How does the Lemon Law of the Philippines work? And other information around Lemon Law PH that you should know besides its primary goal of protecting consumers and establishing of the consumer’s proper obligations.
Philmotorlaw.com will explain and show you more details about the law and how to constituting a proper claim. We also highlight for your general knowledge and other exclusive cases when using the law.
What Is Lemon Law Of The Philippines?
The Philippine Lemon Law or Republic Act No. 10642 is an act strengthening consumer protection for purchasing new motor vehicles. The State declared it to support and encourage complete protection to the consumers’ rights in the motor vehicles’ sale. Moreover, it plays an important role in assisting consumers and the public by preventing unfair, deceptive, or other damaging business and trade practices.
You could learn more about Lemon Law Philippine here
How Do Vehicle Lemon Laws Work In PH?
The State approves a motor vehicle as a major investment or purchase of a consumer. Therefore, we will clearly define the consumers’ rights and redress violations in this lemon law in the Philippines.
More specifically, This Lemon Law would protect all the owners if they purchased brand-new vehicles in the Philippines within the first twenty-thousand-kilometer operation after the vehicle’s delivery or twelve months after the new motor vehicle’s original delivery date.
This law offers motor vehicle owners the right to help them report all the nonconformity and issues about standards and specifications of the manufacturer or the distributor of the vehicle.
Besides, the rule indicates that the consumers/owners must notify in writing a text about the unresolved complaints and their Lemon Law rights’ intention to avail to the distributor, manufacturer, retailer, or the authorized dealer.
You must be mindful that the consumers may only invoke the Lemon Law rights within twelve months or after operating the first 20,000 kilometers. Moreover, the invoking process is legal after repairing at least four different times for the same unresolved nonconformity issues and complaints. Consumers also have to ensure that the repair is from the same distributor/manufacturer or the authorized dealer.
Exclusive Situations When Using The Lemon Law Of The Philippines
The lemon law for motorcycles Philippines will exclude the nonconformity if it comes with the following causes:
- The consumer’s noncompliance with the warranty obligation.
- The distributor, manufacturer, retailer, or authorized dealer did not authorize the modifications.
- Consumers neglect or abuse new motor vehicles.
- Consumers damage vehicles through force majeure or accident.
- The repair may involve assemblies or parts component replacement.
Luckily, the distributors or authorized dealers give each customer a warranty booklet to understand their responsibility before using the “lemon law in Philippines”.
Before any remedies’ availing under the Lemon Law act, consumers have to notify in writing the distributor, manufacturer, retailer, or authorized dealer of their complaint and their intention to invoke the rights.
After writing the notification, the consumer/owner should bring their vehicle to the distributor/manufacturer where they purchased the vehicle for the last attempt of addressing the complaints about better satisfaction.
At this stage, upon the motor vehicle’s receipt and the nonconformity’s notice, the manufacturer/retailer or authorized dealer must resolve the customers’ complaints. In many cases, they would make the repairs if necessary to make the vehicles meet the manufacturers’ standards and specifications.
Besides, the consumer still has a nonconformity problem that remains unresolved after many efforts to repair their vehicle. They can send their complaint to the Department of Trade and Industry (DTI).
The law will also allow the consumers entitled to an acceptable daily transportation allowance. In detail, this feature helps compensate for their vehicles’ non-usage while the consumers exercise their Lemon Law rights or while under repair.
This amount will help consumers pay the transportation costs from their residence to their workplace or regular destination, and vice versa. The official receipts will evidence all the fees.
Besides, depending on the distributor/ manufacturer or authorized dealer’s options, there will be a service vehicle or the agreement between both sides about the fee amount for consumers to commute.
DTI Exclusive Exercises And Original Jurisdiction Over The Dispute
DTI can direct the distributors or retailers to grant the consumers one of the following remedies if there is nonconformity according to DTI:
- Replace the vehicle with the comparable or same model with similar values and specifications.
- Accept the motor vehicle’s return and pay back the purchase price with the consumer’s collateral charges.
The consumer can even decide to purchase a different vehicle with higher specifications and value from the same distributor, manufacturer, or retailer with a different cost.
However, after validating the consumers’ complaints, DTI will direct consumers to refund the distributor/manufacturer or retailer the costs incurred during the validating process if the DTI cannot find any motor vehicle’ nonconforming.
Republic Act No. 10642 shows that consumers can take an appeal from a final order or judgment in fifteen days from receipt. Simultaneously, the DTI’s Secretary will decide on the appeal in thirty days from receipt.
The distributor or authorized dealer can make available or offer the motor vehicle’s resale that their customers returned. However, the prerequisite is before the transfer or sale, and the authorized dealer should publish in writing the following customer about the same vehicle these details:
- Customers returned the motor vehicle to the distributor, manufacturer, retailer, or the authorized dealer.
- The nonconformity’s nature that caused the return
- The motor vehicle’s condition when making the transfer to the distributor, manufacturer, retailer, or the authorized dealer.
Subsequently, the responsibility of the manufacturer or the authorized dealer in this section will cease right after the affected vehicle’s sale to the first purchaser.
The authorized dealer should not fail or violate to follow the required disclosure related to the nonconformity’s nature, as this will cause the motor vehicle’s return.
When it comes to this case, they will have to be responsible for paying the damages to the aggrieved party, without any prejudice to any criminal liability or civil.
Hopefully, with this article, you will understand clearly the lemon law of the Philippines and its importance to you and your motor vehicle. By knowing more about certain special situations, we believe you can calmly handle situations when having issues with your new motorbike or car.