Section § 1792

Explanation

When you buy products at a store in California, they automatically come with an unspoken guarantee from both the manufacturer and retailer that they are fit for sale and work properly, unless this guarantee is clearly denied in a specific way. If the retailer is held responsible for a defective product, they can seek compensation from the manufacturer.

Unless disclaimed in the manner prescribed by this chapter, every sale of consumer goods that are sold at retail in this state shall be accompanied by the manufacturer’s and the retail seller’s implied warranty that the goods are merchantable. The retail seller shall have a right of indemnity against the manufacturer in the amount of any liability under this section.

Section § 1792.1

Explanation

In California, when a manufacturer sells consumer goods in retail knowing they are meant for a specific purpose, and the buyer is depending on the manufacturer's expertise to pick the right goods, the sale comes with a promise that the goods are fit for that purpose. This promise is called an 'implied warranty of fitness.'

Every sale of consumer goods that are sold at retail in this state by a manufacturer who has reason to know at the time of the retail sale that the goods are required for a particular purpose and that the buyer is relying on the manufacturer’s skill or judgment to select or furnish suitable goods shall be accompanied by such manufacturer’s implied warranty of fitness.

Section § 1792.2

Explanation

This law says that when you buy something in a California store, and the seller knows you want it for a specific purpose, they are promising that it will work for that use. Also, when you buy assistive devices, like hearing aids or wheelchairs, the seller guarantees that it will suit your personal needs.

(a)CA Civil Law Code § 1792.2(a) Every sale of consumer goods that are sold at retail in this state by a retailer or distributor who has reason to know at the time of the retail sale that the goods are required for a particular purpose, and that the buyer is relying on the retailer’s or distributor’s skill or judgment to select or furnish suitable goods shall be accompanied by such retailer’s or distributor’s implied warranty that the goods are fit for that purpose.
(b)CA Civil Law Code § 1792.2(b) Every sale of an assistive device sold at retail in this state shall be accompanied by the retail seller’s implied warranty that the device is specifically fit for the particular needs of the buyer.

Section § 1792.3

Explanation

This law section says that when you buy something, the seller generally can't skip out on guaranteeing it's fit to use, unless they're selling it "as is" or with all its issues, and they must strictly follow the rules for making that kind of sale.

No implied warranty of merchantability and, where applicable, no implied warranty of fitness shall be waived, except in the case of a sale of consumer goods on an “as is” or “with all faults” basis where the provisions of this chapter affecting “as is” or “with all faults” sales are strictly complied with.

Section § 1792.4

Explanation

If you're buying something that's sold "as is" or "with all faults," the seller can't just skip giving you certain basic guarantees unless they inform you clearly, in writing, before you buy. This writing has to explain that the product might not work properly, and you’re taking on all risks and repair costs if it doesn’t. For mail-order sales, this information must be included in the catalog.

(a)CA Civil Law Code § 1792.4(a) No sale of goods, governed by the provisions of this chapter, on an “as is” or “with all faults” basis, shall be effective to disclaim the implied warranty of merchantability or, where applicable, the implied warranty of fitness, unless a conspicuous writing is attached to the goods which clearly informs the buyer, prior to the sale, in simple and concise language of each of the following:
(1)CA Civil Law Code § 1792.4(a)(1) The goods are being sold on an “as is” or “with all faults” basis.
(2)CA Civil Law Code § 1792.4(a)(2) The entire risk as to the quality and performance of the goods is with the buyer.
(3)CA Civil Law Code § 1792.4(a)(3) Should the goods prove defective following their purchase, the buyer and not the manufacturer, distributor, or retailer assumes the entire cost of all necessary servicing or repair.
(b)CA Civil Law Code § 1792.4(b) In the event of sale of consumer goods by means of a mail order catalog, the catalog offering such goods shall contain the required writing as to each item so offered in lieu of the requirement of notification prior to the sale.

Section § 1792.5

Explanation

This law means that when you buy something 'as is' or 'with all faults,' you're agreeing that you're giving up the usual protection that the item must be fit for its general purpose. Essentially, you can't claim it should work perfectly if it's sold under these terms.

Every sale of goods that are governed by the provisions of this chapter, on an “as is” or “with all faults” basis, made in compliance with the provisions of this chapter, shall constitute a waiver by the buyer of the implied warranty of merchantability and, where applicable, of the implied warranty of fitness.

Section § 1793

Explanation

This law says that manufacturers, distributors, or retailers can still offer their own written guarantees on products, known as express warranties. However, they cannot change or waive the basic implied warranties that buyers automatically get by law when they sell these consumer goods.

Except as provided in Sections 1793.01 and 1793.02, nothing in this chapter shall affect the right of the manufacturer, distributor, or retailer to make express warranties with respect to consumer goods. However, a manufacturer, distributor, or retailer, in transacting a sale in which express warranties are given, may not limit, modify, or disclaim the implied warranties guaranteed by this chapter to the sale of consumer goods.

Section § 1793.01

Explanation

This law says that manufacturers, distributors, or retailers cannot start a warranty period for a product before it's actually delivered to the customer. However, any warranties made before July 1, 2023, are not affected by this rule.

A manufacturer, distributor, or retail seller shall not make an express warranty with respect to a consumer good that commences earlier than the date of delivery of the good. This section does not limit an express warranty made before July 1, 2023.

Section § 1793.02

Explanation

This law states that when you buy an assistive device in California, such as hearing aids, the seller must give you a written warranty. This warranty guarantees that the device should meet your specific needs. If it doesn't, you have the right to return it within a set time—30 days for most devices and 45 days for hearing aids. The seller must then fix it, replace it, or refund your money. The warranty must be clear and bold, so you can see it easily. This law ensures that if the device doesn't work as promised, you can get your money back without any extra fees. There are some exceptions, like sales under $15 or dental implants, which are not covered by this law.

(a)Copy CA Civil Law Code § 1793.02(a)
(1)Copy CA Civil Law Code § 1793.02(a)(1) Except as provided in paragraph (2), all new and used assistive devices sold at retail in this state shall be accompanied by the retail seller’s written warranty which shall contain the following language: “This assistive device is warranted to be specifically fit for the particular needs of you, the buyer. If the device is not specifically fit for your particular needs, it may be returned to the seller within 30 days of the date of actual receipt by you or completion of fitting by the seller, whichever occurs later. If you return the device, the seller will either adjust or replace the device or promptly refund the total amount paid. This warranty does not affect the protections and remedies you have under other laws.” In lieu of the words “30 days” the retail seller may specify any longer period.
(2)Copy CA Civil Law Code § 1793.02(a)(2)
(A)Copy CA Civil Law Code § 1793.02(a)(2)(A) All new and used hearing aids sold in this state shall be accompanied by the retail seller’s written warranty and shall contain the following language: “This hearing aid is warranted to be specifically fit for the particular needs of you, the buyer. If the hearing aid is not initially fit for your particular needs, it may be returned to the seller within 45 days of the initial date of delivery to you. If you return the hearing aid, the seller will either adjust or replace the hearing aid or promptly refund the total amount paid. This warranty does not affect the protections and remedies you have under other laws.”
(B)CA Civil Law Code § 1793.02(a)(2)(A)(B) In lieu of the words “45 days” the retail seller may specify any longer period.
(C)CA Civil Law Code § 1793.02(a)(2)(A)(C) On the initial date of delivery, the retail seller shall revise the written warranty to include the initial date of delivery to the buyer of the hearing aid and expiration date of the warranty.
(b)CA Civil Law Code § 1793.02(b) The language prescribed in subdivision (a) shall appear on the first page of the warranty in at least 10-point bold type. The warranty shall be delivered to the buyer at the time of the sale of the device.
(c)CA Civil Law Code § 1793.02(c) If the buyer returns the device within the period specified in the written warranty, the seller shall, without charge and within a reasonable time, adjust the device or, if appropriate, replace it with a device that is specifically fit for the particular needs of the buyer. If the seller does not adjust or replace the device so that it is specifically fit for the particular needs of the buyer, the seller shall promptly refund to the buyer the total amount paid, the transaction shall be deemed rescinded, and the seller shall promptly return to the buyer all payments and any assistive device or other consideration exchanged as part of the transaction and shall promptly cancel or cause to be canceled all contracts, instruments, and security agreements executed by the buyer in connection with the sale. When a sale is rescinded under this section, no charge, penalty, or other fee may be imposed in connection with the purchase, fitting, financing, or return of the device.
(d)CA Civil Law Code § 1793.02(d) With respect to the retail sale of an assistive device to an individual, organization, or agency known by the seller to be purchasing for the ultimate user of the device, this section and subdivision (b) of Section 1792.2 shall be construed to require that the device be specifically fit for the particular needs of the ultimate user.
(e)CA Civil Law Code § 1793.02(e) This section and subdivision (b) of Section 1792.2 shall not apply to any of the following sales of assistive devices:
(1)CA Civil Law Code § 1793.02(e)(1) A catalog or similar sale, as defined in subdivision (q) of Section 1791, except a sale of a hearing aid.
(2)CA Civil Law Code § 1793.02(e)(2) A sale which involves a retail sale price of less than fifteen dollars ($15).
(3)CA Civil Law Code § 1793.02(e)(3) A surgical implant performed by a physician and surgeon, or a restoration or dental prosthesis provided by a dentist.
(f)CA Civil Law Code § 1793.02(f) The rights and remedies of the buyer under this section and subdivision (b) of Section 1792.2 are not subject to waiver under Section 1792.3. The rights and remedies of the buyer under this section and subdivision (b) of Section 1792.2 are cumulative, and shall not be construed to affect the obligations of the retail seller or any other party or to supplant the rights or remedies of the buyer under any other section of this chapter or under any other law or instrument.
(g)CA Civil Law Code § 1793.02(g) Section 1795.5 shall not apply to a sale of used assistive devices, and for the purposes of the Song-Beverly Consumer Warranty Act the buyer of a used assistive device shall have the same rights and remedies as the buyer of a new assistive device.
(h)CA Civil Law Code § 1793.02(h) The language in subdivision (a) shall not constitute an express warranty for purposes of Sections 1793.2 and 1793.3.

Section § 1793.025

Explanation

If you buy or lease a new or used wheelchair, it must come with a written warranty saying it's free from defects. New wheelchairs have at least a one-year warranty, while used or refurbished ones have at least a 60-day warranty. Even if you don't get the written warranty, it's assumed to be there. If a problem occurs during the warranty period and can't be fixed after several tries, or if the wheelchair is out for repair for more than 30 days, it can't be resold without telling the next buyer about the past issues. If your wheelchair is being fixed for over 24 hours, you should get a temporary replacement, but it should not cost you more than the provider's cost. This law doesn't cover wheelchairs designed for sports or off-road use.

(a)CA Civil Law Code § 1793.025(a) All new and used wheelchairs, including, but not limited to, wheelchairs that are motorized or have been otherwise customized to suit the needs of the user, shall be accompanied by the manufacturer’s or lessor’s written express warranty that the wheelchair is free of defects. The duration of the warranty shall be for a period of at least one year from the date of the first delivery of a new wheelchair to the consumer, or at least 60 days from the date of the first delivery of a used, refurbished, or reconditioned wheelchair to the consumer. If the written express warranty is not furnished to the consumer, the wheelchair nonetheless shall be deemed to be covered by the express warranty. This section shall not apply to wheelchairs manufactured specifically for athletic, competitive, or off-road use.
(b)CA Civil Law Code § 1793.025(b) The provisions of this chapter for express warranties govern the express warranty described in subdivision (a), whether or not those provisions only apply to the sale, and not the lease, of goods.
(c)CA Civil Law Code § 1793.025(c) A reasonable number of attempts have been made to conform a wheelchair to the express warranty if, within the warranty period or within one year of inception of the warranty, whichever occurs first, (1) the same nonconformity has been subject to repair four or more times by the manufacturer, lessor, or an agent thereof, and continues to exist, or (2) the wheelchair is out of service by reason of repair of nonconformities by the manufacturer, lessor, or an agent thereof, for a cumulative total of more than 30 calendar days since inception of the warranty.
(d)CA Civil Law Code § 1793.025(d) No wheelchair that has been returned to the manufacturer, lessor, or an agent thereof, by the consumer for failure to repair a nonconformity after a reasonable number of attempts, either in this state or in another state pursuant to a similar statute of that state, may be sold or leased again in this state unless the reasons for the return are fully disclosed to the prospective buyer or lessee.
(e)CA Civil Law Code § 1793.025(e) If the wheelchair is out of service for a period of at least 24 hours for the repair of a nonconformity by the manufacturer, lessor, or agent thereof, a temporary replacement wheelchair shall be made available to the consumer, if requested. The provider of the temporary replacement wheelchair may not charge the consumer more than the cost to the provider to make the wheelchair available to the consumer. Nothing in this subdivision is intended to prevent a consumer and a provider from negotiating an agreement in which the provider assumes the cost of providing a temporary replacement wheelchair to the consumer.

Section § 1793.03

Explanation

If a manufacturer offers a warranty on certain electronics or appliances priced between $50 and $99.99, they need to provide repair shops with necessary repair information and parts for at least three years after the product is made. For products priced at $100 or more, they must offer these resources for at least seven years. This applies to products described in specific subdivisions of another section.

(a)CA Civil Law Code § 1793.03(a) Every manufacturer making an express warranty with respect to an electronic or appliance product described in subdivision (h), (i), (j), or (k) of Section 9801 of the Business and Professions Code, with a wholesale price to the retailer of not less than fifty dollars ($50) and not more than ninety-nine dollars and ninety-nine cents ($99.99), shall make available to service and repair facilities sufficient service literature and functional parts to effect the repair of a product for at least three years after the date a product model or type was manufactured, regardless of whether the three-year period exceeds the warranty period for the product.
(b)CA Civil Law Code § 1793.03(b) Every manufacturer making an express warranty with respect to an electronic or appliance product described in subdivision (h), (i), (j), or (k) of Section 9801 of the Business and Professions Code, with a wholesale price to the retailer of one hundred dollars ($100) or more, shall make available to service and repair facilities sufficient service literature and functional parts to effect the repair of a product for at least seven years after the date a product model or type was manufactured, regardless of whether the seven-year period exceeds the warranty period for the product

Section § 1793.05

Explanation
If a company changes new vehicles into motorhomes, they must take on the warranty responsibilities for any part of the vehicle affected by their modifications, especially if the original warranty no longer applies due to the changes.
Vehicle manufacturers who alter new vehicles into housecars shall, in addition to any new product warranty, assume any warranty responsibility of the original vehicle manufacturer for any and all components of the finished product which are, by virtue of any act of the alterer, no longer covered by the warranty issued by the original vehicle manufacturer.

Section § 1793.1

Explanation

If you buy something with a warranty in California, this law ensures you can understand the warranty terms and know who offers them. Companies selling goods must provide warranty terms in plain language and meet federal guidelines. If there are warranty registration cards or forms, they should clearly mention they’re for registration only, and not completing them won't affect your warranty rights. Anytime you get warranty service, you should receive a statement explaining your right to service and any time extensions due to repairs or delays. Businesses should give contact info for places you can get repairs. Some rules in this section don't apply to cards printed before January 1, 2004.

(a)Copy CA Civil Law Code § 1793.1(a)
(1)Copy CA Civil Law Code § 1793.1(a)(1) Every manufacturer, distributor, or retailer making express warranties with respect to consumer goods shall fully set forth those warranties in simple and readily understood language, which shall clearly identify the party making the express warranties, and which shall conform to the federal standards for disclosure of warranty terms and conditions set forth in the federal Magnuson-Moss Warranty-Federal Trade Commission Improvement Act (15 U.S.C. Sec. 2301 et seq.), and in the regulations of the Federal Trade Commission adopted pursuant to the provisions of that act. If the manufacturer, distributor, or retailer provides a warranty or product registration card or form, or an electronic online warranty or product registration form, to be completed and returned by the consumer, the card or form shall contain statements, each displayed in a clear and conspicuous manner, that do all of the following:
(A)CA Civil Law Code § 1793.1(a)(1)(A) Informs the consumer that the card or form is for product registration.
(B)CA Civil Law Code § 1793.1(a)(1)(B) Informs the consumer that failure to complete and return the card or form does not diminish his or her warranty rights.
(2)CA Civil Law Code § 1793.1(a)(2) Every work order or repair invoice for warranty repairs or service shall clearly and conspicuously incorporate in 10-point boldface type the following statement either on the face of the work order or repair invoice, or on the reverse side, or on an attachment to the work order or repair invoice: “A buyer of this product in California has the right to have this product serviced or repaired during the warranty period. The warranty period will be extended for the number of whole days that the product has been out of the buyer’s hands for warranty repairs. If a defect exists within the warranty period, the warranty will not expire until the defect has been fixed. The warranty period will also be extended if the warranty repairs have not been performed due to delays caused by circumstances beyond the control of the buyer, or if the warranty repairs did not remedy the defect and the buyer notifies the manufacturer or seller of the failure of the repairs within 60 days after they were completed. If, after a reasonable number of attempts, the defect has not been fixed, the buyer may return this product for a replacement or a refund subject, in either case, to deduction of a reasonable charge for usage. This time extension does not affect the protections or remedies the buyer has under other laws.”
If the required notice is placed on the reverse side of the work order or repair invoice, the face of the work order or repair invoice shall include the following notice in 10-point boldface type: “Notice to Consumer: Please read important information on back.”
A copy of the work order or repair invoice and any attachment shall be presented to the buyer at the time that warranty service or repairs are made.
(b)CA Civil Law Code § 1793.1(b) No warranty or product registration card or form, or an electronic online warranty or product registration form, may be labeled as a warranty registration or a warranty confirmation.
(c)CA Civil Law Code § 1793.1(c) The requirements imposed by this section on the distribution of any warranty or product registration card or form, or an electronic online warranty or product registration form, shall become effective on January 1, 2004.
(d)CA Civil Law Code § 1793.1(d) This section does not apply to any warranty or product registration card or form that was printed prior to January 1, 2004, and was shipped or included with a product that was placed in the stream of commerce prior to January 1, 2004.
(e)CA Civil Law Code § 1793.1(e) Every manufacturer, distributor, or retailer making express warranties and who elects to maintain service and repair facilities within this state pursuant to this chapter shall perform one or more of the following:
(1)CA Civil Law Code § 1793.1(e)(1) At the time of sale, provide the buyer with the name and address of each service and repair facility within this state.
(2)CA Civil Law Code § 1793.1(e)(2) At the time of the sale, provide the buyer with the name and address and telephone number of a service and repair facility central directory within this state, or the toll-free telephone number of a service and repair facility central directory outside this state. It shall be the duty of the central directory to provide, upon inquiry, the name and address of the authorized service and repair facility nearest the buyer.
(3)CA Civil Law Code § 1793.1(e)(3) Maintain at the premises of retail sellers of the warrantor’s consumer goods a current listing of the warrantor’s authorized service and repair facilities, or retail sellers to whom the consumer goods are to be returned for service and repair, whichever is applicable, within this state. It shall be the duty of every retail seller provided with that listing to provide, on inquiry, the name, address, and telephone number of the nearest authorized service and repair facility, or the retail seller to whom the consumer goods are to be returned for service and repair, whichever is applicable.

Section § 1793.2

Explanation

This section outlines the responsibilities of manufacturers who sell consumer goods with warranties in California. Manufacturers must have sufficient repair facilities in the state or authorize independent shops to handle warranty repairs. If a manufacturer's goods need repair because they don't meet warranty promises, repairs should start promptly, ideally within 30 days unless delayed by unforeseen issues. If problems persist after several repair attempts, manufacturers must replace or refund the purchase, taking into account prior usage. If goods can't be easily returned due to their installation or attachment, manufacturers must arrange for repairs. If goods can't be serviced due to being part of real estate, manufacturers must replace or refund them. New motor vehicle buyers have specific rights, including choices between replacement and refund under lemon laws.

(a)CA Civil Law Code § 1793.2(a) Every manufacturer of consumer goods sold in this state and for which the manufacturer has made an express warranty shall:
(1)Copy CA Civil Law Code § 1793.2(a)(1)
(A)Copy CA Civil Law Code § 1793.2(a)(1)(A) Maintain in this state sufficient service and repair facilities reasonably close to all areas where its consumer goods are sold to carry out the terms of those warranties or designate and authorize in this state as service and repair facilities independent repair or service facilities reasonably close to all areas where its consumer goods are sold to carry out the terms of the warranties.
(B)CA Civil Law Code § 1793.2(a)(1)(A)(B) As a means of complying with this paragraph, a manufacturer may enter into warranty service contracts with independent service and repair facilities. The warranty service contracts may provide for a fixed schedule of rates to be charged for warranty service or warranty repair work. However, the rates fixed by those contracts shall be in conformity with the requirements of subdivision (c) of Section 1793.3. The rates established pursuant to subdivision (c) of Section 1793.3, between the manufacturer and the independent service and repair facility, do not preclude a good faith discount that is reasonably related to reduced credit and general overhead cost factors arising from the manufacturer’s payment of warranty charges direct to the independent service and repair facility. The warranty service contracts authorized by this paragraph may not be executed to cover a period of time in excess of one year, and may be renewed only by a separate, new contract or letter of agreement between the manufacturer and the independent service and repair facility.
(2)CA Civil Law Code § 1793.2(a)(2) In the event of a failure to comply with paragraph (1), be subject to Section 1793.5.
(3)CA Civil Law Code § 1793.2(a)(3) Make available to authorized service and repair facilities sufficient service literature and replacement parts to effect repairs during the express warranty period.
(b)CA Civil Law Code § 1793.2(b) Where those service and repair facilities are maintained in this state and service or repair of the goods is necessary because they do not conform with the applicable express warranties, service and repair shall be commenced within a reasonable time by the manufacturer or its representative in this state. Unless the buyer agrees in writing to the contrary, the goods shall be serviced or repaired so as to conform to the applicable warranties within 30 days. Delay caused by conditions beyond the control of the manufacturer or its representatives shall serve to extend this 30-day requirement. Where delay arises, conforming goods shall be tendered as soon as possible following termination of the condition giving rise to the delay.
(c)CA Civil Law Code § 1793.2(c) The buyer shall deliver nonconforming goods to the manufacturer’s service and repair facility within this state, unless, due to reasons of size and weight, or method of attachment, or method of installation, or nature of the nonconformity, delivery cannot reasonably be accomplished. If the buyer cannot return the nonconforming goods for any of these reasons, the buyer shall notify the manufacturer or its nearest service and repair facility within the state. Written notice of nonconformity to the manufacturer or its service and repair facility shall constitute return of the goods for purposes of this section. Upon receipt of that notice of nonconformity, the manufacturer shall, at its option, service or repair the goods at the buyer’s residence, or pick up the goods for service and repair, or arrange for transporting the goods to its service and repair facility. All reasonable costs of transporting the goods when a buyer cannot return them for any of the above reasons shall be at the manufacturer’s expense. The reasonable costs of transporting nonconforming goods after delivery to the service and repair facility until return of the goods to the buyer shall be at the manufacturer’s expense.
(d)Copy CA Civil Law Code § 1793.2(d)
(1)Copy CA Civil Law Code § 1793.2(d)(1) Except as provided in paragraph (2), if the manufacturer or its representative in this state does not service or repair the goods to conform to the applicable express warranties after a reasonable number of attempts, the manufacturer shall either replace the goods or reimburse the buyer in an amount equal to the purchase price paid by the buyer, less that amount directly attributable to use by the buyer prior to the discovery of the nonconformity. However, if the manufacturer or its representative in this state does not service or repair a travel trailer or a portion of a motor home designed, used, or maintained for human habitation, to conform to the applicable express warranties after a reasonable number of attempts, the buyer shall be free to elect reimbursement in lieu of replacement, and in no event shall the buyer be required by the manufacturer to accept a replacement travel trailer or motor home.
(2)CA Civil Law Code § 1793.2(d)(2) If the manufacturer or its representative in this state is unable to service or repair a new motor vehicle, as that term is defined in paragraph (2) of subdivision (e) of Section 1793.22, to conform to the applicable express warranties after a reasonable number of attempts, the manufacturer shall either promptly replace the new motor vehicle in accordance with subparagraph (A) or promptly make restitution to the buyer in accordance with subparagraph (B). However, the buyer shall be free to elect restitution in lieu of replacement, and in no event shall the buyer be required by the manufacturer to accept a replacement vehicle.
(A)CA Civil Law Code § 1793.2(d)(2)(A) In the case of replacement, the manufacturer shall replace the buyer’s vehicle with a new motor vehicle substantially identical to the vehicle replaced. The replacement vehicle shall be accompanied by all express and implied warranties that normally accompany new motor vehicles of that specific kind. The manufacturer also shall pay for, or to, the buyer the amount of any sales or use tax, license fees, registration fees, and other official fees which the buyer is obligated to pay in connection with the replacement, plus any incidental damages to which the buyer is entitled under Section 1794, including, but not limited to, reasonable repair, towing, and rental car costs actually incurred by the buyer.
(B)CA Civil Law Code § 1793.2(d)(2)(B) In the case of restitution, the manufacturer shall make restitution in an amount equal to the actual price paid or payable by the buyer, including any charges for transportation and manufacturer-installed options, but excluding nonmanufacturer items installed by a dealer or the buyer, and including any collateral charges such as sales or use tax, license fees, registration fees, and other official fees, plus any incidental damages to which the buyer is entitled under Section 1794, including, but not limited to, reasonable repair, towing, and rental car costs actually incurred by the buyer.
(C)CA Civil Law Code § 1793.2(d)(2)(C) When the manufacturer replaces the new motor vehicle pursuant to subparagraph (A), the buyer shall only be liable to pay the manufacturer an amount directly attributable to use by the buyer of the replaced vehicle prior to the time the buyer first delivered the vehicle to the manufacturer or distributor, or its authorized service and repair facility for correction of the problem that gave rise to the nonconformity. When restitution is made pursuant to subparagraph (B), the amount to be paid by the manufacturer to the buyer may be reduced by the manufacturer by that amount directly attributable to use by the buyer prior to the time the buyer first delivered the vehicle to the manufacturer or distributor, or its authorized service and repair facility for correction of the problem that gave rise to the nonconformity. The amount directly attributable to use by the buyer shall be determined by multiplying the actual price of the new motor vehicle paid or payable by the buyer, including any charges for transportation and manufacturer-installed options, by a fraction having as its denominator 120,000 and having as its numerator the number of miles traveled by the new motor vehicle prior to the time the buyer first delivered the vehicle to the manufacturer or distributor, or its authorized service and repair facility for correction of the problem that gave rise to the nonconformity. Nothing in this paragraph shall in any way limit the rights or remedies available to the buyer under any other law.
(D)CA Civil Law Code § 1793.2(d)(2)(D) Pursuant to Section 1795.4, a buyer of a new motor vehicle shall also include a lessee of a new motor vehicle.
(e)Copy CA Civil Law Code § 1793.2(e)
(1)Copy CA Civil Law Code § 1793.2(e)(1) If the goods cannot practicably be serviced or repaired by the manufacturer or its representative to conform to the applicable express warranties because of the method of installation or because the goods have become so affixed to real property as to become a part thereof, the manufacturer shall either replace and install the goods or reimburse the buyer in an amount equal to the purchase price paid by the buyer, including installation costs, less that amount directly attributable to use by the buyer prior to the discovery of the nonconformity.
(2)CA Civil Law Code § 1793.2(e)(2) With respect to claims arising out of deficiencies in the construction of a new residential dwelling, paragraph (1) shall not apply to either of the following:
(A)CA Civil Law Code § 1793.2(e)(2)(A) A product that is not a manufactured product, as defined in subdivision (g) of Section 896.
(B)CA Civil Law Code § 1793.2(e)(2)(B) A claim against a person or entity that is not the manufacturer that originally made the express warranty for that manufactured product.

Section § 1793.22

Explanation

This law is known as the Tanner Consumer Protection Act and relates to ensuring that new cars meet their warranties. If a new motor vehicle has not been fixed after a reasonable number of repair attempts, the buyer may have certain rights. These rights include returning the car if it's not safe or if it spends too much time in the shop. The law says you can assume there have been enough attempts to fix the car if it meets specific conditions, like being in the shop for 30 days or experiencing the same problem multiple times. Buyers are encouraged to use a third-party dispute process before taking further legal action, and manufacturers must comply with decisions from this process if accepted by the buyer. Additionally, definitions are provided for terms like 'nonconformity' and 'new motor vehicle,' and there are rules about selling vehicles that were returned under these circumstances to ensure the defect is disclosed and fixed.

(a)CA Civil Law Code § 1793.22(a) This section shall be known and may be cited as the Tanner Consumer Protection Act.
(b)CA Civil Law Code § 1793.22(b) It shall be presumed that a reasonable number of attempts have been made to conform a new motor vehicle to the applicable express warranties if, within 18 months from delivery to the buyer or 18,000 miles on the odometer of the vehicle, whichever occurs first, one or more of the following occurs:
(1)CA Civil Law Code § 1793.22(b)(1) The same nonconformity results in a condition that is likely to cause death or serious bodily injury if the vehicle is driven and the nonconformity has been subject to repair two or more times by the manufacturer or its agents, and the buyer or lessee has at least once directly notified the manufacturer of the need for the repair of the nonconformity.
(2)CA Civil Law Code § 1793.22(b)(2) The same nonconformity has been subject to repair four or more times by the manufacturer or its agents and the buyer has at least once directly notified the manufacturer of the need for the repair of the nonconformity.
(3)CA Civil Law Code § 1793.22(b)(3) The vehicle is out of service by reason of repair of nonconformities by the manufacturer or its agents for a cumulative total of more than 30 calendar days since delivery of the vehicle to the buyer. The 30-day limit shall be extended only if repairs cannot be performed due to conditions beyond the control of the manufacturer or its agents. The buyer shall be required to directly notify the manufacturer pursuant to paragraphs (1) and (2) only if the manufacturer has clearly and conspicuously disclosed to the buyer, with the warranty or the owner’s manual, the provisions of this section and that of subdivision (d) of Section 1793.2, including the requirement that the buyer must notify the manufacturer directly pursuant to paragraphs (1) and (2). The notification, if required, shall be sent to the address, if any, specified clearly and conspicuously by the manufacturer in the warranty or owner’s manual. This presumption shall be a rebuttable presumption affecting the burden of proof, and it may be asserted by the buyer in any civil action, including an action in small claims court, or other formal or informal proceeding.
(c)CA Civil Law Code § 1793.22(c) If a qualified third-party dispute resolution process exists, and the buyer receives timely notification in writing of the availability of that qualified third-party dispute resolution process with a description of its operation and effect, the presumption in subdivision (b) may not be asserted by the buyer until after the buyer has initially resorted to the qualified third-party dispute resolution process as required in subdivision (d). Notification of the availability of the qualified third-party dispute resolution process is not timely if the buyer suffers any prejudice resulting from any delay in giving the notification. If a qualified third-party dispute resolution process does not exist, or if the buyer is dissatisfied with that third-party decision, or if the manufacturer or its agent neglects to promptly fulfill the terms of the qualified third-party dispute resolution process decision after the decision is accepted by the buyer, the buyer may assert the presumption provided in subdivision (b) in an action to enforce the buyer’s rights under subdivision (d) of Section 1793.2. The findings and decision of a qualified third-party dispute resolution process shall be admissible in evidence in the action without further foundation. Any period of limitation of actions under any federal or California laws with respect to any person shall be extended for a period equal to the number of days between the date a complaint is filed with a third-party dispute resolution process and the date of its decision or the date before which the manufacturer or its agent is required by the decision to fulfill its terms if the decision is accepted by the buyer, whichever occurs later.
(d)CA Civil Law Code § 1793.22(d) A qualified third-party dispute resolution process shall be one that does all of the following:
(1)CA Civil Law Code § 1793.22(d)(1) Complies with the minimum requirements of the Federal Trade Commission for informal dispute settlement procedures as set forth in Part 703 of Title 16 of the Code of Federal Regulations, as those regulations read on January 1, 1987.
(2)CA Civil Law Code § 1793.22(d)(2) Renders decisions which are binding on the manufacturer if the buyer elects to accept the decision.
(3)CA Civil Law Code § 1793.22(d)(3) Prescribes a reasonable time, not to exceed 30 days after the decision is accepted by the buyer, within which the manufacturer or its agent must fulfill the terms of its decisions.
(4)CA Civil Law Code § 1793.22(d)(4) Provides arbitrators who are assigned to decide disputes with copies of, and instruction in, the provisions of the Federal Trade Commission’s regulations in Part 703 of Title 16 of the Code of Federal Regulations as those regulations read on January 1, 1987, Division 2 (commencing with Section 2101) of the Commercial Code, and this chapter.
(5)CA Civil Law Code § 1793.22(d)(5) Requires the manufacturer, when the process orders, under the terms of this chapter, either that the nonconforming motor vehicle be replaced if the buyer consents to this remedy or that restitution be made to the buyer, to replace the motor vehicle or make restitution in accordance with paragraph (2) of subdivision (d) of Section 1793.2.
(6)CA Civil Law Code § 1793.22(d)(6) Provides, at the request of the arbitrator or a majority of the arbitration panel, for an inspection and written report on the condition of a nonconforming motor vehicle, at no cost to the buyer, by an automobile expert who is independent of the manufacturer.
(7)CA Civil Law Code § 1793.22(d)(7) Takes into account, in rendering decisions, all legal and equitable factors, including, but not limited to, the written warranty, the rights and remedies conferred in regulations of the Federal Trade Commission contained in Part 703 of Title 16 of the Code of Federal Regulations as those regulations read on January 1, 1987, Division 2 (commencing with Section 2101) of the Commercial Code, this chapter, and any other equitable considerations appropriate in the circumstances. Nothing in this chapter requires that, to be certified as a qualified third-party dispute resolution process pursuant to this section, decisions of the process must consider or provide remedies in the form of awards of punitive damages or multiple damages, under subdivision (c) of Section 1794, or of attorneys’ fees under subdivision (d) of Section 1794, or of consequential damages other than as provided in subdivisions (a) and (b) of Section 1794, including, but not limited to, reasonable repair, towing, and rental car costs actually incurred by the buyer.
(8)CA Civil Law Code § 1793.22(d)(8) Requires that no arbitrator deciding a dispute may be a party to the dispute and that no other person, including an employee, agent, or dealer for the manufacturer, may be allowed to participate substantively in the merits of any dispute with the arbitrator unless the buyer is allowed to participate also. Nothing in this subdivision prohibits any member of an arbitration board from deciding a dispute.
(9)CA Civil Law Code § 1793.22(d)(9) Obtains and maintains certification by the Department of Consumer Affairs pursuant to Chapter 9 (commencing with Section 472) of Division 1 of the Business and Professions Code.
(e)CA Civil Law Code § 1793.22(e) For the purposes of subdivision (d) of Section 1793.2 and this section, the following terms have the following meanings:
(1)CA Civil Law Code § 1793.22(e)(1) “Nonconformity” means a nonconformity which substantially impairs the use, value, or safety of the new motor vehicle to the buyer or lessee.
(2)CA Civil Law Code § 1793.22(e)(2) “New motor vehicle” means a new motor vehicle that is bought or used primarily for personal, family, or household purposes. “New motor vehicle” also means a new motor vehicle with a gross vehicle weight under 10,000 pounds that is bought or used primarily for business purposes by a person, including a partnership, limited liability company, corporation, association, or any other legal entity, to which not more than five motor vehicles are registered in this state. “New motor vehicle” includes the chassis, chassis cab, and that portion of a motor home devoted to its propulsion, but does not include any portion designed, used, or maintained primarily for human habitation, a dealer-owned vehicle and a “demonstrator” or other motor vehicle sold with a manufacturer’s new car warranty but does not include a motorcycle or a motor vehicle which is not registered under the Vehicle Code because it is to be operated or used exclusively off the highways. A demonstrator is a vehicle assigned by a dealer for the purpose of demonstrating qualities and characteristics common to vehicles of the same or similar model and type.
(3)CA Civil Law Code § 1793.22(e)(3) “Motor home” means a vehicular unit built on, or permanently attached to, a self-propelled motor vehicle chassis, chassis cab, or van, which becomes an integral part of the completed vehicle, designed for human habitation for recreational or emergency occupancy.
(f)Copy CA Civil Law Code § 1793.22(f)
(1)Copy CA Civil Law Code § 1793.22(f)(1) Except as provided in paragraph (2), no person shall sell, either at wholesale or retail, lease, or transfer a motor vehicle transferred by a buyer or lessee to a manufacturer pursuant to paragraph (2) of subdivision (d) of Section 1793.2 or a similar statute of any other state, unless the nature of the nonconformity experienced by the original buyer or lessee is clearly and conspicuously disclosed to the prospective buyer, lessee, or transferee, the nonconformity is corrected, and the manufacturer warrants to the new buyer, lessee, or transferee in writing for a period of one year that the motor vehicle is free of that nonconformity.
(2)CA Civil Law Code § 1793.22(f)(2) Except for the requirement that the nature of the nonconformity be disclosed to the transferee, paragraph (1) does not apply to the transfer of a motor vehicle to an educational institution if the purpose of the transfer is to make the motor vehicle available for use in automotive repair courses.

Section § 1793.23

Explanation

This law is known as the Automotive Consumer Notification Act and is designed to protect car buyers by ensuring they are informed about the history of a used vehicle. If a manufacturer or dealer takes back a car because it couldn't be fixed to meet warranty standards, they must label it as a 'Lemon Law Buyback' on the vehicle's title, which alerts buyers about the car's past issues. Before selling such a vehicle, they must provide a disclosure notice to the new buyer, who must acknowledge it in writing. This ensures transparency and helps buyers make informed decisions. Additionally, these disclosure rules are in addition to other consumer protection laws, not a replacement.

(a)CA Civil Law Code § 1793.23(a) The Legislature finds and declares all of the following:
(1)CA Civil Law Code § 1793.23(a)(1) That the expansion of state warranty laws covering new and used cars has given important and valuable protection to consumers.
(2)CA Civil Law Code § 1793.23(a)(2) That, in states without this valuable warranty protection, used and irrepairable motor vehicles are being resold in the marketplace without notice to the subsequent purchaser.
(3)CA Civil Law Code § 1793.23(a)(3) That other states have addressed this problem by requiring notices on the title of these vehicles or other notice procedures to warn consumers that the motor vehicles were repurchased by a dealer or manufacturer because the vehicle could not be repaired in a reasonable length of time or a reasonable number of repair attempts or the dealer or manufacturer was not willing to repair the vehicle.
(4)CA Civil Law Code § 1793.23(a)(4) That these notices serve the interests of consumers who have a right to information relevant to their buying decisions.
(5)CA Civil Law Code § 1793.23(a)(5) That the disappearance of these notices upon the transfer of title from another state to this state encourages the transport of “lemons” to this state for sale to the drivers of this state.
(b)CA Civil Law Code § 1793.23(b) This section and Section 1793.24 shall be known, and may be cited as, the Automotive Consumer Notification Act.
(c)CA Civil Law Code § 1793.23(c) Any manufacturer who reacquires or assists a dealer or lienholder to reacquire a motor vehicle registered in this state, any other state, or a federally administered district shall, prior to any sale, lease, or transfer of the vehicle in this state, or prior to exporting the vehicle to another state for sale, lease, or transfer if the vehicle was registered in this state and reacquired pursuant to paragraph (2) of subdivision (d) of Section 1793.2, cause the vehicle to be retitled in the name of the manufacturer, request the Department of Motor Vehicles to inscribe the ownership certificate with the notation “Lemon Law Buyback,” and affix a decal to the vehicle in accordance with Section 11713.12 of the Vehicle Code if the manufacturer knew or should have known that the vehicle is required by law to be replaced, accepted for restitution due to the failure of the manufacturer to conform the vehicle to applicable warranties pursuant to paragraph (2) of subdivision (d) of Section 1793.2, or accepted for restitution by the manufacturer due to the failure of the manufacturer to conform the vehicle to warranties required by any other applicable law of the state, any other state, or federal law.
(d)CA Civil Law Code § 1793.23(d) Any manufacturer who reacquires or assists a dealer or lienholder to reacquire a motor vehicle in response to a request by the buyer or lessee that the vehicle be either replaced or accepted for restitution because the vehicle did not conform to express warranties shall, prior to the sale, lease, or other transfer of the vehicle, execute and deliver to the subsequent transferee a notice and obtain the transferee’s written acknowledgment of a notice, as prescribed by Section 1793.24.
(e)CA Civil Law Code § 1793.23(e) Any person, including any dealer, who acquires a motor vehicle for resale and knows or should have known that the vehicle was reacquired by the vehicle’s manufacturer in response to a request by the last retail owner or lessee of the vehicle that it be replaced or accepted for restitution because the vehicle did not conform to express warranties shall, prior to the sale, lease, or other transfer, execute and deliver to the subsequent transferee a notice and obtain the transferee’s written acknowledgment of a notice, as prescribed by Section 1793.24.
(f)CA Civil Law Code § 1793.23(f) Any person, including any manufacturer or dealer, who sells, leases, or transfers ownership of a motor vehicle when the vehicle’s ownership certificate is inscribed with the notation “Lemon Law Buyback” shall, prior to the sale, lease, or ownership transfer of the vehicle, provide the transferee with a disclosure statement signed by the transferee that states:
“THIS VEHICLE WAS REPURCHASED BY ITS MANUFACTURER DUE TO A DEFECT IN THE VEHICLE PURSUANT TO CONSUMER WARRANTY LAWS. THE TITLE TO THIS VEHICLE HAS BEEN PERMANENTLY BRANDED WITH THE NOTATION ‛LEMON LAW BUYBACK’.”
(g)CA Civil Law Code § 1793.23(g) The disclosure requirements in subdivisions (d), (e), and (f) are cumulative with all other consumer notice requirements and do not relieve any person, including any dealer or manufacturer, from complying with any other applicable law, including any requirement of subdivision (f) of Section 1793.22.
(h)CA Civil Law Code § 1793.23(h) For purposes of this section, “dealer” means any person engaged in the business of selling, offering for sale, or negotiating the retail sale of, a used motor vehicle or selling motor vehicles as a broker or agent for another, including the officers, agents, and employees of the person and any combination or association of dealers.

Section § 1793.24

Explanation

This law requires car manufacturers to create a notice for any vehicles they buy back because of defects, known as "Lemon Law Buybacks." The notice must include details like the year, make, model, and vehicle identification number, whether the title says "Lemon Law Buyback," and information on the problems reported and repairs attempted. This notice must be printed on a specific-sized form using clear black text on a white background. Manufacturers must provide this notice to anyone who gets the vehicle before it is sold to a new buyer, ensuring they know the vehicle's history.

(a)CA Civil Law Code § 1793.24(a) The notice required in subdivisions (d) and (e) of Section 1793.23 shall be prepared by the manufacturer of the reacquired vehicle and shall disclose all of the following:
(1)CA Civil Law Code § 1793.24(a)(1) Year, make, model, and vehicle identification number of the vehicle.
(2)CA Civil Law Code § 1793.24(a)(2) Whether the title to the vehicle has been inscribed with the notation “Lemon Law Buyback.”
(3)CA Civil Law Code § 1793.24(a)(3) The nature of each nonconformity reported by the original buyer or lessee of the vehicle.
(4)CA Civil Law Code § 1793.24(a)(4) Repairs, if any, made to the vehicle in an attempt to correct each nonconformity reported by the original buyer or lessee.
(b)CA Civil Law Code § 1793.24(b) The notice shall be on a form 81/2 x 11 inches in size and printed in no smaller than 10-point black type on a white background.
The form shall only contain the following information prior to it being filled out by the manufacturer:
(Check One)
□ This vehicle was repurchased by the vehicle’s manufacturer after the last retail owner or lessee requested its repurchase due to the problem(s) listed below.
□THIS VEHICLE WAS REPURCHASED BY ITS MANUFACTURER DUE TO A DEFECT IN THE VEHICLE PURSUANT TO CONSUMER WARRANTY LAWS. THE TITLE TO THIS VEHICLE HAS BEEN PERMANENTLY BRANDED WITH THE NOTATION “LEMON LAW BUYBACK.” Under California law, the manufacturer must warrant to you, for a one year period, that the vehicle is free of the problem(s) listed below.
V.I.N.
Year
Make
Model
Problem(s) Reported by
Original Owner
Repairs Made, if any, to
Correct Reported Problem(s)









Signature of Manufacturer
Date
Signature of Dealer(s)
Date

Signature of Retail Buyer or Lessee

Date
(c)CA Civil Law Code § 1793.24(c) The manufacturer shall provide an executed copy of the notice to the manufacturer’s transferee. Each transferee, including a dealer, to whom the motor vehicle is transferred prior to its sale to a retail buyer or lessee shall be provided an executed copy of the notice by the previous transferor.

Section § 1793.25

Explanation

This law explains how California handles tax reimbursements for car manufacturers that replace or refund defective vehicles under the state's lemon law. If a manufacturer gives a replacement vehicle or refunds money, they can get reimbursed for sales or use tax they've paid on behalf of the buyer, lessee, or retailer as long as they provide proof all taxes were paid. The law makes clear that it's about reimbursing taxes, not changing tax law itself. The State Board of Equalization, which manages such processes, can create rules to ensure everything is followed properly and manufacturers' claims are handled under specific tax provisions.

(a)CA Civil Law Code § 1793.25(a) Notwithstanding Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code, the State Board of Equalization shall reimburse the manufacturer of a new motor vehicle for an amount equal to the sales tax or use tax which the manufacturer pays to or for the buyer or lessee when providing a replacement vehicle pursuant to subparagraph (A) of paragraph (2) of subdivision (d) of Section 1793.2 or includes in making restitution to the buyer or lessee pursuant to subparagraph (B) of paragraph (2) of subdivision (d) of Section 1793.2, when the manufacturer provides satisfactory proof that it has complied with subdivision (c) of Section 1793.23, and satisfactory proof is provided for one of the following:
(1)CA Civil Law Code § 1793.25(a)(1) The retailer of the motor vehicle for which the manufacturer is making restitution has reported and paid the sales tax on the gross receipts from the sale of that motor vehicle.
(2)CA Civil Law Code § 1793.25(a)(2) The buyer of the motor vehicle has paid the use tax on the sales price for the storage, use, or other consumption of that motor vehicle in this state.
(3)CA Civil Law Code § 1793.25(a)(3) The lessee of the motor vehicle has paid the use tax on the rentals payable from the lease of that motor vehicle.
(b)CA Civil Law Code § 1793.25(b) The State Board of Equalization may adopt rules and regulations to carry out, facilitate compliance with, or prevent circumvention or evasion of, this section.
(c)CA Civil Law Code § 1793.25(c) This section shall not change the application of the sales and use tax to the gross receipts, the rentals payable, and the sales price from the sale, lease, and the storage, use, or other consumption, in this state of tangible personal property pursuant to Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code.
(d)CA Civil Law Code § 1793.25(d) The manufacturer’s claim for reimbursement and the State Board of Equalization’s approval or denial of the claim shall be subject to the provisions of Article 1 (commencing with Section 6901) of Chapter 7 of Part 1 of Division 2 of the Revenue and Taxation Code, except Sections 6907 and 6908, insofar as those provisions are not inconsistent with this section.
(e)CA Civil Law Code § 1793.25(e) For purposes of this section, the amount of use tax that the State Board of Equalization is required to reimburse the manufacturer shall be limited to the amount of use tax the manufacturer is required to pay to or for the lessee pursuant to Section 1793.2.

Section § 1793.26

Explanation

This law makes it illegal for car manufacturers, importers, distributors, dealers, or lienholders in California to force car owners to keep quiet about problems with their vehicles when the cars are bought back. They can't include confidentiality or gag clauses about the vehicle's issues or the nonfinancial terms of the buyback in any agreements. If such clauses are included, they are invalid according to state policy. However, confidentiality about the financial terms of the buyback is still allowed.

(a)CA Civil Law Code § 1793.26(a) Any automobile manufacturer, importer, distributor, dealer, or lienholder who reacquires, or who assists in reacquiring, a motor vehicle, whether by judgment, decree, arbitration award, settlement agreement, or voluntary agreement, is prohibited from doing either of the following:
(1)CA Civil Law Code § 1793.26(a)(1) Requiring, as a condition of the reacquisition of the motor vehicle, that a buyer or lessee who is a resident of this state agree not to disclose the problems with the vehicle experienced by the buyer or lessee or the nonfinancial terms of the reacquisition.
(2)CA Civil Law Code § 1793.26(a)(2) Including, in any release or other agreement, whether prepared by the manufacturer, importer, distributor, dealer, or lienholder, for signature by the buyer or lessee, a confidentiality clause, gag clause, or similar clause prohibiting the buyer or lessee from disclosing information to anyone about the problems with the vehicle, or the nonfinancial terms of the reacquisition of the vehicle by the manufacturer, importer, distributor, dealer, or lienholder.
(b)CA Civil Law Code § 1793.26(b) Any confidentiality clause, gag clause, or similar clause in such a release or other agreement in violation of this section shall be null and void as against the public policy of this state.
(c)CA Civil Law Code § 1793.26(c) Nothing in this section is intended to prevent any confidentiality clause, gag clause, or similar clause regarding the financial terms of the reacquisition of the vehicle.

Section § 1793.3

Explanation

This law section explains what buyers can do if a manufacturer doesn’t provide necessary repair services for faulty goods under warranty. If the manufacturer hasn't set up repair centers or provided enough parts for repairs, a buyer can choose one of three options: return the goods to the original or any retailer (who must repair, replace, or refund), or use an independent repair facility at the manufacturer's expense, if reasonably possible. The manufacturer must inform the buyer about these options when the goods cost $50 or more. Retailers might also have to cover transport costs when collecting and returning bulky items, which they can reclaim from the manufacturer.

If the manufacturer of consumer goods sold in this state for which the manufacturer has made an express warranty does not provide service and repair facilities within this state pursuant to subdivision (a) of Section 1793.2, or does not make available to authorized service and repair facilities service literature and replacement parts sufficient to effect repair during the express warranty period, the buyer of such manufacturer’s nonconforming goods may follow the course of action prescribed in either subdivision (a), (b), or (c), below, as follows:
(a)CA Civil Law Code § 1793.3(a) Return the nonconforming consumer goods to the retail seller thereof. The retail seller shall do one of the following:
(1)CA Civil Law Code § 1793.3(a)(1) Service or repair the nonconforming goods to conform to the applicable warranty.
(2)CA Civil Law Code § 1793.3(a)(2) Direct the buyer to a reasonably close independent repair or service facility willing to accept service or repair under this section.
(3)CA Civil Law Code § 1793.3(a)(3) Replace the nonconforming goods with goods that are identical or reasonably equivalent to the warranted goods.
(4)CA Civil Law Code § 1793.3(a)(4) Refund to the buyer the original purchase price less that amount directly attributable to use by the buyer prior to the discovery of the nonconformity.
(b)CA Civil Law Code § 1793.3(b) Return the nonconforming consumer goods to any retail seller of like goods of the same manufacturer within this state who may do one of the following:
(1)CA Civil Law Code § 1793.3(b)(1) Service or repair the nonconforming goods to conform to the applicable warranty.
(2)CA Civil Law Code § 1793.3(b)(2) Direct the buyer to a reasonably close independent repair or service facility willing to accept service or repair under this section.
(3)CA Civil Law Code § 1793.3(b)(3) Replace the nonconforming goods with goods that are identical or reasonably equivalent to the warranted goods.
(4)CA Civil Law Code § 1793.3(b)(4) Refund to the buyer the original purchase price less that amount directly attributable to use by the buyer prior to the discovery of the nonconformity.
(c)CA Civil Law Code § 1793.3(c) Secure the services of an independent repair or service facility for the service or repair of the nonconforming consumer goods, when service or repair of the goods can be economically accomplished. In that event the manufacturer shall be liable to the buyer, or to the independent repair or service facility upon an assignment of the buyer’s rights, for the actual and reasonable cost of service and repair, including any cost for parts and any reasonable cost of transporting the goods or parts, plus a reasonable profit. It shall be a rebuttable presumption affecting the burden of producing evidence that the reasonable cost of service or repair is an amount equal to that which is charged by the independent service dealer for like services or repairs rendered to service or repair customers who are not entitled to warranty protection. Any waiver of the liability of a manufacturer shall be void and unenforceable.
The course of action prescribed in this subdivision shall be available to the buyer only after the buyer has followed the course of action prescribed in either subdivision (a) or (b) and such course of action has not furnished the buyer with appropriate relief. In no event, shall the provisions of this subdivision be available to the buyer with regard to consumer goods with a wholesale price to the retailer of less than fifty dollars ($50). In no event shall the buyer be responsible or liable for service or repair costs charged by the independent repair or service facility which accepts service or repair of nonconforming consumer goods under this section. Such independent repair or service facility shall only be authorized to hold the manufacturer liable for such costs.
(d)CA Civil Law Code § 1793.3(d) A retail seller to which any nonconforming consumer good is returned pursuant to subdivision (a) or (b) shall have the option of providing service or repair itself or directing the buyer to a reasonably close independent repair or service facility willing to accept service or repair under this section. In the event the retail seller directs the buyer to an independent repair or service facility, the manufacturer shall be liable for the reasonable cost of repair services in the manner provided in subdivision (c).
(e)CA Civil Law Code § 1793.3(e) In the event a buyer is unable to return nonconforming goods to the retailer due to reasons of size and weight, or method of attachment, or method of installation, or nature of the nonconformity, the buyer shall give notice of the nonconformity to the retailer. Upon receipt of such notice of nonconformity the retailer shall, at its option, service or repair the goods at the buyer’s residence, or pick up the goods for service or repair, or arrange for transporting the goods to its place of business. The reasonable costs of transporting the goods shall be at the retailer’s expense. The retailer shall be entitled to recover all such reasonable costs of transportation from the manufacturer pursuant to Section 1793.5. The reasonable costs of transporting nonconforming goods after delivery to the retailer until return of the goods to the buyer, when incurred by a retailer, shall be recoverable from the manufacturer pursuant to Section 1793.5. Written notice of nonconformity to the retailer shall constitute return of the goods for the purposes of subdivisions (a) and (b).
(f)CA Civil Law Code § 1793.3(f) The manufacturer of consumer goods with a wholesale price to the retailer of fifty dollars ($50) or more for which the manufacturer has made express warranties shall provide written notice to the buyer of the courses of action available to him under subdivision (a), (b), or (c).

Section § 1793.35

Explanation

If you buy clothing or consumable goods with a written warranty and they don't meet the warranty terms, you can return them within 30 days or the warranty period, whichever is longer. The warranty might tell you to return the items to any store that sells the same brand for a replacement. If you return such items because they don't match the warranty, the store must replace them if the warranty says so. If not, the store can choose to either replace the items or give you your money back. Stores can get reimbursed by the manufacturer for these returns. For draperies without a warranty but with clear writings that the store won't guarantee the fabric quality, the usual guarantee on the fabric doesn't apply.

(a)CA Civil Law Code § 1793.35(a) Where the retail sale of clothing or consumables is accompanied by an express warranty and such items do not conform with the terms of the express warranty, the buyer thereof may return the goods within 30 days of purchase or the period specified in the warranty, whichever is greater. The manufacturer may, in the express warranty, direct the purchaser to return nonconforming goods to a retail seller of like goods of the same manufacturer for replacement.
(b)CA Civil Law Code § 1793.35(b) When clothing or consumables are returned to a retail seller for the reason that they do not conform to an express warranty, the retailer shall replace the nonconforming goods where the manufacturer has directed replacement in the express warranty. In the event the manufacturer has not directed replacement in the express warranty, the retailer may replace the nonconforming goods or reimburse the buyer in an amount equal to the purchase price paid by the buyer for the goods, at the option of the retailer. Costs of reimbursement or replacement are recoverable by a retailer from the manufacturer in the manner provided in Section 1793.5.
(c)CA Civil Law Code § 1793.35(c) Where the retail sale of draperies is not accompanied by an express warranty and the sale of such draperies is accompanied by a conspicuous writing disclaiming the retailer’s implied warranty of merchantability on the fabric, the retailer’s implied warranty of merchantability shall not apply to the fabric.

Section § 1793.4

Explanation

If a buyer opts for service and repair, it should start promptly and be completed within 30 days unless the buyer agrees otherwise. Delays beyond the seller's control can extend this timeframe, but the seller must finish the repair as soon as the delay ends.

Where an option is exercised in favor of service and repair under Section 1793.3, such service and repair must be commenced within a reasonable time, and, unless the buyer agrees in writing to the contrary, goods conforming to the applicable express warranties shall be tendered within 30 days. Delay caused by conditions beyond the control of the retail seller or his representative shall serve to extend this 30-day requirement. Where such a delay arises, conforming goods shall be tendered as soon as possible following termination of the condition giving rise to the delay.

Section § 1793.5

Explanation

This law explains how a product manufacturer in California who offers express warranties but doesn't have repair or service facilities in the state is financially responsible to the retail sellers of their products. Specifically, if a retail seller replaced goods under warranty, the manufacturer must pay them back for the actual replacement cost, transportation, and a handling fee. If the retailer performed service and repairs, the manufacturer has to pay what the retailer would usually earn from non-warranty services, including costs of repairs, transportation, and a reasonable profit. Lastly, if the seller reimbursed a buyer under warranty, the manufacturer must cover that amount plus a handling fee.

Every manufacturer making express warranties who does not provide service and repair facilities within this state pursuant to subdivision (a) of Section 1793.2 shall be liable as prescribed in this section to every retail seller of such manufacturer’s goods who incurs obligations in giving effect to the express warranties that accompany such manufacturer’s consumer goods. The amount of such liability shall be determined as follows:
(a)CA Civil Law Code § 1793.5(a) In the event of replacement, in an amount equal to the actual cost to the retail seller of the replaced goods, and cost of transporting the goods, if such costs are incurred plus a reasonable handling charge.
(b)CA Civil Law Code § 1793.5(b) In the event of service and repair, in an amount equal to that which would be received by the retail seller for like service rendered to retail consumers who are not entitled to warranty protection, including actual and reasonable costs of the service and repair and the cost of transporting the goods, if such costs are incurred, plus a reasonable profit.
(c)CA Civil Law Code § 1793.5(c) In the event of reimbursement under subdivision (a) of Section 1793.3, in an amount equal to that reimbursed to the buyer, plus a reasonable handling charge.

Section § 1793.6

Explanation

This law states that manufacturers who offer express warranties for their products are responsible for paying independent service and repair facilities for work done under the warranty. This includes covering costs for repairs, parts, transportation, and a reasonable profit. It's assumed that the reasonable repair cost is what the facility usually charges non-warranty customers unless proven otherwise. Manufacturers can't make agreements that waive this responsibility—they're not valid.

Except as otherwise provided in the terms of a warranty service contract, as specified in subdivision (a) of Section 1793.2, entered into between a manufacturer and an independent service and repair facility, every manufacturer making express warranties whose consumer goods are sold in this state shall be liable as prescribed in this section to every independent serviceman who performs services or incurs obligations in giving effect to the express warranties that accompany such manufacturer’s consumer goods whether the independent serviceman is acting as an authorized service and repair facility designated by the manufacturer pursuant to paragraph (1) of subdivision (a) of Section 1793.2 or is acting as an independent serviceman pursuant to subdivisions (c) and (d) of Section 1793.3. The amount of such liability shall be an amount equal to the actual and reasonable costs of the service and repair, including any cost for parts and any reasonable cost of transporting the goods or parts, plus a reasonable profit. It shall be a rebuttable presumption affecting the burden of producing evidence that the reasonable cost of service or repair is an amount equal to that which is charged by the independent serviceman for like services or repairs rendered to service or repair customers who are not entitled to warranty protection. Any waiver of the liability of a manufacturer shall be void and unenforceable.

Section § 1794

Explanation

If you buy consumer goods and suffer damage because someone didn't meet their legal obligations or the terms of a warranty, you can sue for damages and other relief. If they were willful about not complying, you could get a penalty up to twice your actual damages, but this doesn't apply in class actions or to only implied warranty breaches. If you win your case, you can also recover your legal costs and attorney's fees. Furthermore, if the manufacturer has a dispute resolution process that meets certain standards, they might avoid penalties, but you must notify them in writing to push for resolution. If satisfied promptly, they can avoid the penalty.

(a)CA Civil Law Code § 1794(a) Any buyer of consumer goods who is damaged by a failure to comply with any obligation under this chapter or under an implied or express warranty or service contract may bring an action for the recovery of damages and other legal and equitable relief.
(b)CA Civil Law Code § 1794(b) The measure of the buyer’s damages in an action under this section shall include the rights of replacement or reimbursement as set forth in subdivision (d) of Section 1793.2, and the following:
(1)CA Civil Law Code § 1794(b)(1) Where the buyer has rightfully rejected or justifiably revoked acceptance of the goods or has exercised any right to cancel the sale, Sections 2711, 2712, and 2713 of the Commercial Code shall apply.
(2)CA Civil Law Code § 1794(b)(2) Where the buyer has accepted the goods, Sections 2714 and 2715 of the Commercial Code shall apply, and the measure of damages shall include the cost of repairs necessary to make the goods conform.
(c)CA Civil Law Code § 1794(c) If the buyer establishes that the failure to comply was willful, the judgment may include, in addition to the amounts recovered under subdivision (a), a civil penalty which shall not exceed two times the amount of actual damages. This subdivision shall not apply in any class action under Section 382 of the Code of Civil Procedure or under Section 1781, or with respect to a claim based solely on a breach of an implied warranty.
(d)CA Civil Law Code § 1794(d) If the buyer prevails in an action under this section, the buyer shall be allowed by the court to recover as part of the judgment a sum equal to the aggregate amount of costs and expenses, including attorney’s fees based on actual time expended, determined by the court to have been reasonably incurred by the buyer in connection with the commencement and prosecution of such action.
(e)Copy CA Civil Law Code § 1794(e)
(1)Copy CA Civil Law Code § 1794(e)(1) Except as otherwise provided in this subdivision, if the buyer establishes a violation of paragraph (2) of subdivision (d) of Section 1793.2, the buyer shall recover damages and reasonable attorney’s fees and costs, and may recover a civil penalty of up to two times the amount of damages.
(2)CA Civil Law Code § 1794(e)(2) If the manufacturer maintains a qualified third-party dispute resolution process which substantially complies with Section 1793.22, the manufacturer shall not be liable for any civil penalty pursuant to this subdivision.
(3)CA Civil Law Code § 1794(e)(3) After the occurrence of the events giving rise to the presumption established in subdivision (b) of Section 1793.22, the buyer may serve upon the manufacturer a written notice requesting that the manufacturer comply with paragraph (2) of subdivision (d) of Section 1793.2. If the buyer fails to serve the notice, the manufacturer shall not be liable for a civil penalty pursuant to this subdivision.
(4)CA Civil Law Code § 1794(e)(4) If the buyer serves the notice described in paragraph (3) and the manufacturer complies with paragraph (2) of subdivision (d) of Section 1793.2 within 30 days of the service of that notice, the manufacturer shall not be liable for a civil penalty pursuant to this subdivision.
(5)CA Civil Law Code § 1794(e)(5) If the buyer recovers a civil penalty under subdivision (c), the buyer may not also recover a civil penalty under this subdivision for the same violation.

Section § 1794.1

Explanation

This law says that if a retail seller or an independent serviceman who deals with consumer goods is harmed by someone repeatedly or intentionally breaking this chapter's rules, they can sue for money. If they win, they can get three times the amount of their actual losses, plus the cost of hiring a lawyer.

(a)CA Civil Law Code § 1794.1(a) Any retail seller of consumer goods injured by the willful or repeated violation of the provisions of this chapter may bring an action for the recovery of damages. Judgment may be entered for three times the amount at which the actual damages are assessed plus reasonable attorney fees.
(b)CA Civil Law Code § 1794.1(b) Any independent serviceman of consumer goods injured by the willful or repeated violation of the provisions of this chapter may bring an action for the recovery of damages. Judgment may be entered for three times the amount at which the actual damages are assessed plus reasonable attorney fees.

Section § 1794.3

Explanation
If a defect or issue with consumer goods happens because the buyer used them in a way that wasn't authorized or was unreasonable after they bought them, then this law won't cover those defects.
The provisions of this chapter shall not apply to any defect or nonconformity in consumer goods caused by the unauthorized or unreasonable use of the goods following sale.

Section § 1794.4

Explanation

This law section says that a service contract can be sold to a buyer along with or instead of a regular warranty, as long as it's written in clear language about what's included and excluded. It details what has to be in a service contract, including product information, terms of coverage, how long it lasts, and how to cancel it. The service contracts should also provide necessary repairs without extra charges for as long as the contract is active. Specific rules are outlined for month-to-month contracts, especially regarding cancellation and refunds. Service providers can cancel contracts only under certain conditions, such as non-payment or fraud. The section also specifies that these rules apply to home appliances and electronics bought after certain dates, and some changes to the law apply to contracts made after January 1, 2022.

(a)CA Civil Law Code § 1794.4(a) Nothing in this chapter shall be construed to prevent the sale of a service contract to the buyer in addition to or in lieu of an express warranty if that contract fully and conspicuously discloses in simple and readily understood language the terms, conditions, and exclusions of that contract, provided that nothing in this section shall apply to a home protection contract issued by a home protection company that is subject to Part 7 (commencing with Section 12740) of Division 2 of the Insurance Code.
(b)CA Civil Law Code § 1794.4(b) Except as otherwise expressly provided in the service contract, every service contract shall obligate the service contractor to provide to the buyer of the product all of the services and functional parts that may be necessary to maintain proper operation of the entire product under normal operation and service for the duration of the service contract and without additional charge.
(c)CA Civil Law Code § 1794.4(c) The service contract shall contain all of the following items of information:
(1)CA Civil Law Code § 1794.4(c)(1) If the service contract covers a single product, a clear description and identification of the covered product. If the service contract covers a class of products, a description of the class of products covered by the service contract that is sufficiently clear so the buyer is able to discern the products covered.
(2)CA Civil Law Code § 1794.4(c)(2) The point in time or event when the term of the service contract commences, and its duration measured by elapsed time or an objective measure of use.
(3)Copy CA Civil Law Code § 1794.4(c)(3)
(A)Copy CA Civil Law Code § 1794.4(c)(3)(A) A service contract may be offered on a month-to-month or other periodic basis and continue until canceled by the buyer or the service contractor in accordance with Section 1794.41 and, for electronic and appliance repair dealers, Section 9855.6 of the Business and Professions Code. If the service contract continues until canceled by the buyer or service contractor, the service contract shall do all of the following:
(i)CA Civil Law Code § 1794.4(c)(3)(A)(i) Disclose to the buyer in a clear and conspicuous manner that the service contract shall continue until canceled by the buyer or service contractor and require the buyer’s affirmative consent to this provision.
(ii)CA Civil Law Code § 1794.4(c)(3)(A)(ii) Disclose to the buyer all alternatives that the seller offering the service contract offers, including any fixed-term service contracts or other service contract basis that does not continue until it is canceled.
(iii)CA Civil Law Code § 1794.4(c)(3)(A)(iii) Provide, at a minimum, a toll-free number, email address, postal address, and, if one exists, internet website the buyer can use to cancel the service contract. Cancellation shall not require the use of more than one of these methods to be completed and shall be effective immediately upon receipt of the request for cancellation.
(iv)CA Civil Law Code § 1794.4(c)(3)(A)(iv) If the service contract was entered into online, allow the buyer the option to cancel the service contract exclusively online, without engaging in any unnecessary steps that obstruct or delay the buyer’s ability to cancel the continuation of the service contract.
(v)Copy CA Civil Law Code § 1794.4(c)(3)(A)(v)
(I)Copy CA Civil Law Code § 1794.4(c)(3)(A)(v)(I) Provide for a refund to the buyer of any unearned amounts in accordance with Section 1794.41 and, for electronic and appliance repair dealers, Section 9855.6 of the Business and Professions Code.
(II) The amount of any refund, as well as any cancellation or administrative fees, under this paragraph shall be calculated based on the period, whether month to month or otherwise, for which payment is made and the amount of the payment for the period.
(III) A written notice of cancellation other than notice required by clauses (iii) and (iv) shall not be required to obtain a refund.
(B)CA Civil Law Code § 1794.4(c)(3)(A)(B) This paragraph does not apply to vehicle service contracts.
(4)CA Civil Law Code § 1794.4(c)(4) If the enforceability of the service contract is limited to the original buyer or is limited to persons other than every consumer owner of the covered product during the term of the service contract, a description of the limits on transfer or assignment of the service contract.
(5)CA Civil Law Code § 1794.4(c)(5) A statement of the general obligation of the service contractor in the same language set forth in subdivision (b), with equally clear and conspicuous statements of the following:
(A)CA Civil Law Code § 1794.4(c)(5)(A) Any services, parts, characteristics, components, properties, defects, malfunctions, causes, conditions, repairs, or remedies that are excluded from the scope of the service contract.
(B)CA Civil Law Code § 1794.4(c)(5)(B) Any other limits on the application of the language in subdivision (b) such as a limit on the total number of service calls.
(C)CA Civil Law Code § 1794.4(c)(5)(C) Any additional services that the service contractor will provide.
(D)CA Civil Law Code § 1794.4(c)(5)(D) Whether the obligation of the service contractor includes preventive maintenance and, if so, the nature and frequency of the preventive maintenance that the service contractor will provide.
(E)CA Civil Law Code § 1794.4(c)(5)(E) Whether the buyer has an obligation to provide preventive maintenance or perform any other obligations and, if so, the nature and frequency of the preventive maintenance and of any other obligations, and the consequences of any noncompliance.
(6)CA Civil Law Code § 1794.4(c)(6) A step-by-step explanation of the procedure that the buyer should follow in order to obtain performance of any obligation under the service contract including the following:
(A)CA Civil Law Code § 1794.4(c)(6)(A) The full legal and business name of the service contractor.
(B)CA Civil Law Code § 1794.4(c)(6)(B) The mailing address of the service contractor.
(C)CA Civil Law Code § 1794.4(c)(6)(C) The persons or class of persons that are authorized to perform service.
(D)CA Civil Law Code § 1794.4(c)(6)(D) The name or title and address of any agent, employee, or department of the service contractor that is responsible for the performance of any obligations.
(E)CA Civil Law Code § 1794.4(c)(6)(E) The method of giving notice to the service contractor of the need for service.
(F)CA Civil Law Code § 1794.4(c)(6)(F) Whether in-home service is provided or, if not, whether the costs of transporting the product for service or repairs will be paid by the service contractor.
(G)CA Civil Law Code § 1794.4(c)(6)(G) If the product must be transported to the service contractor, either the place where the product may be delivered for service or repairs or a toll-free telephone number that the buyer may call to obtain that information.
(H)CA Civil Law Code § 1794.4(c)(6)(H) All other steps that the buyer must take to obtain service.
(I)CA Civil Law Code § 1794.4(c)(6)(I) All fees, charges, and other costs that the buyer must pay to obtain service.
(7)CA Civil Law Code § 1794.4(c)(7) An explanation of the steps that the service contractor will take to carry out its obligations under the service contract.
(8)CA Civil Law Code § 1794.4(c)(8) A description of any right to cancel the contract if the buyer returns the product or the product is sold, lost, stolen, or destroyed, or, if there is no right to cancel or the right to cancel is limited, a statement of the fact.
(9)CA Civil Law Code § 1794.4(c)(9) Information respecting the availability of any informal dispute settlement process.
(d)CA Civil Law Code § 1794.4(d) A service contractor may cancel a service contract offered on a month-to-month or other periodic basis only if any of the following occurs:
(1)CA Civil Law Code § 1794.4(d)(1) The buyer fails to make timely payment.
(2)CA Civil Law Code § 1794.4(d)(2) The buyer is otherwise in material breach of the service contract.
(3)CA Civil Law Code § 1794.4(d)(3) The buyer has committed fraud in connection with the service contract.
(4)Copy CA Civil Law Code § 1794.4(d)(4)
(A)Copy CA Civil Law Code § 1794.4(d)(4)(A) The service contractor or its affiliate is the obligor under the service contract, and the service contractor or its affiliate is discontinuing this category of service contract no later than 30 days after the effective date of the cancellation.
(B)CA Civil Law Code § 1794.4(d)(4)(A)(B) A cancellation or administrative fee shall not be charged to the buyer for a cancellation pursuant to this paragraph.
(5)Copy CA Civil Law Code § 1794.4(d)(5)
(A)Copy CA Civil Law Code § 1794.4(d)(5)(A) Neither the seller offering the service contract nor any of its affiliates is the obligor under the service contract, and the seller is discontinuing its offering of the service contract no later than 30 days after the effective date of the cancellation in favor of a service contract with a different obligor.
(B)CA Civil Law Code § 1794.4(d)(5)(A)(B) A cancellation or administrative fee shall not be charged to the buyer for a cancellation pursuant to this paragraph.
(e)CA Civil Law Code § 1794.4(e) As used in this section:
(1)CA Civil Law Code § 1794.4(e)(1) “Affiliate” means an entity that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with another specified entity.
(2)Copy CA Civil Law Code § 1794.4(e)(2)
(A)Copy CA Civil Law Code § 1794.4(e)(2)(A) “Affirmative consent” means any freely given, specific, informed, and unambiguous indication of the consumer’s wishes by which the consumer, or the consumer’s legal guardian, a person who has power of attorney, or a person acting as a conservator for the consumer, including by a statement or by a clear affirmative action, signifies agreement to the continuous until canceled nature of the service contract.
(B)CA Civil Law Code § 1794.4(e)(2)(A)(B) “Affirmative consent” does not mean any of the following:
(i)CA Civil Law Code § 1794.4(e)(2)(A)(B)(i) Acceptance of a general or broad terms of use, or similar document, that contains descriptions of the coverages under the service contract along with other, unrelated information.
(ii)CA Civil Law Code § 1794.4(e)(2)(A)(B)(ii) Hovering over, muting, pausing, or closing a given piece of content.
(iii)CA Civil Law Code § 1794.4(e)(2)(A)(B)(iii) Agreement obtained through the use of dark patterns.
(f)CA Civil Law Code § 1794.4(f) Subdivisions (b) and (c) are applicable to service contracts on new or used home appliances and home electronic products entered into on or after July 1, 1989. They are applicable to service contracts on all other new or used products entered into on and after July 1, 1991.
(g)CA Civil Law Code § 1794.4(g) The amendments to this section made by the act adding this subdivision are applicable only to a service contract entered into on or after January 1, 2022.

Section § 1794.41

Explanation

This law sets the rules for service contracts on motor vehicles, home appliances, or home electronics sold in California. The contract must include certain disclosures and be available for buyers to inspect before purchase. Buyers must receive the contract within 60 days of purchase, or within 30 days if sold over the phone. These service contracts cover costs not under the manufacturer's warranty but can overlap if they offer additional benefits. Buyers can cancel their contract within certain timeframes for a full or pro-rated refund, depending on whether they haven't, or have, made claims. Sellers can charge a small cancellation fee. If the service contract was financed, the refund can be paid to the buyer or lender. Home protection plans from specific companies are not covered under this rule, and if this section conflicts with insurance law, insurance rules prevail.

(a)CA Civil Law Code § 1794.41(a) No service contract covering any motor vehicle, home appliance, or home electronic product purchased for use in this state may be offered for sale or sold unless all of the following elements exist:
(1)CA Civil Law Code § 1794.41(a)(1) The contract shall contain the disclosures specified in Section 1794.4 and shall disclose in the manner described in that section the buyer’s cancellation and refund rights provided by this section.
(2)CA Civil Law Code § 1794.41(a)(2) The contract shall be available for inspection by the buyer prior to purchase and either the contract, or a brochure which specifically describes the terms, conditions, and exclusions of the contract, and the provisions of this section relating to contract delivery, cancellation, and refund, shall be delivered to the buyer at or before the time of purchase of the contract. Within 60 days after the date of purchase, the contract itself shall be delivered to the buyer. If a service contract for a home appliance or a home electronic product is sold by means of a telephone solicitation, the seller may elect to satisfy the requirements of this paragraph by mailing or delivering the contract to the buyer not later than 30 days after the date of the sale of the contract.
(3)CA Civil Law Code § 1794.41(a)(3) The contract is applicable only to items, costs, and time periods not covered by the express warranty. However, a service contract may run concurrently with or overlap an express warranty if (A) the contract covers items or costs not covered by the express warranty or (B) the contract provides relief to the purchaser not available under the express warranty, such as automatic replacement of a product where the express warranty only provides for repair.
(4)CA Civil Law Code § 1794.41(a)(4) The contract shall be cancelable by the purchaser under the following conditions:
(A)CA Civil Law Code § 1794.41(a)(4)(A) Unless the contract provides for a longer period, within the first 60 days after receipt of the contract, or with respect to a contract covering a used motor vehicle without manufacturer warranties, a home appliance, or a home electronic product, within the first 30 days after receipt of the contract, the full amount paid shall be refunded by the seller to the purchaser if the purchaser provides a written notice of cancellation to the person specified in the contract, and if no claims have been made against the contract. If a claim has been made against the contract either within the first 60 days after receipt of the contract, or with respect to a used motor vehicle without manufacturer warranties, home appliance, or home electronic product, within the first 30 days after receipt of the contract, a pro rata refund, based on either elapsed time or an objective measure of use, such as mileage or the retail value of any service performed, at the seller’s option as indicated in the contract, or for a vehicle service contract at the obligor’s option as determined at the time of cancellation, shall be made by the seller to the purchaser if the purchaser provides a written notice of cancellation to the person specified in the contract.
(B)CA Civil Law Code § 1794.41(a)(4)(B) Unless the contract provides for a longer period for obtaining a full refund, after the first 60 days after receipt of the contract, or with respect to a contract covering a used motor vehicle without manufacturer warranties, a home appliance, or a home electronic product, after the first 30 days after the receipt of the contract, a pro rata refund, based on either elapsed time or an objective measure of use, such as mileage or the retail value of any service performed, at the seller’s option as indicated in the contract, or for a vehicle service contract at the obligor’s option as determined at the time of cancellation, shall be made by the seller to the purchaser if the purchaser provides a written notice of cancellation to the person specified in the contract. In addition, the seller may assess a cancellation or administrative fee, not to exceed 10 percent of the price of the service contract or twenty-five dollars ($25), whichever is less.
(C)CA Civil Law Code § 1794.41(a)(4)(C) If the purchase of the service contract was financed, the seller may make the refund payable to the purchaser, the assignee, or lender of record, or both.
(b)CA Civil Law Code § 1794.41(b) Nothing in this section shall apply to a home protection plan that is issued by a home protection company which is subject to Part 7 (commencing with Section 12740) of Division 2 of the Insurance Code.
(c)CA Civil Law Code § 1794.41(c) If any provision of this section conflicts with any provision of Part 8 (commencing with Section 12800) of Division 2 of the Insurance Code, the provision of the Insurance Code shall apply instead of this section.

Section § 1794.45

Explanation

If you're a retailer selling a service contract, you have to either keep the contract details handy and share them with the buyer or their beneficiary if they ask, or if they request a copy of the contract, you must provide it within 10 business days. This rule doesn't apply to vehicle service contracts.

(a)CA Civil Law Code § 1794.45(a) A retailer that sells a service contract pursuant to Section 1794.4 shall do either of the following during the period that the service contract is in effect:
(1)CA Civil Law Code § 1794.45(a)(1) Maintain contract information that includes a description of the terms and conditions of the service contract, and provide that information to the purchaser of the service contract or other beneficiary upon request.
(2)CA Civil Law Code § 1794.45(a)(2) Upon request from the purchaser of the service contract or other beneficiary, obtain a copy of the service contract, and provide that copy to the requester within 10 business days after receiving the request.
(b)CA Civil Law Code § 1794.45(b) This section shall not apply to a vehicle service contract, as defined in subdivision (c) of Section 12800 of the Insurance Code.

Section § 1794.5

Explanation

This law allows manufacturers who provide express warranties the flexibility to recommend ways to service and repair products. These recommendations can be different from the ones specified in this chapter, as long as they stay within the warranty's terms and conditions.

The provisions of this chapter shall not preclude a manufacturer making express warranties from suggesting methods of effecting service and repair, in accordance with the terms and conditions of the express warranties, other than those required by this chapter.

Section § 1795

Explanation

This law says that if a person or company other than the manufacturer of a product gives a warranty, they have the same responsibilities as the manufacturer under the warranty laws. Basically, they're held to the same standards.

If express warranties are made by persons other than the manufacturer of the goods, the obligation of the person making such warranties shall be the same as that imposed on the manfacturer under this chapter.

Section § 1795.1

Explanation

This law relates to any part of a system, like heating or cooling equipment, that helps control air temperature or quality. However, the rest of the system isn’t covered when it’s permanently installed in a building.

This chapter shall apply to any equipment or mechanical, electrical, or thermal component of a system designed to heat, cool, or otherwise condition air, but, with that exception, shall not apply to the system as a whole where such a system becomes a fixed part of a structure.

Section § 1795.4

Explanation

This section explains the rules for leasing new and used consumer goods in the context of warranties. When express warranties are typically given to buyers of similar goods, those warranties apply to leased goods too. Both the person leasing the goods and the manufacturer have the same rights and responsibilities as if the goods were bought outright. If goods come from the lessor's inventory, the lessee has the same rights as a buyer would against the lessor. If the goods are not from inventory, the lessee can assert rights against the seller who supplied the goods to the lessor. Lessors can disclaim warranties for re-leased goods if they clearly state this in the lease. Both the lessor and the seller can pursue the same claims against manufacturers as they would in a sales scenario.

For the purposes of this chapter only, the following rules apply to leases of both new and used consumer goods:
(a)CA Civil Law Code § 1795.4(a) If express warranties are regularly furnished to purchasers of substantially the same kind of goods, (1) those warranties will be deemed to apply to the leased goods and (2) the lessor and lessee shall each be deemed to be the first purchaser of the goods for the purpose of any warranty provision limiting warranty benefits to the original purchaser.
(b)CA Civil Law Code § 1795.4(b) The lessee of goods has the same rights under this chapter against the manufacturer and any person making express warranties that the lessee would have had under this chapter if the goods had been purchased by the lessee, and the manufacturer and any person making express warranties have the same duties and obligations under this chapter with respect to the goods that such manufacturer and other person would have had under this chapter if the goods had been sold to the lessee.
(c)CA Civil Law Code § 1795.4(c) If a lessor leases goods to a lessee from the lessor’s inventory, the lessee has the same rights under this chapter against the lessor that the lessee would have had if the goods had been purchased by the lessee, and the lessor has the same duties and obligations under this chapter with respect to the goods that the lessor would have had under this chapter if the goods had been sold to the lessee. For purposes of this section, “inventory” shall include both goods in the lessor’s possession prior to negotiation of the lease and goods ordered from another party in order to lease those goods to the lessee where the lessor is a dealer in goods of that type.
(d)CA Civil Law Code § 1795.4(d) If a lessor leases goods to a lessee which the lessor acquires other than from the lessor’s inventory, the lessee has the same rights under this chapter against the seller of the goods to the lessor that the lessee would have had under this chapter if the goods had been purchased by the lessee from the seller, and the seller of the goods to the lessor has the same duties and obligations under this chapter with respect to the goods that the seller would have had under this chapter if the goods had been purchased by the lessee from the seller.
(e)CA Civil Law Code § 1795.4(e) A lessor who re-leases goods to a new lessee and does not retake possession of the goods prior to consummation of the re-lease may, notwithstanding the provisions of Section 1793, disclaim as to that lessee any and all warranties created by this chapter by conspicuously disclosing in the lease that these warranties are disclaimed.
(f)CA Civil Law Code § 1795.4(f) A lessor who has obligations to the lessee with relation to warranties in connection with a lease of goods and the seller of goods to a lessor have the same rights and remedies against the manufacturer and any person making express warranties that a seller of the goods would have had if the seller had sold the goods to the lessee.

Section § 1795.5

Explanation

If you're selling used consumer goods with a warranty, you have the same responsibilities as the original manufacturer, except: you must have repair facilities available in California; a specific rule doesn’t apply to used goods; the warranty can't be shorter than 30 days or longer than three months unless stated otherwise and has to match any express warranty; and these obligations apply to all used goods sold, no matter when they were made.

Notwithstanding the provisions of subdivision (a) of Section 1791 defining consumer goods to mean “new” goods, the obligation of a distributor or retail seller of used consumer goods in a sale in which an express warranty is given shall be the same as that imposed on manufacturers under this chapter except:
(a)CA Civil Law Code § 1795.5(a) It shall be the obligation of the distributor or retail seller making express warranties with respect to used consumer goods (and not the original manufacturer, distributor, or retail seller making express warranties with respect to such goods when new) to maintain sufficient service and repair facilities within this state to carry out the terms of such express warranties.
(b)CA Civil Law Code § 1795.5(b) The provisions of Section 1793.5 shall not apply to the sale of used consumer goods sold in this state.
(c)CA Civil Law Code § 1795.5(c) The duration of the implied warranty of merchantability and where present the implied warranty of fitness with respect to used consumer goods sold in this state, where the sale is accompanied by an express warranty, shall be coextensive in duration with an express warranty which accompanies the consumer goods, provided the duration of the express warranty is reasonable, but in no event shall such implied warranties have a duration of less than 30 days nor more than three months following the sale of used consumer goods to a retail buyer. Where no duration for an express warranty is stated with respect to such goods, or parts thereof, the duration of the implied warranties shall be the maximum period prescribed above.
(d)CA Civil Law Code § 1795.5(d) The obligation of the distributor or retail seller who makes express warranties with respect to used goods that are sold in this state, shall extend to the sale of all such used goods, regardless of when such goods may have been manufactured.

Section § 1795.51

Explanation

If you're buying or leasing a used car from a 'buy-here-pay-here' dealer in California, they must give you a written warranty that lasts at least 30 days or 1,000 miles, whichever comes first. This warranty covers a range of important parts and systems, including the engine, brakes, and transmission. If something goes wrong, the dealer must fix it at no cost to you or offer a full refund minus any damage not caused by the issue covered under warranty. The car must also meet certain safety equipment requirements before being sold or leased. Any attempt by the dealer to limit these rights is not allowed. If they don't give you the warranty as required, they're legally considered to have done so anyway.

(a)CA Civil Law Code § 1795.51(a) No buy-here-pay-here dealer, as that term is defined in Section 241 of the Vehicle Code, shall sell or lease a used vehicle, as defined in Section 665 of the Vehicle Code, at retail price without giving the buyer or lessee a written warranty that shall have a minimum duration of at least 30 days from the date of delivery or when the odometer has registered 1,000 miles from what is shown on the contract, whichever occurs first.
(b)CA Civil Law Code § 1795.51(b) The written warranty shall provide that if the buyer or lessee notifies the buy-here-pay-here dealer that the vehicle does not conform to the written warranty, the buy-here-pay-here dealer shall either repair the vehicle to conform to the written warranty, reimburse the buyer or lessee for the reasonable cost of repairs, or cancel the sale or lease contract and provide the buyer or lessee with a full refund, less a reasonable amount for any damage sustained by the vehicle after the sale or lease, excepting damage caused by any nonconformity with the written warranty.
(c)CA Civil Law Code § 1795.51(c) The written warranty shall provide that the buy-here-pay-here dealer shall pay 100 percent of the cost of labor and parts for any repairs pursuant to the warranty, and may not charge the buyer or lessee for the cost of repairs or for inspecting the vehicle, tearing down the engine or transmission or other part, or for any deductible. Any person performing repairs pursuant to this subdivision shall comply with the requirements of an automotive repair dealer pursuant to Chapter 20.3 (commencing with Section 9880) of Division 3 of the Business and Professions Code.
(d)CA Civil Law Code § 1795.51(d) The buy-here-pay-here dealer or its agent may elect to refund the buyer or lessee a full refund, less a reasonable amount for any damage sustained by the vehicle after the sale or lease, excepting damage caused by any nonconformity with the written warranty, rather than performing a repair. In the event that the buy-here-pay-here dealer cancels the sale or lease, all of the following shall apply:
(1)CA Civil Law Code § 1795.51(d)(1) The buy-here-pay-here dealer shall give written notice to the buyer or lessee of the election to cancel the sale or lease by personal delivery or first-class mail.
(2)CA Civil Law Code § 1795.51(d)(2) The buyer or lessee shall return the vehicle in substantially the same condition as when it was delivered by the buy-here-pay-here dealer, reasonable wear and tear and any nonconformity with the written warranty excepted.
(3)CA Civil Law Code § 1795.51(d)(3) The buy-here-pay-here dealer shall provide the buyer or lessee with a receipt stating all of the following:
(A)CA Civil Law Code § 1795.51(d)(3)(A) The date the vehicle was returned to the buy-here-pay-here dealer.
(B)CA Civil Law Code § 1795.51(d)(3)(B) The vehicle identification number.
(C)CA Civil Law Code § 1795.51(d)(3)(C) The make, year, and model of the vehicle.
(D)CA Civil Law Code § 1795.51(d)(3)(D) The odometer reading at the time that the vehicle was returned to the buy-here-pay-here dealer.
(E)CA Civil Law Code § 1795.51(d)(3)(E) A statement that the buy-here-pay-here dealer has canceled the sale or lease.
(F)CA Civil Law Code § 1795.51(d)(3)(F) The amount of the buyer’s or lessee’s refund.
(4)CA Civil Law Code § 1795.51(d)(4) The buy-here-pay-here dealer shall not treat the return of the vehicle pursuant to the contract cancellation provisions of this subdivision as a repossession.
(5)CA Civil Law Code § 1795.51(d)(5) The buyer or lessee shall execute the documents necessary to transfer any interest in the vehicle to the buy-here-pay-here dealer or to remove the buyer or lessee from any registration or title documents.
(6)CA Civil Law Code § 1795.51(d)(6) The buy-here-pay-here dealer shall refund to the buyer or lessee, no later than the day after the day on which the buyer or lessee returns the vehicle and the notice of election to cancel is given to the buyer or lessee, all amounts paid under the sale or lease agreement, less a reasonable amount for property damage sustained by the vehicle after the sale or lease, excepting damage caused by any nonconformity with the warranty.
(e)CA Civil Law Code § 1795.51(e) The written warranty shall cover at least the following components:
(1)CA Civil Law Code § 1795.51(e)(1) Engine, including all internally lubricated parts.
(2)CA Civil Law Code § 1795.51(e)(2) Transmission and transaxle.
(3)CA Civil Law Code § 1795.51(e)(3) Front and rear wheel drive components.
(4)CA Civil Law Code § 1795.51(e)(4) Engine cooling system.
(5)CA Civil Law Code § 1795.51(e)(5) Alternator, generator, starter, and ignition system, not including the battery.
(6)CA Civil Law Code § 1795.51(e)(6) Braking system.
(7)CA Civil Law Code § 1795.51(e)(7) Front and rear suspension systems.
(8)CA Civil Law Code § 1795.51(e)(8) Steering system and components.
(9)CA Civil Law Code § 1795.51(e)(9) Seatbelts.
(10)CA Civil Law Code § 1795.51(e)(10) Inflatable restraint systems installed on the vehicle as originally manufactured.
(11)CA Civil Law Code § 1795.51(e)(11) Catalytic converter and other emissions components necessary for the vehicle to pass a California emissions test.
(12)CA Civil Law Code § 1795.51(e)(12) Heater.
(13)CA Civil Law Code § 1795.51(e)(13) Seals and gaskets on components described in this subdivision.
(14)CA Civil Law Code § 1795.51(e)(14) Electrical, electronic, and computer components, to the extent that those components substantially affect the functionality of other components described in this subdivision.
(f)CA Civil Law Code § 1795.51(f) Any Used Car Buyer’s Guide displayed on a vehicle offered for sale or lease by a buy-here-pay-here dealer shall list each of the above systems and components and shall specify that the buy-here-pay-here dealer will pay 100 percent of the cost of parts and labor for repairs covered by the warranty.
(g)CA Civil Law Code § 1795.51(g) The buy-here-pay-here dealer shall make the repair or provide a refund notwithstanding the fact that the warranty period has expired if the buyer or lessee notified the buy-here-pay-here dealer of the failure of a covered system or part within the warranty period.
(h)CA Civil Law Code § 1795.51(h) This section shall not apply to any defect or nonconformity caused by the unauthorized or unreasonable use of the vehicle following the sale, or to any property damage not to the vehicle arising out of the failure of a covered part.
(i)CA Civil Law Code § 1795.51(i) In any proceeding in which the exclusion of coverage permitted by subdivision (h) or the deduction allowed by paragraph (6) of subdivision (d) is an issue, the buy-here-pay-here dealer shall have the burden of proof.
(j)CA Civil Law Code § 1795.51(j) A buy-here-pay-here dealer shall not sell or lease any vehicle unless the vehicle meets all of the equipment requirements of Division 12 (commencing with Section 24000) of the Vehicle Code.
(k)CA Civil Law Code § 1795.51(k) Any agreement between a buy-here-pay-here dealer and a buyer or lessee that disclaims, limits, or waives the rights set forth in this section shall be void as contrary to public policy.
(l)CA Civil Law Code § 1795.51(l) If a buy-here-pay-here dealer fails to give a buyer a written warranty pursuant to this section, the buy-here-pay-here dealer shall be deemed to have provided the warranty as a matter of law.

Section § 1795.6

Explanation

This law covers warranty periods for consumer goods sold for $50 or more. If you return a product for repair or notify the manufacturer of a problem, the warranty is paused until you get the item back fixed. For hearing aids, the pause ends when the fixed item is returned or five days after you're notified it's ready, whichever comes first. The warranty doesn't end if repairs are delayed beyond your control or if repairs don't fix the problem, as long as you notify the manufacturer within 60 days. Sellers must provide receipts showing purchase dates and service details, and for hearing aids, they must include adjusted warranty dates when you receive the repaired item.

(a)Copy CA Civil Law Code § 1795.6(a)
(1)Copy CA Civil Law Code § 1795.6(a)(1) Except as provided in paragraph (2) warranty period relating to an implied or express warranty accompanying a sale or consignment for sale of consumer goods selling for fifty dollars ($50) or more shall automatically be tolled for the period from the date upon which the buyer either (1) delivers nonconforming goods to the manufacturer or seller for warranty repairs or service or (2), pursuant to subdivision (c) of Section 1793.2 or Section 1793.22, notifies the manufacturer or seller of the nonconformity of the goods up to, and including, the date upon which (1) the repaired or serviced goods are delivered to the buyer, (2) the buyer is notified the goods are repaired or serviced and are available for the buyer’s possession or (3) the buyer is notified that repairs or service is completed, if repairs or service is made at the buyer’s residence.
(2)CA Civil Law Code § 1795.6(a)(2) With respect to hearing aids, the warranty period shall resume on the date upon which (1) the repaired or serviced hearing aid is delivered to the buyer or (2) five days after the buyer is notified the hearing aid is repaired or serviced and is available for the buyer’s possession, whichever is earlier.
(b)CA Civil Law Code § 1795.6(b) Notwithstanding the date or conditions set for the expiration of the warranty period, such warranty period shall not be deemed expired if either or both of the following situations occur: (1) after the buyer has satisfied the requirements of subdivision (a), the warranty repairs or service has not been performed due to delays caused by circumstances beyond the control of the buyer or (2) the warranty repairs or service performed upon the nonconforming goods did not remedy the nonconformity for which such repairs or service was performed and the buyer notified the manufacturer or seller of this failure within 60 days after the repairs or service was completed. When the warranty repairs or service has been performed so as to remedy the nonconformity, the warranty period shall expire in accordance with its terms, including any extension to the warranty period for warranty repairs or service.
(c)CA Civil Law Code § 1795.6(c) For purposes of this section only, “manufacturer” includes the manufacturer’s service or repair facility.
(d)Copy CA Civil Law Code § 1795.6(d)
(1)Copy CA Civil Law Code § 1795.6(d)(1) Except as provided in paragraph (2), every manufacturer or seller of consumer goods selling for fifty dollars ($50) or more shall provide a receipt to the buyer showing the date of purchase. Every manufacturer or seller performing warranty repairs or service on the goods shall provide to the buyer a work order or receipt with the date of return and either the date the buyer was notified that the goods were repaired or serviced or, where applicable, the date the goods were shipped or delivered to the buyer.
(2)CA Civil Law Code § 1795.6(d)(2) With respect to hearing aids, the seller, after receiving the hearing aid for warranty repairs or service, shall also provide at the time of delivery to the buyer a work order or receipt with the following: (1) the date the warranty period resumes and (2) the revised expiration date of the warranty, as adjusted to reflect the suspension of the warranty period provided under this section.

Section § 1795.7

Explanation

This law states that if a product's warranty, either express or implied, is paused because a retailer is making repairs, the warranty time is extended. During this extended time, the manufacturer must remain responsible for the warranty obligations to the retailer. Essentially, if the warranty gets longer due to repairs, the manufacturer still has to back the product's quality during this extra time. If a manufacturer uses both its own repair centers and independent ones in the state, it is responsible to those centers for the warranty obligations during this extended period.

Whenever a warranty, express or implied, is tolled pursuant to Section 1795.6 as a result of repairs or service performed by any retail seller, the warranty shall be extended with regard to the liability of the manufacturer to a retail seller pursuant to law. In such event, the manufacturer shall be liable in accordance with the provisions of Section 1793.5 for the period that an express warranty has been extended by virtue of Section 1795.6 to every retail seller who incurs obligations in giving effect to such express warranty. The manufacturer shall also be liable to every retail seller for the period that an implied warranty has been extended by virtue of Section 1795.6, in the same manner as he would be liable under Section 1793.5 for an express warranty. If a manufacturer provides for warranty repairs and service through its own service and repair facilities and through independent repair facilities in the state, its exclusive liability pursuant to this section shall be to such facilities.

Section § 1795.8

Explanation

This California law says that members of the Armed Forces can take advantage of certain protections when buying a vehicle under a manufacturer's warranty, no matter where they buy or register the vehicle in the U.S. Two conditions must be met: they must buy the vehicle from a manufacturer or a dealer who sells cars in California, and they must have been stationed in or living in California at either the time of purchase or when they file a legal action related to the purchase.

 Notwithstanding any other provision of law, this chapter shall apply to a purchase in the United States of a motor vehicle, as defined in paragraph (2) of subdivision (e) of Section 1793.22, with a manufacturer’s express warranty by a member of the Armed Forces regardless of in which state his or her motor vehicle is purchased or registered, if both of the following apply:
(a)CA Civil Law Code § 1795.8(a) The member of the Armed Forces purchases a motor vehicle, as defined in paragraph (2) of subdivision (e) of Section 1793.22, with a manufacturer’s express warranty from a manufacturer who sells motor vehicles in this state or from an agent or representative of that manufacturer.
(b)CA Civil Law Code § 1795.8(b) The member of the Armed Forces was stationed in or a resident of this state at the time he or she purchased the motor vehicle or at the time he or she filed an action pursuant to this chapter.

Section § 1803.1

Explanation

This law requires that a retail installment contract must be written, dated, and the printed text should be no smaller than eight-point type.

A retail installment contract shall be dated and in writing; the printed portion thereof shall be in at least eight-point type.

Section § 1803.10

Explanation
This law makes it illegal for sellers to persuade someone to sign a contract by promising rewards like discounts or commissions if those rewards depend on a future event, such as the buyer selling or helping to sell more of the same or similar products.
It shall be unlawful for any seller to induce or attempt to induce any person to enter into a contract subject to this act by offering a rebate, discount, commission, or other consideration, contingent upon the happening of a future event, on the condition that the buyer either sells, or gives information or assistance for the purpose of leading to a sale by the seller of, the same or related goods.

Section § 1803.11

Explanation

This law makes it illegal for a seller to encourage buyers through advertising to get a retail installment contract if the seller doesn't plan to sell that contract to a financing agency or someone else. However, if the seller does this, they must clearly list the interest rates as annual percentage rates that will apply to the contract.

It shall be unlawful for any seller to solicit buyers, in any advertisement, to enter into a retail installment contract with it if the seller does not intend to sell that retail installment contract to a financing agency or other assignee, unless the advertisement clearly states the periodic rate or range of periodic rates, expressed as an annual percentage rate or a range of annual percentage rates that will be used to determine the finance charge imposed on the retail installment contract.

Section § 1803.2

Explanation

This law states that every retail installment contract must be in a single document that clearly outlines the payment terms and costs for goods and services. It must include any related promissory notes or debts. If the contract involves a security interest (meaning an asset is used as collateral), it should say “Security Agreement” at the top. If not, it should say “Retail Installment Contract.” If there’s a security interest in real estate, a warning must be included about the risk of losing the property if payments are missed. Contracts must also notify buyers about prepayment options and any associated finance charge refunds, using specific methods like precomputed or simple interest for calculations. These rules took effect on October 1, 1995, but the format could be used earlier to comply with previous legislation changes.

Except as provided in Section 1808.3, every retail installment contract shall be contained in a single document that shall contain:
(a)CA Civil Law Code § 1803.2(a) The entire agreement of the parties with respect to the cost and terms of payment for the goods and services, including any promissory notes or any other evidences of indebtedness between the parties relating to the transaction.
(b)Copy CA Civil Law Code § 1803.2(b)
(1)Copy CA Civil Law Code § 1803.2(b)(1) At the top of the contract the words “Security Agreement” shall appear in at least 12-point bold type where a security interest in the goods is retained or a security interest on other goods or realty is obtained by the seller as security for the goods or services purchased.
(2)CA Civil Law Code § 1803.2(b)(2) At the top of the contract the words “Retail Installment Contract” shall appear in at least 12-point bold type where a security interest is not retained or obtained by the seller as security for the goods or services purchased.
(3)CA Civil Law Code § 1803.2(b)(3) Any contract for goods or services that provides for a security interest in real property shall also provide the following notice, written in the same language, e.g., Spanish, as used in the contract: “WARNING TO BUYER: IF YOU SIGN THIS CONTRACT, YOU WILL BE PUTTING UP YOUR HOME AS SECURITY. THIS MEANS THAT YOUR HOME COULD BE SOLD WITHOUT YOUR PERMISSION AND WITHOUT ANY COURT ACTION IF YOU MISS ANY PAYMENT AS REQUIRED BY THIS CONTRACT.” This notice shall be printed in at least 14-point boldface type, shall be set apart from the rest of the contract by a border, and shall appear directly above the space reserved for the signature of the buyer. A security interest created in any contract described in this paragraph that does not provide the notice as required by this paragraph shall be void and unenforceable.
As used in this subdivision, the term “security interest” refers to a contractual interest in property and not to a mechanic’s lien or other interest in property arising by operation of law.
(c)CA Civil Law Code § 1803.2(c) Where the contract includes a finance charge that is determined on the precomputed basis and provides that the unearned portion of the finance charge to be refunded upon full prepayment of the contract is to be determined by a method other than actuarial, a notice in at least 10-point bold type if the contract is printed reading as follows: “Notice to buyer: (1) Do not sign this agreement before you read it or if it contains any blank spaces to be filled in. (2) You are entitled to a completely filled-in copy of this agreement. (3) You can prepay the full amount due under this agreement at any time and obtain a partial refund of the finance charge if it is $1 or more. Because of the way the amount of this refund will be figured, the time when you prepay could increase the ultimate cost of credit under this agreement. (4) If you desire to pay off in advance the full amount due, the amount of the refund you are entitled to, if any, will be furnished upon request.”
(d)CA Civil Law Code § 1803.2(d) Where the contract includes a finance charge that is determined on the precomputed basis and provides for the actuarial method for computing the unearned portion of the finance charge upon prepayment in full, a notice in at least 10-point bold type if the contract is printed reading as follows: “Notice to buyer: (1) Do not sign this agreement before you read it or if it contains any blank spaces to be filled in. (2) You are entitled to a completely filled-in copy of this agreement. (3) You can prepay the full amount due under this agreement at any time and obtain a partial refund of the finance charge if it is $1 or more. (4) If you desire to pay off in advance the full amount due, the amount of the refund you are entitled to, if any, will be furnished upon request.”
(e)CA Civil Law Code § 1803.2(e) Where the contract includes a finance charge that is determined on the simple-interest basis, a notice in at least 10-point bold type if the contract is printed reading as follows: “Notice to buyer: (1) Do not sign this agreement before you read it or if it contains any blank spaces to be filled in. (2) You are entitled to a completely filled-in copy of this agreement. (3) You can prepay the full amount due under this agreement at any time. (4) If you desire to pay off in advance the full amount due, the amount which is outstanding will be furnished upon request.”
(f)CA Civil Law Code § 1803.2(f) This section shall become operative on October 1, 1995.
(g)CA Civil Law Code § 1803.2(g) The form specified in this section may be used before October 1, 1995, to comply with the provisions of this section as amended and repealed by Section 2 of Chapter 888 of the Statutes of 1994.

Section § 1803.3

Explanation

Contracts must include specific details about both parties (buyer and seller), and clearly describe the goods or services involved. They must also include required financial disclosures, even if not legally required by another regulation, which must be presented in certain formats. These disclosures include breakdowns of cash prices, taxes, premiums, any administrative finance charges, and downpayment details. If the finance charge is calculated in a particular way, like simple-interest, the contract needs to explain how any unearned charges will be handled if the loan is prepaid. Insurance included in the financing must also be itemized, showing what coverage there is and how much it costs. Any agreements involving trade-in property must clearly identify that property.

Except as provided in Article 8 (commencing with Section 1808.1) of this chapter, a contract shall contain the following:
(a)CA Civil Law Code § 1803.3(a) The names of the seller and the buyer, the place of business of the seller, the residence or place of business of the buyer as specified by the buyer and a description of the goods or services sufficient to identify them. Services or multiple items of goods may be described in general terms and may be described in detail sufficient to identify them in a separate writing.
(b)CA Civil Law Code § 1803.3(b) Every contract subject to this chapter shall contain the disclosures required by Regulation Z whether or not Regulation Z applies to the transaction. In addition, to the extent applicable, the contract shall contain the other disclosures and notices required by, and shall satisfy the requirements and limitations of, this section. The disclosures required by subdivision (c) may be itemized or subtotaled to a greater extent than as required by that subdivision and shall be made together and in the sequence set forth in that subdivision. No particular terminology is required to disclose the items set forth in subdivision (c) except as therein expressly provided. Except as otherwise provided by this subdivision (b), these disclosures and notices may appear in the contract in any location or sequence and may be combined or interspersed with other provisions of the contract.
(c)CA Civil Law Code § 1803.3(c) The contract shall contain the following disclosures, as applicable, which shall be labeled “itemization of the amount financed”:
(1)Copy CA Civil Law Code § 1803.3(c)(1)
(A)Copy CA Civil Law Code § 1803.3(c)(1)(A) The cash price, exclusive of taxes imposed on the sale.
(B)CA Civil Law Code § 1803.3(c)(1)(A)(B) Taxes imposed on the sale.
(C)CA Civil Law Code § 1803.3(c)(1)(A)(C) The total of the above.
(2)CA Civil Law Code § 1803.3(c)(2) An itemization of the amount to be paid to any public officer for official fees.
(3)CA Civil Law Code § 1803.3(c)(3) The aggregate amount of premiums agreed, upon execution of the contract, to be paid for policies of insurance included in the contract, excluding the amount of any insurance premium included in the finance charge.
(4)CA Civil Law Code § 1803.3(c)(4) A subtotal representing the sum of the foregoing items.
(5)CA Civil Law Code § 1803.3(c)(5) The amount of the buyer’s downpayment, which downpayment shall not include any administrative finance charge charged, received, or collected by the seller pursuant to subdivision (c) of Section 1805.1 and as shown as item (6), itemized to show the following:
(A)CA Civil Law Code § 1803.3(c)(5)(A) The net agreed value of the property being traded in.
(B)CA Civil Law Code § 1803.3(c)(5)(B) The amount of any portion of downpayment to be deferred until not later than the due date of the second regularly scheduled installment under the contract and which is not subject to a finance charge.
(C)CA Civil Law Code § 1803.3(c)(5)(C) The amount of any manufacturer’s rebate applied or to be applied to the downpayment.
(D)CA Civil Law Code § 1803.3(c)(5)(D) The remaining amount paid or to be paid by the buyer as a downpayment.
(6)CA Civil Law Code § 1803.3(c)(6) The amount of any administrative finance charge, labeled “prepaid finance charge.”
(7)CA Civil Law Code § 1803.3(c)(7) The difference between item (4) and the sum of items (5) and (6), labeled “amount financed.”
(d)CA Civil Law Code § 1803.3(d) If the payment of all or a portion of the downpayment is to be deferred, the deferred payment shall be reflected in the payment schedule disclosed pursuant to Regulation Z.
(e)CA Civil Law Code § 1803.3(e) If the downpayment includes property being traded in, the contract shall contain a brief description of that property.
(f)Copy CA Civil Law Code § 1803.3(f)
(1)Copy CA Civil Law Code § 1803.3(f)(1) Where the contract includes a finance charge determined on the precomputed basis, the contract shall identify the method of computing the unearned portion of the finance charge in the event of prepayment in full of the buyer’s obligation and contain a statement of the amount or method of computation of any charge that may be deducted from the amount of any such unearned finance charge in computing the amount that will be credited to the obligation or refunded to the buyer. Reference to the Rule of 78’s, the sum of the digits, the sum of the periodic time balances or the actuarial method shall constitute a sufficient identification of the method of computing the unearned portion of the finance charge.
(2)CA Civil Law Code § 1803.3(f)(2) Where the contract includes a finance charge which is determined on the simple-interest basis but provides for a minimum finance charge in the event of prepayment in full, the contract shall contain a statement of that fact and the amount of the minimum finance charge or its method of calculation.
(g)CA Civil Law Code § 1803.3(g) The contract shall contain an itemization of any insurance included as part of the amount financed disclosed pursuant to paragraph (3) of subdivision (c) and of any insurance included as part of the finance charge. The itemization shall identify the type of insurance coverage and the premium charged therefor, and, if the insurance expires before the date of the last scheduled installment included in the repayment schedule, the term of the insurance shall be stated.

Section § 1803.4

Explanation
Sellers can't have buyers sign a contract if there are any blank spaces left that are supposed to be filled in after signing.
The seller shall not obtain the signature of the buyer to a contract when it contains blank spaces to be filled in after it has been signed.

Section § 1803.5

Explanation

This law says if you're paying for insurance as part of a contract, the contract must state who will actually get the insurance – you or the seller. The charge for the insurance cannot be more than what the insurance company allows. If the seller is getting the insurance for you, they must send you proof of it within 45 days. If someone doesn't follow these rules, certain penalties from another insurance law might apply.

If the cost of any insurance is included in the contract and a separate charge is made to the buyer for such insurance:
(a)CA Civil Law Code § 1803.5(a) The contract shall state whether the insurance is to be procured by the buyer or the seller.
(b)CA Civil Law Code § 1803.5(b) The amount, included for such insurance, shall not exceed the premiums chargeable in accordance with rate fixed for such insurance by the insurer.
(c)CA Civil Law Code § 1803.5(c) If the insurance is to be procured by the seller or holder, he shall, within 45 days after delivery of the goods or furnishing of the services under the contract, deliver, mail or cause to be mailed to the buyer, at his address as specified in the contract, a notice thereof or a copy of the policy or policies of insurance or a certificate or certificates of the insurance so procured.
(d)CA Civil Law Code § 1803.5(d) The provisions of Insurance Code Section 1668 shall apply to any violation of this section.

Section § 1803.6

Explanation

This law allows a contract to include a penalty for late payments, known as a delinquency charge. If a buyer is late by at least 10 days, they may be charged up to $10, and if they're late by at least 15 days, they can be charged up to $15. Only one such charge can be applied per late payment, no matter how long it remains unpaid. If the buyer and seller have a written agreement to delay or extend payments, no delinquency charge applies. The contract may also require the buyer to pay reasonable collection costs if they move goods out of state without permission, fail to update their address, or don’t reply to the contract holder within 45 days of missing a payment.

(a)CA Civil Law Code § 1803.6(a) A contract may provide that for each installment in default the buyer shall pay a delinquency charge not in excess of one of the following amounts:
(1)CA Civil Law Code § 1803.6(a)(1) For a period in default of not less than 10 days, an amount not in excess of ten dollars ($10).
(2)CA Civil Law Code § 1803.6(a)(2) For a period in default of not less than 15 days, an amount not in excess of fifteen dollars ($15).
(b)CA Civil Law Code § 1803.6(b) Only one delinquency charge may be collected on any installment regardless of the period during which it remains in default. Payments timely received by the seller under a written extension or deferral agreement shall not be subject to any delinquency charge. The contract may also provide for payment of any actual and reasonable costs of collection occasioned by removal of the goods from the state without written permission of the holder, or by the failure of the buyer to notify the holder of any change of residence, or by the failure of the buyer to communicate with the holder for a period of 45 days after any default in making payments due under the contract.

Section § 1803.7

Explanation

This law requires a seller to give the buyer a readable copy of the contract or any signed documents at the time of signing. If they don't, the buyer only has to pay the agreed price in cash. The contract must clearly show the buyer's acknowledgment of receiving a copy in at least 10-point bold type right above where the buyer signs. If the buyer acknowledges receiving the documents, it is usually assumed they were given correctly, unless proven otherwise. Also, if the contract holder provides these documents and instructs the buyer to notify them within 30 days if they weren't received, and the buyer doesn't object, it's assumed everything was done properly.

The seller shall deliver to the buyer at the time of the buyer’s signature a legible copy of the contract or of any other document which the seller has required or requested the buyer to sign, and which he has signed, during the contract negotiation. In addition to the penalties provided under Article 12.2 (commencing with Section 1812.6) of this chapter, until the seller delivers such documents, the buyer shall be obligated to pay only the cash price. Any acknowledgment by the buyer of delivery of a copy of such documents shall be printed or written in a size equal to a least 10-point bold type and, if contained in the contract shall also appear directly above the space reserved for the buyer’s signature. The buyer’s written acknowledgment, conforming to the requirements of this section of delivery of a copy of such documents shall be a rebuttable presumption of such delivery and of compliance with this section and Section 1803.4, in any action or proceeding by or against an assignee of the contract without knowledge to the contrary when he purchases the contract.
If the holder furnishes the buyer a copy of such documents, or a notice containing the items required by Section 1803.3 and stating that the buyer should notify the holder in writing within 30 days if he was not furnished a copy of the contract or of any other document which the seller had required or requested the buyer to sign, and which he did sign, during the contract negotiation, and no such notification is given, it shall be conclusively presumed in favor of the third party that copies of such documents were furnished as required by Sections 1803. 4 and 1803.7.

Section § 1803.8

Explanation

This law talks about how retail installment sales can be handled when they are done by mail or phone, without a salesperson being directly involved. If a seller provides all the sale information clearly in a catalog that anyone can access, they don't have to give the buyer a contract copy right away as usually required. Instead, if there are any blanks in the contract, the seller can fill in these blanks using the catalog's prices and terms. The seller then has 15 days after shipping the goods to send the buyer a written statement detailing what's been added to the contract.

Retail installment sales negotiated and entered into by mail or telephone without personal solicitation by a salesman or other representative of the seller, where the seller’s cash and deferred payment prices and other terms are clearly set forth in a catalog or other printed solicitation of business which is generally available to the public, may be made as hereinafter provided. All of the provisions of this chapter shall apply to such sales except that the seller shall not be required to deliver a copy of the contract to the buyer as provided in Section 1803.7, and if, when the proposed retail installment sale contract is received by the seller from the buyer, there are blank spaces to be filled in, the seller may insert in the appropriate blank spaces the amounts of money and other terms which are set forth in the seller’s catalog which is then in effect. In lieu of the copy of the contract provided for in Section 1803.7 the seller shall, within 15 days from the date of shipment of goods, furnish to the buyer a written statement of the items inserted in such blank spaces.

Section § 1803.9

Explanation

This law states that if a buyer and seller agree that the buyer will finance the purchase through a loan, the buyer can cancel the sale if they can’t get the loan on reasonable terms despite trying. To do so, the buyer must notify the seller within three business days, and both parties must return any money or benefits exchanged.

If it is explicitly understood between the seller and the buyer that all or any part of the cash price will be paid from the proceeds of a loan to be obtained by the buyer from a third party, the contract of sale or purchase order may be rescinded at the election of the buyer, and all considerations thereupon shall be returned by the respective parties without further demand, if the buyer is unable to obtain such third-party financing upon reasonable terms after having made a reasonable effort to obtain it, and buyer notifies the seller of the rescission within three business days.

Section § 2330

Explanation

This law says that when an agent is acting on behalf of someone else (the principal), everything the agent does within the authority given to them is as if the principal is doing it themselves. So, any rights or responsibilities that come with those actions belong to the principal, not the agent.

An agent represents his principal for all purposes within the scope of his actual or ostensible authority, and all the rights and liabilities which would accrue to the agent from transactions within such limit, if they had been entered into on his own account, accrue to the principal.

Section § 2331

Explanation

If someone is acting on your behalf under your authority, you are responsible for their actions even if they don't complete the task, as long as their actions are consistent with what you intended for them to do.

A principal is bound by an incomplete execution of an authority, when it is consistent with the whole purpose and scope thereof, but not otherwise.

Section § 2332

Explanation

If two people are working together, where one is the principal and the other is the agent, both of them are considered to know what the other knows. They are expected to share important information with each other if they are acting honestly and carefully.

As against a principal, both principal and agent are deemed to have notice of whatever either has notice of, and ought, in good faith and the exercise of ordinary care and diligence, to communicate to the other.

Section § 2333

Explanation

If someone acting on your behalf does more than they're allowed to do, you're only responsible for the actions they were actually permitted to take. Anything extra they did without permission doesn't count against you.

When an agent exceeds his authority, his principal is bound by his authorized acts so far only as they can be plainly separated from those which are unauthorized.

Section § 2334

Explanation

This section explains that a person (the principal) is responsible for the actions of someone acting on their behalf (the agent) if it seems reasonable to believe the agent had the authority to act. However, this only applies to those who, acting in good faith and with reasonable care, took on a liability or gave something valuable based on that belief.

A principal is bound by acts of his agent, under a merely ostensible authority, to those persons only who have in good faith, and without want of ordinary care, incurred a liability or parted with value, upon the faith thereof.

Section § 2335

Explanation

When someone does business with an agent and trusts that agent to handle things, the agent's boss (the principal) is not responsible for payments or settlements that the agent correctly makes on behalf of the principal, as long as the principal didn't know the creditor wanted to hold them accountable instead of the agent.

If exclusive credit is given to an agent by the person dealing with him, his principal is exonerated by payment or other satisfaction made by him to his agent in good faith, before receiving notice of the creditor’s election to hold him responsible.

Section § 2336

Explanation

If you deal with someone not realizing they're actually acting on behalf of someone else (the principal), you can offset any claims the principal has against you with the claims you could have used against the agent before you knew they were acting as an agent.

One who deals with an agent without knowing or having reason to believe that the agent acts as such in the transaction, may set off against any claim of the principal arising out of the same, all claims which he might have set off against the agent before notice of the agency.

Section § 2337

Explanation

This law states that if an agent acts within their power and it's clear from the document that they intend to make the principal responsible, then the principal is indeed legally bound by it.

An instrument within the scope of his authority by which an agent intends to bind his principal, does bind him if such intent is plainly inferable from the instrument itself.

Section § 2338

Explanation

This law explains that if a person (the principal) hires another person (the agent) to do work for them, the principal is responsible for any mistakes or wrongful actions that the agent makes while doing that work. This includes any failure by the agent to do things the way they were supposed to according to the principal's obligations.

Unless required by or under the authority of law to employ that particular agent, a principal is responsible to third persons for the negligence of his agent in the transaction of the business of the agency, including wrongful acts committed by such agent in and as a part of the transaction of such business, and for his willful omission to fulfill the obligations of the principal.

Section § 2339

Explanation

A person (called a principal) is not automatically responsible for any mistakes or bad actions by someone they hire (called an agent) unless the principal specifically allowed or approved these actions. This applies even if the agent was on the job at the time.

A principal is responsible for no other wrongs committed by his agent than those mentioned in the last section, unless he has authorized or ratified them, even though they are committed while the agent is engaged in his service.

Section § 2888

Explanation

This law means that even if there's an agreement saying otherwise, having a lien or a contract for a lien doesn't actually give someone ownership of the property involved. A lien only gives them a right to secure a debt, not a title to the property.

Notwithstanding an agreement to the contrary, a lien, or a contract for a lien, transfers no title to the property subject to the lien.

Section § 2889

Explanation

This law states that any agreement that makes you give up property secured by a lien because you couldn't meet your obligations, or that stops you from reclaiming that property, is not valid.

All contracts for the forfeiture of property subject to a lien, in satisfaction of the obligation secured thereby, and all contracts in restraint of the right of redemption from a lien, are void.

Section § 2890

Explanation

Just because a lien is created doesn’t mean that anyone has to do the task or obligation the lien is meant to secure. In other words, a lien doesn't automatically create an obligation for a person to act.

The creation of a lien does not of itself imply that any person is bound to perform the act for which the lien is a security.

Section § 2891

Explanation

Just because you have a claim, called a lien, on a property for a specific debt or obligation, it doesn't automatically give you the right to claim a lien on that same property for any other debts or obligations.

The existence of a lien upon property does not of itself entitle the person in whose favor it exists to a lien upon the same property for the performance of any other obligation than that which the lien originally secured.

Section § 2892

Explanation

If someone has a lien on property, they can't ask the property's owner to pay for any trouble or costs they encounter in dealing with that property, except in the same way someone borrowing it would under specific rules.

One who holds property by virtue of a lien thereon, is not entitled to compensation from the owner thereof for any trouble or expense which he incurs respecting it, except to the same extent as a borrower, under Sections 1892 and 1893.