Lemon Law PLR Ebook

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Chapter 7 - Uniform Commercial Code

The Uniform Commercial Code is another law designed to protect the consumers. This law is enacted in all 50 states and is the primary source of the law concerning contracts of the sale of consumer products. This law is referred to as the TARR, which stands for tender, acceptance, rejection, and revocation.

It refers to the many different aspects of the relationship of the consumer with the goods being purchased.

Under the Uniform Commercial Code, the tender provision states that the buyer has the right to reject goods that fail in any of the respect where they should be conforming to provisions of a contract. The problem that occurs too often is that new car buyers don’t often have a clear understanding of the inner workings of a car. New or used cars are often too technically complex for the buyer to understand what their rights are. The buyer has a difficult time understanding if the car conforms to the provisions of the contract or if it does not. The tender provision is found in section 2-601 of the Uniform Commercial Code.

The acceptance provision of the Uniform Commercial code is designed to protect a consumer who makes a purchase believing the seller will fix any defects of the product. This portion of the code is usually considered when a consumer is misled or coerced into purchasing a product. The buyer will accept a product and be verbally promised things. A verbal agreement can be withheld in court.

The rejection clause of the Uniform Commercial code is setup for the buyer to have the right to reject the product. A new car buyer may sign the papers and purchase a new or used vehicle and a few miles down the road experience problems. Immediately after purchase if there is a defect or something to cause the car to be malfunctioned the buyer may return the vehicle and reject the sale.

The time period for the rejection clause is not clearly defined in this code. However, a buyer may have a vehicle inspected and if any defects are discovered of the vehicle, he or she may reject the vehicle. It is important to remember that the buyer must be given a reasonable amount of time to inspect the vehicle and look for any defects of the vehicle. If reasonable amount of time is given to the buyer it is considered an acceptance of the vehicle. Because the reasonable amount of time is not clearly defined by the law the courts will make the decision on what amount of time is fair for the buyer.

This will be based on the experience and the knowledge of motor vehicles the buyer has. The difficulty of discovering the defect will also be considered in addition to the opportunity to discover the defect during the purchase of the vehicle. If the defect was covered up and impossible to discover during the purchase of the vehicle then it will be in favor of the buyer, even if it is days later the defect of the vehicle is discovered.

Revocation is the final step of the Uniform Commercial Code. This provision covers if the buyer has had the vehicle for a considered lengthy amount of time. Most lemon car cases fall under this category as buyers don’t seem to realize they have a lemon until after they believe it is too late.

The revocation clause allows a buyer to revoke their acceptance of the goods if the non-conformity impairs the value of the vehicle. If a buyer accepts a vehicle thinking that it conforms to all functionality and then finds the vehicle is nonconforming or not functioning properly they may return the vehicle and revoke their payment. This may be if the defect is difficult for the buyer to discover or if the defects were promised to be repaired by the seller.

It is common that a lemon is sold to someone where there are defects on the vehicle that make the vehicle impossible to drive. The vehicle is a lemon. When the defects are hard to find or impossible in most cases when the time frame of inspecting a vehicle is limited at a dealership. It is virtually impossible for a buyer to take apart a vehicle to do a full inspection when they are looking at a car for purchase. If the defect can only be found by a certified mechanic or not common sense to a buyer then they are considered under the revocation clause.

It is also common for buyers to find defects on a vehicle during the initial inspection at the car lot. The seller or dealer will promise to fix defects found but not withhold their end of the bargain once the buyer drives away. In this case, a buyer can revoke the purchase made if the seller does not fix promised repairs.

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