Lemon Law

Question 1

Define ‘motor vehicle’ as per the policy.

Answer 1

Any self-propelled, four (4)-wheeled road vehicle designed to carry passengers, excluding motorcycles, delivery trucks, dump trucks, buses, road rollers, trolley cars, street sweepers, sprinklers, lawn mowers, and heavy equipment

Question 2

What are the requisites to invoke Lemon Law rights?

4 Requisites

Answer 2

1. Brand new motor vehicles
2. Purchased in the Philippines
3. Reported by a consumer to be in nonconformity with standards
4. Within 12 months or 20,000 kms of operations after delivery, whichever comes first

Question 3

What constitutes ‘repair attempts’ under the Lemon Law?

Mere replacement of part or components is not a repair attempt.

Answer 3

1. At least 4 separate attempts
2. Same complaint to the product
3. Remains unresolved

False

Question 4

Before makapag avail ng remedy, consumer must (2 things)

Answer 4

1. Written notice of unresolved complaint
2. customer’s intention to invoke rights

Question 5

If yung nonconformity issue remains unresolved kahit pa ginawa na ng manufacturer, ano na pwedeng gawin ni customer?

Answer 5

file a complaint sa DTI

Question 6

Ginawa na ni manufacturer yung vehicle. After 30 days, hindi pa bumabalik si customer para iparepair ulit. Ano yung assumption natin?

Answer 6

repair is deemed successful

Question 7

Nonconformity issue still remains after the 30-day period (but still within lemon law rights period), ano na pwedeng gawin ni customer?

Answer 7

pwede na niya mainvoke yung rights niya sa lemon lalw

Question 8

What compensation is provided for non-use of the vehicle?

Answer 8

A reasonable daily transportation allowance equivalent to:
* Air-conditioned taxi fare
* As agreed by parties
* A service vehicle (at manufacturer’s option)

Question 9

What are the three remedies under the Lemon Law?

Answer 9

1. Mediation
2. Arbitration
3. Adjudication

Question 10

What happens if negotiation fails during mediation?

Answer 10

Both parties shall execute a certificate attesting to such failure

• then pili if arbitration or adjudication

Question 11

Maximum period ng adjudication proceedings

Answer 11

20 days

Question 12

If napatunayan nga na may nonconformity, ano yung gagawin ni manufacturer?

2 possibilities

Answer 12

1. Replace the motor vehicle with a similar or comparable vehicle
2. Accept the return of the motor vehicle and pay the purchase price plus collateral damages

Question 13

If ever irequest man ni customer na ireplace or mag purchase ulit, the “reasonable allowance for use” must be deducted. How is it determined?

Answer 13

Lower of
- 20% per annum deduction from purchase price
- Distance travelled (in kms) * Purchase price / 100,000 kms

Question 14

Yung returned vehicle is available na ulit for sale, ano yung responsibility ni manufacturer?

Answer 14

idisclose na yung vehicle is binalik lang and yung condition nung vehicle