1793.22. (a) This section shall be known and may be cited as the Tanner Consumer Protection Act.
(b) It shall be presumed that a reasonable
number of attempts have been made to
conform a new motor vehicle to the applicable
express warranties if, within 18 months
from delivery to the buyer or 18,000
miles on the odometer of the vehicle,
whichever occurs first, one or more
of the following occurs:
(1) The same nonconformity results in
a condition that is likely to cause
death or serious bodily injury if the
vehicle is driven and the nonconformity
has been subject to repair two or more
times by the manufacturer or its agents,
and the buyer or lessee has at least
once directly notified the manufacturer
of the need for the repair of the nonconformity.
(2) The same nonconformity has been
subject to repair four or more times
by the manufacturer or its agents and
the buyer has at least once directly
notified the manufacturer of the need
for the repair of the nonconformity.
(3) The vehicle is out of service by reason of repair of nonconformities by the manufacturer or its agents for a cumulative total of more than 30 calendar days since delivery of the vehicle to the buyer. The 30-day limit shall be extended only if repairs cannot be performed due to conditions beyond the control of the manufacturer or its agents. The buyer shall be required to directly notify the manufacturer pursuant to paragraphs (1) and (2) only if the manufacturer has clearly and conspicuously disclosed to the buyer, with the warranty or the owner's manual, the provisions of this section and that of subdivision (d) of Section 1793.2, including the requirement that the buyer must notify the manufacturer directly pursuant to paragraphs (1) and (2). The notification, if required, shall be sent to the address, if any, specified clearly and conspicuously by the manufacturer in the warranty or owner's manual. This presumption shall be a rebuttable presumption affecting the burden of proof, and it may be asserted by the buyer in any civil action, including an action in small claims court, or other formal or informal proceeding.
(c) If a qualified third-party dispute
resolution process exists, and the buyer
receives timely notification in writing
of the availability of that qualified
third-party dispute resolution process
with a description of its operation
and effect, the presumption in subdivision
(b) may not be asserted by the buyer
until after the buyer has initially
resorted to the qualified third-party
dispute resolution process as required
in subdivision (d). Notification of
the availability of the qualified third-party
dispute resolution process is not timely
if the buyer suffers any prejudice resulting
from any delay in giving the notification.
If a qualified third-party dispute resolution
process does not exist, or if the buyer
is dissatisfied with that third-party
decision, or if the manufacturer or
its agent neglects to promptly fulfill
the terms of the qualified third-party
dispute resolution process decision
after the decision is accepted by the
buyer, the buyer may assert the presumption
provided in subdivision (b) in an action
to enforce the buyer's rights under
subdivision (d) of Section 1793.2. The
findings and decision of a qualified
third-party dispute resolution process
shall be admissible in evidence in the
action without further foundation. Any
period of limitation of actions under
any federal or California laws with
respect to any person shall be extended
for a period equal to the number of
days between the date a complaint is
filed with a third-party dispute resolution
process and the date of its decision
or the date before which the manufacturer
or its agent is required by the decision
to fulfill its terms if the decision
is accepted by the buyer, whichever
occurs later.
(d) A qualified third-party dispute
resolution process shall be one that
does all of the following:
(1) Complies with the minimum requirements
of the Federal Trade Commission for
informal dispute settlement procedures
as set forth in Part 703 of Title 16
of the Code of Federal Regulations,
as those regulations read on January
1, 1987.
(2) Renders decisions which are binding
on the manufacturer if the buyer elects
to accept the decision.
(3) Prescribes a reasonable time, not to exceed 30 days after the decision is accepted by the buyer, within which the manufacturer or its agent must fulfill the terms of its decisions.
(4) Provides arbitrators who are assigned to decide disputes with copies of, and instruction in, the provisions of the Federal Trade Commission's regulations in Part 703 of Title 16 of the Code of Federal Regulations as those regulations read on January 1, 1987, Division 2 (commencing with Section 2101) of the Commercial Code, and this chapter.
(5) Requires the manufacturer, when the process orders, under the terms of this chapter, either that the nonconforming motor vehicle be replaced if the buyer consents to this remedy or that restitution be made to the buyer, to replace the motor vehicle or make restitution in accordance with paragraph (2) of subdivision (d) of Section 1793.2.
(6) Provides, at the request of the arbitrator or a majority of the arbitration panel, for an inspection and written report on the condition of a nonconforming motor vehicle, at no cost to the buyer, by an automobile expert who is independent of the manufacturer.
(7) Takes into account, in rendering decisions, all legal and equitable factors, including, but not limited to, the written warranty, the rights and remedies conferred in regulations of the Federal Trade Commission contained in Part 703 of Title 16 of the Code of Federal Regulations as those regulations read on January 1, 1987, Division 2 (commencing with Section 2101) of the Commercial Code, this chapter, and any other equitable considerations appropriate in the circumstances. Nothing in this chapter requires that, to be certified as a qualified third-party dispute resolution process pursuant to this section, decisions of the process must consider or provide remedies in the form of awards of punitive damages or multiple damages, under subdivision (c) of Section 1794, or of attorneys' fees under subdivision (d) of Section 1794, or of consequential damages other than as provided in subdivisions (a) and (b) of Section 1794, including, but not limited to, reasonable repair, towing, and rental car costs actually incurred by the buyer.
(8) Requires that no arbitrator deciding a dispute may be a party to the dispute and that no other person, including an employee, agent, or dealer for the manufacturer, may be allowed to participate substantively in the merits of any dispute with the arbitrator unless the buyer is allowed to participate also. Nothing in this subdivision prohibits any member of an arbitration board from deciding a dispute.
(9) Obtains and maintains certification by the Department of Consumer Affairs pursuant to Chapter 9 (commencing with Section 472) of Division 1 of the Business and Professions Code.
(e) For the purposes of subdivision
(d) of Section 1793.2 and this section,
the following terms have the following
meanings:
(1) "Nonconformity"
means a nonconformity which substantially
impairs the use, value, or safety of
the new motor vehicle to the buyer or
lessee.
(2) "New motor vehicle" means
a new motor vehicle that is bought or
used primarily for personal, family,
or household purposes. "New motor
vehicle" also means a new motor
vehicle with a gross vehicle weight
under 10,000 pounds that is bought or
used primarily for business purposes
by a person, including a partnership,
limited liability company, corporation,
association, or any other legal entity,
to which not more than five motor vehicles
are registered in this state. "New
motor vehicle" includes the chassis,
chassis cab, and that portion of a motor
home devoted to its propulsion, but
does not include any portion designed,
used, or maintained primarily for human
habitation, a dealer-owned vehicle and
a "demonstrator" or other
motor vehicle sold with a manufacturer's
new car warranty but does not include
a motorcycle or a motor vehicle which
is not registered under the Vehicle
Code because it is to be operated or
used exclusively off the highways. A
demonstrator is a vehicle assigned by
a dealer for the purpose of demonstrating
qualities and characteristics common
to vehicles of the same or similar model
and type.
(3) "Motor home" means a vehicular unit built on, or permanently attached to, a self-propelled motor vehicle chassis, chassis cab, or van, which becomes an integral part of the completed vehicle, designed for human habitation for recreational or emergency occupancy.
(f) (1) Except as provided in paragraph
(2), no person shall sell, either at
wholesale or retail, lease, or transfer
a motor vehicle transferred by a buyer
or lessee to a manufacturer pursuant
to paragraph (2) of subdivision (d)
of Section 1793.2 or a similar statute
of any other state, unless the nature
of the nonconformity experienced by
the original buyer or lessee is clearly
and conspicuously disclosed to the prospective
buyer, lessee, or transferee, the nonconformity
is corrected, and the manufacturer warrants
to the new buyer, lessee, or transferee
in writing for a period of one year
that the motor vehicle is free of that
nonconformity.
(2) Except for the requirement that
the nature of the nonconformity be disclosed
to the transferee, paragraph (1) does
not apply to the transfer of a motor
vehicle to an educational institution
if the purpose of the transfer is to
make the motor vehicle available for
use in automotive repair courses.
(Amended Sec. 1, Ch. 679, Stats. 2000. Effective January 1, 2001.)
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