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Free Malaysia Today Follow View Profile

What is a lemon law?

Tsubasa Nair - 8h ago

React Comments | 11 Share Save

P ETALING JAYA: Recently, the domestic trade and consumer affairs ministry
said it was considering a “lemon law” to protect consumers from becoming
victims of fraud or having to bear losses when buying used vehicles.

Although ‘lemon’ is commonly used to describe a vehicle that is defective, a lemon law can apply to any
product that has a lifespan of more than six months.
© Provided by Free Malaysia Today

What is a lemon law, how does it work, and will it be worthwhile? FMT takes a
closer look.

What is a lemon law?

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 In 1975, the US enacted the
Magnuson-Moss Warranty Act, which
later became commonly known as
the first lemon law, according to
Cornell University.
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Formula Milk Powder (1 - 6+ years)… The law came in the wake of protests
from people whose car warranties
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had loopholes, enabling sellers to sell
“lemons” at “good” prices.

“Lemon” is commonly used to describe a vehicle that is defective but a lemon law
can apply to any product that has a lifespan longer than six months, from cars to
electrical devices.

Baskaran Sithamparam, senior manager at the National Consumer Complaints

Centre (NCCC), explained that the law holds manufacturers responsible for
refunding or replacing faulty products.

What does it do?

Lawyer Edwin Tomas said a lemon law would protect consumers from having
“little to no recourse from sellers when they are sold defective items”.

Sellers, on the other hand, would have to implement stringent quality control
(QC), and possibly insure themselves against the risk of defective items even
after stringent QC, Tomas said.

“As a whole, it improves the economy because consumers have more confidence
and faith in purchasing items while holding sellers to a higher standard,” he said.

Protecting consumers

As consumers are paying for used vehicles in good faith, Sithamparam said, it is
not fair to burden them with a car that does not function as promised.

He said that sometimes, used-car dealers sold vehicles that were defective to
buyers who had little mechanical understanding of cars.

In some cases, used cars were falsely advertised as being in better condition
than they really were.

“Some even hoodwink buyers by claiming cars are accident-free or have no

issues, but when the buyers receive the cars, they are found to be faulty,” he said,
adding that by right, the buyers should get their money’s worth.

He said these undisclosed issues often resulted in vehicles needing frequent

repairs, rendering them unusable for periods of time, while incurring extra costs.

Liability

Sithamparam said although used-car dealers were not manufacturers, a lemon

law should also apply to them.

“It doesn’t matter if they’re selling a variety of cars from different manufacturers,
it’s their responsibility to ensure the cars are problem-free and safe to use.
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 “If the car has any issue, they should inform the buyers, so they can make
informed decisions and take the necessary steps,” he said, adding that the price
should reflect the car’s value.

In contrast, lawyer Fahri Azzat felt that laying the responsibility for defective
products on used-car dealers could be “too onerous an obligation, both
financially and technically”.

“It is unfair to place the burden on the dealers as they just sell the car, not make
it. Also, they don’t have the technical expertise and equipment that vehicle
manufacturers do,” Fahri said.

Tomas agreed, saying that imposing a lemon law on used-car dealers “may be a
tad too excessive” whereas imposing it on manufacturers was “just in law”.

Pricier used cars?

He said that enforcing a lemon law on used-car dealers could potentially result in
pricier second-hand vehicles, as from a practical standpoint, more stringent QC
would require more manpower and man hours.

“And also having to fix or compensate defective items would lead to lower profits,
which is often offset by increasing the prices of items,” he said.

Sithamparam disagreed, saying it was unfair to burden consumers with even

higher prices. “I don’t see why used-car dealers must increase their prices. They
can’t put everything on the consumers,” he said.

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The Star Online Follow View Profile

End of an era
BY LIEW JIA XIAN JIAXIAN@THESTAR.COM.MY - 10h ago

React 4 Comments | 14 Share Save

FOR over six decades, taxi driver Tan Teong Poh has lived in a zinc-roofed
wooden house in Perak Road, George Town in Penang.

The 68-year-old, who is the third- generation occupant of the house, has many
fond memories of his home.

“My grandfather was one of the pioneers and he was the one who built this
house.
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“The ho se is at least 100 ears old When I as o ng all nine of s sta ed here
 “The house is at least 100 years old. When I was young, all nine of us stayed here
under one roof.

“Everybody knows everybody here and most of my neighbours are my relatives.

“This area is usually packed with people during Chinese New Year when our
friends and families come home.

“My three children, aged between 27 and 41, used to stay here when they were
young but all of them have since moved out,” he said.

Some of the old wooden premises have been torn down and more will be demolished to make way for the
new development in Perak Road, Penang. – Photos: CHAN BOON KAI/The Star
© Provided by The Star Online

Teong Poh’s home is among some 100 wooden houses and 20 shoplots which
will be demolished to make way for a new development.

A representative for the landowner Tan Si Teoh Tng Seah Association, who
wished to be known only as Tan, said the residents and shopkeepers had been
instructed to move out by next month.

“I believe some buildings are more than 150 years old.

“The residents and tenants were given letters to move out a few months ago.

“The initial plan is to build high-rise residential units as well as commercial

shoplots, and the tenants will be compensated accordingly,” he said.

Teong Poh said although he was a bit reluctant to move, he understood that
development was needed.

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