Book Opener

in cases in which you are led to believe that the seller would fix a defectand the seller does not do so. The revocation must be made within areasonable time after the defect is discovered.Selling “As Is”The engine in Ji’s carleaks oil and makes aclanging noise whenthe oil is low. She knowsHyun is looking for acheap car to get to workafter school, so shewipes off the engine,puts in an extra quartof oil to temporarilystop the noise, and sellsthe car to Hyun “as is.”She does not tell himabout the oil leak orthe noise. In youropinion, is this actionethical? Why orwhy not?Notifying the Seller about Defects Buyers must notify sellers ofdefects in vehicles within a reasonable time after the purchase. If youfail to do so, you may lose the right to recover. You can also lose thebenefits of an express warranty by failing to notify the seller of a defectbefore the warranty expires. Notification can be made in a number ofways. Doing so by certified mail with return receipt requested is bestbecause it gives you proof that the seller was notified of the defect.State Lemon Laws Many states have passed “lemon laws” to protectconsumers when they buy defective vehicles, either new or used. InMassachusetts, for example, you can return a vehicle and get back themoney paid if the vehicle does not pass the state’s required inspectiontest and it will cost more than 10 percent of the purchase price to repairthe vehicle so that it will pass. Dealers in Massachusetts must also givea warranty on used vehicles for 30, 60, or 90 days, depending on thecar’s mileage. In addition, private parties must disclose defects that theyknow of when they sell a vehicle to any buyer.A “lemon” is defined in one state as “a substantially defective newcar that has been at a dealer’s three times for the repair of the same defector any combination of defects.” The car must be no older than one yearand must not have mileage in excess of 15,000 miles to qualify as alemon. If you purchase such a car, you may write a letter to the dealerand manufacturer demanding the replacement of the defective part orparts or a refund. A refund is based on a formula that takes into accountthe use of the car. You have 18 months to request arbitration; that is, youcan have the complaint heard by a neutral party called an arbiter. Ifeither party is dissatisfied with the arbiter’s report, it may be contestedin court.348 Unit 3: Understanding Consumer LawFederal Consumer ProtectionThe federal Motor Vehicle Information and Cost Savings Act hasestablished bumper standards for passenger vehicles. If you are injuredfrom vehicles not in compliance with the law, you may seek damagesfrom vehicle manufacturers. The act also establishes average fueleconomy standards for motor vehicles. Automakers must reach a prescribedaverage of miles per gallon in the cars they sell or make eachyear. The law also requires a label (see Figure 16.4) to be placed on eachnew car when it is sold. The label must show the fuel economy for eachvehicle, estimated annual fuel cost of operating the automobile, andrange of fuel economy of comparable automobiles.