California Code of Regulations › Title 16 - Professional and Vocational Regulations › Division 33.1 - Arbitration Certification Program › Article 1 › Section 3396.1 - Definitions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) "Applicable
				law" means the portions of the Song-Beverly Consumer Warranty Act (Civil Code
				Sections
				1790-
				1795.7) that
				pertain to express and implied warranties and remedies for breach; the portions
				of Division 2 (commencing with Section
				2101) of the Commercial Code that
				pertain to express and implied warranties and remedies for breach; the portions
				of Sections
				43204,
				43205
				and
				43205.5
				of the Health and Safety Code that pertain to automobile emissions warranties;
				Chapter 9 of Division 1 of the Business and Professions Code, pertaining to
				certification of dispute resolution processes, and this subchapter.
(b) "Applicant" means a manufacturer seeking
				certification of an arbitration program sponsored and used by the manufacturer,
				or an arbitration program and a manufacturer jointly seeking certification of
				an arbitration program used by the manufacturer.
(c) "Arbitration program" means a "dispute
				resolution process," as that term is used in Civil Code Sections
				1793.22(c)-(d)
				and
				1794(e),
				and Business and Professions Code Section
				472,
				established to resolve disputes involving written warranties on new motor
				vehicles. The term includes an "informal dispute settlement procedure," as that
				term is used in Section
				703.1(e) of Title
				16 of the Code of Federal Regulations, established to resolve disputes
				involving written warranties on new motor vehicles. The term includes an
				"informal dispute settlement mechanism," as that term is used in
				15 U.S.C.
				2310(a)(1), and an "informal
				dispute settlement procedure," as that term is used in Section
				703.1(e) of Title
				16 of the Code of Federal Regulations, established to resolve disputes
				involving written warranties on new motor vehicles. The term includes those
				components of a program for which the manufacturer has responsibilities under
				Article 2 of this subchapter.
(d)
				"Arbitrator" means the person or persons within an arbitration program who
				actually decide disputes.
(e)
				"Arbitration Certification Program" means the Arbitration Certification Program
				of the Department of Consumer Affairs.
(f) "Certification" means a determination by
				the Arbitration Certification Program, made pursuant to this subchapter, that
				an arbitration program is in substantial compliance with Civil Code Section
				1793.22(d),
				Chapter 9 of Division 1 of the Business and Professions Code, and this
				subchapter.
(g) "Consumer" means
				any individual who buys or leases a new motor vehicle from a person (including
				any entity) engaged in the business of manufacturing, distributing, selling, or
				leasing new motor vehicles at retail. The term includes a lessee for a term
				exceeding four months, whether or not the lessee bears the risk of the
				vehicle's depreciation. The term includes any individual to whom the vehicle is
				transferred during the duration of a written warranty or under applicable state
				law to enforce the obligations of the warranty. The name of the registered
				owner or class of motor vehicle registration does not by itself determine the
				purpose or use.
(h) "Days" means
				calendar days unless otherwise stated.
(i) "Independent automobile expert" means an
				expert in automotive mechanics who is certified in the pertinent area by the
				National Institute for Automotive Service Excellence (NIASE). The expert may be
				a volunteer, or may be paid by the arbitration program or the manufacturer for
				his or her services, but in all other respects shall be in both fact and
				appearance independent of the manufacturer.
(j) "Manufacturer" means a new motor vehicle
				manufacturer, manufacturer branch, distributor or distributor branch, required
				to be licensed pursuant to Article 1 (commencing with Section
				11700) of Chapter 4 of Division 5
				of the Vehicle Code, or any other person (including any entity) actually making
				a written warranty on a new motor vehicle.
(k) "New motor vehicle" means a new motor
				vehicle which is used or bought for use 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. The term includes a
				dealer-owned vehicle, a "demonstrator," and any other motor vehicle sold or
				leased with a manufacturer's new car warranty. The term 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. The term
				"new motor vehicle" also includes the chassis and chassis cab of the motor
				home, and that portion of a motor home devoted to its propulsion, but does not
				include any portion of a motor home designed, used or maintained primarily for
				human habitation. A "motor home" is 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. 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.
(l) "Nonconformity" means any
				defect, malfunction or failure to conform to the written warranty.
(m) "Substantial nonconformity" means any
				defect, malfunction or failure to conform to the written warranty which
				substantially impairs the use, value or safety of the new motor vehicle to the
				consumer.
(n) "Written warranty"
				means either:
(1) any written affirmation of
				fact or written promise made by a manufacturer to a consumer in connection with
				the sale or lease of a new motor vehicle which relates to the nature of the
				material or workmanship and affirms or promises that such material or
				workmanship is defect-free or will meet a specified level of performance over a
				specified period of time;
(2) any
				undertaking in writing made by a manufacturer to a consumer in connection with
				the sale or lease of a new motor vehicle to refund, repair, replace, or take
				other remedial action with respect to the vehicle in the event that the vehicle
				fails to meet the specifications set forth in the undertaking, which written
				affirmation, promise or undertaking becomes part of the basis of the
				bargain.