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Spring 2005-11 Stronger vehicle warranty law considered

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Number 59
Spring 2005

Stronger vehicle warranty law considered

Law Number 7 of September 24, 1979, known as the "Motor Vehicles Warranty Act," would be amended to provide additional protection to automobile buyers, if Puerto Rico Senate Bill 194 makes it through the legislative process and becomes law.

Three strikes

A car manufacturer and its service agent would have three opportunities to repair a motor vehicle covered by the manufacturer's warranty. After the third unsuccessful attempt, the purchaser would have the option of either requiring that the unit be replaced for a like or similar one, or requiring return of the purchase price. Either the new unit or the money must be delivered within five days; except that the term is extended to 25 days in the case of a recreational vehicle. The purchase price to be returned may be reduced for "reasonable compensation" for the time that the purchaser had use of the car.

Lenders

A lender holding a lien on the vehicle in question must cancel the same.


© 2005 Goldman Antonetti
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