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The following causes of non-conformity
shall be excluded:
(1) Noncompliance
by the consumer of his obligations under the warranty;
(2) Modifications
not authorized by the manufacturer
or distributor;
(3) Abuse or neglect of the brand new motor vehicle; and
(4) Damage to the vehicle due to an accident or force majeure.
c) the defect of the automobile must substantially impair the use, value, or safety
of the motor vehicle; and
d) the motor vehicle has been out of service for the same defect for a cumulative
-::--"total
of thirty
(3B)-days -or more or the defect was not corrected
within the
reasonable number of attempts.
Motorcycles,
conversion vans or farm equipment are not included under this Act.
SEC. 4. Repair Attempts.
- At any time within the Lemon Law rights period and
after at least four (4) separate repair attempts by the same dealer-manufacturer
for the same
complaint, the consumer, if still unsatisfied with the results of the said repairs, may invoke his
rights under this Act.
SEC. 5. Notice of Availment
of the Lemon Law Rights. - Before availing of any
remedy under this Act and subject to compliance with the provisions of Section 4 hereof, the
consumer shall, in writing, notify the manufacturer,
distributor, authorized dealer or retailer of
the unresolved complaint and the consumer's
intention to invoke his rights under this Act
within the Lemon Law rights period.
SEC. 6. Buyer's
remedy when motor vehicle is a lemon. --A buyer of a new motor
vehicle shall have the right to either the remedy of a prompt repurchase or replacement from a
seller or manufacturer
should his automobile is shown to be a lemon in accordance with the
next preceding section. Nothing in this law shall in any way limit or expand the rights or
- remedies which are otherwise available to a consumer-buyer
of motor vehicle under any other
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existing laws or jurisprudence.
SEC. 7. Replacement.
-The buyer who chooses replacement as a remedy is entitled to
a motor vehicle identical to the vehicle being replaced. The seller or manufacturer
shall be
responsible for paying all taxes and licensing fees.
SEC. 8. Repurchase.--A
buyer may at his option be entitled to a refund of all monies
invested in the lemon including the down payment, monthly finance payments and payoff of
the finance contract. In both cases of replacement or repurchase, the buyer is also entitled to
recover expenses such as towing costs and repair costs.
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SEC. 9. Attorney's Fees. -In addition to the foregoing sections, a buyer is also
entitled to an award of attorney's
fees and other costs oflitigation.
SEC. 10. Civil liability of seller who refuses to comply. -A seller of a lemon motor
vehicle who willfully fails to comply with his obligations to repurchase or replace lemon
products after final judgment
shall be subject to a civil penalty of up to two times the
buyer's actual damages.
SEC.ll.
Implementing Rules and Regulations. - The DTI shall promulgate the
necessary implementing
rules and regulations within ninety (90) days from the affectivity of
this Act.
SEC. 12. Assistance by Other Agencies. - The DOTe
and other agencies, political
--=- subdivisions and local government units, including government-owned
and -controlled
corporations,
shall render such assistance as required by the DTI in order to effectively
implement the provisions of this Act.
SEC. 13. Separability Clause. - If, for any reason, any part or provision of this Act
is declared invalid, such declaration shall not affect the other provisions of this Act.
SEC. 14. Repealing Clause. - All laws, decrees, executive orders, issuances, rules or
regulations or parts thereof which are inconsistent with the provisions of this Act are hereby
deemed repealed, amended or modified accordingly.
SEC. 15. Effectivity - This Act shall take effect immediately upon its publication
in
two (2) newspaper of general circulation.
APPROVED,
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