NextGen Day

Following a Court of Appeals (CA) rule, a local auto dealer must replace a damaged car at no cost to the buyer.

Chevrolet Carmona in Cavite lost an appeal to the CA on July 22, 2021, which upheld the Department of Trade and Industry’s (DTI) verdict in a “lemon” issue.

The dealer must replace the vehicle purchased by Corazon Reyes in June 2013 and return on Nov. 5, 2014, according to the two-page CA resolution dated June 7.

The “check engine” light illuminated, according to Reyes, and the car was prone to “sudden downshifting of gears.”

The vehicle was returned to Reyes after a check revealed no flaws, but the problems reappeared a few days later.

She was then notified that the vehicle had a faulty transmission control module, which had been changed.

The car’s troubles, however, persisted, causing Reyes to file a complaint with DTI-Laguna, which ordered the replacement.

A brand new car can be replaced under Republic Act 10642, sometimes known as the Philippine Lemon Law, if the dealer fails to resolve complaints at least four times in a year.

During the fixing period, the dealer must provide the buyer with a daily mode of transportation or an alternate vehicle.

The dealer “failed to demonstrate that the DTI engaged in egregious abuse of discretion,” according to the CA, and “the DTI’s judgment was firmly established on the facts and the law.”

The DTI “found that Chevrolet’s responsibility derived from its failure to rectify the issue in Reyes’ car despite multiple attempts,” according to the CA.

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