedure Required
   3. SUBSEQUENT AUTHORIZATION, FINAL INVOICE, AND GUARANTEE
      1. Additional Charges Require Additional Authorization
         1. Verbal-Requires Documenting Extra Authorization on Repair Order or 2nd Signature when Work Completed
         2. Fax/Email must be attached to invoice
      2. Any Subletting Must be Authorized by Customer
         1. Exception: Unable to Reasonably Notify Customer
      3. Final Invoice Must Clearly Itemize Work Performed/Parts Replaced
         1. Parts Replaced Must Be Clearly Identified
            1. Must state as New, Used, Rebuilt, Reconditioned, etc.
            2. Manufacturer Brand Name must be Listed
         2. Shops ARD Number Must be Listed
      4. Guarantee must be in writing
         1. Must clearly state restrictions/limitations and steps customer must take
         2. Must clearly state any pro-rating of guarantee
   4. EXTRA CONSUMER PROTECTION ON SPECIFIC REPAIRS
      1. Ball Joints
         1. Measurements Must be Noted on Final Invoice
            1. Usually Performed with Dial Indicator Calibrated in Thousandths of Inches
      2. Automatic Transmissions
         1. Initial Inspection First Required to Determine if Minor Repair Can Fix Transmission
         2. Tear Down Estimate Must be Given for any Removal and Inspection
         3. Use of words "Rebuilt", "Reconditioned", etc. Must Mean that specific parts have been replaced and services performed
      3. Air Conditioning
         1. Use of words "Service", "Diagnosis", "Top Off", "Performance Check", etc. Must Mean that specific services have been performed
      4. Auto Body Shops
         1. All repairs must be performed according to OEM standards
         2. Installation of Previous Inflated Air Bags Forbidden
   5. SMOG CHECK PROGRAM - PT. 1
      1. Prices-Shop May Set Price but all Smog Related Prices Must be Clearly Posted
         1. Fee for Smog Certificate Must be Posted Separately and is Set by State
      2. Vehicle Inspection Report Must be Given to Customer After Smog Test
      3. Estimates/Final Invoice Must be Handled in Same Manner as other Services
      4. Subletting Smog Inspections/Repairs Prohibited
   6. SMOG CHECK PROGRAM - PT. 2
      1. Vehicle's Registration Zip Code Determines whether Basic/Enhanced Area Test is Required
         1. Basic Area - Vehicle Tested Standing Still
         2. Enhanced Area - Vehicle Tested on Dynamometer
      2. Test Only/Gold Shield Stations
         1. Test Only - Not Permitted to Perform Repairs
            1. Statistic Compared to Test and Repair Stations
         2. Gold Shield - May Function as Test Only Stations and Perform Repairs
            1. Must Meet Stricter Licensing Standards
      3. Gross Polluters/Pre-Test
         1. Vehicles with Unusually High Emissions Flagged as Gross Polluters
            1. May Only be Tested at "Test Only"/Gold Shield Stations
            2. No Cost Limit
            3. Request Official "Pre-Test" to Prevent Labeling as Gross Polluter
      4. Cost Limits and Economic Hardship
         1. One Time Cost Waiver - $450.00
         2. Low Income Families - $250.00
         3. No Cost Limit for Tampered Vehicles or Gross Polluters
   
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6. SERVICE CONTRACTS
   1. SERVICE CONTRACTS COMPARED TO WARRANTIES
      1. Service Contract is Not a Warranty
         1. Factors to Consider
      2. Service Contract May not Provide Concurrent Coverage to Warranty
         1. Two Exceptions
            1. Covers Items not Covered by Warranty
            2. Service Contract Provides Relief Warranty Does Not
   2. LICENSING AND REGULATION
      1. Vehicle Dealers only Allowed to Sell Service Contracts
      2. Service Contract Obligors and Administrators Regulated by Department of Insurance
         1. Obligor - Entity obligated to perform the promised services/repairs
            1. Must have "Service Contract Provider" License
            2. Regulated in Same Manner as Fire/Casualty Insurance Brokers
            3. However Exempt from Taking Exam
         2. Administrator - Delegated by Obligor to handle Claims and Dispurse Funds
            1. Regulated in Same Manner as Fire/Casualty Insurance Brokers
            2. Must qualify and obtain a Fire/Casualty Insurance Broker License
         3. Insurance - Obligor must have policy covering 100% of claims on file
      3. Service Contract Claims Process
   3. DISCLOSURES - PT. 1
      1. Right to Inspect
         1. Buyer has right to inspect copy of contract or brochure containing all terms
         2. Buyer must received fully signed copy of contract in 60 days
      2. Obligor, Administrator, and Insurance Company must be listed in the contract
      3. General Information - Contract must state price, vehicle covered, and duration
      4. Obligor must provide all parts and labor for to keep vehicle in good working order unless specifically excluded
   4. DISCLOSURES - PT. 2
      1. Exclusions must be Clearly Listed in Bold Print
         1. Exclusion of "Pre-Existing Conditions" requires bold 12 point type
         2. Watch out for exclusions concerning diagnostic time or "tear down estimates"
      2. Transferability to Subsequent Owner (whether or not it is permitted) must be disclosed
      3. Buyer's Obligations - Procedures buyer must take to get to service must be disclosed
   5. CANCELLATION OPTIONS
      1. Buyer's Right
         1. Within First 30 Days
            1. No Claims Made - Full Refund
            2. Claims Made - Pro Rated Refund based on method (mileage, time, etc.) stated in contract
         2. After 30 Days
            1. Pro Rated Refund based on method (mileage, time, etc.) stated in contract
      2. Obligor's Right
         1. Generally - Cancel Within First 60 Days
         2. Non Payment - Cancel at any time must refund any partial payment
         3. Misrepresentation - Must state the specific reason and give pro rata refund within 30 days
   6. BUYER'S REMEDIES
      1. Obligor has the burden of proving claim is not covered by contract
      2. Losing Party Must Pay Winner's Attorney Fees
   
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7. SELF HELP
   1. INTRODUCTION TO SELF HELP
   2. LINKS TO OTHER WEBSITES
   3. INTERACTIVE FORM LETTERS YOU CAN USE
      1. Notice of Repeated Defects
      2. 30 Day Notice for Replacement or Restitution
      3. Request for Arbitration
   4. LEMON LAW ATTORNEYS OUT OF THE AREA
      1. Nothern California Lemon Law Attorneys
      2. Southern California Lemon Law Attorneys
   5. OTHER LEGAL RESOURCES
   
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8. ABOUT OUR LEMON LAW FIRM
   1. INTRODUCTION BY MILFORD REYNOLDS
   
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9. CONTACT US
   1. WE LOOK FORWARD TO YOUR E-MAILS
   
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