Ohio Consumer Law and Automobile Warranties

Warranties

New Vehicle Warranties

The rules concerning the Ohio Consumer Sales Practice Act and automobile warranties continue to grow. When a new vehicle is sold, the dealer must provide the consumer with a copy of the warranty. That is typically not a problem. However, Ohio has enacted a "lemon law" that affords consumers the right to revoke the transaction if the new vehicle they purchased has significant flaws. Ohio's lemon law allows for revocation if any of the following occur:

  1. The dealer/manufacturer fail to repair the same defect after three attempts,
  2. The vehicle is out of service for repair for a total of thirty days,
  3. There have been eight repairs that impair the use or value of the vehicle, or
  4. There has been one unsuccessful attempt to repair a defect likely to cause death or injury.

Used Vehicle Warranties

In the past, auto dealers were protected by the sale of used vehicles through the use of an "as is" clause. The "as is" clause meant that the used vehicle came with no warranty. Today, many auto dealers are learning the hard way that an "as is" clause does not insulate them from liability.

Contrary to popular belief, the use of an "as is" provision in the contract does not always mean the vehicle is being sold without a warranty. Verbal representations or statements made in an advertisement can rise to the level of a warranty. Various Ohio courts have found the following phrases to constitute a warranty even though the contract between the consumer and dealer stated it was an "as is" sale: In each of the above situations, the dealer was found to have made a warranty by making these statements. Ohio law holds that failure to integrate a warranty into the contract is a Consumer Sales Practice Act violation. Therefore, use of the above language would be the basis for a consumer to rescind their purchase or seek treble monetary damages or $ 200.00, whichever is greater, if the dealer fails to incorporate these material representations in the contract. Unfortunately, dealers do not make a habit of including these statements in the contract. Hence, many dealers have been found in violation of the CSPA for making material statements and failing to include them in the warranty even though the warranty states the sale is "as is".

For more information of this topic, Blackstone Legal Publications, Inc. has published a manual designed for use by dealerships and lawyers.