Consumer Law

Buying Cars on eBay

Posted on November 15, 2009
eBay Motors states over 3 million vehicles have been sold through its site. No doubt the vast majority of buyers were satisfied, but attorneys in this office have talked to buyers who were defrauded by sellers using eBay. For example, one buyer found that the classic car he bought from an Arizona car dealer was rusted out...

Governor Signs Car Buyers Protection Bills

Posted on October 12, 2009
Gov Schwarzenegger signed two car buyer protection bills. Given the fact his own administration had publicly opposed them both, this is a stunning reversal. Senate Bill 95(Corbett) will require auto dealers to pay off liens on cars that were traded in with negative equity, before they can sell or transfer them -- which usually happens within a day or two -- or within 21 days (if they keep them that long)...

Bill Requiring Car Dealers to Pay Off Liens on Trade-Ins is on the Governor's Desk

Posted on September 23, 2009
Many consumers have been burned by used car dealers who failed to pay off the loans on cars customers traded in. Car dealers then sold the cars without disclosing to the buyers that there were liens on the cars. The finance company's lien did not disappear with the sale...

Owner Uses Clunker Program to get Rid of a Lemon Maserati

Posted on August 30, 2009
The Associated Press reports that a Subaru dealer in Golden, Colorado, did a double-take when a customer drove up in a 1985 Maserati Biturbo with 19,000 miles on the odometer. The owner, who had been trying without success to sell the car on his own, offered it in trade-in on a new Subaru Impreza...

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Chrysler Reverses Ban on New Product Liability Cases

Posted on August 29, 2009
When Chrysler went through Chapter 11 bankruptcy protection earlier this year the court granted an important request to prevent current owners from suing the new company if they were injured by a safety defect in the future. But Chrysler has had a change of heart...

Enterprise Rent-A-Car Sold Cars with No Side Airbags

Posted on August 16, 2009
Side airbags, an important safety feature, were standard equipment on the 2006, 2007 and 2008 Chevrolet Impalas and on the 2007 and 2008 Chevrolet Cobalts. Even though the airbags were standard equipment, GM allowed fleet buyers to delete the side airbags to save $175 a car...

Nissan's All Electric Car on Sale in 2010

Posted on August 09, 2009
Nissan will sell an all electric car, the Leaf, in 2010 priced less than $20,000. The Leaf has a range of 100 miles. The cars initially will be produced in Japan; later, cars for the U.S. market will be produced in Smyrna, TN. Nissan is building a battery factory at the same location with the help of a $1...

Consumer Groups Protest Chrysler & GM Avoiding Product Liability Claims

Posted on July 03, 2009
Chrysler and GM are using the bankruptcy proceedings to bar persons injured in accidents due to defects in their vehicles. Thanks to the bankruptcy, owners injured or killed due to product defects in vehicles produced before Chrysler's bankruptcy filing are barred from making any claims...

Chrysler Owners' Lemon Law Rights Are Preserved

Posted on June 10, 2009
The new Chrysler/Fiat corporation that emerged from the bankruptcy proceeding will negotiate settlements with owners of vehicles manufactured by the old Chrysler corporation. This concession was made in response to publicity generated by consumer groups...

Dealer Promises to Pay off the Loan on Your Trade-In Car & then Goes out of Business, What Protection do you Have?

Posted on May 25, 2009
Car dealers routinely accept trade-in cars promising to pay off the existing loan as part of the deal. But what happens when the dealer goes out of business without paying off the loan? That leaves the consumer owing money on the trade-in with the finance company looks to the consumer to keep paying...

Can Consumers Sue the new Chrysler?

Posted on May 20, 2009
Whether Chrysler owners may sue based on the lemon laws or for personal injury caused by product defects is not settled. Christopher Jensen, writing today in the NY Times, said that the new Chrysler, the company that is expected to emerge from bankruptcy court, will honor warranties, but will only be responsible for personal injury lawsuits for vehicles sold after the bankruptcy...

Best Cars for Teen Drivers

Posted on May 19, 2009
Accident rates for teen age drivers are pretty appalling. An aggravating factor is that parents often give older, unsafe cars to the kids. Given their driving habits, the kids should have the safest cars. Columnist Joseph White of the Wall Street Journal analyzed crash tests and reliability data to come up with recommendations for the best used cars for young drivers...

Be Cautious Buying from Dealers Going Out of Business

Posted on May 17, 2009
As everyone knows, Chrysler and GM are disenfranchising thousands of car dealers. Lots of used car dealers have gone out of business because of the rescission and poor sales. When dealers go out of business, bad things can happen to buyers. Dealers may forget to pay off the loan on a trade-in car or to send in the paperwork for an extended warranty or a factory rebate...

Chrysler Bankruptcy Trumps Lemon Law Claims

Posted on May 10, 2009
Chrysler's bankruptcy has left owners of Chrysler lemon vehicles without a remedy. Under bankruptcy law, Chrysler owners with lemon law claims are are merely unsecured creditors who are essentially last in line. Owners may file a claim with the bankruptcy court, but it is unlikely such claims will be paid...

Smart, Yaris & Fit Fare Poorly in Crash Tests

Posted on April 16, 2009
The Insurance Institute for Highway Safety sent the Honda Fit crashing into a Honda Accord, the Smart ForTwo into a Mercedes C-Class and a Toyota Yaris into a Toyota Camry -- each at 40 miles per hour. The results indicate what safety you may be trading for efficiency when your mode of transportation shrinks...

President Nominates Safety Advocate to Head NHTSA

Posted on April 14, 2009
President Obama has nominated safety advocate Charles A. Hurley to head the National Highway Traffic Safety Administration (NHTSA). Hurley has been the CEO of Mothers Against Drunk Driving (MADD) for four years. Before that Hurley was with the National Safety Council and the Insurance Institute for Highway Safety...

Some SUVs Do Poorly in Roll Over Crashes

Posted on March 31, 2009
Some SUVs did not do well in roof crush tests conducted by the Insurance Institute of America. A report in the NY Times by Chris Jensen digests the Institute's findings. Only four of the dozen small S.U.V.?s evaluated in a new test to see how well their roofs held up in a rollover crash got ?good? ratings, and some of the country?s most popular models did not fare well...

Government to Guarantee GM & Chrysler Warranties

Posted on March 31, 2009
A Consumer Reports survey found that more than three-quarters (78 percent) of respondents said they were unlikely to consider buying a new car from an automaker in bankruptcy; 64 percent were very unlikely. Further, more than eight in 10 respondents said they are unlikely to consider buying a new car from a division that is being sold or phased out; 63 percent said very unlikely...

Major RV Manufacturers File Bankruptcy

Posted on March 16, 2009
Fleetwood Motor Homes filed Chapter 11 bankruptcy on March 10, 2009. Fleetwood, the leading RV manufacturer in terms of sales, announced it would continue operations while it reorganized. Fleetwood said it would close its travel trailer operation. Fleetwood joins Monaco Coach Corp and Country Coach in the bankruptcy courts...

Consumer Reports on the Best New Cars & Trucks

Posted on February 28, 2009

Auto Makers Charge Extra for Safety Features

Posted on February 22, 2009
Side air bags and electronic stability control are two of the most effective safety features available on new cars. The good news is that the federal safety agency is requiring auto makers to equip cars with side air bags by the 2010 model year and stability control by the 2012 model year...

Will GM & Chrysler Honor Warranties in Bankruptcy?

Posted on February 21, 2009
Writing in the NY Times auto blog, Chris Jensen explores whether GM and Chrysler will honor new-car warranties if they file Chapter 11 bankruptcy. The bankruptcy experts agree the companies would not have to do so and theoretically creditors could object to being disfavored...

How Car Talk Selects its Callers

Posted on February 19, 2009
The NPR program Car Talk with Tom and Ray Magliozzi, aka Click and Clack, is the most popular car show on the radio. Ever wonder how you get through to talk about your car? It is not a matter of just calling 1-888-227-8255 and waiting to get connected to hosts according to a Wall Street Journal article in its February 18, 2009, edition...

National Database of Wrecked Vehicles Available January 30, 2009

Posted on January 29, 2009
On January 30, 2009, the federal safety agency will make available a national database on stolen and totaled (salvage) vehicles. Consumers may go to www.nmvtis.gov for information on how to use the system. At this time, the database has information from only 27 states that cover 73% of U...

Used Car Buyers Should Not Rely on Carfax Reports

Posted on January 18, 2009
As most car buyers know, Carfax.com sells auto histories. Carfax' website tells consumers, "Don't buy a used car without CARFAX Vehicle History Reports! Order a CARFAX Vehicle History Report. . . the first step to protecting yourself against buying used cars with costly hidden problems...

Chrysler Having to Repurchase 2007 Dodge RAM Diesel Trucks

Posted on January 06, 2009
Chrysler is having repair problems with its 2007 and 2008 Dodge RAM trucks equipped with the 6.7L Cummins turbo diesel engine. Typically, the check engine light comes on causing the owner to take it in to their dealer for warranty repairs. The dealers often find problems with the engine computer controls, the emissions system, the turbo, and the transmissions...

Crooked Dealers Fail to Pay Off Loans on Trade-Ins

Posted on January 06, 2009
Buyers often trade in cars with outstanding loans on the the dealer's promise it will pay off the loan. Honest dealers promptly do so, but a small number of dishonest dealers do not pay off the loan. When that happens, the lien-holder finance company usually finds the car and reposses it leaving the consumer out the down payment, payments, and no car...

Faulty Chinese Auto Parts Worry Safety Advocates

Posted on January 01, 2009
Safety advocates are concerned about defective Chinese auto parts such as tires susceptible to tread separation and child restraints that come apart in an impact. Other examples are tire valves that break and let air escape, glass that does not meet standards for tempered glass, and high-intensity discharged headlights that do not meet U...

Why Small Gains in MPG in Low Mileage Vehicles are Important

Posted on December 18, 2008
People greatly undervalue what small increments in miles per gallon (MPG) in large vehicles means and at the same time overestimate the value of increases in already fuel efficient vehicles. The right way to think about fuel efficiency is to look at gallons consumed per 100 miles according to an article in the June 20, 2008, issue of Science Magazine written by Richard Larrick of Duke University and a co-author...

New Improved EPA Mileage Estimates for 2008+ Models

Posted on November 30, 2008
Most drivers have complained that their cars could not get the mileage promised by the EPA fuel economy figures. Starting with 2008 models, the EPA revised its testing procedures to more accurately reflect real driving conditions. J. D. Power surveyed owners of 2008 cars and found that drivers said there were getting 5% better gas mileage than the EPA estimates...

Bankruptcy Expert's Proposal to Save the American Auto Industry

Posted on November 29, 2008
J. Ronald Trost, a leading expert on bankruptcy law, has a proposal to save GM, Ford and Chrysler. His proposal in the NY Times is a restructuring under the umbrella of a special federal statute. He states ordinary Chapter 11 proceeding won't work for various reasons...

Auto Care Myths Cost Consumers & Harm the Environment

Posted on November 20, 2008
Dealers and oil changer companies typically recommend changing oil every 3 months or 3,000 miles. On November 6, 2008, GM issued a statement that this recommendation is the biggest myth in the car business. GM has a Oil Life System (OLS) in almost all its models that monitors combustion events, engine temperature and other parameters to gauge oil's life...

Today's Incredibly Weak Car Bumpers

Posted on October 20, 2008
Car bumpers in most new cars are incredibly weak. The Insurance Institute of America testers bumpers of 17 cars by crashing them into a barrier at a mere 6 mph resulting in an average cost to repair of $4,500! Luxury cars were the worst offenders; an Infiniti G35 had more than $5,200 in front end damage...

Judge Orders Wrecked & Stolen Car Database Made Public

Posted on September 24, 2008
Sixteen years ago, Congress enacted a statute requiring the federal government to implement the National Motor Vehicle Title Information System (NMVTIS), a single database that would provide public access to vehicle-history information gathered from states, insurance companies, and junk and salvage yards...

Digital Odometers Make it Easy to Cheat Car Buyers

Posted on September 10, 2008
High-tech digital odometers are making it easy to chat unsuspecting used car buyers according to a USA Today article. Unscrupulous sellers can obtain the software or services from the Internet to reset the odometers. Old style mechanical odometers could be reset, but it was fairly easy to detect that the tampering had taken place...

Honda Sues Dealer Selling Discount Extended Warranties

Posted on August 05, 2008
Savvy car buyers know that they may save money by buying an extended warranty (service contract) backed by a manufacturer from any authorized dealer. A NY Times article published August 2, 2008, on the subject of extended warranties features a Rhode Island Honda dealer, Saccucci Auto Group, that has made a business of selling discounted Honda Care service contracts over the Internet (www...

Honda Trying to Halt Sales of Discounted Service Contracts

Posted on August 05, 2008
Savvy car buyers know that they may save money by buying an extended warranty (service contract) backed by a manufacturer from any authorized dealer. A NY Times article published August 2, 2008, on the subject of extended warranties features a Rhode Island Honda dealer, Saccucci Auto Group, that has made a business of selling discounted Honda Care service contracts over the Internet (www...

BMW's Mini Sales Soar, but Quality Stumbles

Posted on July 06, 2008
Automotive News reports that BMW's Mini brand sales were up 52.8% in May 2008 from a year ago, but that J.D. Power reports that Mini owners reported 163 defects per 100 vehicles in the first 90 days of ownership. That figure was only topped only by the Jeep brand with 167 defects in the first 90 days.

Aged Tires Being Sold New Are Dangerous

Posted on June 22, 2008
An ABC news report reveals that aged tires--some as old as 12 years--are being sold as new at leading retailersl After about 6 years of sitting on the shelf, tires dry out and lose their elasticity. The tread will peel off these tires when put in use causing the car to swerve out of control and crash...

Car Dealer Fee Bill Dies in the California Legislature

Posted on June 18, 2008
California law allows cars dealers to add a so-called document fee of $55 to each auto purchase contract. There is no good reason the law should allow dealers to add this fee because document preparation is just part of the cost of doing business. Not satisfied with the $55 fee, this year, the car dealers sponsored a bill in the California Legislature to raise the fees to $65, which we estimate would cost California car buyers an additional $40 million per year...

Checkbook Rates Bay Area Auto Repair Shops

Posted on June 08, 2008
Bay Area Checkbook has published a survey of 495 auto repair shops in the San Francisco Bay Area. It found plenty of good and bad shops--195 shops were rated superior for overall performance by 90% or more of their customers while 54 shops were rated inferior, the lowest rating, by at least 1/4 of their customers...

No Lemon, But this Car Has No Reverse

Posted on May 24, 2008
Nissan has a new concept car with no reverse. Plus, it is electric. Check it out.http://http://www.cnn.com/video/#/video/tech/2008/05/23/nzekwu.uk.rotating.car.itn

RV Makers in Tight Squeeze

Posted on May 13, 2008
RV manufacturers are experiencing drastic declines in sales and revenue. Buyers are scarce due to high gasoline prices and a poor housing market. RV manufacturer National RV went out of business in November 2007. Just in the last two months, Alfa Leisure, Western RV (Alpine), and Travel Supreme closed down...

Crash Ratings from the Insurance Institute

Posted on April 26, 2008
To select a safe car or truck, buyers should review the Insurance Institute for Highway Institute reports. The Institute website makes its findings on cars, trucks and baby seats easily accessible. In April 2008, the Institute released its side impact crash results on midsize cars...

Smart ForTwo Car Has Safety and Mechanical Issues

Posted on April 26, 2008
The Smart ForTwo car is now being sold in by Mercedes-Benz dealers. The tiny car has met with mixed reviews. After the driver's door opened during a side-impact test, the U.S. federal safety agency opened an investigation. The investigation followed a New York Times blog post that includes a video of a Smart car hitting a barrier at 70 mph...

Michelin Abandons Its Pax Run-Flat Tire System

Posted on February 29, 2008
This is an update on the class actions this and other law firms have filed against Michelin and Honda concerning the "PAX" run-flat tires on the 2005-2007 Honda Odyssey Touring minivans and certain Acura RL models. The cases involve Michelin's "PAX" run-flat tire system consisting of a special tire, support ring, wheel and tire presssure monitoring system...

Federal Safety Agency Withholds Safety Information from the Public

Posted on February 29, 2008
The National Highway Safety Administration ("NHTSA") is the agency that is supposed to regulate auto manufacturers to improve highway safety. For many years, however, the agency has done little or nothing to ensure highway safety; its actions are more in tune with protecting the auto industry than the public...

Car Dealers Are Taking Away Your Right to Sue

Posted on February 19, 2008
Car dealers in California increasingly have arbitration clauses buried in their sales contracts that preclude buyers from going to court. Under these clauses, any disputes are channeled to arbitration forums, principally the National Arbitration Forum (NAF) and the arbitrator's findings are binding...

Flaws in the Car Buyers Bill of Rights

Posted on November 29, 2007
California's Car Buyers Bill of Rights gives used car buyers the right to return the vehicle for any reason within two days, but only if the buyer agrees to pay a fee ranging from $75 to $400 depending on the price of the vehicle. The first problem is that many dealers are persuading buyers to waive this protection...

Let?s Make a Deal ? What the Deal Jacket Reveals

Posted on November 12, 2007
Car sales and leases are not sealed with a handshake these days. After hours of haggling, you?ll be told: ?Sign here. And here. And here. And here.? Of course, you should get an exact copy of every document signed or initialed at the dealership before taking delivery of the vehicle...

Using Internet Forums to Research Defects

Posted on October 26, 2007
Years ago, manufacturers and their dealers were forever telling owners with problem vehicles this "we've never seen this before" or "the car meets manufacturer's specifications" when the truth was that the manufacturer knew that the problem of which the owner was complaining was both real and to be found in other vehicles of the model...

Best Web Sites on Green Cars & Fuel Economy

Posted on October 24, 2007
The New York Times has selected the best websites that provide accurate information on green cars--hybrid and electric. The sites are treehugger.com that provides a survey of the green car landscape, priuschat.com that covers the Prius, pluginamerica...

Good News: California to Join U.S. Car Titling System; Consumers and Law Enforcement to Benefit

Posted on September 17, 2007
In good news for consumers, the California DMV announced that it would join the National Motor Vehicle Titling Information System (NMVTIS) in 2008. Being part of the system allows the state to instantly verify the validity of out-of-state ownership documents, including the VIN, odometer, and any damage history before issuing a California title...

Lemon Law Extended to Military Personnel Stationed in California

Posted on July 30, 2007
In July 2007, the California Legislature approved and the Governor signed a bill to extend the protection of the California Lemon Law to members of the Armed Forces stationed in California regardless of where they bought their lemon car or truck. California is the only state that has extended its lemon law to military personnel who bought their vehicle outside of the state in which they are stationed...

The Honda Hybrid Civic that Cannot Make it Up a Hill

Posted on July 10, 2007
One of our clients has a 2006 Honda Civic hybrid that cannot always make it up the hill to her house! Even when she floors the accelerator, the car just stops. Turns out the problem is that when the battery to the electric booster engine on the car is low, the tiny gasoline engine just does not have the power to move the car up the rather steep hill going to her house...

Auto Leasing Class Action Settlement with Wells Fargo Bank - Gutierrez v AutoWest, et al.

Posted on July 06, 2007
In an auto lease class action, the San Francisco Superior Court recently granted preliminary approval of a class action settlement that plaintiffs reached with Wells Fargo Bank. The case is entitled Gutierrez v AutoWest et al. The Settlement Class Notice was mailed on or about June 20, 2007...

KABOB Files Class Action Alleging BMW Has an Illegal Secret Warranty on the Run Flat Tires on the 2006 and 2007 3 Series Cars

Posted on June 10, 2007
On May 31, 2007, KABOB filed a class action against BMW alleging that BMW has an illegal secret warranty on the run-flat tires on its 2006 and 2007 BMW 3 Series cars. The suit also states that the run-flat tires are defective and not fit for their ordinary purposes--the tires often wear out with less than 10,000 miles of use! The 3 Series cars come equipped with Bridgestone run-flat tires, which are designed to enable drivers to continue driving a limited number of miles with a punctured tire...

Dangers of Co-Signing An Auto Loan

Posted on June 05, 2007
Co-signing a car loan always seems like a good thing at the time. Often, the arrangement is based on optimism and affection. A friend or family member?s credit simply comes up a little short. The bank wants a second name on the signature line. So, Dad might co-sign on a teenager?s first car, an aunt might help a temporarily unemployed nephew who needs wheels, or a girlfriend might use her good credit to help out her new flame...

Pontiac GTO Oversized Tires Class Action Filed

Posted on May 10, 2007
GM sold its 2004 and 2005 Pontiac GTO cars with 17" wheels and 245 mm tires. Unfortunately, the tires are too wide causing them to sometimes graze the front struts which causes premature and uneven tire wear and even tire failure. On May 10, 2007, KABOB filed a class action seeking a court order forcing GM to notify GTO owners of this problem and compensation for the cost of new, narrower tires...

Prior Daily Rental Cars: Rip-Off on Resale

Posted on April 26, 2007
Hertz, Avis, Budget, Thrifty, Dollar and Enterprise are all household names for daily rental cars. The ease and convenience of pay-per-day driving is a blessing to the traveler, whether on business or for pleasure. On the other hand, we've all returned from a trip saying, "Nice place to visit, but I wouldn't want to live there...

Bigger Cars with Stability Control Are Safest

Posted on April 26, 2007
A new report of driver deaths in auto accidents shows that bigger cars and those with stability control are safer. A new study by the Insurance Institute for Highway Safety published April 19, 2007, shows that the vehicles associated with the lowest death rates are the Chevrolet Astr, Infiniti G35, BMW 7 series, Toyota 4 Runner, Audi A4, Mercedes E & M class, and other larger vehicles...

Hybrid Cars ? Green Lemons Waiting to Ripen?

Posted on April 24, 2007
Full disclosure here: A hybrid just might be my next car. The local parking lot?s ?green preferred? spot is nearly always filled with a Prius; my octogenarian aunt just bought a Honda hybrid; and my trendsetting friend Cathy tools around in a Lexus RX...

Lemon Law Support: Technical Service Bulletins

Posted on April 12, 2007
Car defects are less of a mystery than they used to be. The National Highway Traffic Safety Administration (NHTSA) provides a source of information useful to investigation of Lemon Law complaints that was not readily available to consumers before the Internet Age...