Wirtz Law Blog

Recently, the owner of a Rivian R1S took to Reddit to describe a situation: The owner’s R1S had ongoing problems with its air conditioning system. After multiple attempts to get the issue repaired or communicate with Rivian, the automaker gave the R1S’s owner an offer: Rivian would pay $2,000, but the owner had to waive their right to sue Rivian under the lemon law for any issues related to the vehicle’s air conditioning. 

Responses on Reddit varied. Some posters said they’d never sign away their rights, while others felt it was worthwhile to end the frustration with the AC issue. Here’s why an experienced California lemon law attorney will tell you never to sign away your rights to a lemon law claim. 

Understanding Your Lemon Law Rights in California

California’s lemon law does more to protect consumers than any other state’s lemon law. When you agree to give up rights under the lemon law, you give up these protections. 

California’s lemon law covers new and certified pre-owned (CPO) vehicles that come with a manufacturer’s warranty. Covered vehicles include cars, pickup trucks, vans, SUVs, hybrids, EVs, and certain parts of motor homes. Vehicles purchased for personal, family, and household use are covered, as are certain small business vehicles. 

Your lemon law rights apply if the manufacturer or dealer can’t fix the issue after a “reasonable number” of repair attempts. This number may be as low as two attempts for issues that risk life, health, or safety. 

If your car is a lemon, you can seek compensation, including:

• Your choice of a refund or a defect-free replacement vehicle,
• Compensation for out-of-pocket expenses related to owning your lemon vehicle, 
• Attorney’s fees for the legal help you need to win your case – whether that’s negotiating with the automaker for a full, fair settlement or going to trial.

The bottom line? Don’t sign anything until you understand exactly how it will affect your lemon law rights and your finances. Talk to a California lemon law attorney at Wirz Law APC for help. 

Common Tactics Automakers Use to Waive Your Rights

Automakers use several tactics to convince you to waive some or all of your rights under California’s lemon law. Here are a couple of common tactics to look out for.

• The Risks of “Cash and Keep” Deals for L.A. and San Diego Drivers
  The Reddit poster who wrote about the Rivian R1S deal faced a common approach automakers use: the “cash and keep” offer. 

In a “cash and keep” deal, the automaker pays you a cash settlement and you keep your vehicle. A lemon law claim requires you to choose between a cash award or receiving a non-defective replacement vehicle. 

Automakers like cash and keep deals because they resolve the issue quickly. Yet they often stick defective vehicle owners with costs that are far higher than the offered cash amount. Always review a cash and keep deal carefully and don’t be afraid to reject it.

• Why You Should Think Twice About Agreeing to Arbitration

Arbitration is an alternative form of dispute resolution. Instead of going to trial, the parties present their case to an arbitrator, who makes a decision. 

Automakers often prefer arbitration because many arbitrators have backgrounds in the auto industry. Statistically, vehicle owners lose at arbitration more often than they do in court – even when the arbitrated claim weighs in favor of the vehicle owner. When you agree to go to arbitration instead of court, you give up your lemon law right to file a lawsuit as a means of protecting your rights. 

Tesla is well-known for including a forced arbitration clause in its contracts, with a brief opt-out period that auto purchasers may miss. Yet Tesla isn’t the only car company that may try to get you to agree to arbitration. Talk to a California lemon law firm before you agree to arbitration. 

Always read the paperwork from the automaker carefully before signing it. If you’re not sure what you’re agreeing to by signing, ask an experienced lemon law attorney to help you. 

Steps to Take if You Suspect Your Car is a Lemon in Southern California

If you suspect your vehicle is a lemon, you can take steps to protect your legal rights. First, take your car to the dealership when the problem occurs. Doing so gives the automaker the required “reasonable repair attempts” to fix the issue. It also creates a record of the issue. 

Always keep all paperwork related to your vehicle and its costs, from registration and insurance to the rental fees or bus fare you had to pay because your car was in the shop. These expenses can often be recovered under “incidental and consequential damages.” 

Finally, speak to an attorney. The experienced California lemon law attorneys at Wirtz Law APC are here to help. We can examine offers, explain your rights, and help you fight for the full, fair compensation you deserve.