lemon law (ra 10462)

• ra 10462 - lemon law
• lemon law rights/period

  1. 12 months after delivery
  2. first 20km of operation after deliver

  w/c ever is shorter
• purpose of lemon law - consumer protection in purchase of brand new motor vehicles
• reqs to invoke rights:

  • brand new motor vehcles
  • purchased in ph
  • within lemon law rights period
  • reported by consumer:
  • non-conformity to: standards and specifications
  • prevents conformity
  • cannot be repaired
• non conformity excludes:

  • non-compliance of obligation under warranty
  • modification not authorized by manuf
  • abuse/neglect of brand new motor vehicle
  • damage to vehicle - force majeure
• COMPENSATION FOR NON-USE:

  reasonable daily transpo allowance: lower of:

  • 20% per annum deduct from price
  • [traveled km x price] / 100,000 km

  any disagreement - resolved by dti
• REMEDIES FOR DISPUTE RESOLUTION:

  1. mediation - dispute settles w/in 10 working days
  2. arbitration - if failed to settle during (1)
  3. adjudication - not exceed 20 working days
• REMEDIES OF CONSUMER:

  1. replacement of motor vehicle (similar/comparable)
  2. accept the return of motor vehicle - and pay consumer the purchase price + collateral charges
• disclosure on resale (written)

  • vehicle = returned
  • nature of non-conformity
  • condition of vehicle at time of transfer to M/D
  • penalty - 100k as damages