DMV and General Motors Agree
to 'Lemon Law' Settlement

"The California Department of Motor Vehicles settled with General Motors Corporation charges that the automobile manufacturer violated California's so-called 'Lemon Law.' As part of the settlement, GM denies the allegations, but agreed to pay DMV $330,000 to assist DMV's consumer protection efforts.

One consumer complaint [filed by current CARS Board Member Gayle Pena] started DMV's investigation into GM that resulted in the April 29, 1993, filing of allegations that GM and 34 of its Northern California dealers were buying back 'lemon' cars and trucks from the original customers and resold the 'lemons' without telling the used car buyer about the vehicles' past repair history as required by law.

GM maintains that its employees did not intend to mislead or defraud any consumers of these vehicles. However, GM believes the settlement is consistent with its continued efforts to assure that all of its customers are fully satisfied."

– California Department of Motor Vehicles news release, April 4, 1994

 

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