California’s Lemon Law: the Song-Beverly Consumer Warranty Act
The Song-Beverly Consumer Warranty Act is one of the most powerful consumer warranty laws in the United States. This act, together with a provision of the law known as the Tanner Consumer Protection Act, are commonly known as the California Lemon Law.
The Song-Beverly Act applies to any new product that is sold in the state of California for personal, family, or household purposes, including new cars, boats, manufactured homes, new or used devices that are designed to assist disabled individuals, and many other consumer products.
Because of their long warranty periods and the high costs associated with their repair, the Song-Beverly Consumer Warranty Act is most frequently applied in cases involving automotive defects.
Consumer Protections Under the Song-Beverly Act
The Song-Beverly Act stipulates that all consumer goods, including “new motor vehicles”, which are sold in the state of California are covered under an implied warranty of both merchantability and fitness. This means that the products must be able to perform as promised by the manufacturer or retailer, must be suitable for their intended use, and must be of the same quality as similar products.
Under the Song-Beverly Act, any manufacturers, such as automakers, that provide consumers with a warranty when a product is sold must have agents available to repair defects under the terms of the warranty. When vehicles or other products cannot be repaired in “a reasonable number of attempts”, the manufacturer or retailer is required to either buy-back or replace the vehicle.
Importantly, the Song-Beverly Act defines a “new motor vehicle” as one that is covered under a manufacturer’s new car warranty at the time that it was sold. This means that used vehicles may still be covered by the protections of the Song-Beverly Act if they were under the original manufacturer’s warranty at the time of purchase.
The Song-Beverly Act specifies the damages available to consumers when manufacturers or retailers fail to comply with their express or implied warranties or the requirements of the Act. These damages can include monetary damages, equitable relief, civil penalties, incidental and consequential damages, vehicle fees, and the recovery of litigation costs and expenses, including attorneys’ fees.
Tanner Consumer Protection Act
A provision of the Song-Beverly Act, known as the Tanner Consumer Protection Act, specifies the “reasonable number of attempts” at repair that auto dealers are allotted before new vehicles sold in California can be deemed a lemon. The Tanner Consumer Protection Act only applies to new vehicles that were sold in the last 18 months and that have been driven less than 18,000 miles.
For vehicle defects that are likely to result in death or serious bodily injury, auto dealers are allowed two repair attempts before the vehicle can be presumed to be a lemon. For performance defects, the dealer is allowed four repair attempts. A new vehicle may also be deemed a lemon if it has been out of service for repairs for a total of 30 days after it was delivered to the buyer.
Because most auto warranties include a non-binding arbitration provision, vehicle owners may be forced to undergo an arbitration process before they can assert the lemon law provisions of the Tanner Consumer Protection Act. However, vehicle owners are not bound by the arbiter’s decision, and can still file a lawsuit to recover damages against the manufacturer if they disagree with the arbitration finding.
Song-Beverly Act Effective July 2023
Starting on July 1, 2023, an amendment to the Song-Beverly Act went into effect that involves consumer products that are delivered to the buyer on a date subsequent to the date of sale. The new amendment prohibits express warranties for such products from going into effect on the date at which the product was sold. Under the new amendment, warranties for products sold in California must go into effect on the date when the product is delivered to the consumer.
This new amendment to the Song-Beverly Act will require companies to track both the sales date and the delivery date of products sold in California when these dates differ. Companies whose products are sold through unaffiliated retailers may need to create mechanisms to ensure that sales and delivery dates for their products are being properly tracked. Companies will also likely need to review and potentially update the language of their consumer product warranties to ensure they are in compliance with the amended Song-Beverly Act, and to ensure that the correct term of the warranty period is being communicated to consumers.