PHILIPPINES: The local automotive industry is willing to work with Congress in crafting a "lemon law" that will ensure "equal protection of buyers and sellers" of motor vehicles.

Elizabeth Lee, the president of the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) said CAMPI welcomes the initiative of Congress to craft a lemon law for the Philippines, and added that CAMPI was willing participate in discussions that will ensure a law that will "strike a balance between the rights of buyers and sellers."

Ms. Lee, as well as other officers and members of CAMPI, attended a joint hearing yesterday of the House trade and industry and transportation committees on House Bill No. 3517 introduced by Compostela Valley Rep. Manuel E. Zamora.

The bill wants to introduce a lemon law for the Philippines, which will protect buyers of brand-new cars and penalize sellers of lemon or defective cars.

Mr. Zamora's bill seeks to strengthen Republic Act 7394 or the Consumer Act, which in its present form does not spell out how complaints of buyers of lemon cars are to be addressed, or how the warranties of motor vehicles are to be enforced.

CAMPI said it has made a study of the lemon laws of different states in the United States and has recommended since last year that a lemon law suited to the Philippines be legislated.

CAMPI made the following recommendations on the provisions that should be incorporated in a lemon law for the Philippines:

• it should cover motor vehicles purchased in the Philippines, which are covered by warranty at the time of purchase;
• motor vehicles should be designed as passenger vehicles, sports utility vehicles, or as pickup trucks or vans;
• the motor vehicle should be for personal, family or household use;
• the warranty should not cover defects resulting from modification or installation not made by manufacturer;
• the manufacturer should be given 15 days to repair defect within 15 business days; and
• repurchase or replacement by the manufacturer becomes warranted when the defects persist after four unsuccessful repairs by the manufacturer and within one year of purchase.

Mr. Zamora's bill provides for a refund or a replacement in the event the manufacturer or authorized dealer could not make the necessary repairs to correct the defect of a motor vehicle.

A motor vehicle is considered "significantly impaired" if, first, it is repaired three or more times, second, if its defect is a serious safety defect, and third, if it is out of service due to repairs for 30 days, within 24 months after its date of delivery or after 20,000 kilometers mileage.

At the Senate, Sen. Manuel A. Roxas II's bill seeks to require manufacturers to "promptly" repair motor vehicle defects, and for the manufacturer to either refund the buyer or to make a replacement when the defects cannot be corrected.

Senators Manuel B. Villar, Jr. and Aquilino Q. Pimentel, Jr.'s bills, on the other hand, provide that within 18 months from delivery of the motor vehicle, the buyer can report any defect to the manufacturer and demand repairs, repurchase or refund.

Source:
http://bworldonline.com/current/TheNation/nationstory4.html