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In December of 2008, I posted a blog article about my experience with helping my friend, at the last minute, attend a Texas Department of Transportation Lemon Law hearing.

It was then discovered that my friend relied on the incorrect information provided by TexasDOT’s representative (he called (800) 622-8682) and did not send the car manufacturer a notice letter by certified mail. The case was dismissed due to this reason alone.

My friend then asked me about what could be done at that point. Once a case has been referred by the administrative judge to be dismissed, the claimant has the option of appealing the decision, provided that he or she does so in writing and within the specified period of time. Alternatively, the consumer may elect to forgo the appeal process and hire a lemon law attorney to file a lawsuit under the Texas Deceptive Trade Practices and Federal Magnusson Moss Act.

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I recently found some time while working at my law office and stumbled upon a great article written by Ellen Phillips of the Chattanooga Times Free Press. Ms. Phillips wrote briefly about whether one should purchase extended warranty, especially when faced with the dilemma of either not buying one and having an expensive item break, or buying one and wasting money on an item that may not need foreseeable warranty repair work done on it.

Ms. Phillip’s answer to this dilemma is to have the consumer evaluate two factors before buying deciding on whether to buy extended warranty or not. First, the consumer should determine the specific services and coverages of the extended warranty terms, and second, the cost and value of the consumer’s peace of mind. Ms. Phillips pointed to a recent Consumer Report article that pointed out that the cost of extended warranties may be as much as the actual repair work itself.

Speaking of peace of mind, having extended warranty on a product such as a car does not guarantee that you will be worry-free. For example, if you bought a new car and have taken it in 4 or more times under the Texas lemon law and the service center is unable to properly diagnose the defect and fix it, then having additional extended warranty beyond the standard manufacturer warranty period is virtually useless.
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This is a continuation on last week’s post, on how to avoid your chances of purchasing a lemon pre-owned/used car. The same disclaimer applies; this is not legal advice, but are mere suggestions. Although I handle Texas lemon law cases, I do not handle pre-owned or used car cases.

Tip #4: Get a mechanic’s inspection. Purchasing a vehicle is arguably the second most costliest item that most consumers buy in their lifetime. As a consumer, you do not purchase vegetables at your local grocery with blindfolds on,…the same logic applies in purchasing lemon cars. Without a mechanic’s expert opinion, it is difficult to determine the condition of the vehicle underneath the hood. My lemon law office gets at least one call a day of unsuspecting car owners who subsequently learn that their 2007 Dodge Caravan has a 2005 engine or component on it.

Tip #5: Bring a friend during your visit to the dealership. During my pre-lasik surgery days, my friends always advise that four eyes are usually better than two. Buying a vehicle can be stressful and it is a good idea to have your friend look for potential red flags and defect cover-ups while you talk to the used car salesman.

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Last month, right before the inauguration, I helped a friend move from Texas to Maryland (yes, I did temporarily closed my lemon law office for a couple of days,…but, I stayed in touched with all of my clients via my laptop and cell phone,…hence, clients are happy). Once we arrived in Maryland, my friend needed to purchase a vehicle and we began shopping for a pre-owned car over that weekend.

From that experience, I proffer some tips that I’ve learned on ways to avoid a potentially problematic vehicle, aka, the lemon car. Please keep in mind that these tips are merely my personal bias opinion and not legal advice, by any means. Also, please DO NOT call my office if you are a victim of a pre-owned or used lemon car, as my office only handles new lemon cars.

Tip #1: If you have an Iphone, G1, or any smartphone with data or internet capabilities, then bring it along (make sure you enroll in autocheck.com before you go car shopping).

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Near this time last year, my law clerk wrote a short article comparing the differences between Georgia and Texas Lemon Law. At that time, Georgia’s Lemon Law was arguably weaker than in Texas, because the time and mileage eligibility was twice as short in Georgia.

For example, in Texas, a consumer can file a claim with the Texas Department of Transportation (TXDot) so long as it has been within 24,000 miles or 24 months from the date of ownership, whichever occurs first. Georgia at that time, only protects a consumer when the vehicle is within 12,000 miles or 12 months from ownership (whichever occurs first).

As of January 1, 2009, cars and most other vehicles purchased in the state of Georgia will be protected for 24,000 miles/24 month. Further, the Governor’s Office of Consumer Affairs of Georgia promises that its state lemon law process will be more “stream-lined” and consumer friendly (I guess they weren’t very consumer friendly previously).

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Four months ago, a friend of mine called my office four days before his scheduled administrative hearing with the Texas Department of Transportation regarding his lemon vehicle. I asked him to forward the documents to my office before I agreed to attend the hearing with him.

Upon receiving the documents, I noticed that my friend’s file did not include a copy of the notice letter to the car manufacturer. I asked my friend about this and he told me that when he called the 1 800 lemon law number to the Texas Department of Transportation, he spoke with a representative from the department and the person on the phone told him that he did not need to mail the manufacturer any.

I ended up attending the hearing with my friend anyways. At the hearing, the administrative judge focused on the fact my friend failed to provide written notice to the manufacturer. Further, the administrative judge stated that because of the failure to provide the manufacturer with a 30 day notice, that my friend also did not provide the manufacturer with a final opportunity to cure.

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Most consumers who find themselves stuck with a lemon car that was purchased new find themselves paralyzed when trying to figure out what to do with a car that routinely has problems.

When the consumer brings the vehicle into the service center, the service representative is always cooperative and cordial, but at the end of the day, the car still has problems after the 3rd or 4th visit. When the consumer contacts the car manufacturer, they are assigned a case manager who provides no solution to the consumer — a lot of times, the consumer is led to run around in circles.

This is the situation that my recent client from Alpine, Texas found himself in. At first when I spoke with this client, he was very frustrated with the predicament that Chrysler put him through. I started working on this client’s case after he submitted documents to my office, after we discussed his options, and after he signed the representation agreement with my office in early May 2008.

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At my lemon law office in Dallas, it is frustrating to learn about the pre-owned auction car market, where a defective lemon vehicle is transported from one state to another and then resold back to uninformed consumers who are not aware of the faulty vehicle’s history. I get calls from potential clients about this issue on a daily basis and it is often referred to as lemon laundering.

Typically, lemon cars get transported into states with weak lemon law disclosure requirements. Why?…because car manufacturers know that they can do so and because it is legal.

For example, prior to August 1, many car manufacturers may have potentially targeted Minnesota as a state where it can dump many of its lemon inventory because Minnesota Lemon Law, in the past, did not require a lemon “stamp” on the vehicle’s title. An unsuspecting car buyer in Minnesota, prior to August 1st, may never know that his or her used vehicle that was purchased at a local car lot has been subject to repeated repair attempts or may have serious safety defects….until the vehicle manifests a defect several days or weeks after owning the vehicle.

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Two new car buyers purchased the same year, make, and model vehicle from Chrysler. The main difference between these two buyers is that one purchased their vehicle in Texas, while the other purchased it in California.

Quiz: in the event that both vehicles are defective lemon cars, which consumer is better off and more likely to get a repurchase or replacement?

Answer: the California car owner is more likely to win their lemon law case. Why, you ask?

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The Texas Lemon Law was created to protect consumers when they lease or buy a new vehicle. This law covers new motor vehicles of all kinds that have required excessive repairs or trips to the shop to fix the same problem, which should be covered by the vehicle warranty. Additionally, this law helps consumers seek recourse from the company, the dealer, or the lender in the form of buying back the vehicle or loan, replacing the vehicle, or repairing the vehicle.

Recognizing a Lemon

How do you know if your car fits the description of a lemon according to the Texas Lemon Law? There are several different criteria that need to be looked into before considering filing a complaint regarding your vehicle.

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