Chrysler Ban Being Proposed in California

Ban for 60 Days is Proposed Against Chrysler in California

"A California judge proposed yesterday that the Chrysler corporation be prohibited from shipping new cars to its 300 dealers in the state for 60 days as a punishment after he found that the auto maker had resold 119 cars and trucks that had been returned under the state's 'lemon law.'

'A strong sanction is warranted by the extent of violations committed by Chrysler Corporation,' said Anne Bersinger, the department's acting director, 'but we must be certain that the impact will not be felt by innocent parties.'

'What's unusual is that this is the first case where the manufacturer didn't settle,' said Rosemary Shahan, president of the Consumers for Auto Reliability and Safety, a consumer advocacy group in Sacramento.

In legal papers filed as part of the case by the department, the agency said Chrysler had repurchased and resold nearly 1,000 cars since 1990, when the state's nine-year-old 'lemon law' was modified to require consumer notification, Ms. Shahan said. 'That's why they asked for such tough sanctions,' she said."

– New York Times, June 1, 1996

 

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