Lemon Law

A collection of flashcards covering key terms and concepts from the Lemon Law lecture.

Lemon Law

An act strengthening consumer protection in the purchase of brand new motor vehicles.

Consumer Protection

Promotion of consumers' rights in transactions against deceptive or unfair business practices.

Brand new motor vehicle

A vehicle constructed entirely from new parts and under a manufacturer's warranty, not previously sold or registered.

Collateral charges

Fees for registration and incidental expenses related to the purchase of a new motor vehicle.

Comparable motor vehicle

A vehicle identical or reasonably equivalent to the one to be replaced, based on specifications and values.

Consumer

Any person who purchases a brand new motor vehicle in the Philippines.

Dealer or retailer

Authorized sellers of brand new motor vehicles to the public.

Distributor

Authorized individuals or entities selling new vehicles to dealers or retailers.

Implementing agency

Department of Trade and Industry overseeing the enforcement of the Lemon Law.

Lemon Law rights period

The timeframe in which consumers can report vehicle nonconformities.

Manufacturer

Any entity engaged in the business of making or assembling motor vehicles.

Motor vehicle

Self-propelled, four-wheeled vehicle designed for passengers.

Nonconformity

Defects that significantly impair the safety, value, or use of a vehicle.

Purchase price

The actual amount received by the dealer for a new motor vehicle.

Warranty

Written assurance by the manufacturer regarding vehicle compliance with specified standards.

Warranty rights period

Period provided for under the sales contract when the manufacturer guarantees vehicle conditions.

Requisites to invoke Lemon Law rights

Conditions such as vehicle being brand new, being purchased in the Philippines, and being reported for nonconformity.

Repair attempts

At least four attempts needed for consumers to invoke Lemon Law rights for unresolved complaints.

Notice of availment

Written notification to the manufacturer or dealer about unresolved vehicle complaints.

Final attempt for repair

Consumer must bring vehicle back to the dealer after filing notice of availment.

Deemed successful repair

Repair is considered successful if vehicle is not returned within 30 days after release.

Compensation for non-use

Daily transportation allowance during vehicle repair under Lemon Law.

Dispute resolution

Process overseen by DTI to settle disputes under Lemon Law.

Mediation

Negotiation process between affected parties aimed at amicable settlement.

Arbitration

Voluntary process for dispute resolution when mediation fails.

Adjudication

Legal process where the DTI resolves claims under the Lemon Law.

Reasonable allowance for use

Deduction from purchase price based on vehicle usage.

Disclosure on resale

Written information to be provided to the next buyer of a returned vehicle.

Penalties for violation of disclosure

Manufacturer liable for damages if disclosure requirements are not met.

Department of Trade and Industry (DTI)

Agency responsible for the implementation of the Lemon Law.

Lemon Law dispute processes

Mechanisms including mediation, arbitration, and adjudication available for resolving disputes.

Consumer's rights

Rights derived from Lemon Law protecting consumers in motor vehicle purchases.

Four repair attempts

Minimum attempts required before invoking Lemon Law consumer rights.

Complaint validity

Establishment of whether vehicle conforms to manufacturer standards during DTI proceedings.

Impact of Lemon Law

Improved protection for buyers from defects in newly purchased vehicles.

Return of vehicle

Process by which a consumer returns a defective vehicle for remedy options.

Replacement vehicle

Vehicle provided to a consumer that is similar in specifications to the defective one.

Approval of vehicle purchase

Consumer's right to purchase a comparable vehicle after returning a defective one.

Materials guarantee

Guarantee by manufacturer on the quality of materials in the vehicle.

Consumer obligations

Responsibilities of consumers regarding vehicle care under warranty terms.

Manufacturer's duties

Responsibilities of manufacturers towards addressing vehicle defects.

Duration of Lemon Law rights

Twelve months from delivery or 20,000 kilometers, whichever comes first.

Keen notice requirement

Mandatory written notice to manufacturer about unresolved vehicle issues.

Vehicle registration costs

Costs that include insurance and fees applied during vehicle registration.

Exemptions from Lemon Law

Exclusions like motorcycles and heavy equipment from coverage.

Grounds for appeal

Reasons a party may challenge a DTI decision regarding Lemon Law claims.

Initial registration fees

Costs incurred when registering a new vehicle with LTO.

Lemon Law notice format

Specific format required for notice to be legally recognized.

Complaints reporting

Process consumers follow to report issues within the Lemon Law rights period.

Vague warranty clauses

Unclear terms in warranty documents that may affect consumer claims.

Manufacturer's warranty condition

Part of assurance detailing conditions for repair or replacement.

Maintenance responsibilities

Consumer's duties to maintain the vehicle as per warranty requirements.

Damage classification

Types of vehicle damage recognized under Lemon Law.

Government agency participation

Role of various agencies in ensuring Lemon Law compliance.

Law compliance

Requirement for businesses to adhere to the provisions of the Lemon Law.

Settlement timelines

Timeframes established for mediation and resolution of disputes.

Impact of noncompliance

Consequences faced by manufacturers for failing to comply with the Lemon Law.

Identical vehicle definition

Definition of vehicles that can replace a nonconforming unit.

Rebuttal of claims

Consumer's option to challenge findings not in their favor.

Adjustment for use

Calculation of allowances based on how much a vehicle has been used.

Types of vehicles covered

List of vehicles that fall under the Lemon Law protections.

Legal definitions

Clarifications of legal terms used within the Lemon Law.

Approval for repairs

Consent required from consumers for repair attempts.

Finalisation of repairs

Last effort from manufacturers to ameliorate unresolved complaints.

Scope of Lemon Law

Extent of consumer protection concerning new motor vehicle purchases.

Consumer education

Informing consumers of their rights under the Lemon Law.

Traditional remedies

Common solutions available under the Lemon Law for consumers.

Authority of DTI

Exclusive power of DTI to handle Lemon Law disputes.

Resolution finality

Lasting decisions made by DTI in Lemon Law cases.

Continuous compliance requirement

Obligation for manufacturers to adhere to standards continuously.

Provision for legal actions

Consumers' rights to seek judicial relief after Lemon Law adjudication.

Evaluation of claims

Process DTI uses to assess consumer complaints.

Return process details

Specifics on how the return of vehicles should be handled.

Cooperation expectations

Expectation for manufacturers and consumers to cooperate during disputes.

Addressing vehicle defects

Actions to be taken when a motor vehicle shows nonconformities.

Guidelines for return

Instructions for consumers on how to return a nonconforming vehicle.