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Does the Lemon Law Apply to Vehicles Used in Business?

As you may know, the CA lemon law applies to new or used vehicles with substantial defects that the manufacturer is unable to repair within a reasonable number of repair attempts. 

But does the lemon law apply to vehicles used in business? Well, that’s one of the first questions business owners who invest a substantial amount of money in vehicles ask. 

Read on to learn in what specific cases the California Lemon Law applies to business vehicles if they turn out to be lemons.

The CA Lemon Law Applies to Vehicles Used for Business Purposes if…

In the state of California, lemon law generally protects consumers who have purchased vehicles for “personal, family, or household purposes”. However, business vehicles can also be covered by the California Lemon Law.

The CA Lemon Law (California Civil Code Section 1793.22) covers business vehicles if:

(1) the business (be it a corporation, sole proprietorship, partnership, or LLC) that owns the lemon car or truck has no more than five vehicles registered in its name;

and (2) the vehicle’s “gross vehicle weight” is less than 10,000 pounds.

Please, pay attention to one keyword here: gross vehicle weight (or GVW). 

This term is usually confused with “Gross Vehicle Weight Rating” or GVWR. GVW refers to the actual weight of the vehicle, while GVWR specifies the fully-loaded (with passengers and cargo) weight capacity that the vehicle can handle. Thus, the GVWR is always higher than the GVW. Simply put, if you want to know whether or not your business vehicle satisfies the weight limit of California Lemon Law, you will only need to consider whether its GVW is less than 10,000 pounds.

If the business vehicle satisfies both of these rules, then it qualifies for coverage under the CA Lemon Law.

And one last thing: if the manufacturer tells you that your defective vehicle isn’t covered under the California Lemon Law, because (1) it’s registered in a business name, or (2) its GVWR is greater than 10,000 pounds, then you may be entitled to a Civil Penalty (which can be two times the number of actual damages).

Contact an Experienced Lemon Law Attorney for a FREE Consultation!

If you believe you have purchased a defective vehicle for business purposes in California, contact the Margarian Law Firm right away! Our experienced lemon law lawyers will fight for the compensation you deserve.

Call us today at (818) 553-1000 for a FREE consultation!

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