CAL LEG New Motor Vehicle Lemon


On Sep. 12, CAL LEG passed bill on vehicle restitution/replacement.


  • CAL LEG passed bill AB 1755 re restitution for or replacement of a new motor vehicle.
  • Adds chapter 12 (CAL LEG 10-2-12) to the Code of Civil Procedure, re civil actions.
  • Sets provisions for repurchase or replacement of a vehicle that is unable to be repaired
  • Bill Provisions
  • Under the Song-Beverly Consumer Warranty Act, if a manufacturer of a new motor vehicle is unable to service or repair it the manufacturer must repurchase or replace.
  • Bill provides that an action seeking the restitution for or replacement of a new motor vehicle, or for civil penalties, must commence within 1 year after the warranty expires.
  • In no event may action be brought later than 6 years after original delivery of vehicle.
  • Starting Apr. 1, 2025, consumer to provide written notice to manufacturer demanding restitution for or replacement of the consumer’s vehicle prior to seeking civil penalties.
  • Requires mediation in action or civil penalty and would stay all discovery, except limited set of disclosures and depositions, in such actions until mediation is concluded.
  • For such actions filed on or after Jan. 1, 2025, the bill authorizes the court to impose specified sanctions on represented parties who fail to comply with its provisions.
  • Legislative History
  • On Mar. 2, 2024, bill introduced in Assembly; on May 31, 2024, bill passed Assembly.
  • On Jun. 1, 2024, bill introduced in Senate; on Aug. 29, 2024, bill passed Senate.
  • On Aug. 31, 2024, bill amendments concurred; on Sep. 12, bill delivered to governor.
  • Effectiveness
  • Section CAL LEG 10-2-12-871.24 shall become operative on Apr. 1, 2025.
  • All other sections will become effective the Jan. 1 after enactment, i.e., Jan. 1, 2025.
  • Sep. 2024 CAL LEG Bill Approval
  • On Sep. 29, 2024, CAL LEG reported bill approval by governor, became Chapter 938.

Regulators CAL LEG
Entity Types CNSM; Corp
Reference Ch. 938, 9/29/2024; Bill, AB1755, 9/12/2024; Citation: CAL LEG 10-2;
Functions Compliance; Legal; Operations; Reporting
Countries United States of America
Category
State
Products Corporate
Regions Am
Rule Type Final
Rule Date 9/12/2024
Effective Date 1/1/2025
Rule Id 226208
Linked to N/A
Reg. Last Update 9/29/2024
Report Section US Consumer

Last substantive update on 10/03/2024