Lemon Law for Commercial Vehicles

Businesses earn some of the same protections through California Lemon law as personal use drivers, and for good reason. Companies rely on their commercial vehicles to ensure operations remain smooth, with any faulty vehicle leaving a damaging financial impact on the organization. While a Lemon law claim can’t be filed for every type of commercial vehicle, the Song-Beverly Consumer Warranty Act does offer some comprehensive provisions.

The Lemon Pros are experts in California’s Lemon law, understanding exactly how commercial vehicles apply. With a practice area focused solely on defective vehicles, our team has been able to secure millions in compensation for clients. Contact us today for your free case evaluation to see if you can start a claim for your defective vehicle.

In this guide, we explore how Lemon laws apply to commercial vehicles and business owners. We also discuss the need for Lemon law attorneys when dealing with a defective vehicle.

What Qualifies a Commercial Vehicle as a “Lemon”?

Does Lemon law apply the same way to commercial vehicles as it does to personal vehicles? In some cases, yes. A commercial lemon vehicle is still one with substantial defects that impair its use, value, or safety. There must also be multiple repair attempts to resolve the problem under its warranty coverage.

However, the vehicle qualifies only if it has a gross vehicle weight of less than 10,000 pounds. Additionally, for Lemon law protections to extend to a business, the company may not have a fleet of more than five vehicles registered in California.

The problems qualifying the defective vehicles remain the same for personal use. A claim can be filed due to safety defects, such as malfunctioning airbags, or because of a recurring defect causing transmission issues. The only requirement is that the defect substantially impairs its use, value, or safety.

Types of Commercial Vehicles Covered Under California’s Lemon Law

Many businesses rely on light-duty trucks and vans for service and delivery purposes. These vehicles are covered under the Song-Beverly Act if they weigh less than 10,000 pounds.

Buses and taxis also have some protections for smaller operations, depending on the size of the fleet and the weight of the vehicle. These vehicles are used for transporting customers and clients and could be detrimental to a small business if they become inoperable due to defects.

There’s also the chance that the business uses RVs for commercial purposes. As long as these are under the weight limit and the company registers five or fewer vehicles, these could also receive protection. If there are specialty vehicles needed, such as 4wheelers or ATVs, these may also be included, but each one counts towards the registered vehicle limit.

Smaller fleet vehicles are also covered, as long as the company has no more than five vehicles across all types. These would include utility trucks, compact vans and passenger cars.

Key Criteria for Qualifying for a Lemon Law Claim

To file valid Lemon law claims, there are three very important requirements for commercial vehicles.

• Time: The vehicle must first experience the defect during its manufacturer’s warranty. In most cases, the timeframe is 18,000 miles or 18 months, whichever comes first. However, used cars have different stipulations based on warranty coverage.
• Number of repair attempts: There must be a reasonable number of attempts to repair the problem. If the significant defects pose a serious safety risk (such as malfunctioning brakes or faulty airbags), the manufacturer has two attempts to fix the problem. Otherwise, manufacturers and dealerships should be given a minimum of four attempts to complete the repairs.
• Days out of service: To protect consumers, California law stipulates that the vehicle should not be out of service during repairs for more than thirty days, but these days don’t need to run consecutively.

An experienced attorney can help you determine whether your car or truck is eligible for Lemon law compensation or a replacement vehicle.

Differences in California Lemon Law for Commercial vs. Personal Vehicles

The regulations for commercial vehicles versus cars used for household purposes are very similar in many ways, but there are a few differences. The most relevant comes down to the 10,000 gross vehicle weight limit and the fact that the business cannot have more than five vehicles registered to it. Most of the other stipulations remain the same.

Because the vehicles are used strictly for business purposes, there will be many that don’t qualify under California’s Lemon law. For those, there may still be protection under the federal Magnuson-Moss Warranty Act.

It’s essential that businesses explore every avenue to hold the manufacturers responsible. Every defective vehicle creates a huge impact on business operations, safety, and finances when it is out of use. A free consultation with a knowledgeable team of lawyers can help you determine how to get compensation for your defective commercial vehicles.

How to File a Lemon Law Claim for a Commercial Vehicle

Before starting a Lemon law claim, you need to know that there’s a time limit to filing. While your request must be sent within four years of the defect occurring, the coverage is typically only for the first 18,000 miles or 18 months after taking ownership of the vehicle. It’s always in your best interest to start the process as soon as possible.

Step 1: Document the Issue

To prove your case, you will need all the relevant documentation as evidence. Therefore, you should keep a record of all the repair orders, the purchase agreement, warranty paperwork, and communication with the dealership or manufacturer.

When talking with people on the phone, make sure you get their names for your records. You should also write down the time, date, and outcome of the call.

Step 2: Understanding State-Specific Guidelines

While we’ve been primarily dealing with the laws in California, some businesses operate in multiple locations. Therefore, you would need to fully understand the laws in the region where you need to file. For example, there’s no coverage for motorhomes in Alabama, while Missouri specifically excludes commercial vehicles from the law.

Step 3: Consult a Lemon Law Attorney

It’s advisable to contact a lawyer for a consultation before going any further. Because of all the regulations to keep track of, it’s easy to make a mistake that could cost you compensation. The Lemon Pros have the experience to get you a full refund and won’t charge any legal fees unless you win. Contact us for your free case evaluation.

Step 4: Filing the Claim

Once you know that your vehicle qualifies for compensation, it’s time to file the claim. A demand letter must be sent to the manufacturer, which your lawyer can also help you create. From here, you may be asked to enter negotiations or third-party arbitration with the manufacturer, so it’s always good to secure your attorney upfront.

Can Leased Commercial Vehicles Be Covered Under Lemon Law?

Even if you haven’t purchased the commercial vehicle, you may still be able to get coverage under the Lemon law. While financed vehicles will be figured off the original purchase price and payments made since the start of the agreement, a leased vehicle also qualifies. You may be able to receive back your down payment and any installments that have been made, or you could be offered a replacement vehicle of equal value.

Common Issues in Lemon Law Claims for Commercial Vehicles

As a business owner, you may face some of the following obstacles during your claim.

• Limited manufacturer cooperation: This problem mostly occurs when working without a lawyer. The manufacturer and dealership aren’t normally cooperative with the average consumer when there’s a problem, but the story usually changes when a lawyer gets involved.
• Downtime of vehicle: It can be challenging to navigate the loss of a vehicle during a claim if it can’t be repaired. This loss of transportation can adversely affect operations at the business. If a rental vehicle is needed during this time, a lawyer may be able to recoup those costs during the settlement.
• Legal fees: Lawyers aren’t cheap to hire, but The Lemon Pros charge nothing to clients upfront. We also don’t take any money unless you win your case, ensuring that we work as hard as possible to get you the compensation you deserve.
• Lack of documentation: If there are multiple people within your organization heading up the claim, there could be trouble keeping all the documentation in one place. A lawyer can hold the documentation for you and help organize it.
• Negotiations: It can be difficult to know when to settle the Lemon law claim. A qualified lawyer ensures you get the best deal possible and doesn’t quit until your needs are met. By hiring an attorney, you have less time invested in the process, allowing you to focus on daily business operations.

Need a Lemon Law Attorney to Handle Your Commercial Vehicles?

If you have a defective commercial vehicle, we may be able to secure compensation for you. Depending on the size of your business and the type of vehicle in question, California Lemon laws may apply. To ensure you aren’t missing out on a refund or replacement vehicle, it’s best to speak with a qualified attorney.

The Lemon Pros have helped thousands of businesses secure compensation for defective vehicles. We are regularly named the best Lemon law attorney in California because of our extremely high success rate. Contact us today to make an appointment.