Skip to main content

Search

Consumer Class Actions: Introduction

California’s operative general class action statute, Code of Civil Procedure § 382, was enacted in 1872 as part of California’s Field Code and has remained essentially unchanged.12 California’s second class action statute, the Consumer Legal Remedies Act, is found at Civil Code §§ 1750, et seq., and lists 23 prohibited acts, violations of which form the basis for class actions seeking damages and a wide variety of other remedies.

Consumer Credit Regulation: 13.2.2 Which Laws Apply to RTO and Which to LTO Transactions?

Because they are structured as short-term, renewable leases with a purchase option, RTO transactions fall outside the scope of several important consumer protection statutes. But most of those statutes do apply to LTO transactions. In addition, some statutes and common law doctrines apply to both.

The following chart summarizes what statutes apply to which type of lease transactions. However, this chart does not capture all the nuances, and advocates should refer to the more detailed discussions of these issues elsewhere in this book.

Consumer Credit Regulation: 13.3.5.2 New and Used Price Differentials

RTO dealers usually charge the same periodic payment whether the item is used or new but adjust the total number of weekly or monthly payments required to achieve ownership of the used item. This means that the weekly amount that rental consumers are paying for used goods is the same as for new goods. For example, a low-end new stereo may be priced at $15.99 a week for seventy-eight weeks for a total of $1,247.22, while a low-end used stereo may also be $15.99 a week but only for sixty weeks, for a total of $959.40.

Consumer Warranty Law: J.1 Sample Complaints

This treatise’s digital edition contains over thirty warranty-related sample complaints, available in Microsoft Word format. To locate complaints in the digital edition, go to “Contents” in the left pane, and select Pleadings and Discovery > Initial Pleadings, Forms and Notices > Complaints. Another approach, in addition to using the standard search function, is to use the advanced pleadings search and select Complaints under “Filter by Pleading Type.” To further narrow the search, select either a subject, a legal claim, or both in the other fields on that page.

Consumer Warranty Law: J.2 Sample Document Requests and Interrogatories

This treatise’s digital edition contains a large number of sample discovery documents, available in Microsoft Word format. To locate interrogatories and document requests on the website, go to “Contents” in the left pane, and select Pleadings and Discovery > Discovery > Document Requests or > Interrogatories or > Combined Document Requests and Interrogatories.

Consumer Warranty Law: J.3 Sample Requests for Admissions and Deposition Transcripts

This treatise’s digital edition contains requests for admissions (in Microsoft Word format) and a number of deposition transcripts (in PDF format) directed towards various personnel at a car dealership and a zone manager. To locate these in the digital edition, go to “Contents” in the left pane and select Pleadings and Discovery > Discovery > Requests for Admissions or > Depositions.

Consumer Warranty Law: J.4 Sample Trial Documents

This treatise’s digital edition contains sample trial documents, generally in Microsoft Word format. To locate these in the digital edition, go to “Contents” in the left pane and select Pleadings and Discovery > Discovery > Initial Motions or > Trials.

Consumer Warranty Law: 14.1 Introduction

This chapter focuses on new motor vehicle warranty issues. As new vehicles invariably come with a manufacturer’s warranty, the pivotal question is not, as with used car cases, the warranty’s existence, but its enforcement.

Consumer Warranty Law: 14.2.1 Introduction

A common warranty problem for a new car owner is that, shortly after purchase, the car displays certain defects that persist despite dealer repair attempts. Such cars are colloquially termed “lemons.” State lemon laws offer targeted remedies for owners of such cars.

Consumer Warranty Law: 14.2.2 Lemon Laws Are Constitutional

Courts consistently uphold lemon laws against constitutional challenges.15 Courts have rejected constitutional challenges based on the Commerce Clause,16 even when the state lemon law is applicable to vehicles purchased in another state.17 The Eighth Circuit has ruled that a lemon law did not amount to a taking of private property without due process of law.18

Consumer Warranty Law: 14.2.3.1 Types of Vehicles Covered

Every lemon law covers private passenger motor vehicles purchased for consumer use. Whether trucks, tractors, mopeds, motorcycles, trailers,20 motor homes,21 and heavy equipment such as construction vehicles are covered depends on the specific language of the statute and judicial interpretation of that language.

Consumer Warranty Law: 4.3.2.8 “Impliedly Warranted to Be Fit for Such Purpose”

This clause of section 2-315 is what makes the implied particular purpose warranty of such value to buyers. When this warranty arises, the seller is promising that the goods are suitable for the buyer’s particular job. Goods may fail to do the job even though they are not defective and operate exactly as intended by the manufacturer or seller. The buyer is given more specific protection than that offered by the implied warranty of merchantability, which promises only ordinary quality.

Consumer Warranty Law: 4.3.3 Seller’s Good Faith Is Irrelevant

As with express warranties and the implied warranty of merchantability, the seller’s good faith is irrelevant.239 If the goods are not fit for the buyer’s particular purpose, and the elements of section 2-315 are shown, the seller is liable regardless of whether the seller relied on the manufacturer’s or distributor’s statements in recommending the product, whether the manufacturer made a defective product, or whether the seller otherwise was not at fault.

Consumer Warranty Law: 4.3.4.2 Parol Evidence Rule Not Applicable

The implied warranty of fitness for a particular purpose arises by operation of law rather than through agreement of the parties.243 This principle is true even though the existence of the warranty usually depends on verbal communication by the buyer to the seller of the buyer’s purpose for the goods.244 As a result, the parol evidence rule is no bar to claims of breach.245 The buyers are free, for example, to show that they told the seller why the

Consumer Warranty Law: 4.4.1 General

Except in mail order, catalog, or internet sale transactions, buyers often have an opportunity to inspect the goods, a model, or a sample before the sale is consummated. The mere opportunity to inspect has no effect on the existence or scope of any of the UCC warranties.

Consumer Warranty Law: 4.4.2.1 Defects That Could Not Reasonably Have Been Discovered

As section 2-316(3)(b) provides, examination of the goods or refusal to examine the goods can vitiate implied warranties only with respect to defects that are discovered, or should have been discovered, “in the circumstances.” An inspection does not waive the implied warranty for defects which could not reasonably have been discovered during the examination, such as latent defects.259 A typical consumer buyer, and often a commercial buyer, cannot be expected to conduct complicated testing or discover latent defects through an examination of t

Consumer Warranty Law: 4.4.2.3 Post-Sale Inspections Irrelevant

A post-sale inspection, unlike inspection upon delivery or before acceptance of the goods, is not an examination within the meaning of section 2-316(3)(b). As the deal has already been made, inspection after the sale has no bearing on whether implied warranties arose in the bargain. This point is made in comment 8 to section 2-316: “ ‘Examination’ as used in this paragraph [section 2-316(3)(b)] is not synonymous with inspection before acceptance or at any other time after the contract has been made.

Consumer Warranty Law: 4.4.2.4 Necessity of Demand by Seller When Consumer Fails to Inspect Goods

Sellers will rarely be able to avoid responsibility by looking to the “refused to examine the goods” language in section 2-316(3)(b). This provision applies only when the seller actually demands examination by the buyer before the sale. The buyer’s failure to examine the goods or even the buyer’s refusal of a request or offer to examine the goods is insufficient. Again, comment 8 to section 2-316 is explicit on this point:

Consumer Warranty Law: 14.2.3.2.2 Are living quarters excluded?

In many states the statutory language or judicial interpretation applies the lemon law to the motorized portion of motor homes and excludes the living quarters or non-motorized portion of the vehicle.37 The practical effect of the limitation has largely been eliminated in California, where the lemon law excludes the living quarters, but the Song-Beverly Consumer Warranty Act includes them, thus resulting in full relief for the aggrieved purchaser.38

Consumer Warranty Law: 14.2.3.3 Demonstrators and Low-Mileage Used Cars

With some exceptions, lemon laws apply only to new motor vehicles,42 although the term “new” may not be defined in the lemon law. Definitions found in other state motor vehicle laws will generally define “new,” and may state that a vehicle is “new” if it has not previously been subject to a retail sale or has not yet had a certificate of title issued.