AB 1849: Song-Beverly Consumer Warranty Act: services and repairs: travel trailers and motor homes.
- Session Year: 2023-2024
- House: Assembly
- Latest Version Date: 2024-08-26
Current Status:
Passed
(2024-08-26: Chaptered by Secretary of State - Chapter 196, Statutes of 2024.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Enacted
What does this bill do?
The bill lets a buyer of a travel trailer or a part of a motor home meant for people to live in choose reimbursement instead of a replacement if the manufacturer or its agent cannot fix the problem after a reasonable number of repair attempts. It also says the buyer cannot be forced to accept a replacement travel trailer or motor home. The bill defines “travel trailer” as a towable vehicle unit that is not a mobilehome.
The summary is provided by generative AI which can make mistakes. For original language, please view the details in the table below.
The Song-Beverly Consumer Warranty Act requires every manufacturer of consumer goods sold in the state for which the manufacturer has made an express warranty to maintain sufficient service and repair facilities, as specified, to carry out the terms of the warranties. Existing law requires a manufacturer or its representative who fails to service or repair goods pursuant to an express warranty, after a reasonable number of attempts, to replace those goods or to reimburse the buyer, as specified.
This bill, if a manufacturer or its representative does not service or repair a travel trailer or a portion of a motor home, as specified, to conform to applicable express warranties after a reasonable number of attempts, would authorize a buyer to elect reimbursement in lieu of replacement, and would specify that the buyer is not required to accept a replacement travel trailer or motor home. The bill would define terms for these purposes.
The Song-Beverly Consumer Warranty Act requires every manufacturer of consumer goods sold in the state for which the manufacturer has made an express warranty to maintain sufficient service and repair facilities, as specified, to carry out the terms of the warranties. Existing law requires a manufacturer or its representative who fails to service or repair goods pursuant to an express warranty, after a reasonable number of attempts, to replace those goods or to reimburse the buyer, as specified.
This bill, if a manufacturer or its representative does not service or repair a travel trailer or a portion of a motor home, as specified, to conform to applicable express warranties after a reasonable number of attempts, would authorize a buyer to elect reimbursement in lieu of replacement, and would specify that the buyer is not required to accept a replacement travel trailer or motor home. The bill would define terms for these purposes.
The Song-Beverly Consumer Warranty Act requires every manufacturer of consumer goods sold in the state for which the manufacturer has made an express warranty to maintain sufficient service and repair facilities, as specified, to carry out the terms of the warranties. Existing law requires a manufacturer or its representative who fails to service or repair goods pursuant to an express warranty, after a reasonable number of attempts, to replace those goods or to reimburse the buyer, as specified.
This bill, if a manufacturer or its representative does not service or repair a travel trailer, as defined, trailer or a portion of a motor home, as specified, to conform to applicable express warranties after a reasonable number of attempts, would authorize a buyer to elect reimbursement in lieu of replacement, and would specify that the buyer is not required to accept a replacement travel trailer. trailer or motor home. The bill would define terms for these purposes.
The Song-Beverly Consumer Warranty Act requires every manufacturer of consumer goods sold in the state for which the manufacturer has made an express warranty to maintain sufficient service and repair facilities, as specified, to carry out the terms of the warranties. Existing law requires a manufacturer or its representative who fails to service or repair goods pursuant to an express warranty, after a reasonable number of attempts, to replace those goods or to reimburse the buyer, as specified.
This bill, if a manufacturer or its representative does not service or repair a travel trailer, as defined, to conform to applicable express warranties after a reasonable number of attempts, would authorize a buyer to elect reimbursement in lieu of replacement, and would specify that the buyer is not required to accept a replacement travel trailer.
Existing law, the Tanner Consumer Protection Act, establishes a presumption 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 or 18,000 miles on the odometer, whichever occurs first, one or more specified conditions occur. Existing law defines the term new motor vehicle for these purposes as including, among other things, the chassis, chassis cab, and that portion of a motor home devoted to its propulsion, except any portion designed, used, or maintained primarily for human habitation.This bill would expand the definition of new motor vehicle for these purposes to mean, among other things, a travel trailer without motive power that is towed by a motor vehicle, including a fifth-wheel travel trailer. The bill would define fifth-wheel travel trailer for that purpose.Existing law, the Tanner Consumer Protection Act, establishes a presumption 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 or 18,000 miles on the odometer, whichever occurs first, one or more specified conditions occur. Existing law defines the term new motor vehicle for these purposes as including, among other things, the chassis, chassis cab, and that portion of a motor home devoted to its propulsion, except any portion designed, used, or maintained primarily for human habitation.
This bill would expand the definition of new motor vehicle for these purposes to include mean, among other things, a travel trailer without motive power that is towed by a motor vehicle, including a fifth-wheel travel trailer. The bill would define fifth-wheel travel trailer for that purpose.
Existing law, the Tanner Consumer Protection Act, establishes a presumption 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 or 18,000 miles on the odometer, whichever occurs first, one or more specified conditions occur. Existing law defines the term new motor vehicle for these purposes as including, among other things, the chassis, chassis cab, and that portion of a motor home devoted to its propulsion, except any portion designed, used, or maintained primarily for human habitation.
This bill would expand the definition of new motor vehicle for these purposes to include a travel trailer without motive power that is towed by a motor vehicle, including a fifth-wheel travel trailer. The bill would define fifth-wheel travel trailer for that purpose.
As used in this chapter:
(a)Consumer goods means any new product or part thereof that is used, bought, or leased for use primarily for personal, family, or household purposes, except for clothing and consumables. Consumer goods shall include new and used assistive devices sold at retail.
(b)Buyer or retail buyer means any individual who buys consumer goods from a person engaged in the business of manufacturing, distributing, or selling consumer goods at retail. As used in this subdivision, person means any individual, partnership, corporation, limited liability company, association, or other legal entity that engages in any of these businesses.
(c)Clothing means any wearing apparel, worn for any purpose, including under and outer garments, shoes, and accessories composed primarily of woven material, natural or synthetic yarn, fiber, or leather or similar fabric.
(d)Consumables means any product that is intended for consumption by individuals, or use by individuals for purposes of personal care or in the performance of services ordinarily rendered within the household, and that usually is consumed or expended in the course of consumption or use.
(e)Distributor means any individual, partnership, corporation, association, or other legal relationship that stands between the manufacturer and the retail seller in purchases, consignments, or contracts for sale of consumer goods.
(f)Independent repair or service facility or independent service dealer means any individual, partnership, corporation, association, or other legal entity, not an employee or subsidiary of a manufacturer or distributor, that engages in the business of servicing and repairing consumer goods.
(g)Lease means any contract for the lease or bailment for the use of consumer goods by an individual, for a term exceeding four months, primarily for personal, family, or household purposes, whether or not it is agreed that the lessee bears the risk of the consumer goods depreciation.
(h)Lessee means an individual who leases consumer goods under a lease.
(i)Lessor means a person who regularly leases consumer goods under a lease.
(j)Manufacturer means any individual, partnership, corporation, association, or other legal relationship that manufactures, assembles, or produces consumer goods.
(k)Place of business means, for the purposes of any retail seller that sells consumer goods by catalog or mail order, the distribution point for consumer goods.
(l)Retail seller, seller, or retailer means any individual, partnership, corporation, association, or other legal relationship that engages in the business of selling or leasing consumer goods to retail buyers.
(m)Return to the retail seller means, for the purposes of any retail seller that sells consumer goods by catalog or mail order, the retail sellers place of business, as defined in subdivision (k).
(n)Sale means either of the following:
(1)The passing of title from the seller to the buyer for a price.
(2)A consignment for sale.
(o)Service contract means a contract in writing to perform, over a fixed period of time or for a specified duration, services relating to the maintenance or repair of a consumer product, except that this term does not include a policy of automobile insurance, as defined in Section 116 of the Insurance Code.
(p)Assistive device means any instrument, apparatus, or contrivance, including any component or part thereof or accessory thereto, that is used or intended to be used, to assist an individual with a disability in the mitigation or treatment of an injury or disease or to assist or affect or replace the structure or any function of the body of an individual with a disability, except that this term does not include prescriptive lenses and other ophthalmic goods unless they are sold or dispensed to a blind person, as defined in Section 19153 of the Welfare and Institutions Code and unless they are intended to assist the limited vision of the person so disabled.
(q)Catalog or similar sale means a sale in which neither the seller nor any employee or agent of the seller nor any person related to the seller nor any person with a financial interest in the sale participates in the diagnosis of the buyers condition or in the selection or fitting of the device.
(r)Home appliance means any refrigerator, freezer, range, microwave oven, washer, dryer, dishwasher, garbage disposal, trash compactor, or room air-conditioner normally used or sold for personal, family, or household purposes.
(s)Home electronic product means any television, radio, antenna rotator, audio or video recorder or playback equipment, video camera, video game, video monitor, computer equipment, telephone, telecommunications equipment, electronic alarm system, electronic appliance control system, or other kind of electronic product, if it is normally used or sold for personal, family, or household purposes. The term includes any electronic accessory that is normally used or sold with a home electronic product for one of those purposes. The term excludes any single product with a wholesale price to the retail seller of less than fifty dollars ($50).
(t)Member of the Armed Forces means a person on full-time active duty in the Army, Navy, Marine Corps, Air Force, National Guard, Space Force, or Coast Guard. Full-time active duty shall also include active military service at a military service school designated by law or the Adjutant General of the Military Department concerned.
(u)Clear and conspicuous and clearly and conspicuously means a larger type than the surrounding text, or in a contrasting type, font, or color to the surrounding text of the same size, or set off from the surrounding text of the same size by symbols or other marks, in a manner that clearly calls attention to the language. For an audio disclosure, clear and conspicuous and clearly and conspicuously means in a volume and cadence sufficient to be readily audible and understandable.
(v)Motor home has the same meaning as defined in Section 1793.22.
(w)Mobilehome means a vehicle as defined in Section 18008 of the Health and Safety Code.
(x)Travel trailer means a vehicular unit without motive power that is designed to be towed or carried by a motor vehicle. Travel trailer does not include a mobilehome.
SEC. 2.Section 1793.2 of the Civil Code is amended to read:1793.2.(a)Every manufacturer of consumer goods sold in this state and for which the manufacturer has made an express warranty shall:
(1)(A)Maintain in this state sufficient service and repair facilities reasonably close to all areas where its consumer goods are sold to carry out the terms of those warranties or designate and authorize in this state as service and repair facilities independent repair or service facilities reasonably close to all areas where its consumer goods are sold to carry out the terms of the warranties.
(B)As a means of complying with this paragraph, a manufacturer may enter into warranty service contracts with independent service and repair facilities. The warranty service contracts may provide for a fixed schedule of rates to be charged for warranty service or warranty repair work. However, the rates fixed by those contracts shall be in conformity with the requirements of subdivision (c) of Section 1793.3. The rates established pursuant to subdivision (c) of Section 1793.3, between the manufacturer and the independent service and repair facility, do not preclude a good faith discount that is reasonably related to reduced credit and general overhead cost factors arising from the manufacturers payment of warranty charges direct to the independent service and repair facility. The warranty service contracts authorized by this paragraph may not be executed to cover a period of time in excess of one year, and may be renewed only by a separate, new contract or letter of agreement between the manufacturer and the independent service and repair facility.
(2)In the event of a failure to comply with paragraph (1), be subject to Section 1793.5.
(3)Make available to authorized service and repair facilities sufficient service literature and replacement parts to effect repairs during the express warranty period.
(b)Where those service and repair facilities are maintained in this state and service or repair of the goods is necessary because they do not conform with the applicable express warranties, service and repair shall be commenced within a reasonable time by the manufacturer or its representative in this state. Unless the buyer agrees in writing to the contrary, the goods shall be serviced or repaired so as to conform to the applicable warranties within 30 days. Delay caused by conditions beyond the control of the manufacturer or its representatives shall serve to extend this 30-day requirement. Where delay arises, conforming goods shall be tendered as soon as possible following termination of the condition giving rise to the delay.
(c)The buyer shall deliver nonconforming goods to the manufacturers service and repair facility within this state, unless, due to reasons of size and weight, or method of attachment, or method of installation, or nature of the nonconformity, delivery cannot reasonably be accomplished. If the buyer cannot return the nonconforming goods for any of these reasons, the buyer shall notify the manufacturer or its nearest service and repair facility within the state. Written notice of nonconformity to the manufacturer or its service and repair facility shall constitute return of the goods for purposes of this section. Upon receipt of that notice of nonconformity, the manufacturer shall, at its option, service or repair the goods at the buyers residence, or pick up the goods for service and repair, or arrange for transporting the goods to its service and repair facility. All reasonable costs of transporting the goods when a buyer cannot return them for any of the above reasons shall be at the manufacturers expense. The reasonable costs of transporting nonconforming goods after delivery to the service and repair facility until return of the goods to the buyer shall be at the manufacturers expense.
(d)(1)Except as provided in paragraph (2), if the manufacturer or its representative in this state does not service or repair the goods to conform to the applicable express warranties after a reasonable number of attempts, the manufacturer shall either replace the goods or reimburse the buyer in an amount equal to the purchase price paid by the buyer, less that amount directly attributable to use by the buyer prior to the discovery of the nonconformity. However, if the manufacturer or its representative in this state does not service or repair a travel trailer or a portion of a motor home designed, used, or maintained for human habitation, to conform to the applicable express warranties after a reasonable number of attempts, the buyer shall be free to elect reimbursement in lieu of replacement, and in no event shall the buyer be required by the manufacturer to accept a replacement travel trailer or motor home.
(2)If the manufacturer or its representative in this state is unable to service or repair a new motor vehicle, as that term is defined in paragraph (2) of subdivision (e) of Section 1793.22, to conform to the applicable express warranties after a reasonable number of attempts, the manufacturer shall either promptly replace the new motor vehicle in accordance with subparagraph (A) or promptly make restitution to the buyer in accordance with subparagraph (B). However, the buyer shall be free to elect restitution in lieu of replacement, and in no event shall the buyer be required by the manufacturer to accept a replacement vehicle.
(A)In the case of replacement, the manufacturer shall replace the buyers vehicle with a new motor vehicle substantially identical to the vehicle replaced. The replacement vehicle shall be accompanied by all express and implied warranties that normally accompany new motor vehicles of that specific kind. The manufacturer also shall pay for, or to, the buyer the amount of any sales or use tax, license fees, registration fees, and other official fees which the buyer is obligated to pay in connection with the replacement, plus any incidental damages to which the buyer is entitled under Section 1794, including, but not limited to, reasonable repair, towing, and rental car costs actually incurred by the buyer.
(B)In the case of restitution, the manufacturer shall make restitution in an amount equal to the actual price paid or payable by the buyer, including any charges for transportation and manufacturer-installed options, but excluding nonmanufacturer items installed by a dealer or the buyer, and including any collateral charges such as sales or use tax, license fees, registration fees, and other official fees, plus any incidental damages to which the buyer is entitled under Section 1794, including, but not limited to, reasonable repair, towing, and rental car costs actually incurred by the buyer.
(C)When the manufacturer replaces the new motor vehicle pursuant to subparagraph (A), the buyer shall only be liable to pay the manufacturer an amount directly attributable to use by the buyer of the replaced vehicle prior to the time the buyer first delivered the vehicle to the manufacturer or distributor, or its authorized service and repair facility for correction of the problem that gave rise to the nonconformity. When restitution is made pursuant to subparagraph (B), the amount to be paid by the manufacturer to the buyer may be reduced by the manufacturer by that amount directly attributable to use by the buyer prior to the time the buyer first delivered the vehicle to the manufacturer or distributor, or its authorized service and repair facility for correction of the problem that gave rise to the nonconformity. The amount directly attributable to use by the buyer shall be determined by multiplying the actual price of the new motor vehicle paid or payable by the buyer, including any charges for transportation and manufacturer-installed options, by a fraction having as its denominator 120,000 and having as its numerator the number of miles traveled by the new motor vehicle prior to the time the buyer first delivered the vehicle to the manufacturer or distributor, or its authorized service and repair facility for correction of the problem that gave rise to the nonconformity. Nothing in this paragraph shall in any way limit the rights or remedies available to the buyer under any other law.
(D)Pursuant to Section 1795.4, a buyer of a new motor vehicle shall also include a lessee of a new motor vehicle.
(e)(1)If the goods cannot practicably be serviced or repaired by the manufacturer or its representative to conform to the applicable express warranties because of the method of installation or because the goods have become so affixed to real property as to become a part thereof, the manufacturer shall either replace and install the goods or reimburse the buyer in an amount equal to the purchase price paid by the buyer, including installation costs, less that amount directly attributable to use by the buyer prior to the discovery of the nonconformity.
(2)With respect to claims arising out of deficiencies in the construction of a new residential dwelling, paragraph (1) shall not apply to either of the following:
(A)A product that is not a manufactured product, as defined in subdivision (g) of Section 896.
(B)A claim against a person or entity that is not the manufacturer that originally made the express warranty for that manufactured product.
As used in this chapter:
(a)Consumer goods means any new product or part thereof that is used, bought, or leased for use primarily for personal, family, or household purposes, except for clothing and consumables. Consumer goods shall include new and used assistive devices sold at retail.
(b)Buyer or retail buyer means any individual who buys consumer goods from a person engaged in the business of manufacturing, distributing, or selling consumer goods at retail. As used in this subdivision, person means any individual, partnership, corporation, limited liability company, association, or other legal entity that engages in any of these businesses.
(c)Clothing means any wearing apparel, worn for any purpose, including under and outer garments, shoes, and accessories composed primarily of woven material, natural or synthetic yarn, fiber, or leather or similar fabric.
(d)Consumables means any product that is intended for consumption by individuals, or use by individuals for purposes of personal care or in the performance of services ordinarily rendered within the household, and that usually is consumed or expended in the course of consumption or use.
(e)Distributor means any individual, partnership, corporation, association, or other legal relationship that stands between the manufacturer and the retail seller in purchases, consignments, or contracts for sale of consumer goods.
(f)Independent repair or service facility or independent service dealer means any individual, partnership, corporation, association, or other legal entity, not an employee or subsidiary of a manufacturer or distributor, that engages in the business of servicing and repairing consumer goods.
(g)Lease means any contract for the lease or bailment for the use of consumer goods by an individual, for a term exceeding four months, primarily for personal, family, or household purposes, whether or not it is agreed that the lessee bears the risk of the consumer goods depreciation.
(h)Lessee means an individual who leases consumer goods under a lease.
(i)Lessor means a person who regularly leases consumer goods under a lease.
(j)Manufacturer means any individual, partnership, corporation, association, or other legal relationship that manufactures, assembles, or produces consumer goods.
(k)Place of business means, for the purposes of any retail seller that sells consumer goods by catalog or mail order, the distribution point for consumer goods.
(l)Retail seller, seller, or retailer means any individual, partnership, corporation, association, or other legal relationship that engages in the business of selling or leasing consumer goods to retail buyers.
(m)Return to the retail seller means, for the purposes of any retail seller that sells consumer goods by catalog or mail order, the retail sellers place of business, as defined in subdivision (k).
(n)Sale means either of the following:
(1)The passing of title from the seller to the buyer for a price.
(2)A consignment for sale.
(o)Service contract means a contract in writing to perform, over a fixed period of time or for a specified duration, services relating to the maintenance or repair of a consumer product, except that this term does not include a policy of automobile insurance, as defined in Section 116 of the Insurance Code.
(p)Assistive device means any instrument, apparatus, or contrivance, including any component or part thereof or accessory thereto, that is used or intended to be used, to assist an individual with a disability in the mitigation or treatment of an injury or disease or to assist or affect or replace the structure or any function of the body of an individual with a disability, except that this term does not include prescriptive lenses and other ophthalmic goods unless they are sold or dispensed to a blind person, as defined in Section 19153 of the Welfare and Institutions Code and unless they are intended to assist the limited vision of the person so disabled.
(q)Catalog or similar sale means a sale in which neither the seller nor any employee or agent of the seller nor any person related to the seller nor any person with a financial interest in the sale participates in the diagnosis of the buyers condition or in the selection or fitting of the device.
(r)Home appliance means any refrigerator, freezer, range, microwave oven, washer, dryer, dishwasher, garbage disposal, trash compactor, or room air-conditioner normally used or sold for personal, family, or household purposes.
(s)Home electronic product means any television, radio, antenna rotator, audio or video recorder or playback equipment, video camera, video game, video monitor, computer equipment, telephone, telecommunications equipment, electronic alarm system, electronic appliance control system, or other kind of electronic product, if it is normally used or sold for personal, family, or household purposes. The term includes any electronic accessory that is normally used or sold with a home electronic product for one of those purposes. The term excludes any single product with a wholesale price to the retail seller of less than fifty dollars ($50).
(t)Member of the Armed Forces means a person on full-time active duty in the Army, Navy, Marine Corps, Air Force, National Guard, Space Force, or Coast Guard. Full-time active duty shall also include active military service at a military service school designated by law or the Adjutant General of the Military Department concerned.
(u)Clear and conspicuous and clearly and conspicuously means a larger type than the surrounding text, or in a contrasting type, font, or color to the surrounding text of the same size, or set off from the surrounding text of the same size by symbols or other marks, in a manner that clearly calls attention to the language. For an audio disclosure, clear and conspicuous and clearly and conspicuously means in a volume and cadence sufficient to be readily audible and understandable.
(v)Motor home has the same meaning as defined in Section 1793.22.
(w)Mobilehome means a vehicle as defined in Section 18008 of the Health and Safety Code.
(x)Travel trailer means a vehicular unit without motive power that is designed to be towed or carried by a motor vehicle. Travel trailer does not include a mobilehome.
SEC. 2.Section 1793.2 of the Civil Code is amended to read:1793.2.(a)Every manufacturer of consumer goods sold in this state and for which the manufacturer has made an express warranty shall:
(1)(A)Maintain in this state sufficient service and repair facilities reasonably close to all areas where its consumer goods are sold to carry out the terms of those warranties or designate and authorize in this state as service and repair facilities independent repair or service facilities reasonably close to all areas where its consumer goods are sold to carry out the terms of the warranties.
(B)As a means of complying with this paragraph, a manufacturer may enter into warranty service contracts with independent service and repair facilities. The warranty service contracts may provide for a fixed schedule of rates to be charged for warranty service or warranty repair work. However, the rates fixed by those contracts shall be in conformity with the requirements of subdivision (c) of Section 1793.3. The rates established pursuant to subdivision (c) of Section 1793.3, between the manufacturer and the independent service and repair facility, do not preclude a good faith discount that is reasonably related to reduced credit and general overhead cost factors arising from the manufacturers payment of warranty charges direct to the independent service and repair facility. The warranty service contracts authorized by this paragraph may not be executed to cover a period of time in excess of one year, and may be renewed only by a separate, new contract or letter of agreement between the manufacturer and the independent service and repair facility.
(2)In the event of a failure to comply with paragraph (1), be subject to Section 1793.5.
(3)Make available to authorized service and repair facilities sufficient service literature and replacement parts to effect repairs during the express warranty period.
(b)Where those service and repair facilities are maintained in this state and service or repair of the goods is necessary because they do not conform with the applicable express warranties, service and repair shall be commenced within a reasonable time by the manufacturer or its representative in this state. Unless the buyer agrees in writing to the contrary, the goods shall be serviced or repaired so as to conform to the applicable warranties within 30 days. Delay caused by conditions beyond the control of the manufacturer or its representatives shall serve to extend this 30-day requirement. Where delay arises, conforming goods shall be tendered as soon as possible following termination of the condition giving rise to the delay.
(c)The buyer shall deliver nonconforming goods to the manufacturers service and repair facility within this state, unless, due to reasons of size and weight, or method of attachment, or method of installation, or nature of the nonconformity, delivery cannot reasonably be accomplished. If the buyer cannot return the nonconforming goods for any of these reasons, the buyer shall notify the manufacturer or its nearest service and repair facility within the state. Written notice of nonconformity to the manufacturer or its service and repair facility shall constitute return of the goods for purposes of this section. Upon receipt of that notice of nonconformity, the manufacturer shall, at its option, service or repair the goods at the buyers residence, or pick up the goods for service and repair, or arrange for transporting the goods to its service and repair facility. All reasonable costs of transporting the goods when a buyer cannot return them for any of the above reasons shall be at the manufacturers expense. The reasonable costs of transporting nonconforming goods after delivery to the service and repair facility until return of the goods to the buyer shall be at the manufacturers expense.
(d)(1)Except as provided in paragraph (2), if the manufacturer or its representative in this state does not service or repair the goods to conform to the applicable express warranties after a reasonable number of attempts, the manufacturer shall either replace the goods or reimburse the buyer in an amount equal to the purchase price paid by the buyer, less that amount directly attributable to use by the buyer prior to the discovery of the nonconformity. However, if the manufacturer or its representative in this state does not service or repair a travel trailer or a portion of a motor home designed, used, or maintained for human habitation, to conform to the applicable express warranties after a reasonable number of attempts, the buyer shall be free to elect reimbursement in lieu of replacement, and in no event shall the buyer be required by the manufacturer to accept a replacement travel trailer or motor home.
(2)If the manufacturer or its representative in this state is unable to service or repair a new motor vehicle, as that term is defined in paragraph (2) of subdivision (e) of Section 1793.22, to conform to the applicable express warranties after a reasonable number of attempts, the manufacturer shall either promptly replace the new motor vehicle in accordance with subparagraph (A) or promptly make restitution to the buyer in accordance with subparagraph (B). However, the buyer shall be free to elect restitution in lieu of replacement, and in no event shall the buyer be required by the manufacturer to accept a replacement vehicle.
(A)In the case of replacement, the manufacturer shall replace the buyers vehicle with a new motor vehicle substantially identical to the vehicle replaced. The replacement vehicle shall be accompanied by all express and implied warranties that normally accompany new motor vehicles of that specific kind. The manufacturer also shall pay for, or to, the buyer the amount of any sales or use tax, license fees, registration fees, and other official fees which the buyer is obligated to pay in connection with the replacement, plus any incidental damages to which the buyer is entitled under Section 1794, including, but not limited to, reasonable repair, towing, and rental car costs actually incurred by the buyer.
(B)In the case of restitution, the manufacturer shall make restitution in an amount equal to the actual price paid or payable by the buyer, including any charges for transportation and manufacturer-installed options, but excluding nonmanufacturer items installed by a dealer or the buyer, and including any collateral charges such as sales or use tax, license fees, registration fees, and other official fees, plus any incidental damages to which the buyer is entitled under Section 1794, including, but not limited to, reasonable repair, towing, and rental car costs actually incurred by the buyer.
(C)When the manufacturer replaces the new motor vehicle pursuant to subparagraph (A), the buyer shall only be liable to pay the manufacturer an amount directly attributable to use by the buyer of the replaced vehicle prior to the time the buyer first delivered the vehicle to the manufacturer or distributor, or its authorized service and repair facility for correction of the problem that gave rise to the nonconformity. When restitution is made pursuant to subparagraph (B), the amount to be paid by the manufacturer to the buyer may be reduced by the manufacturer by that amount directly attributable to use by the buyer prior to the time the buyer first delivered the vehicle to the manufacturer or distributor, or its authorized service and repair facility for correction of the problem that gave rise to the nonconformity. The amount directly attributable to use by the buyer shall be determined by multiplying the actual price of the new motor vehicle paid or payable by the buyer, including any charges for transportation and manufacturer-installed options, by a fraction having as its denominator 120,000 and having as its numerator the number of miles traveled by the new motor vehicle prior to the time the buyer first delivered the vehicle to the manufacturer or distributor, or its authorized service and repair facility for correction of the problem that gave rise to the nonconformity. Nothing in this paragraph shall in any way limit the rights or remedies available to the buyer under any other law.
(D)Pursuant to Section 1795.4, a buyer of a new motor vehicle shall also include a lessee of a new motor vehicle.
(e)(1)If the goods cannot practicably be serviced or repaired by the manufacturer or its representative to conform to the applicable express warranties because of the method of installation or because the goods have become so affixed to real property as to become a part thereof, the manufacturer shall either replace and install the goods or reimburse the buyer in an amount equal to the purchase price paid by the buyer, including installation costs, less that amount directly attributable to use by the buyer prior to the discovery of the nonconformity.
(2)With respect to claims arising out of deficiencies in the construction of a new residential dwelling, paragraph (1) shall not apply to either of the following:
(A)A product that is not a manufactured product, as defined in subdivision (g) of Section 896.
(B)A claim against a person or entity that is not the manufacturer that originally made the express warranty for that manufactured product.
As used in this chapter:
(a)Consumer goods means any new product or part thereof that is used, bought, or leased for use primarily for personal, family, or household purposes, except for clothing and consumables. Consumer goods shall include new and used assistive devices sold at retail.
(b)Buyer or retail buyer means any individual who buys consumer goods from a person engaged in the business of manufacturing, distributing, or selling consumer goods at retail. As used in this subdivision, person means any individual, partnership, corporation, limited liability company, association, or other legal entity that engages in any of these businesses.
(c)Clothing means any wearing apparel, worn for any purpose, including under and outer garments, shoes, and accessories composed primarily of woven material, natural or synthetic yarn, fiber, or leather or similar fabric.
(d)Consumables means any product that is intended for consumption by individuals, or use by individuals for purposes of personal care or in the performance of services ordinarily rendered within the household, and that usually is consumed or expended in the course of consumption or use.
(e)Distributor means any individual, partnership, corporation, association, or other legal relationship that stands between the manufacturer and the retail seller in purchases, consignments, or contracts for sale of consumer goods.
(f)Independent repair or service facility or independent service dealer means any individual, partnership, corporation, association, or other legal entity, not an employee or subsidiary of a manufacturer or distributor, that engages in the business of servicing and repairing consumer goods.
(g)Lease means any contract for the lease or bailment for the use of consumer goods by an individual, for a term exceeding four months, primarily for personal, family, or household purposes, whether or not it is agreed that the lessee bears the risk of the consumer goods depreciation.
(h)Lessee means an individual who leases consumer goods under a lease.
(i)Lessor means a person who regularly leases consumer goods under a lease.
(j)Manufacturer means any individual, partnership, corporation, association, or other legal relationship that manufactures, assembles, or produces consumer goods.
(k)Place of business means, for the purposes of any retail seller that sells consumer goods by catalog or mail order, the distribution point for consumer goods.
(l)Retail seller, seller, or retailer means any individual, partnership, corporation, association, or other legal relationship that engages in the business of selling or leasing consumer goods to retail buyers.
(m)Return to the retail seller means, for the purposes of any retail seller that sells consumer goods by catalog or mail order, the retail sellers place of business, as defined in subdivision (k).
(n)Sale means either of the following:
(1)The passing of title from the seller to the buyer for a price.
(2)A consignment for sale.
(o)Service contract means a contract in writing to perform, over a fixed period of time or for a specified duration, services relating to the maintenance or repair of a consumer product, except that this term does not include a policy of automobile insurance, as defined in Section 116 of the Insurance Code.
(p)Assistive device means any instrument, apparatus, or contrivance, including any component or part thereof or accessory thereto, that is used or intended to be used, to assist an individual with a disability in the mitigation or treatment of an injury or disease or to assist or affect or replace the structure or any function of the body of an individual with a disability, except that this term does not include prescriptive lenses and other ophthalmic goods unless they are sold or dispensed to a blind person, as defined in Section 19153 of the Welfare and Institutions Code and unless they are intended to assist the limited vision of the person so disabled.
(q)Catalog or similar sale means a sale in which neither the seller nor any employee or agent of the seller nor any person related to the seller nor any person with a financial interest in the sale participates in the diagnosis of the buyers condition or in the selection or fitting of the device.
(r)Home appliance means any refrigerator, freezer, range, microwave oven, washer, dryer, dishwasher, garbage disposal, trash compactor, or room air-conditioner normally used or sold for personal, family, or household purposes.
(s)Home electronic product means any television, radio, antenna rotator, audio or video recorder or playback equipment, video camera, video game, video monitor, computer equipment, telephone, telecommunications equipment, electronic alarm system, electronic appliance control system, or other kind of electronic product, if it is normally used or sold for personal, family, or household purposes. The term includes any electronic accessory that is normally used or sold with a home electronic product for one of those purposes. The term excludes any single product with a wholesale price to the retail seller of less than fifty dollars ($50).
(t)Member of the Armed Forces means a person on full-time active duty in the Army, Navy, Marine Corps, Air Force, National Guard, Space Force, or Coast Guard. Full-time active duty shall also include active military service at a military service school designated by law or the Adjutant General of the Military Department concerned.
(u)Clear and conspicuous and clearly and conspicuously means a larger type than the surrounding text, or in a contrasting type, font, or color to the surrounding text of the same size, or set off from the surrounding text of the same size by symbols or other marks, in a manner that clearly calls attention to the language. For an audio disclosure, clear and conspicuous and clearly and conspicuously means in a volume and cadence sufficient to be readily audible and understandable.
(v)Motor home has the same meaning as defined in Section 1793.22.
(v)
(w)Mobilehome means a vehicle as defined in Section 18008 of the Health and Safety Code.
(w)
(x)Travel trailer means a vehicular unit without motive power that is designed to be towed or carried by a motor vehicle. Travel trailer does not include a mobilehome.
SEC. 2.Section 1793.2 of the Civil Code is amended to read:1793.2.(a)Every manufacturer of consumer goods sold in this state and for which the manufacturer has made an express warranty shall:
(1)(A)Maintain in this state sufficient service and repair facilities reasonably close to all areas where its consumer goods are sold to carry out the terms of those warranties or designate and authorize in this state as service and repair facilities independent repair or service facilities reasonably close to all areas where its consumer goods are sold to carry out the terms of the warranties.
(B)As a means of complying with this paragraph, a manufacturer may enter into warranty service contracts with independent service and repair facilities. The warranty service contracts may provide for a fixed schedule of rates to be charged for warranty service or warranty repair work. However, the rates fixed by those contracts shall be in conformity with the requirements of subdivision (c) of Section 1793.3. The rates established pursuant to subdivision (c) of Section 1793.3, between the manufacturer and the independent service and repair facility, do not preclude a good faith discount that is reasonably related to reduced credit and general overhead cost factors arising from the manufacturers payment of warranty charges direct to the independent service and repair facility. The warranty service contracts authorized by this paragraph may not be executed to cover a period of time in excess of one year, and may be renewed only by a separate, new contract or letter of agreement between the manufacturer and the independent service and repair facility.
(2)In the event of a failure to comply with paragraph (1), be subject to Section 1793.5.
(3)Make available to authorized service and repair facilities sufficient service literature and replacement parts to effect repairs during the express warranty period.
(b)Where those service and repair facilities are maintained in this state and service or repair of the goods is necessary because they do not conform with the applicable express warranties, service and repair shall be commenced within a reasonable time by the manufacturer or its representative in this state. Unless the buyer agrees in writing to the contrary, the goods shall be serviced or repaired so as to conform to the applicable warranties within 30 days. Delay caused by conditions beyond the control of the manufacturer or its representatives shall serve to extend this 30-day requirement. Where delay arises, conforming goods shall be tendered as soon as possible following termination of the condition giving rise to the delay.
(c)The buyer shall deliver nonconforming goods to the manufacturers service and repair facility within this state, unless, due to reasons of size and weight, or method of attachment, or method of installation, or nature of the nonconformity, delivery cannot reasonably be accomplished. If the buyer cannot return the nonconforming goods for any of these reasons, the buyer shall notify the manufacturer or its nearest service and repair facility within the state. Written notice of nonconformity to the manufacturer or its service and repair facility shall constitute return of the goods for purposes of this section. Upon receipt of that notice of nonconformity, the manufacturer shall, at its option, service or repair the goods at the buyers residence, or pick up the goods for service and repair, or arrange for transporting the goods to its service and repair facility. All reasonable costs of transporting the goods when a buyer cannot return them for any of the above reasons shall be at the manufacturers expense. The reasonable costs of transporting nonconforming goods after delivery to the service and repair facility until return of the goods to the buyer shall be at the manufacturers expense.
(d)(1)Except as provided in paragraph (2), if the manufacturer or its representative in this state does not service or repair the goods to conform to the applicable express warranties after a reasonable number of attempts, the manufacturer shall either replace the goods or reimburse the buyer in an amount equal to the purchase price paid by the buyer, less that amount directly attributable to use by the buyer prior to the discovery of the nonconformity. However, if the manufacturer or its representative in this state does not service or repair a travel trailer or a portion of a motor home designed, used, or maintained for human habitation, to conform to the applicable express warranties after a reasonable number of attempts, the buyer shall be free to elect reimbursement in lieu of replacement, and in no event shall the buyer be required by the manufacturer to accept a replacement travel trailer. trailer or motor home.
(2)If the manufacturer or its representative in this state is unable to service or repair a new motor vehicle, as that term is defined in paragraph (2) of subdivision (e) of Section 1793.22, to conform to the applicable express warranties after a reasonable number of attempts, the manufacturer shall either promptly replace the new motor vehicle in accordance with subparagraph (A) or promptly make restitution to the buyer in accordance with subparagraph (B). However, the buyer shall be free to elect restitution in lieu of replacement, and in no event shall the buyer be required by the manufacturer to accept a replacement vehicle.
(A)In the case of replacement, the manufacturer shall replace the buyers vehicle with a new motor vehicle substantially identical to the vehicle replaced. The replacement vehicle shall be accompanied by all express and implied warranties that normally accompany new motor vehicles of that specific kind. The manufacturer also shall pay for, or to, the buyer the amount of any sales or use tax, license fees, registration fees, and other official fees which the buyer is obligated to pay in connection with the replacement, plus any incidental damages to which the buyer is entitled under Section 1794, including, but not limited to, reasonable repair, towing, and rental car costs actually incurred by the buyer.
(B)In the case of restitution, the manufacturer shall make restitution in an amount equal to the actual price paid or payable by the buyer, including any charges for transportation and manufacturer-installed options, but excluding nonmanufacturer items installed by a dealer or the buyer, and including any collateral charges such as sales or use tax, license fees, registration fees, and other official fees, plus any incidental damages to which the buyer is entitled under Section 1794, including, but not limited to, reasonable repair, towing, and rental car costs actually incurred by the buyer.
(C)When the manufacturer replaces the new motor vehicle pursuant to subparagraph (A), the buyer shall only be liable to pay the manufacturer an amount directly attributable to use by the buyer of the replaced vehicle prior to the time the buyer first delivered the vehicle to the manufacturer or distributor, or its authorized service and repair facility for correction of the problem that gave rise to the nonconformity. When restitution is made pursuant to subparagraph (B), the amount to be paid by the manufacturer to the buyer may be reduced by the manufacturer by that amount directly attributable to use by the buyer prior to the time the buyer first delivered the vehicle to the manufacturer or distributor, or its authorized service and repair facility for correction of the problem that gave rise to the nonconformity. The amount directly attributable to use by the buyer shall be determined by multiplying the actual price of the new motor vehicle paid or payable by the buyer, including any charges for transportation and manufacturer-installed options, by a fraction having as its denominator 120,000 and having as its numerator the number of miles traveled by the new motor vehicle prior to the time the buyer first delivered the vehicle to the manufacturer or distributor, or its authorized service and repair facility for correction of the problem that gave rise to the nonconformity. Nothing in this paragraph shall in any way limit the rights or remedies available to the buyer under any other law.
(D)Pursuant to Section 1795.4, a buyer of a new motor vehicle shall also include a lessee of a new motor vehicle.
(e)(1)If the goods cannot practicably be serviced or repaired by the manufacturer or its representative to conform to the applicable express warranties because of the method of installation or because the goods have become so affixed to real property as to become a part thereof, the manufacturer shall either replace and install the goods or reimburse the buyer in an amount equal to the purchase price paid by the buyer, including installation costs, less that amount directly attributable to use by the buyer prior to the discovery of the nonconformity.
(2)With respect to claims arising out of deficiencies in the construction of a new residential dwelling, paragraph (1) shall not apply to either of the following:
(A)A product that is not a manufactured product, as defined in subdivision (g) of Section 896.
(B)A claim against a person or entity that is not the manufacturer that originally made the express warranty for that manufactured product.
As used in this chapter:
(a)Consumer goods means any new product or part thereof that is used, bought, or leased for use primarily for personal, family, or household purposes, except for clothing and consumables. Consumer goods shall include new and used assistive devices sold at retail.
(b)Buyer or retail buyer means any individual who buys consumer goods from a person engaged in the business of manufacturing, distributing, or selling consumer goods at retail. As used in this subdivision, person means any individual, partnership, corporation, limited liability company, association, or other legal entity that engages in any of these businesses.
(c)Clothing means any wearing apparel, worn for any purpose, including under and outer garments, shoes, and accessories composed primarily of woven material, natural or synthetic yarn, fiber, or leather or similar fabric.
(d)Consumables means any product that is intended for consumption by individuals, or use by individuals for purposes of personal care or in the performance of services ordinarily rendered within the household, and that usually is consumed or expended in the course of consumption or use.
(e)Distributor means any individual, partnership, corporation, association, or other legal relationship that stands between the manufacturer and the retail seller in purchases, consignments, or contracts for sale of consumer goods.
(f)Independent repair or service facility or independent service dealer means any individual, partnership, corporation, association, or other legal entity, not an employee or subsidiary of a manufacturer or distributor, that engages in the business of servicing and repairing consumer goods.
(g)Lease means any contract for the lease or bailment for the use of consumer goods by an individual, for a term exceeding four months, primarily for personal, family, or household purposes, whether or not it is agreed that the lessee bears the risk of the consumer goods depreciation.
(h)Lessee means an individual who leases consumer goods under a lease.
(i)Lessor means a person who regularly leases consumer goods under a lease.
(j)Manufacturer means any individual, partnership, corporation, association, or other legal relationship that manufactures, assembles, or produces consumer goods.
(k)Place of business means, for the purposes of any retail seller that sells consumer goods by catalog or mail order, the distribution point for consumer goods.
(l)Retail seller, seller, or retailer means any individual, partnership, corporation, association, or other legal relationship that engages in the business of selling or leasing consumer goods to retail buyers.
(m)Return to the retail seller means, for the purposes of any retail seller that sells consumer goods by catalog or mail order, the retail sellers place of business, as defined in subdivision (k).
(n)Sale means either of the following:
(1)The passing of title from the seller to the buyer for a price.
(2)A consignment for sale.
(o)Service contract means a contract in writing to perform, over a fixed period of time or for a specified duration, services relating to the maintenance or repair of a consumer product, except that this term does not include a policy of automobile insurance, as defined in Section 116 of the Insurance Code.
(p)Assistive device means any instrument, apparatus, or contrivance, including any component or part thereof or accessory thereto, that is used or intended to be used, to assist an individual with a disability in the mitigation or treatment of an injury or disease or to assist or affect or replace the structure or any function of the body of an individual with a disability, except that this term does not include prescriptive lenses and other ophthalmic goods unless they are sold or dispensed to a blind person, as defined in Section 19153 of the Welfare and Institutions Code and unless they are intended to assist the limited vision of the person so disabled.
(q)Catalog or similar sale means a sale in which neither the seller nor any employee or agent of the seller nor any person related to the seller nor any person with a financial interest in the sale participates in the diagnosis of the buyers condition or in the selection or fitting of the device.
(r)Home appliance means any refrigerator, freezer, range, microwave oven, washer, dryer, dishwasher, garbage disposal, trash compactor, or room air-conditioner normally used or sold for personal, family, or household purposes.
(s)Home electronic product means any television, radio, antenna rotator, audio or video recorder or playback equipment, video camera, video game, video monitor, computer equipment, telephone, telecommunications equipment, electronic alarm system, electronic appliance control system, or other kind of electronic product, if it is normally used or sold for personal, family, or household purposes. The term includes any electronic accessory that is normally used or sold with a home electronic product for one of those purposes. The term excludes any single product with a wholesale price to the retail seller of less than fifty dollars ($50).
(t)Member of the Armed Forces means a person on full-time active duty in the Army, Navy, Marine Corps, Air Force, National Guard, Space Force, or Coast Guard. Full-time active duty shall also include active military service at a military service school designated by law or the Adjutant General of the Military Department concerned.
(u)Clear and conspicuous and clearly and conspicuously means a larger type than the surrounding text, or in a contrasting type, font, or color to the surrounding text of the same size, or set off from the surrounding text of the same size by symbols or other marks, in a manner that clearly calls attention to the language. For an audio disclosure, clear and conspicuous and clearly and conspicuously means in a volume and cadence sufficient to be readily audible and understandable.
(v)Mobilehome means a vehicle as defined in Section 18008 of the Health and Safety Code.
(w)Travel trailer means a vehicular unit without motive power that is designed to be towed or carried by a motor vehicle. Travel trailer does not include a mobilehome.
SEC. 2.Section 1793.2 of the Civil Code is amended to read:1793.2.(a)Every manufacturer of consumer goods sold in this state and for which the manufacturer has made an express warranty shall:
(1)(A)Maintain in this state sufficient service and repair facilities reasonably close to all areas where its consumer goods are sold to carry out the terms of those warranties or designate and authorize in this state as service and repair facilities independent repair or service facilities reasonably close to all areas where its consumer goods are sold to carry out the terms of the warranties.
(B)As a means of complying with this paragraph, a manufacturer may enter into warranty service contracts with independent service and repair facilities. The warranty service contracts may provide for a fixed schedule of rates to be charged for warranty service or warranty repair work. However, the rates fixed by those contracts shall be in conformity with the requirements of subdivision (c) of Section 1793.3. The rates established pursuant to subdivision (c) of Section 1793.3, between the manufacturer and the independent service and repair facility, do not preclude a good faith discount that is reasonably related to reduced credit and general overhead cost factors arising from the manufacturers payment of warranty charges direct to the independent service and repair facility. The warranty service contracts authorized by this paragraph may not be executed to cover a period of time in excess of one year, and may be renewed only by a separate, new contract or letter of agreement between the manufacturer and the independent service and repair facility.
(2)In the event of a failure to comply with paragraph (1) of this subdivision, (1), be subject to Section 1793.5.
(3)Make available to authorized service and repair facilities sufficient service literature and replacement parts to effect repairs during the express warranty period.
(b)Where those service and repair facilities are maintained in this state and service or repair of the goods is necessary because they do not conform with the applicable express warranties, service and repair shall be commenced within a reasonable time by the manufacturer or its representative in this state. Unless the buyer agrees in writing to the contrary, the goods shall be serviced or repaired so as to conform to the applicable warranties within 30 days. Delay caused by conditions beyond the control of the manufacturer or its representatives shall serve to extend this 30-day requirement. Where delay arises, conforming goods shall be tendered as soon as possible following termination of the condition giving rise to the delay.
(c)The buyer shall deliver nonconforming goods to the manufacturers service and repair facility within this state, unless, due to reasons of size and weight, or method of attachment, or method of installation, or nature of the nonconformity, delivery cannot reasonably be accomplished. If the buyer cannot return the nonconforming goods for any of these reasons, he or she the buyer shall notify the manufacturer or its nearest service and repair facility within the state. Written notice of nonconformity to the manufacturer or its service and repair facility shall constitute return of the goods for purposes of this section. Upon receipt of that notice of nonconformity, the manufacturer shall, at its option, service or repair the goods at the buyers residence, or pick up the goods for service and repair, or arrange for transporting the goods to its service and repair facility. All reasonable costs of transporting the goods when a buyer cannot return them for any of the above reasons shall be at the manufacturers expense. The reasonable costs of transporting nonconforming goods after delivery to the service and repair facility until return of the goods to the buyer shall be at the manufacturers expense.
(d)(1)Except as provided in paragraph (2), if the manufacturer or its representative in this state does not service or repair the goods to conform to the applicable express warranties after a reasonable number of attempts, the manufacturer shall either replace the goods or reimburse the buyer in an amount equal to the purchase price paid by the buyer, less that amount directly attributable to use by the buyer prior to the discovery of the nonconformity. However, if the manufacturer or its representative in this state does not service or repair a travel trailer to conform to the applicable express warranties after a reasonable number of attempts, the buyer shall be free to elect reimbursement in lieu of replacement, and in no event shall the buyer be required by the manufacturer to accept a replacement travel trailer.
(2)If the manufacturer or its representative in this state is unable to service or repair a new motor vehicle, as that term is defined in paragraph (2) of subdivision (e) of Section 1793.22, to conform to the applicable express warranties after a reasonable number of attempts, the manufacturer shall either promptly replace the new motor vehicle in accordance with subparagraph (A) or promptly make restitution to the buyer in accordance with subparagraph (B). However, the buyer shall be free to elect restitution in lieu of replacement, and in no event shall the buyer be required by the manufacturer to accept a replacement vehicle.
(A)In the case of replacement, the manufacturer shall replace the buyers vehicle with a new motor vehicle substantially identical to the vehicle replaced. The replacement vehicle shall be accompanied by all express and implied warranties that normally accompany new motor vehicles of that specific kind. The manufacturer also shall pay for, or to, the buyer the amount of any sales or use tax, license fees, registration fees, and other official fees which the buyer is obligated to pay in connection with the replacement, plus any incidental damages to which the buyer is entitled under Section 1794, including, but not limited to, reasonable repair, towing, and rental car costs actually incurred by the buyer.
(B)In the case of restitution, the manufacturer shall make restitution in an amount equal to the actual price paid or payable by the buyer, including any charges for transportation and manufacturer-installed options, but excluding nonmanufacturer items installed by a dealer or the buyer, and including any collateral charges such as sales or use tax, license fees, registration fees, and other official fees, plus any incidental damages to which the buyer is entitled under Section 1794, including, but not limited to, reasonable repair, towing, and rental car costs actually incurred by the buyer.
(C)When the manufacturer replaces the new motor vehicle pursuant to subparagraph (A), the buyer shall only be liable to pay the manufacturer an amount directly attributable to use by the buyer of the replaced vehicle prior to the time the buyer first delivered the vehicle to the manufacturer or distributor, or its authorized service and repair facility for correction of the problem that gave rise to the nonconformity. When restitution is made pursuant to subparagraph (B), the amount to be paid by the manufacturer to the buyer may be reduced by the manufacturer by that amount directly attributable to use by the buyer prior to the time the buyer first delivered the vehicle to the manufacturer or distributor, or its authorized service and repair facility for correction of the problem that gave rise to the nonconformity. The amount directly attributable to use by the buyer shall be determined by multiplying the actual price of the new motor vehicle paid or payable by the buyer, including any charges for transportation and manufacturer-installed options, by a fraction having as its denominator 120,000 and having as its numerator the number of miles traveled by the new motor vehicle prior to the time the buyer first delivered the vehicle to the manufacturer or distributor, or its authorized service and repair facility for correction of the problem that gave rise to the nonconformity. Nothing in this paragraph shall in any way limit the rights or remedies available to the buyer under any other law.
(D)Pursuant to Section 1795.4, a buyer of a new motor vehicle shall also include a lessee of a new motor vehicle.
(e)(1)If the goods cannot practicably be serviced or repaired by the manufacturer or its representative to conform to the applicable express warranties because of the method of installation or because the goods have become so affixed to real property as to become a part thereof, the manufacturer shall either replace and install the goods or reimburse the buyer in an amount equal to the purchase price paid by the buyer, including installation costs, less that amount directly attributable to use by the buyer prior to the discovery of the nonconformity.
(2)With respect to claims arising out of deficiencies in the construction of a new residential dwelling, paragraph (1) shall not apply to either of the following:
(A)A product that is not a manufactured product, as defined in subdivision (g) of Section 896.
(B)A claim against a person or entity that is not the manufacturer that originally made the express warranty for that manufactured product.
SECTION 1.Section 1793.22 of the Civil Code is amended to read: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 owners 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 owners 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 buyers 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 Commissions 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)(A)New motor vehicle means any of the following:(i)A new motor vehicle that is bought or used primarily for personal, family, or household purposes.(ii)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.(iii)A travel trailer without motive power that is towed by a motor vehicle, including, but not limited to, a fifth-wheel travel trailer.(B)New motor vehicle includes the following:(i)The chassis, chassis cab, and that portion of a motor home devoted to its propulsion, except any portion designed, used, or maintained primarily for human habitation.(ii)A dealer-owned vehicle and a demonstrator or other motor vehicle sold with a manufacturers new car warranty, except 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.(4)Fifth-wheel travel trailer has the same meaning as defined in Section 324 of the Vehicle Code.(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.(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 owners 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 owners 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 buyers 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 Commissions 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 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)(A)New motor vehicle means either any of the following:
(i)A new motor vehicle that is bought or used primarily for personal, family, or household purposes.
(ii)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.
(iii)A travel trailer without motive power that is towed by a motor vehicle, including, but not limited to, a fifth-wheel travel trailer.
(B)New motor vehicle includes all of the following:
(i)The chassis, chassis cab, and that portion of a motor home devoted to its propulsion, except any portion designed, used, or maintained primarily for human habitation.
(ii)A dealer-owned vehicle and a demonstrator or other motor vehicle sold with a manufacturers new car warranty, except 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.
(iii)A travel trailer without motive power that is towed by a motor vehicle, including, but not limited to, a fifth-wheel travel trailer.(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.
(4)Fifth-wheel travel trailer has the same meaning as defined in Section 324 of the Vehicle Code.
(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.
(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 owners 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 owners 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 buyers 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 Commissions 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)(A)New motor vehicle means a new either of the following:
(i)A new motor vehicle that is bought or used primarily for personal, family, or household purposes. New motor vehicle also means a
(ii)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
(B)New motor vehicle includes the all of the following:
(i)The chassis, chassis cab, and that portion of a motor home devoted to its propulsion, but does not include except any portion designed, used, or maintained primarily for human habitation, a habitation.
(ii)A dealer-owned vehicle and a demonstrator or other motor vehicle sold with a manufacturers new car warranty but does not include warranty, except 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.
(iii)A travel trailer without motive power that is towed by a motor vehicle, including, but not limited to, a fifth-wheel travel trailer.
(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.
(4)Fifth-wheel travel trailer has the same meaning as defined in Section 324 of the Vehicle Code.
(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.
|
Date
|
Status
|
|---|---|
| Aug 26, 2024 | Chaptered by Secretary of State - Chapter 196, Statutes of 2024. |
| Aug 26, 2024 | Approved by the Governor. |
| Aug 19, 2024 | Enrolled and presented to the Governor at 3 p.m. |
| Aug 12, 2024 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 74. Noes 0. Page 6266.). |
| Jun 27, 2024 | In Assembly. Concurrence in Senate amendments pending. May be considered on or after June 29 pursuant to Assembly Rule 77. |
| Jun 27, 2024 | Read third time. Passed. Ordered to the Assembly. (Ayes 40. Noes 0.). |
| Jun 20, 2024 | Read second time. Ordered to Consent Calendar. |
| Jun 19, 2024 | From committee: Do pass. To Consent Calendar. (Ayes 10. Noes 0.) (June 18). |
| Jun 6, 2024 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD. |
| May 29, 2024 | Referred to Com. on JUD. |
| May 21, 2024 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 20, 2024 | Read third time. Passed. Ordered to the Senate. (Ayes 72. Noes 0. Page 5295.) |
| May 16, 2024 | Read third time and amended. Ordered to third reading. |
| Mar 21, 2024 | Read second time. Ordered to third reading. |
| Mar 20, 2024 | Read second time and amended. Ordered returned to second reading. |
| Mar 19, 2024 | From committee: Amend, and do pass as amended. (Ayes 10. Noes 0.) (March 12). |
| Feb 28, 2024 | In committee: Set, first hearing. Hearing canceled at the request of author. |
| Feb 26, 2024 | Referred to Com. on P. & C.P. |
| Jan 18, 2024 | From printer. May be heard in committee February 17. |
| Jan 17, 2024 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 12, 2024 | AB 1849 Grayson Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Jun 27, 2024 | Consent Calendar 2nd AB1849 Grayson | Senate Floor |
Passed |
|
| Jun 18, 2024 | Do pass and be ordered to the Consent Calendar | Senate Standing Committee on Judiciary |
Passed |
|
| May 20, 2024 | AB 1849 Grayson Assembly Third Reading | Assembly Floor |
Passed |
|
| Mar 12, 2024 | Do pass as amended. | Assembly Standing Committee on Privacy and Consumer Protection |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Center for Auto Safety | ** Against | |
| Consumer Attorneys Of California | * Neutral | Mar 12, 2024 |
| Consumers For Auto Reliability And Safety | * Against | Mar 12, 2024 |
| National Association of Consumer Advocates | * Against | Mar 12, 2024 |
| Rv Industry Association | * Neutral | Mar 12, 2024 |
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 1849
Author:(Grayson)
As Amended Ver:June 6, 2024
Majority vote
SUMMARY
Provides that, if the manufacturer or its representative in this state does not service or repair a travel trailer or a portion of motor homes designed, used, or maintained for human habitation to conform to the applicable express warranties after a reasonable number of attempts, the buyer is free to elect reimbursement in lieu of replacement, and in no event will the buyer be required by the manufacturer to accept a replacement travel trailer or motor home.
Senate Amendments
Add motor homes or a portion of a motor home designed, used, or maintained for human habitation to the items covered by the bill.
COMMENTS
This bill seeks to provide greater consumer protections to consumers of travel trailers and motor homes under the Song-Beverly Act.
The author states that the recreational vehicles (RV) industry saw the highest sales demand during the COVID-19 pandemic, and that many consumers found themselves with faulty or poorly made RVs. As evidence of this, the author points to an investigative report from the Indianapolis Star newspaper that noted "three of the biggest RV manufacturers in the country have recalled hundreds of thousands of their products, according to data from the National Highway Traffic Safety Administration." The article reports that owners of RVs have complained "of problems that range from cracks on cabinets and improperly installed ceiling fans to more serious ones such as mold due to water damage, faulty electrical wiring and gas leaks."
The Song-Beverly Act sets forth standards for warranties that govern consumer goods and outlines remedies available to purchasers. Retail sales of consumer goods are accompanied by the manufacturer's and the retail seller's implied warranty that the goods are merchantable. In specified circumstances, an implied warranty that the good is fit for a particular purpose also attaches. Such implied warranties can generally not be waived or otherwise modified except in limited, specified circumstances. Under the Song-Beverly Act, every manufacturer of consumer goods sold in this state and for which the manufacturer has made an express warranty is required to, among other things, replace the warrantied goods or reimburse the buyer if the manufacturer does not service or repair the goods to conform to the express warranties after a reasonable number of attempts. The Tanner Act, which is found within the Song-Beverly Act, applies specifically to new motor vehicles and provides consumers an additional protection by allowing them to choose whether they want restitution or replacement of a new vehicle if the manufacturer does not service or repair the goods to conform to the express warranties after a reasonable number of attempts. This bill seeks to allow a consumer of a travel trailer or motor home the similar right to elect reimbursement of replacement.
According to the Author
During the COVID-19 pandemic, recreational vehicle (RV) sales skyrocketed and saw a massive surge in demand. According to the RV Industry Association (RVIA) in December of 2021, over 600,000 RVs were shipped out with 544,028 being non-powered travel trailers and fifth wheel trailers. With this robust demand for RVs, many consumers found themselves with faulty or poorly made travel trailers or fifth wheels. The Song-Beverly Consumer Warranty Act and the Tanner Consumer Protection Act mandate that manufacturers and their representatives must offer warranties on their products and provide either a replacement or a refund if the product cannot be serviced or replaced within a reasonable timeframe. The Tanner Consumer Protection Act grants purchasers of new motor vehicles additional protections and autonomy by allowing them to choose their remedy, rather than having it dictated by the manufacturer. Unfortunately, these same options do not extend to purchasers of travel trailers. AB 1849 will help protect consumers and provide additional protections for individuals who unknowingly purchase defective travel trailers or fifth wheels. The bill extends the flexibility for consumers to elect their remedy, similar to purchasers of new motor vehicles.
Specifically, the bill will allow the buyer of a travel trailer to elect to receive a refund in the event that a manufacturer or its representative fails to service or repair the trailer after a reasonable number of attempts.
Arguments in Support
Consumers for Auto Reliability and Safety was opposed to the bill, but after recent amends they are now in support writing:
CARS is pleased to support passage of AB 1849 (Grayson). As amended June 6, this measure will add additional clarity to the Song-Beverly Consumer Warranty Act regarding the remedies available to owners of lemon travel trailers and lemon motor homes (regarding the portions of motor homes designed, used and maintained for human habitation), making it clear that they are free to elect reimbursement in lieu of replacement. When consumers purchase travel trailers and motorhomes, they and their families are typically making a sizable investment in a major product, trusting that the manufacturer will live up to its warranty and they will be able to use those goods safely and without experiencing lengthy delays in obtaining repairs to any substantial problems that arise.
AB 1849 will help encourage manufacturers of travel trailers and motor homes to make appropriate investments in repair parts, diagnostic equipment, automotive technicians, plumbers, electricians, and other skilled workers necessary in order to comply with their warranties. Such investments have been required since 1970, when Governor Ronald Reagan signed the Song-Beverly Consumer Warranty Act into law, and are long overdue.
Arguments in Opposition
None on file.
FISCAL COMMENTS
This bill is keyed non-fiscal.
VOTES:
ASM PRIVACY AND CONSUMER PROTECTION: 10-0-1
YES: Bauer-Kahan, Joe Patterson, Bryan, Dixon, Hoover, Lowenthal, Ortega, Ward, Wicks, Wilson
ABS, ABST OR NV: Irwin
ASSEMBLY FLOOR: 72-0-8
YES: Addis, Aguiar-Curry, Alanis, Alvarez, Bains, Bauer-Kahan, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas
ABS, ABST OR NV: Arambula, Bennett, Cervantes, Megan Dahle, Gabriel, Mathis, Stephanie Nguyen, Luz Rivas
SENATE FLOOR: 40-0-0
YES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk
UPDATED
VERSION: June 6, 2024
CONSULTANT: Julie Salley / P. & C.P. / (916) 319-2200 FN: 0003674
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 1849 |
CONSENT
Bill No: AB 1849
Author: Grayson (D)
Amended: 6/6/24 in Senate
Vote: 21
SENATE JUDICIARY COMMITTEE: 10-0, 6/18/24
AYES: Umberg, Wilk, Allen, Ashby, Caballero, Durazo, Niello, Roth, Stern, Wahab
NO VOTE RECORDED: Laird
ASSEMBLY FLOOR: 72-0, 5/20/24 - See last page for vote
SUBJECT: Song-Beverly Consumer Warranty Act: services and repairs: travel trailers and motor homes
SOURCE: Consumers for Auto Reliability and Safety
DIGEST:
This bill provides that, if the manufacturer or its representative in this state does not service or repair a travel trailer or a portion of motor homes designed, used, or maintained for human habitation to conform to the applicable express warranties after a reasonable number of attempts, the buyer is free to elect reimbursement in lieu of replacement, and in no event will the buyer be required by the manufacturer to accept a replacement travel trailer or motor home.
ANALYSIS:
Existing law:
- The Song-Beverly Consumer Warranty Act (Song-Beverly Act) provides that, except as specified, every sale of consumer goods that are available for purchase by the public in this state are to be accompanied by the manufacturer’s and the retail seller’s implied warranty that the goods are suitable for sale. (Civ. Code § 1792.[1])
- Defines “express warranty” to mean:
- A written statement arising out of a sale to the consumer of a consumer good that the manufacturer, distributor, or retailer undertakes to preserve or maintain the utility or performance of the consumer good or provide compensation if there is a failure in utility or performance; or
- In the event of any sample or model, that the whole of the goods conforms to the sample or model. (§ 1791.2(a).)
- Provides that, except as specified, existing state laws do not affect the right of a manufacturer, distributor, or retailer to make express warranties with respect to consumer goods, provided that the express warranties do not limit, modify, or disclaim the implied warranties. (§ 1793.)
- Requires every manufacturer, distributor, or retailer making express warranties with respect to consumer goods to fully set forth those warranties in simple and readily understood language that clearly identifies the party making the express warranties, and that conforms to the federal standards for warranty terms and conditions. (§ 1793.1(a).)
- Requires every manufacturer of consumer goods sold in this state and for which the manufacturer has made an express warranty to, among other things, do all of the following:
- Maintain in this state sufficient service and repair facilities reasonably close to all areas where its consumer goods are sold in order to carry out the terms of those warranties, or designate and authorize independent repair or service facilities reasonably close to all areas where its goods are sold;
- Commence service and repair for goods that do not conform to the express warranties within 30 days, unless the buyer agrees in writing to the contrary;
- Replace the goods or reimburse the buyer if the manufacturer does not service or repair the goods to conform to the express warranties after a reasonable number of attempts. (§ 1793.2.)
- Establishes the Tanner Consumer Protection Act (Tanner Act), which defines a “new motor vehicle” as all of the following:
- A new motor vehicle that is bought or used primarily for personal, family, or household purposes.
- 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. (§ 1793.22(e)(2).)
- Defines “motor home” under the Tanner Act as 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. (§ 1793.2(d)(2).)
- Requires that, if a manufacturer is unable to service or repair a new motor vehicle to conform to the applicable express warranties after a reasonable number of attempts, the manufacturer must either promptly replace the new motor vehicle or promptly make restitution to the buyer.
- The buyer is free to elect restitution in lieu of replacement, and in no event can the buyer be required to accept a replacement vehicle. (Id. at (d)(2).)
- Authorizes any buyer of consumer goods who is damaged by a failure to comply with any obligation under an implied or express warranty or service contract to bring an action for the recovery of damages and other legal and equitable relief, including court costs and attorney’s fees.
- If a buyer establishes that failure to comply was willful, the judgment may include, in addition to damages and other legal and equitable relief, a civil penalty which is not to exceed two times the amount of actual damages. (§ 1794.)
This bill:
- Provides under the Song-Beverly Act that, if the manufacturer or its representative in this state does not service or repair a travel trailer or a portion of motor homes designed, used, or maintained for human habitation to conform to the applicable express warranties after a reasonable number of attempts, the buyer is free to elect reimbursement in lieu of replacement, and in no event will the buyer be required by the manufacturer to accept a replacement travel trailer or motor home.
- Defines “travel trailer” as a vehicular unit without motive power that is designed to be towed or carried by a motor vehicle. “Travel trailer” does not include a mobilehome.
- Defines “motor home” for the purposes of 1), above, in the same manner as under the Tanner Act.
Comments
The author states that the RV industry saw the highest sales demand during the COVID-19 pandemic, and that many consumers found themselves with faulty or poorly made RVs. As evidence of this, the author points to an investigative report from the Indianapolis Star newspaper that noted “three of the biggest RV manufacturers in the country have recalled hundreds of thousands of their products, according to data from the National Highway Traffic Safety Administration.” [2] The article reports that owners of RVs have complained “of problems that range from cracks on cabinets and improperly installed ceiling fans to more serious ones such as mold due to water damage, faulty electrical wiring and gas leaks.”[3]
The Song-Beverly Act sets forth standards for warranties that govern consumer goods and outlines remedies available to purchasers. Retail sales of consumer goods are accompanied by the manufacturer’s and the retail seller’s implied warranty that the goods are merchantable. In specified circumstances, an implied warranty that the good is fit for a particular purpose also attaches. Such implied warranties can generally not be waived or otherwise modified except in limited, specified circumstances. Under the Song-Beverly Act, every manufacturer of consumer goods sold in this state and for which the manufacturer has made an express warranty is required to, among other things, replace the warrantied goods or reimburse the buyer if the manufacturer does not service or repair the goods to conform to the express warranties after a reasonable number of attempts. The Tanner Act, which is found within the Song-Beverly Act, applies specifically to new motor vehicles and provides consumers an additional protection by allowing them to choose whether they want restitution or replacement of a new vehicle if the manufacturer does not service or repair the goods to conform to the express warranties after a reasonable number of attempts. This bill seeks to allow a consumer of a travel trailer or motor the similar right to elect reimbursement of replacement.
When this bill was in the Assembly, Consumers for Auto Reliability and Safety, the Center for Auto Safety, and the National Association of Consumer Advocates were opposed to this bill. However, amendments were made and now Consumers for Auto Reliability and Safety is sponsoring this bill and Center for Auto Safety and the National Association of Consumer Advocates are now neutral on this bill.
FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No
SUPPORT: (Verified 6/20/24)
Consumers for Auto Reliability and Safety (source)
Consumer Attorneys of California
OPPOSITION: (Verified 6/20/24)
None received
ARGUMENTS IN SUPPORT: The author writes:
During the COVID-19 pandemic, recreational vehicle (RV) sales skyrocketed and saw a massive surge in demand. According to the RV Industry Association (RVIA) in December of 2021, Over 600,000 RVs were shipped out with 544,028 being non-powered travel trailers and fifth wheel trailers. With this robust demand for RVs, many consumers found themselves with faulty or poorly made travel trailers or fifth wheels. The Song-Beverly Consumer Warranty Act and the Tanner Consumer Protection Act mandate that manufacturers and their representatives must offer warranties on their products and provide either a replacement or a refund if the product cannot be serviced or replaced within a reasonable timeframe. The Tanner Consumer Protection Act grants purchasers of new motor vehicles additional protections and autonomy by allowing them to choose their remedy, rather than having it dictated by the manufacturer. Unfortunately, these same options do not extend to purchasers of travel trailers. AB 1849 will help protect consumers and provide additional protections for individuals who unknowingly purchase defective travel trailers or fifth wheels. The bill extends the flexibility for consumers to elect their remedy, similar to purchasers of new motor vehicles.
Specifically, the bill will allow the buyer of a travel trailer to elect to receive a refund in the event that a manufacturer or its representative fails to service or repair the trailer after a reasonable number of attempts.
Consumers for Auto Reliability and Safety (CARS) writes in support, stating:
CARS is pleased to support passage of AB 1849 (Grayson). As amended June 6, this measure will add additional clarity to the Song-Beverly Consumer Warranty Act regarding the remedies available to owners of lemon travel trailers and lemon motor homes (regarding the portions of motor homes designed, used and maintained for human habitation), making it clear that they are free to elect reimbursement in lieu of replacement. When consumers purchase travel trailers and motorhomes, they and their families are typically making a sizable invesünent in a major product, trusting that the manufacturer will live up to its warranty and they will be able to use those goods safely and without experiencing lengthy delays in obtaining repairs to any substantial problems that arise.
AB 1849 will help encourage manufacturers of travel trailers and motor homes to make appropriate investments in repair parts, diagnostic equipment, automotive technicians, plumbers, electricians, and other skilled workers necessary in order to comply with their warranties. Such investments have been required since 1970, when Governor Ronald Reagan signed the Song-Beverly Consumer Warranty Act into law, and are long overdue.
ASSEMBLY FLOOR: 72-0, 5/20/24
AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Bains, Bauer-Kahan, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas
NO VOTE RECORDED: Arambula, Bennett, Cervantes, Megan Dahle, Gabriel, Mathis, Stephanie Nguyen, Luz Rivas
Prepared by: Amanda Mattson / JUD. / (916) 651-4113
6/21/24 11:02:21
**** END ****
All further references are to the Civil Code unless otherwise stated. ↑
Phillips and Huang, “Bottom Line: Shoddy work. Unhappy buyers. A near-death experience. When the RV lifestyle goes wrong” Indianapolis Star (Oct. 19, 2022) available at https://www.indystar.com/in-depth/news/investigations/2022/10/19/rv-horrors-defective-units-unhappy-buyers-a-near-death-experience/69523329007/. ↑
Ibid. ↑
SENATE JUDICIARY COMMITTEE
Senator Thomas Umberg, Chair
2023-2024 Regular Session
Bill No: AB 1849 (Author:Grayson)
Version: June 6, 2024
Hearing Date: June 18, 2024
Fiscal: No
Urgency: No
Consultant: AM
SUBJECT
Song-Beverly Consumer Warranty Act: services and repairs: travel trailers
DIGEST
This bill provides that, if the manufacturer or its representative in this state does not service or repair a travel trailer or a portion of motor homes designed, used, or maintained for human habitation to conform to the applicable express warranties after a reasonable number of attempts, the buyer is free to elect reimbursement in lieu of replacement, and in no event will the buyer be required by the manufacturer to accept a replacement travel trailer or motor home.
EXECUTIVE SUMMARY
The author notes that the recreational vehicle (RV) industry saw the highest sales demand during the COVID-19 pandemic, and that many consumers found themselves with faulty or poorly made RVs, with little to no recourse. This bill seeks to provide consumers of RVs, travel trailers and motor homes, with enhanced consumer protections. This bill is author sponsored and supported by Consumers for Auto Reliability and Safety and the Consumer Attorneys of California. No timely opposition was received by the Committee.
PROPOSED CHANGES TO THE LAW
Existing law:
- The Song-Beverly Consumer Warranty Act (Song-Beverly Act) provides that, except as specified, every sale of consumer goods that are available for purchase by the public in this state are to be accompanied by the manufacturer’s and the retail seller’s implied warranty that the goods are suitable for sale. (Civ. Code § 1792.[1])
- Defines “express warranty” to mean:
- a written statement arising out of a sale to the consumer of a consumer good that the manufacturer, distributor, or retailer undertakes to preserve or maintain the utility or performance of the consumer good or provide compensation if there is a failure in utility or performance; or
- in the event of any sample or model, that the whole of the goods conforms to the sample or model. (§ 1791.2(a).)
- Provides that, except as specified, existing state laws do not affect the right of a manufacturer, distributor, or retailer to make express warranties with respect to consumer goods, provided that the express warranties do not limit, modify, or disclaim the implied warranties. (§ 1793.)
- Requires every manufacturer, distributor, or retailer making express warranties with respect to consumer goods to fully set forth those warranties in simple and readily understood language that clearly identifies the party making the express warranties, and that conforms to the federal standards for warranty terms and conditions. (§ 1793.1(a).)
- Requires every manufacturer of consumer goods sold in this state and for which the manufacturer has made an express warranty to, among other things, do all of the following:
- maintain in this state sufficient service and repair facilities reasonably close to all areas where its consumer goods are sold in order to carry out the terms of those warranties, or designate and authorize independent repair or service facilities reasonably close to all areas where its goods are sold;
- commence service and repair for goods that do not conform to the express warranties within 30 days, unless the buyer agrees in writing to the contrary;
- replace the goods or reimburse the buyer if the manufacturer does not service or repair the goods to conform to the express warranties after a reasonable number of attempts. (§ 1793.2.)
- Establishes the Tanner Consumer Protection Act (Tanner Act), which defines a “new motor vehicle” as all of the following:
- A new motor vehicle that is bought or used primarily for personal, family, or household purposes.
- 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. (§ 1793.22(e)(2).)
- Defines “motor home” under the Tanner Act as 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. (§ 1793.2(d)(2).)
- Requires that, if a manufacturer is unable to service or repair a new motor vehicle to conform to the applicable express warranties after a reasonable number of attempts, the manufacturer must either promptly replace the new motor vehicle or promptly make restitution to the buyer.
- The buyer is free to elect restitution in lieu of replacement, and in no event can the buyer be required to accept a replacement vehicle. (Id. at (d)(2).)
- Authorizes any buyer of consumer goods who is damaged by a failure to comply with any obligation under an implied or express warranty or service contract to bring an action for the recovery of damages and other legal and equitable relief, including court costs and attorney’s fees.
- If a buyer establishes that failure to comply was willful, the judgment may include, in addition to damages and other legal and equitable relief, a civil penalty which is not to exceed two times the amount of actual damages. (§ 1794.)
This bill:
- Provides under the Song-Beverly Act that, if the manufacturer or its representative in this state does not service or repair a travel trailer or a portion of motor homes designed, used, or maintained for human habitation to conform to the applicable express warranties after a reasonable number of attempts, the buyer is free to elect reimbursement in lieu of replacement, and in no event will the buyer be required by the manufacturer to accept a replacement travel trailer or motor home.
- Defines “travel trailer” as a vehicular unit without motive power that is designed to be towed or carried by a motor vehicle. “Travel trailer” does not include a mobilehome.
- Defines “motor home” for the purposes of 1), above, in the same manner as under the Tanner Act.
COMMENTS
- Stated need for the bill
The author writes:
During the COVID-19 pandemic, recreational vehicle (RV) sales skyrocketed and saw a massive surge in demand. According to the RV Industry Association (RVIA) in December of 2021, Over 600,000 RVs were shipped out with 544,028 being non-powered travel trailers and fifth wheel trailers. With this robust demand for RVs, many consumers found themselves with faulty or poorly made travel trailers or fifth wheels. The Song-Beverly Consumer Warranty Act and the Tanner Consumer Protection Act mandate that manufacturers and their representatives must offer warranties on their products and provide either a replacement or a refund if the product cannot be serviced or replaced within a reasonable timeframe. The Tanner Consumer Protection Act grants purchasers of new motor vehicles additional protections and autonomy by allowing them to choose their remedy, rather than having it dictated by the manufacturer. Unfortunately, these same options do not extend to purchasers of travel trailers. AB 1849 will help protect consumers and provide additional protections for individuals who unknowingly purchase defective travel trailers or fifth wheels. The bill extends the flexibility for consumers to elect their remedy, similar to purchasers of new motor vehicles.
Specifically, the bill will allow the buyer of a travel trailer to elect to receive a refund in the event that a manufacturer or its representative fails to service or repair the trailer after a reasonable number of attempts.
2. This bill seeks to provide greater consumer protections to consumers of travel trailers and motor homes under the Song-Beverly Act
The author states that the RV industry saw the highest sales demand during the COVID-19 pandemic, and that many consumers found themselves with faulty or poorly made RVs. As evidence of this, the author points to an investigative report from the Indianapolis Star newspaper that noted “three of the biggest RV manufacturers in the country have recalled hundreds of thousands of their products, according to data from the National Highway Traffic Safety Administration.” [2] The article reports that owners of RVs have complained “of problems that range from cracks on cabinets and improperly installed ceiling fans to more serious ones such as mold due to water damage, faulty electrical wiring and gas leaks.”[3]
The Song-Beverly Act sets forth standards for warranties that govern consumer goods and outlines remedies available to purchasers. Retail sales of consumer goods are accompanied by the manufacturer’s and the retail seller’s implied warranty that the goods are merchantable. In specified circumstances, an implied warranty that the good is fit for a particular purpose also attaches. Such implied warranties can generally not be waived or otherwise modified except in limited, specified circumstances. Under the Song-Beverly Act, every manufacturer of consumer goods sold in this state and for which the manufacturer has made an express warranty is required to, among other things, replace the warrantied goods or reimburse the buyer if the manufacturer does not service or repair the goods to conform to the express warranties after a reasonable number of attempts. The Tanner Act, which is found within the Song-Beverly Act, applies specifically to new motor vehicles and provides consumers an additional protection by allowing them to choose whether they want restitution or replacement of a new vehicle if the manufacturer does not service or repair the goods to conform to the express warranties after a reasonable number of attempts. This bill seeks to allow a consumer of a travel trailer or motor the similar right to elect reimbursement of replacement.
3. All prior opposition to the bill has moved to neutral
When this bill was in the Assembly, the Center for Auto Safety and the National Association of Consumer Advocates were opposed to the bill; however, amendments were made and these organizations are now neutral on the bill.
4. Statements in support
Consumers for Auto Reliability and Safety was opposed to the bill, but after recent amends they are now in support writing:
CARS is pleased to support passage of AB 1849 (Grayson). As amended June 6, this measure will add additional clarity to the Song-Beverly Consumer Warranty Act regarding the remedies available to owners of lemon travel trailers and lemon motor homes (regarding the portions of motor homes designed, used and maintained for human habitation), making it clear that they are free to elect reimbursement in lieu of replacement. When consumers purchase travel trailers and motorhomes, they and their families are typically making a sizable invesünent in a major product, trusting that the manufacturer will live up to its warranty and they will be able to use those goods safely and without experiencing lengthy delays in obtaining repairs to any substantial problems that arise.
AB 1849 will help encourage manufacturers of travel trailers and motor homes to make appropriate investments in repair parts, diagnostic equipment, automotive technicians, plumbers, electricians, and other skilled workers necessary in order to comply with their warranties. Such investments have been required since 1970, when Governor Ronald Reagan signed the Song-Beverly Consumer Warranty Act into law, and are long overdue.
SUPPORT
Consumers for Auto Reliability and Safety
Consumer Attorneys of California
OPPOSITION
None received
RELATED LEGISLATION
Pending Legislation: None known.
Prior Legislation:
SB 244 (Eggman, 2023, Ch. 704, Stats. 2023) enacted the Right to Repair Act that requires manufacturers of certain electronic or appliance products that make express warranties for products worth $50 or more to make available sufficient service literature and functional parts, on fair and reasonable terms, to owners of the equipment or products, service and repair facilities, and service dealers, as specified.
AB 1875 (Flora, 2022) would have exempted alarm companies governed by the Alarm Companies Act from certain provisions of Song-Beverly Act pertaining to service contracts. AB 1875 was never set for a hearing in the Assembly.
AB 2912 (Berman, Ch. 464, Stats. 2022) prohibits a manufacturer, distributor, or retail seller from making an express warranty with respect to a consumer good that commences earlier than the date of delivery of the good, unless the express warranty was made before July 1, 2023.
SB 713 (Anderson, 2017) would have expanded the definition of “new motor vehicle” under the Tanner Act to mean a vehicle with a gross vehicle weight of 10,000 pounds or greater that is bought or used exclusively for business purposes, by a person, including a partnership, limited liability company, corporation, association, or any other legal entity. SB 713 was never set for a hearing in the Senate.
SB 1326 (Roth, Ch. 226, Stats. 2014) requires that all new and used hearing aids sold in this state be accompanied by a written warranty providing specified language.
PRIOR VOTES
Assembly Floor (Ayes 72, Noes 0)
Assembly Privacy and Consumer Protection Committee (Ayes 10, Noes 0)
**************
All further references are to the Civil Code unless otherwise stated. ↑
Phillips and Huang, “Bottom Line: Shoddy work. Unhappy buyers. A near-death experience. When the RV lifestyle goes wrong” Indianapolis Star (Oct. 19, 2022) available at https://www.indystar.com/in-depth/news/investigations/2022/10/19/rv-horrors-defective-units-unhappy-buyers-a-near-death-experience/69523329007/. ↑
Ibid. ↑
ASSEMBLY THIRD READING
ATR Bill Id:AB 1849
Author:(Grayson)
As Amended Ver:May 16, 2024
Majority vote
SUMMARY
Allows the buyer of a travel trailer to elect to receive a refund in the event that a manufacturer or its representative fails to service or repair the trailer after a reasonable number of attempts.
Major Provisions
- Defines the following under the Song-Beverly Consumer Warranty Act:
- A "mobilehome" means a vehicle defined in Section 18008 of the Health and Safety Code.
- A "travel trailer" means a vehicular unit without motive power that is designed to be towed or carried by a motor vehicle. It does not include a mobilehome.
- Requires under the Song-Beverly Consumer Warranty Act that if a manufacturer or its representative does not service or repair a travel trailer to conform to express warranties after a reasonable number of attempts, the buyer shall have the right to request a reimbursement in lieu of replacement.
- States that under no circumstances shall a buyer be required by a manufacturer to accept a replacement travel trailer.
COMMENTS
During the COVID-19 pandemic, when travel was severely limited, people took to the road in RVs as a way of getting away from home while still following isolation and distancing protocols. As the sales rose, there was also a large spike in the number of these vehicles that were recalled and growing frustration from consumers who discovered they had purchased "shoddy" RVs that quickly started falling apart.
The Song-Beverly Consumer Warranty Act and the Tanner Consumer Protection Act require the manufacturers and distributors of consumer goods to offer a warranty on their goods and either repurchase or replace a product if they fail to repair faulty products according to that warranty. Song-Beverly applies to any consumer goods, including consumer electronics, vehicles, trailers, and boats. The act only expressly excludes clothing and consumables (food and drinks) from its scope. The Tanner Act is contained within the Song-Beverly statutes. It applies specifically to new vehicles and, importantly for the purposes of this bill, it expressly allows the consumer to choose whether or not they want a refund or a replacement vehicle, as opposed to the general consumer goods provisions that allow the manufacturer to decide the remedy.
Both acts require the manufacturers and distributors of consumer goods to either repurchase or replace a product if they fail to repair it according to their warranty. The key difference between the state's consumer protection laws, for the author, is that under the first one the manufacturer gets to decide the remedy and under the second the buyer gets to make that decision. In order to address that concern, this bill proposes to allow buyers to elect to receive a full refund if the manufacturer fails to repair or service a travel trailer in a manner that is guaranteed under the manufacturer's warranty after a reasonable number of attempts. In addition, under no circumstances is a buyer required to accept a replacement travel trailer from the manufacturer in lieu of a refund.
The amendments to the bill are intended to address concerns raised by the opposition about including non-motorized vehicles under the definition of "new motor vehicle" in the Tanner Act. The amended version of the bill no longer amends Tanner. Instead it allows buyers, under Song-Beverly, to opt for a refund rather than allowing the manufacturer to decide how to fulfill its warranty if they are unable to repair a travel trailer.
According to the Author
During the COVID-19 pandemic, recreational vehicle (RV) sales skyrocketed and saw a massive surge in demand. With this robust demand for RVs, consumers are finding themselves with faulty or poorly made travel trailers or fifth wheels. While consumers of new motor vehicles may be protected in the Lemon Law, non-motorized travel trailers or fifth wheels are not included in certain Lemon Law Protections. AB 1849 will help protect consumers and provide a legal recourse for individuals who unknowingly purchase defective travel trailers or fifth wheels.
Arguments in Support
None.
Arguments in Opposition
Both the Consumers for Auto Reliability and Safety and the Center for Auto Safety present similar arguments in opposition. Specifically, the Center for Auto Safety writes:
We understand that this measure is introduced to protect purchasers of travel trailers, which is a laudable goal, but purchasers of travel trailers already receive sufficient protections under the Song-Beverly Act. AB 1849 contains language that extends far beyond travel and fifth-wheel trailers, and threatens established law protecting purchasers of used vehicles with a portion of the manufacturer's warranty still in effect.
Furthermore, the modification of the definition of "new motor vehicle" to include trailers with no motor or other means of propulsion strains credulity and is inconsistent with a number of provisions in the CA Lemon Law which assume the presence of an engine, odometer, and other vehicle features not present in a travel trailer.
FISCAL COMMENTS
No fiscal impact.
VOTES
ASM PRIVACY AND CONSUMER PROTECTION: 10-0-1
YES: Bauer-Kahan, Joe Patterson, Bryan, Dixon, Hoover, Lowenthal, Ortega, Ward, Wicks, Wilson
ABS, ABST OR NV: Irwin
UPDATED
VERSION: May 16, 2024
CONSULTANT: Julie Salley / P. & C.P. / (916) 319-2200 FN: 0002967
ASSEMBLY THIRD READING
ATR Bill Id:AB 1849
Author:(Grayson)
As Amended Ver:March 20, 2024
Majority vote
SUMMARY
Expands the definition of a "new motor vehicle" under the Tanner Consumer Protection Act.
Major Provisions
- Expands the definition of a "new motor vehicle" to include a travel trailer without motive power that is towed by a motor vehicle, including a fifth-wheel travel trailer.
- Defines "fifth-wheel travel trailer" as a vehicle designed for recreational purposes to carry persons or property on its own structure and so constructed as to be drawn by a motor vehicle by means of a kingpin connecting device.
COMMENTS
This bill proposes expanding the definition of a "new motor vehicle" under the Tanner Consumer Protection Act to include non-motorized recreational vehicles (RVs), including fifth-wheel travel trailers.
During the COVID-19 pandemic, when travel was severely limited, people took to the road in RVs as a way of getting away from home while still following isolation and distancing protocols. As the sales rose, there was also a large spike in the number of these vehicles that were recalled and growing frustration from consumers who discovered they had purchased "shoddy" RVs that quickly started falling apart.
The Song-Beverly Consumer Warranty Act and the Tanner Consumer Protection Act require the manufacturers and distributors of consumer goods to offer a warranty on their goods and either repurchase or replace a product if they fail to repair faulty products according to that warranty. Song-Beverly applies to any consumer goods, including consumer electronics, vehicles, trailers, and boats. The act only expressly excludes clothing and consumables (food and drinks) from its scope. The Tanner Act is contained within the Song-Beverly statutes. It applies specifically to new vehicles and, importantly for the purposes of this bill, it expressly allows the consumer to choose whether or not they want a refund or a replacement vehicle, as opposed to the general consumer goods provisions that allow the manufacturer to decide the remedy.
Both acts require the manufacturers and distributors of consumer goods to either repurchase or replace a product if they fail to repair it according to their warranty. The key difference between the state's consumer protection laws, for the author, is that under the first one the manufacturer gets to decide the remedy and under the second the buyer gets to make that decision. In order to address that concern, this bill proposes adding non-motorized travel trailers to the Tanner Act protections, thus allowing owners of these vehicles to determine the remedy they would prefer, in the event that a manufacturer fails to conform a new recreational vehicle to the applicable warranties.
According to the Author
During the COVID-19 pandemic, recreational vehicle (RV) sales skyrocketed and saw a massive surge in demand. With this robust demand for RVs, consumers are finding themselves with faulty or poorly made travel trailers or fifth wheels. While consumers of new motor vehicles may be protected in the Lemon Law, non-motorized travel trailers or fifth wheels are not included in certain Lemon Law Protections. This bill will help protect consumers and provide a legal recourse for individuals who unknowingly purchase defective travel trailers or fifth wheels.
Arguments in Support
No support on file.
Arguments in Opposition
Both the Consumers for Auto Reliability and Safety and the Center for Auto Safety present similar arguments in opposition. Specifically, the Center for Auto Safety writes:
We understand that this measure is introduced to protect purchasers of travel trailers, which is a laudable goal, but purchasers of travel trailers already receive sufficient protections under the Song-Beverly Act. AB 1849 contains language that extends far beyond travel and fifth-wheel trailers, and threatens established law protecting purchasers of used vehicles with a portion of the manufacturer's warranty still in effect.
Furthermore, the modification of the definition of "new motor vehicle" to include trailers with no motor or other means of propulsion strains credulity and is inconsistent with a number of provisions in the CA Lemon Law which assume the presence of an engine, odometer, and other vehicle features not present in a travel trailer.
FISCAL COMMENTS
No fiscal impact
VOTES
ASM PRIVACY AND CONSUMER PROTECTION: 10-0-1
YES: Bauer-Kahan, Joe Patterson, Bryan, Dixon, Hoover, Lowenthal, Ortega, Ward, Wicks, Wilson
ABS, ABST OR NV: Irwin
UPDATED
VERSION: March 20, 2024
CONSULTANT: Julie Salley / P. & C.P. / (916) 319-2200 FN: 0002677
Date of Hearing: March 12, 2024
ASSEMBLY COMMITTEE ON PRIVACY AND CONSUMER PROTECTION
Rebecca Bauer-Kahan, Chair
ABPCA Bill Id:AB 1849 (
Author:Grayson) – As Introduced Ver:January 17, 2024
SUBJECT: Tanner Consumer Protection Act
SYNOPSIS
This bill proposes expanding the definition of a “new motor vehicle” under the Tanner Consumer Protection Act to include non-motorized recreational vehicles (RVs), including fifth-wheel travel trailers.
During the COVID-19 pandemic, when travel was severely limited, people took to the road in RVs as a way of getting away from home while still following isolation and distancing protocols. As the sales rose, there was also a large spike in the number of these vehicles that were recalled and growing frustration from consumers who discovered they had purchased “shoddy” RVs that quickly started falling apart.
The Song-Beverly Consumer Warranty Act and the Tanner Consumer Protection Act require the manufacturers and distributors of consumer goods to offer a warranty on their goods and either repurchase or replace a product if they fail to repair faulty products according to that warranty. Song-Beverly applies to any consumer goods, including consumer electronics, vehicles, trailers, and boats. The act only expressly excludes clothing and consumables (food and drinks) from its scope. The Tanner Act is contained within the Song-Beverly statutes. It applies specifically to new vehicles and, importantly for the purposes of this bill, it expressly allows the consumer to choose whether or not they want a refund or a replacement vehicle, as opposed to the general consumer goods provisions that allow the manufacturer to decide the remedy.
Both acts require the manufacturers and distributors of consumer goods to either repurchase or replace a product if they fail to repair it according to their warranty. The key difference between the state’s consumer protection laws, for the author, is that under the first one the manufacturer gets to decide the remedy and under the second the buyer gets to make that decision. In order to address that concern, this bill proposes adding non-motorized travel trailers to the Tanner Act protections, thus allowing owners of these vehicles to determine the remedy they would prefer, in the event that a manufacturer fails to conform a new recreational vehicle to the applicable warranties.
The question before the Committee is whether the current remedies are sufficient or whether the owners of new non-motorized RVs should receive the same enhanced remedies as motorized RVs in the event that the vehicles are found to not be suitable for sale. Weighing the arguments presented by the author and the bill’s opposition, the precedent set in other states that include these vehicles in their Lemon Laws, and the lack of clear consistency in the current definition of a “new motor vehicle” (i.e. including some, but not all, vehicles required to be registered with the DMV and including some, but not all, motorized vehicles), it appears reasonable for the Committee to approve adding non-motorized RVs to the Tanner Act.
This bill is author sponsored and is opposed by Consumers for Auto Reliability and Safety and the Center for Auto Safety.
SUMMARY: Expands the definition of a “new motor vehicle” under the Tanner Consumer Protection Act. Specifically, this bill:
- Expands the definition of a “new motor vehicle” to include a travel trailer without motive power that is towed by a motor vehicle, including a fifth-wheel travel trailer.
- Defines “fifth-wheel travel trailer” as a vehicle designed for recreational purposes to carry persons or property on its own structure and so constructed as to be drawn by a motor vehicle by means of a kingpin connecting device.
EXISTING LAW:
- Provides that, except as specified, every sale of consumer goods that are available for purchase by the public in this state shall be accompanied by the manufacturer’s and the retail seller’s implied warranty that the goods are suitable for sale. (Civ. Code § 1792)
- Defines “express warranty” to mean:
- A written statement arising out of a sale to the consumer of a consumer good that the manufacturer, distributor, or retailer undertakes to preserve or maintain the utility or performance of the consumer good or provide compensation if there is a failure in utility or performance; or
- In the event of any sample or model, that the whole of the goods conforms to the sample or model. (Civ. Code § 1791.2(a).)
- Provides that, except as specified, existing state laws shall not affect the right of a manufacturer, distributor, or retailer to make express warranties with respect to consumer goods, provided that the express warranties do not limit, modify, or disclaim the implied warranties. (Civ. Code § 1793.)
- Requires every manufacturer, distributor, or retailer making express warranties with respect to consumer goods to fully set forth those warranties in simple and readily understood language that clearly identifies the party making the express warranties, and that conforms to the federal standards for warranty terms and conditions. (Civ. Code § 1793.1(a).)
- Requires every manufacturer of consumer goods sold in this state and for which the manufacturer has made an express warranty to, among other things, do all of the following:
- Maintain in this state sufficient service and repair facilities reasonably close to all areas where its consumer goods are sold in order to carry out the terms of those warranties, or designate and authorize independent repair or service facilities reasonably close to all areas where its goods are sold.
- Commence service and repair for goods that do not conform to the express warranties within 30 days unless the buyer agrees in writing to the contrary.
- Replace the goods or reimburse the buyer if the manufacturer does not service or repair the goods to conform to the express warranties after a reasonable number of attempts. (Civ. Code § 1793.2.)
- Requires that if a manufacturer is unable to service or repair a new motor vehicle to conform to the applicable express warranties after a reasonable number of attempts, the manufacturer shall either promptly replace the new motor vehicle or promptly make restitution to the buyer. However, the buyer shall be free to elect restitution in lieu of replacement, and in no event shall the buyer be required by the manufacturer to accept a replacement vehicle. [Emphasis added.] (Civ. Code § 1793.2(d)(2))
- Permits any buyer of consumer goods who is damaged by a failure to comply with any obligation under an implied or express warranty or service contract to bring an action for the recovery of damages and other legal and equitable relief, as well as court costs and attorney’s fees; and specifies that if the buyer establishes that failure to comply was willful, the judgment may include, in addition to damages and other legal and equitable relief, a civil penalty which shall not exceed two times the amount of actual damages. (Civ. Code § 1794.)
- Establishes the Tanner Consumer Protection Act. (Civ. Code §1793.22(a))
- Presumes 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:
- The same nonconformity results in a condition that is likely to cause death or serious injury if the vehicle is driven and the same nonconformity has been subject to repair two or more times.
- The same nonconformity has been subject to repair four or more times.
- The vehicle is out of service by reason of repair of nonconformities by the manufacturer more than 30 calendar days since delivery of the vehicle to the buy. (Civ. Code § 1793.22 (b))
- Defines a “nonconformity” as a nonconformity which substantially impairs the use, value, or safety of the new motor vehicle to the buyer or lessee. (Civ. Code §1793.22 (e)(1))
- Defines a “new motor vehicle” as:
- A new motor vehicle that is bought or used primarily for personal, family, or household purposes.
- 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. (§1793.22 (e)(2))
FISCAL EFFECT: As currently in print this bill has been keyed non-fiscal.
COMMENTS:
1) Background. During the COVID-19 pandemic, when travel was severely limited, people took to the road in recreational vehicles (RV) as a way of getting away from home while still following isolation and distancing protocols. Accordingly, the sales of these vehicles rose dramatically. According to the RV Industry Association, they produced 600,000 RVs in 2021, eclipsing their previous highest year by 19 percent.[1]
2) California’s consumer protection laws. The Song-Beverly Consumer Warranty Act and the Tanner Consumer Protection Act are a group of California civil code sections commonly known as and referred to as the California lemon law. Essentially these laws require the manufacturers and distributors of consumer goods to either repurchase or replace a product if they fail to repair it according to their warranty. Song-Beverly applies to any consumer goods, including consumer electronics, vehicles, trailers, and boats. The act only expressly excludes clothing and consumables (food and drinks) from its scope. The Tanner Act is contained within the Song-Beverly statutes. It applies specifically to new vehicles and, importantly for the purposes of this bill, it expressly allows the consumer to choose whether or not they want a refund or a replacement vehicle, as opposed to the general consumer goods provisions that allow the manufacturer to decide the remedy.
3) Purpose of this bill. According to an Indianapolis Star newspaper in-depth investigation in 2022, the rush to meet the demand for RVs during the pandemic lead to overworked and, sometimes, undertrained workers being pressed to build more and faster to meet the demand. According to their investigation:
. . . RV owners, including those who bought units from Thor-owned companies, complain of problems that range from cracks on cabinets and improperly installed ceiling fans to more serious ones such as mold due to water damage, faulty electrical wiring and gas leaks.
Critics of RV manufacturers have noted that while sales went up, the quality went down. According to data from the National Highway Traffic Safety Administration companies owned by Thor Industries, the largest RV maker in the country, recalled more than 156,000 RVs this year. Forest River, a subsidiary of Warren Buffet’s Berkshire Hathaway, recalled nearly 200,000 RVs this year. Winnebago Industries recalled more than 125,000 RVs in 2022. All were among the highest for each company in the previous five years.[2]
Non-motorized RVs are covered under Song-Beverly, which ensures that buyers of consumer goods obtain the benefit of an express warranty with those goods. Song-Beverly requires manufacturers to either replace the nonconforming item or reimburse the purchase price paid by the buyer, less the amount directly attributable to the buyer’s use before discovery of the nonconformity. Under these provisions, manufactures decide how to honor the warranty. Under the Tanner Act, which pertains specifically to some motor vehicles, a buyer is free to request a refund in lieu of replacement, and manufacturers are prohibited from requiring that buyers accept a replacement vehicle.
Because non-motorized RVs are not covered by the Tanner Act, owners are not currently afforded the ability to elect their own remedy in terms of obtaining either a replacement or a refund. The purpose of this bill is to include non-motorized RVs in the definition of a “new motor vehicle” in order to provide the buyer with that choice.
4) Author’s statement. According to the author:
During the COVID-19 pandemic, recreational vehicle (RV) sales skyrocketed and saw a massive surge in demand. With this robust demand for RVs, consumers are finding themselves with faulty or poorly made travel trailers or fifth wheels. While consumers of new motor vehicles may be protected in the Lemon Law, non-motorized travel trailers or fifth wheels are not included in certain Lemon Law Protections. AB 1849 will help protect consumers and provide a legal recourse for individuals who unknowingly purchase defective travel trailers or fifth wheels.
5) What this bill would do. As noted earlier, both acts require the manufacturers and distributors of consumer goods to either repurchase or replace a product if they fail to repair it according to their warranty. The key difference between the state’s consumer protection laws, for the author, is that under the first one the manufacturer gets to decide the remedy and under the second, the buyer gets to make that decision. In order to address that concern, this bill proposes adding non-motorized travel trailers to the Tanner Act protections, thus allowing owners of these vehicles to determine the remedy they would prefer, in the event that a manufacturer fails to conform a new recreational vehicle to the applicable warranties.
6) Analysis. The question before the Committee is whether owners of new non-motorized RVs should receive the same enhanced remedies as new motorized RVs in the event that the vehicles are found to not be suitable for sale or whether they are sufficiently covered by the state’s general Song-Beverly consumer protection laws that apply to all goods. The author argues that consumers who purchase these types of RVs that turn out to be defective need the protection and legal recourse provided by the Tanner Act.
Opponents of the bill argue that the protections in Song-Beverly are sufficient and that adding a non-motorized vehicle to the definition strains credulity. However, if the chief consideration when it comes to whether or not something is a motor vehicle is the presence of a motor, that seems to suggest that all motorized vehicles should be included in the definition, including all on- and off-road motorized vehicles and motorized boats, regardless of whether or not they are required to be registered with the Department of Motor Vehicles (DMV). On the other hand, if the key consideration is that a new motor vehicle must be registered with the DMV as a vehicle, then it is not clear why non-motorized boats and trailers, including RVs, would be excluded, since they are considered vehicles and require registration. Essentially, the current definition of a “new motor vehicle” [see EXISTING LAW (12)], by virtue of what is and is not included, is not necessarily consistent, thus presumably allowing for additions, such as travel trailers, without violating its intent.
In addition, the author has found that the Song-Beverly Act is not sufficient protection for RV owners, while the opposition argues that it is sufficient. While the author offers several media articles related to consumers who purchased faulty RVs and found the general consumer protection laws did not offer a sufficient remedy, unfortunately specific data or research that would confirm this conclusion does not appear to be readily available. The opposition asserts that Song-Beverly provides sufficient remedy and the added Tanner Act protection is not appropriate or necessary and, in fact, that the change in definition actually threatens to weaken existing consumer protections. However, they do not present evidence demonstrating, even anecdotal evidence, that the current protection is sufficient, nor do they clearly explain how broadening the definition in this way threatens the current law.
If this bill passes and is signed into law, California would not be the first state to include a wider range of vehicles in its Lemon Law, nor would it be the first to include this specific type of vehicle. For example, Texas’ Lemon Law covers cars, trucks, vans, motorcycles, all-terrain vehicles, motor homes, towable recreational vehicles (TRVs) [emphasis added], and neighborhood electric vehicles that develop defects covered by a manufacturer’s written warranty.[3]
Given the arguments presented, the precedent in other states, and the lack of clear consistency in the current definition, it appears reasonable for the Committee to approve adding non-motorized RVs to the Tanner Act.
7) Proposed clarifying amendments. As currently drafted, the language suggests that travel trailers and used vehicles would only be included if they met both criteria. In other words, a travel trailer would need to be used and the used vehicle would only count if it was a travel trailer. In order to rectify this, the Committee amendments would move the travel trailer to (A) and return (B) to mirror the current statute, only modifying it to follow the formatting of (A).
2) (A) “New motor vehicle” means any of the following:
(i) A new motor vehicle that is bought or used primarily for personal, family, or household purposes.
(ii) 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.
(iii) A travel trailer without motive power that is towed by a motor vehicle, including, but not limited to, a fifth-wheel travel trailer.
(B) “New motor vehicle” includes all of the following:
(i) The chassis, chassis cab, and that portion of a motor home devoted to its propulsion, except any portion designed, used, or maintained primarily for habitation.
(ii) A dealer-owned vehicle and a “demonstrator” or other motor vehicle sold with a manufacturer’s new car warranty, except 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.
(iii) A travel trailer without motive power that is towed by a motor vehicle, including, but not limited to, a fifth-wheel travel trailer.
8) Related legislation. AB 1875 (Flora, 2022) would exempt alarm companies governed by the Alarm Companies Act from certain provisions of Song-Beverly pertaining to service contracts. That bill died in the Assembly without a hearing.
AB 2912 (Berman; Chap. 464, Stats. 2022) prohibits a manufacturer, distributor, or retail seller from making an express warranty with respect to a consumer good that commences earlier than the date of delivery of the good, unless the express warranty was made before July 1, 2023.
SB 983 (Eggman, 2022) would require manufacturers of certain electronic or appliance products that make express warranties for products worth $50 or more to make available sufficient service literature and functional parts, on fair and reasonable terms, to owners of the equipment or products, service and repair facilities, and service dealers. That bill was held under submission in the Senate Appropriations Committee.
AB 1221 (Flora, Chap. 452, Stats. 2021) clarifies that service contracts can cover a single product or a class of products, and provides explicit authorization for a service contractor to enter into automatically renewing month-to-month service contracts with consumers subject to certain requirements.
AB 1163 (Eggman, 2019) was substantially similar to SB 983, above. AB 1163 died in the Assembly Committee on Privacy & Consumer Protection Committee.
SB 713 (Anderson, 2017) would have expanded the definition of “new motor vehicle” for these purposes to mean a vehicle with a gross vehicle weight of 10,000 pounds or greater that is bought or used exclusively for business purposes, by a person, including a partnership, limited liability company, corporation, association, or any other legal entity. The bill would provide that for new motor vehicles fitting this definition, a reasonable number attempts must have been made within 18 months from the delivery to the buyer, or 100,000 miles on the odometer of the vehicle, whichever comes first. That bill died in the Senate without a hearing.
SB 1326 (Roth, Chap. 226, Stats. 2014) requires that all new and used hearing aids sold in this state be accompanied by a written warranty providing specified language, including, among other things, that if the device is not initially fit for the buyer’s particular needs, it may be returned to the seller within 45 days of the initial date of delivery to the buyer, and requires the warranty period to resume on the date upon which a repaired or serviced hearing aid is delivered to the buyer.
ARGUMENTS IN OPPOSITION:
Both the Consumers for Auto Reliability and Safety and the Center for Auto Safety present similar arguments in opposition. Specifically, the Center for Auto Safety writes:
We understand that this measure is introduced to protect purchasers of travel trailers, which is a laudable goal, but purchasers of travel trailers already receive sufficient protections under the Song-Beverly Act. AB 1849 contains language that extends far beyond travel and fifth-wheel trailers, and threatens established law protecting purchasers of used vehicles with a portion of the manufacturer’s warranty still in effect.
Furthermore, the modification of the definition of “new motor vehicle” to include trailers with no motor or other means of propulsion strains credulity and is inconsistent with a number of provisions in the CA Lemon Law which assume the presence of an engine, odometer, and other vehicle features not present in a travel trailer.
REGISTERED SUPPORT / OPPOSITION:
Support
None on file with this committee.
Opposition
Center for Auto Safety
Consumers for Auto Reliability & Safety
Analysis Prepared by: Julie Salley / P. & C.P. / (916) 319-2200
“Historical RV Data” RV Industry Association available at https://www.rvia.org/historical-rv-data. ↑
Phillips and Huang, “Bottom Line: Shoddy work. Unhappy buyers. A near-death experience. When the RV lifestyle goes wrong” Indianapolis Star (Oct. 19, 2022) available at https://www.indystar.com/in-depth/news/investigations/2022/10/19/rv-horrors-defective-units-unhappy-buyers-a-near-death-experience/69523329007/. ↑
See https://www.txdmv.gov/motorists/consumer-protection/lemon-law. ↑
Discussed in Hearing
Assembly Floor
Assembly Floor
Assembly Standing Committee on Privacy and Consumer Protection
Bill Author
Bill Co-Author(s):