California's New Lemon Law

Lemon Law Protects Consumers And Small Businesses

The plaintiff’s attorney was California lemon law and consumer protection specialist attorney Robert F. Brennan, who is a partner in Brennan and Weiner. When asked why this was a significant case, Brennan responded, “This case shows that Song-Beverly protects not only individual consumers but also small businesses.”

The small limousine service, Park Service, was owned and operated by husband and wife Tim and Teresa Ferraro. Due to the nature of their business, their “fleet” of 3 limousines had to be operational for the company to meet even its basic operating costs.

Mr. Brennan proved during the trial that one of the limos was defective. Not only did this Ford Lincoln Towncar conversion consistently overheat, the air conditioning didn’t work, there were persistent electrical problems, and the suspension malfunctioned continually, which caused a bumpy ride for passengers and damage to the vehicle’s undercarriage. On one occasion, Brennan stated in a recent interview, the car overheated catching fire just after a young man had proposed to his girlfriend while sitting in the limo. Even though the Ferraros brought the limo into the Ford dealership numerous times for service, the vehicle was never properly fixed.

Brennan stated that because this was a small business and not an individual consumer, Ford tried to wash its hands of the problem. Ford believed that only an individual consumer could obtain relief under California’s lemon law, not a small business. However, California’s Song Beverly Act -- also known as the California lemon law, was amended in 1999 to protect small business owners with less than 5 vehicles, as well as individual consumers.

Brennan recommends the following for other California small business owners who may have a defective business vehicle:

1. Maintain detailed records of when the vehicle breaks down, how long it is out of commission and what actions were taken to resolve the problem. If you have specific days, times, and recurring issues documented, it will be easier to prove damage to your business.

2. Since dealership repair records are often the only proof you have in lemon law cases it is important to keep a copy of every repair record.

3. After the dealership has been unable or even unwilling to fix a recurring problem with your vehicle, seek an attorney’s help. Know your rights as a small business owner as dealerships are not under any legal obligation to tell you about them.

It’s About Time

We hear all the time how small businesses are the “engine that drives their economy” so it’s about time that large auto manufacturers like Ford and others realize the importance of quality vehicles for small businesses. According to Brennan, these large organizations need to demonstrate that they are trustworthy partners to the small businesses that rely upon their products. Ford has appealed the verdict.