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Hearing in ‘Lemon Law’ Case


SOME two years after California tried to penalize Chrysler for what the state said were violations of its tough ‘’lemon law,'’ a court is considering a move today to reverse a ruling that threw out the findings and sanctions against the auto maker.

The suit in California Superior Court by the state Department of Motor Vehicles, which initiated the action against the Chrysler Corporation, is the first civil court hearing of a case in which a major auto manufacturer has been accused of reselling defective vehicles.

Other states have settled accusations against auto makers for similar violations, but none have had to file suit to impose sanctions, said Bill Gengler, a spokesman for the motor vehicles agency.

Last August, the little-known California New Motor Vehicle Board, which was created to settle disputes between auto dealers and manufacturers, overturned the motor vehicles agency’s action, the harshest so far by any state for violations of lemon laws. The penalty would have halted shipment of Chrysler cars and trucks to the state for 45 days.

In papers submitted to the court, the lawyers for the Department of Motor Vehicles said Chrysler had taken back 116 defective cars that were subsequently offered for resale without the required disclosures, warranties and repairs. In addition, the department cited 20 separate instances in which consumers bought lemons without receiving the disclosure information required under the California law.

Besides ruling that Chrysler had complied with state laws, the new vehicle panel also found that the state agency had wrongfully withheld evidence. Among the documents was a memo written to the agency’s director a year after the accusations against Chrysler were filed, which asked for clarification of the lemon law’s provisions.

More : query.nytimes.com

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