General Lemon Laws

Published on: October 4, 2007

Texas Lemon Law coverage in the Fort Worth Star Telegram newspaper

Too often, when faced with a new broken car, consumers are unfamiliar with their lemon law rights. Burdened with frustration and the runaround from car dealerships and the manufacturer, some consumers resort to trading in their vehicle at a substantial loss.

Recently, the Fort Worth Star Telegram wrote a brief summary about the Texas lemon law. Personally, I think that this public announcement is a very commendable thing that our local newspaper is doing.

In summary, the newspaper article accurately states that a consumer with a suspected lemon should contact the Texas Department of Transportation by calling the local toll free number immediately. In addition, there is a $35 fee, which is refundable to the consumer if the consumer wins the lemon case via the Texas DOT.

Published on: October 1, 2007

Will new Australian Lemon Laws be better than the Texas Lemon Law?

by Kevin Le

Update: See 10/9/07.

Often times, my lemon law practice in Dallas receives potential client calls from consumers who purchase defective cars from out of state. In such cases, I would direct them to find a lemon law attorney in that particular state — as the vehicle’s state of purchase is often the proper jurisdiction for these type of claims. Interestingly, I have not run into a situation where the consumer purchased the vehicle from out of the country….such as Australia.

According to the Australian Broadcasting Company (ABC), the Australian Government will soon join the ranks of other states and countries in providing its citizens with consumer lemon law protections. The proposed Australian lemon law is currently being drafted and is tentative.

Published on: September 26, 2007

Lemon cars (vehicles) in civilian and military environments

by Kevin Le

In a civilian context, when you buy your new car, chances are that you will drive it on paved highways and roads — perhaps rarely on a dirt road or park it on the grass. (For example, I commute from Fort Worth to my office in downtown Dallas on a regular basis and normally drive on concrete roadways such as interstate 75 and 360). Most production cars are designed with this assumption in mind, although some are designed specifically or off-roading.

If you were to take your average economy sedan and start driving over hills and into ditches,…you would soon be in trouble. A car manufacturer would probably not be overly sympathetic if you claimed that your Kia Rio was a lemon because it experienced multiple system failures while you were creating your own path through the Amazon rain forest.

Vehicles used by the military have quite different requirements. Military vehicles need to be able to traverse unpaved paths and go cross-country. There are some vehicles that have made the transition from military to consumer use. A recent example of this is GM’s High Mobility Multipurpose Wheeled Vehicle HMMWV (aka Hummer). The model line was expanded for the civilian market with scaled down versions, the H2 and H3. In 2006, GM announced that it would no longer market the original full sized H1 Hummer.

Long before the Hummer, there was the Jeep. The Jeep was the prototypical army-to-civilian vehicle. The U.S. Army received its first shipment of Jeeps in 1941 and the vehicle proved instrumental in the successful outcome of the war for the Allies. In the years since, it has proved popular with civilians, spawning a long line of derivative vehicles. Now, once again, the Jeep is returning to military use.
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Published on: September 22, 2007

Lemon Law Perspective: a comparison of Chevrolet’s Aveo and Tata Motors Ltd’s really cheap car

by Kevin Le

The 2008 Chevrolet Aveo has an EPA estimated rating of 24/34. It has a 1.6L 103 horsepower engine which gets you from 0 to 60 in a whiplash inducing 10.8 seconds. Standard equipment includes air conditioning (A/C). This vehicle can be yours for only $9,995 (base MSRP). Or — if you haggle — perhaps for a bit less. In the Houston and Austin area, that’s about all the new car you are going to get for under $10,000 (with the exception of arguably the Kia Rio). At minimum, the Aveo will be covered under the Texas lemon law in the event that there is a problem with its manufacturing.

But, cheaper cars are being produced.

Recently, Tata Motors Ltd. of Mumbai India announced that it would soon unveil a new car that would cost $2,472.18 (100,000 Rupees, as of 9/18/07). No name has been revealed yet. These will be manufactured at a plant in West Bengal.

Published on: September 20, 2007

Jefferson County, Texas: Ford dealership sued over a lemon truck

by Kevin Le

Mike Stegall is suing Raiford Motors, an authorized Ford dealership, for selling him a lemon F50 pickup truck. According to the pleadings that was filed in the 136th Judicial District court, Stegall alleges that the vehicle was subject to repairs for at least 10 times since it was purchased. It appears that the case is currently pending in Judge Milton Shuffield’s courtroom.

Stegall’s causes of action stems from both the Texas Lemon Law and the Texas Deceptive Trade Practices Act (DTPA). Stegall is asking the court to award him damages in the cost of the truck, damages under the DTPA, and court costs.

To learn more about the suit, go here. If you are in a similar situation as Mr. Stegall, then feel free to contact my Texas lemon law office for a free case review.

Published on: September 11, 2007

Are used or preowned lemon cars covered under the Texas Lemon Law?

by Kevin Le

As a lemon law practice in Dallas, Texas, my office receive calls from potential clients with used or pre-owned lemon cars very often. The first question asked is whether the Texas lemon law applies to pre-own or used car cases. Unfortunately, the short answer to that question is that, generally, the Texas lemon law does not include used vehicles.

One exception to this rule is if the preowned vehicle is still covered under the car manufacturer’s existing warranty (and not the extended warranty), then the Texas Lemon Law “may” be used to force the manufacturer to repair the problem.

Specifically, section 2301.602 of the Texas Occupations Code dealing with the Regulation of Motor Vehicles and Transportation (better known as the “Texas Lemon Law”), only refers to “new motor vehicle(s).”

Published on: September 7, 2007

Fuel Efficiency Ratings — possible lemon law issue?

by Kevin Le

Recently, a concerned consumer in Houston, Texas contacted my law office about a new truck he had recently purchased. He was concerned that his vehicle might be a lemon because he had never been able to obtain the mileage that was shown on the information sticker when he purchased it. He wanted to know if there was any recourse under the state (Texas) lemon laws or fraud statutes because his vehicle appeared to fail to live up to the advertised specifications.

Without determining the strength or validity of any possible legal claims arising from this situation, lets take a few minutes to look at how those fuel efficiency numbers are obtained and why they are there.

The Environmental Protection Agency (EPA), part of the federal government, requires that car manufactures test vehicles to determine their fuel consumption rate. Not every car produced is tested — only a representative vehicle for the specific model. Typically the vehicle tested is a prototype — before production is started. Some very large vehicles (as well as motorcycles) are currently exempt.

Vehicles are tested during simulated driving in a laboratory environment. The car is placed on a dynamometer (rollers under the wheels). The force needed to turn the dynamometer can be varied, thereby simulating different environmental conditions (e.g. headwind, uphill etc). While the car is on the dynamometer, the exhaust from the engine is collected and the amount of carbon emitted is measured. This amount is used to calculate the amount of fuel that is being consumed. The car is “driven” through a series of “courses” that are designed to mimic different types of driving conditions. Examples of the routes can be found at the Fuel Economy site.
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Published on: September 5, 2007

Economic benefits of keeping a non-lemon car for a long time

by Kevin Le

Having a reliable vehicle to commute in the Dallas and Fort Worth area is essential. If you purchase a new car and it is defective, you may seek recourse under Lemon Laws or product warranty laws. However, the normal hope is that your new car will be perfect and last for years. Some people like to trade their car in every couple of years, but those who maintain their cars can save a great deal of money.

Consumer Reports writes that owners who keep their car for 15 years or 225,000 miles may save $31,000 compared to an owner who trades their car in every 5 years. Using the example of a Honda Civic and taking into account depreciation, taxes, fees, and insurance, an owner holding on to the car for 15 years would save $20,500. In addition to these savings, our hypothetical owner could make $10,300 by investing the money that would have been spent on new cars.

Consumer Reports also compiled a list of cars that are more likely to make it to 200,000 miles. Included in this list are many cars by Honda and Toyota (included are: Civic, Lexus ES, Lexus LS, Toyota 4Runner, Toyota Highlander, Toyota Land Cruiser). It also published a list of vehicles that were not such good bets to make it to 200K threshold. These included such popular (and pricey!) vehicles as the V8-powered Mercedes-Benz M-class, Mercedes-Benz SL, BMW 7-series, Infiniti QX56, Jaguar X-type, V8-powered Volkswagen Touareg, and the V6-powered Volvo XC90.

Published on: September 3, 2007

Dallas, TX: How-to prepare for your Better Business Bureau (BBB) Lemon Law Arbitration Hearing

by Kevin Le

In Texas, most car manufacturers participate in the Better Business Bureau (BBB) Lemon Law Arbitration program. Because this arbitration program does not award consumer attorney fees, a car owner may often find himself/herself going through the arbitration process on his or her own. If this is your situation, then below are some helpful suggestions on how to win your lemon law arbitration hearing.

* Please note that the information below and on this website are not legal advice. Contact a lemon law attorney for information that is specific to your situation. These suggestions are based on my experience with the BBB lemon law arbitration program here in Dallas, other locations may vary. If you are in Dallas or anywhere in Texas, then feel free to contact my office.

Tip number 1: Take a deep breathe. Most arbitrations are less formal than a trial. The arbitrator understands that this will be your first time.

Tip number 2: Bring the lemon vehicle to the hearing. The arbitrator will most likely want to test drive it to verify the problems with the vehicle. Make sure that the vehicle is clean so that the arbitrator does not get the impression that you are not following all maintenance schedules for the vehicle.
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Published on: August 23, 2007

Lemon Car: Toyota Prius may be a defective car by design

by Kevin Le

Consider the danger of driving a vehicle and having it suddenly surge or lunge forward uncontrollably. This is what happened to several Toyota Prius owners recently who described their experience as an “uncontrollable acceleration.” One Prius owner stated that his lemon car “took off like a rocket.”

According to two articles, published by ConsumerAffairs.com, despite repeated complaints and requests for repair by these owners, Toyota service centers minimized the concern and insisted that this was nothing more than “a carpet jamming the accelerator pedal or driver error.”

If this has happened only once before, then this rationale may be a plausible reason for the abnormal defect. However, if there has been numerous complaints of similar problems by different Prius owners, then either Toyota or its technicians are careless in its diagnostics, or it seems, to me, that there may be intentional misrepresentations here. This is a products liability issue.

https://www.youtube.com/watch?v=KxKmvBJn27Q

If you happen to be in a similar situation with your lemon vehicle, it is important to do the following to preserve your rights as a consumer:

First, get everything in writing. For example, if the service manager indicates to you that this is merely driver error, then ask him to write that on the repair invoice. Thereafter, remove the carpet from your vehicle and see if the same problem reoccurs. If it does, then it would be difficult for the same service manager to negate his or her diagnostic error when you bring the vehicle in again for the same problem.
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