DMV Sours on Chrysler 'lemons' penalty

Administrative judge asked to
rethink Chrysler penalty

"A California judge wants to punish Chrysler Motors Corp. for selling 'lemons' by prohibiting the automaker from shipping new cars into the state for 60 days. But it's anybody's guess whether that sanction – the most severe contemplated by any state in an automotive lemon-laundering case – will be carried out.

In a nutshell, the judge found that Chrysler:

• Violated legal requirements that vehicles repurchased as defective be resold only if stringent rules on repair and disclosure are followed.

• Violated warranty laws

• Violated laws requiring that the title of defective cars be branded as 'warranty returns,' alerting dealers and consumers of possible problems.

Consumer advocates reacted with glee Friday to the judge's decision. 'I'm thrilled,' said Rosemary Shahan of Consumers for Auto Reliability and Safety in Sacramento. 'Usually they let companies settle without admitting guilt and they 'PR' their way out of embarrassment. A decision like this will push the issue to the forefront in other states.'

Florida, New York, and Texas are among the states that have gone after automakers for reselling cars that they repurchased due to consumer complaints."

– San Jose Mercury News, June 1, 1996

 

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