Chrysler Settles Lemon Law Case With California DMV.News and Business Editors SACRAMENTO, Calif.--(BUSINESS WIRE)--March 21, 2002 The California 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. has reached a settlement agreement with Daimler-Chrysler Corporation in its administrative enforcement case involving 119 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. buybacks in California. The DMV DMV abbr. Department of Motor Vehicles had filed its administrative accusation A formal criminal charge against a person alleged to have committed an offense punishable by law, which is presented before a court or a magistrate having jurisdiction to inquire into the alleged crime. against Chrysler in August 1994 and had originally adopted the findings of fact findings of fact n. (See: finding) by a neutral 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. that Chrysler had committed acts of fraud, false advertising and violations of the California Lemon Law in repurchasing and reselling used Lemon Law vehicles throughout the State of California without informing the consumers. DMV officials said that some of the vehicles were sold with unrepaired safety defects. Following numerous appeals through the courts over eight years, Chrysler finally agreed to pay the State of California $325,000 in attorney fees and investigation costs to settle the accusation and avoid the original DMV decision that had ordered a 45-day suspension of Chrysler's manufacturer's license to do business in California. As part of the settlement, the DMV required Daimler-Chrysler to establish to the DMV's satisfaction that Chrysler resolved claims of consumers who had purchased the vehicles identified as "Lemons." In announcing the settlement agreement, California DMV Director Steven Gourley said, "This settlement and the stronger Lemon Laws Laws governing the rights of purchasers of new and used motor vehicles that do not function properly and which have to be returned repeatedly to the dealer for repairs. enacted by California in 1995 send a clear message to the industry that California will not tolerate these kinds of abuses." The California DMV licenses drivers; maintains driving records; registers and issues titles to vehicles and vessels; investigates auto and identity related fraud; licenses vehicle manufacturers, vehicle dealers, salespersons, vehicle dismantlers, driving schools, and traffic violator schools. The DMV is a department of the Business, Transportation and Housing Agency, Maria Contreras-Sweet, Secretary. Additional information about the DMV can be found on the department's Web site at: www.dmv.ca.gov |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion