Lemon Law / House Bill 4841 (update: House passes ‘lemon’ bill) [Merged]

[boybi]

mods ng Car Talk, paki merge nalang ito dito: lemon law. thanks.

[cyberdoc95]

Congress warned on ‘Lemon Law’ passage
By Marianne V. Go
The Philippine Star 03/27/2005
SOURCE:CLICK HERE!!

Congress should be careful in passing a so-called "lemon law" for automotive vehicles as it could lead to the collapse of the already ailing Philippine automotive industry.

According to Arnel Doria, deputy head for marketing of Honda Philippines Inc., Congress should first seek adequate knowledge of the state of the local automotive industry, which is already suffering from low domestic sales.

Doria warned that if a local "lemon law" is passed, such a law must take into consideration the cost it would impose on local automotive manufacturers.

A local "lemon law," Doria said, must be able to set limitations on exactly what complaints could be considered minor defects that should not merit a recall as opposed to life-threatening defects that deserve a recall.

Otherwise, Doria warned, after a certain level of losses due to repeated repairs, the affected local automotive manufacturer may deem it necessary to just close its operations in the country since the cost of such repairs would strain the profitability of the manufacturers, whose poor domestic sales continue to lag behind their ASEAN counterparts.

Fortunately for the Philippines, there has been no major vehicle recall yet, Doria said.

[Ibaloi]

Thanks for the post Cyberdoc95! Here's my small take on this issue:

Doria has a point there on setting limitations on what warrants a defective unit but then again, this law wouldn't be necessary if the manufacturers themselves stick to giving quality service and quality in their products (in a perfect world, sadly this is not the reality here). Manufacturers closing shop in this country? Bull. We heard that from the oil companies before, now look at them, they're raping us with overpriced oil products. On the telecomms side, I wanted to hear from the 2 major telecomms company that they might close shop because of Sun's unlimited programs, that could have been the joke of the century. Now look at them, they jumped into the bandwagon and are reaping the rewards. It just goes to show that before Sun, they were raping us with exhorbitant rates (they still do? another thread on this please). Now back to the topic at hand:
As for the recall? For all we know, in the many decades that these manufacturers had been in our country, they might have hid issues that might warranted a recall, just because nobody bothered to look. They must have made perfect vehicles throughout the years.Hmm....I'm sure you won't agree on that. Remember the recent scandal in Japan, the defective FUSO trucks? If mitsubishi was able to keep the defect under wraps under a country with strict laws, how much more for us here? I think that the manufacturers should use the lemon law to it's advantage to lure the buying public away from some of the unsafe vehicles being churned out of Subic, like the converted ones.(Since when was the jeepney or the "owner type" a safe vehicle anyway?, another topic on this. ) So there...

[pink_cadillac]

Congress should be careful in passing a so-called "lemon law" for automotive vehicles as it could lead to the collapse of the already ailing Philippine automotive industry

This is bull. If any, quality assurance saves more in terms of lowered incidences of returns, cost of repairs, and reputation.

The industry is fledgling because of the lack of government protection. Any maturing automotive industry requires tons of incentives to get momentum.

[claRkEnt]

Finally, may nagawa ding maganda!!! This is long overdue!!!

Psylocke, your comment pls. hehehe

House approves Lemon Law


A bill aimed at ensuring that car buyers get their money’s worth when buying brand new vehicles is about to become a law.

The House of Representatives has approved on third and final reading a proposed measure called "an act strengthening consumer protection in the purchase of brand new motor vehicles," binding car manufacturers to fulfill their obligation of fixing any defects covered by warranty on the cars they sold.

House Bill No. 5303, also called as the "Philippine Lemon Law" will mandate the enforcement of warranties on the sale of motor vehicles covering a period of one year from the date of original delivery or 20,000 kilometers of operation, whichever comes first.

Bacolod Rep. Monico Puentevella, chairman of the transportation committee and one of the bill’s proponents, said the measure will strengthen the Consumer Protection Act by specifically focusing on the purchase of brand new vehicles.

"There are numerous complaints from car buyers who unwittingly purchased lemon cars are faced by the refusal or inability of car manufacturers to comply with warranty obligations," Puentevella said.

The measure obligates manufacturers or distributors to repair the defective vehicle free of charge until it conforms to their express warranty. They should also provide the buyer with a service unit while the vehicle is under repair.

If the manufacturer or distributor is not able to correct the defect that impairs the vehicle’s use and safety after several repair attempts, they could either replace the motor vehicle with a similar or comparable vehicle or accept the return of the vehicle and refund the customer.

[van_wilder]

wow... dati pa naman ata ito implemented ng mga car companies ah... pero sana replacement nalang ng vehicle... hehehe

[niky]

"several attempts" is so general... how many is it exactly?

And note: "the manufacturer's express warranty..." meaning, if they don't cover it under warranty (as with most undercarriage pieces, which have limited warranties), or if it happens out of warranty, you're out of luck.

[empy]

step in the right direction. the key is this paragraph:

"If the manufacturer or distributor is not able to correct the defect that impairs the vehicle’s use and safety after several repair attempts, they could either replace the motor vehicle with a similar or comparable vehicle or accept the return of the vehicle and refund the customer."

the rest is just mandating carmakers to honor their warranties, as van wilder mentioned. they should already be doing all that stuff.

the other important thing is that the House be very clear on what defines a lemon - how many failed repair attempts before the company is obligated to replace or refund

[empy]

woops...nagkasabay kami ng post ni niky...pareho pa yung punto :hihihi:

[katsudon_ph]

eto na naman tayo... law that is ambigous hehehe