The Court of Appeals said the car dealer "failed to illustrate that the Department of Trade and Industry committed grave abuse of discretion" in ordering it to replace a defective car after attempts to repair it.
In what may be a landmark ruling for car buyers, the Court of Appeals (CA) recently ruled that a car dealer must replace a defective car "at no cost to the buyer."
A two-page CA resolution dated June 7 ordered Chevrolet Carmona in Cavite to replace a defective vehicle bought by Corazon Reyes in June 2013 and returned on Nov. 5, 2014 as covered by a five-year warranty.
The case stemmed from a complaint filed by Reyes, who claimed the "check engine" warning light turned on and the vehicle was prone to "sudden downshifting of gears."
An inspection did not find defects and the vehicle was released back to Reyes, but the problems manifested anew a few days later.
She was later informed that the car had a problematic transmission control module and that it was subsequently replaced.
However, the car’s problems persisted, prompting Reyes to file a complaint before the Department of Trade and Industry's (DTI) Laguna Office.
DTI-Laguna subsequently ordered Chevrolet Carmona to replace the vehicle, prompting the car dealer to file a Petition for Certiorari at the Court of Appeals.
In its petition, the dealer alleged that the DTI committed a "grave abuse of discretion...in failing to consider that the vehicle of the [private] respondent had already been fixed under the provisions of the petitioner’s warranty."
However, the CA said the dealer "failed to illustrate that the DTI committed grave abuse of discretion" and that "the judgment of the DTI was firmly grounded on the facts and the law."
"In sum, the DTI held that Chevrolet's liability arose from its failure to repair the defect in Reyes' car despite several attempts," the CA said.
Under Republic Act 10642 (Philippine Lemon Law), a brand-new car may be replaced if the dealer fails to address complaints at least four times in a year.
The dealer must also support the buyer with a daily means of transportation or alternative vehicle during the fixing time. (With report from PNA)
Tags: #LemonLaw, #automobiles, #CourtOfAppeals, #DepartmentOfTradeandIndustry