CHRYSLER FACES SUSPENSION : STATE MAY HALT SHIPMENTS TO DEALERS OVER `LEMON LAW' VIOLATIONS.Byline: John Howard Associated Press California Chrysler dealers face at least $24.6 million in losses under a judge's proposal to temporarily block the automaker from shipping new cars to the state, a financial expert testified Tuesday. An administrative law judge administrative law judge n. a professional hearing officer who works for the government to preside over hearings and appeals involving governmental agencies. They are generally experienced in the particular subject matter of the agency involved or of several agencies. is considering the impact of his plan to penalize pe·nal·ize tr.v. pe·nal·ized, pe·nal·iz·ing, pe·nal·iz·es 1. To subject to a penalty, especially for infringement of a law or official regulation. See Synonyms at punish. 2. Chrysler for violations of the state's ``lemon law lemon law n. statutes adopted in some states to make it easier for a buyer of a new vehicle to sue for damages or replacement if the dealer or manufacturer cannot make it run properly after a reasonable number of attempts to fix the car. .'' William Guptill, retained by Chrysler, said that each Chrysler dealership would lose about $102,000 as a result of the proposed 60-day suspension of Chrysler's California business license. The estimate reflects the dealership's lost income resulting from the lack of sales, Guptill told Administrative Law Judge Keith Levy. There are about 240 Chrysler dealers in the state and they sell some 160,000 vehicles annually. On April 29, Levy ruled that Chrysler's right to ship new cars to California should be halted for two months as punishment for allegedly reselling 116 ``lemons'' without telling the new buyers. Under state law, a ``lemon'' is a personal, family or household car that needs four or more major repairs or is inoperable inoperable /in·op·er·a·ble/ (in-op´er-ah-b'l) not susceptible to treatment by surgery. in·op·er·a·ble adj. Unsuitable for a surgical procedure. for at least 30 days during the first year or 12,000 miles. The Department of Motor Vehicles In the United States of America, Department of Motor Vehicles (or DMV) is a commonly used name of the government agency of a U.S. state which administers the registration of automobiles (e.g., by issuing license plates), and/or the licensing of drivers (e.g. said Chrysler's violations included failure to notify used-car buyers that the vehicles had been labeled lemons, failure to provide warranties, and failure to notify the DMV DMV abbr. Department of Motor Vehicles so that the titles could be branded. Chrysler said it provided proper disclosure. |
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