Lemon Law Coverage

1) Subject Matter
The Lemon Law covers only brand new motor vehicles1: meaning vehicles
constructed entirely from new parts, and have never been sold nor operated
in any country. The Lemon Law further limits its coverage to only common
four-wheeled road vehicles such as cars, pick-ups, vans, sports utility
vehicles, and Asian utility vehicles. It specifically excludes motorcycles,
delivery trucks, dump trucks, buses, lawn mowers, heavy equipment, and
farm equipment.2
Does the Philippine Lemon Law cover all motor vehicles?
Not all motor vehicles are covered by Republic Act No. 10642. It covers
only brand new motor vehicles purchased in the Philippines reported by a
consumer to be in nonconformity with the vehicles manufacturer or
distributors standards or specifications within the Lemon Law rights period.
It obviously doesnt apply to second-hand vehicles and to brand-new
vehicles purchased abroad.
2) Defects covered
The Lemon Law covers those irreparable nonconformities which
substantially impair the use, value, or safety of these new vehicles and
prevent such motor vehicles from conforming to the manufacturers or
distributors standards or specifications.
However, the Lemon Law specifically excludes the following causes of
nonconformity3:

1. Noncompliance by the consumer of the obligations under the

warranty;

1 RA 10642, sec.4
2 RA 10642: The Lemon Law. (2015, January 22). Retrieved from
http://www.elegal.ph/republic-act-no-10642-the-lemon-law/
3 Ibid.

2. Modifications not authorized

authorized dealer or retailer;

by

the

manufacturer,

distributor,

3. Abuse or neglect of the brand new motor vehicle; and

4. Damage to the vehicle due to accident or force majeure.

Consumer Rights
In case of nonconformity, and there is a finding to such effect by the
DTI, the manufacturer, distributor, authorized dealer or retailer shall be
given the following options:
1. Replacement. The motor vehicle shall be replaced with a similar or
comparable motor vehicle in terms of specifications and values,
subject to availability. Comparable motor vehicle refers to a motor
vehicle that is identical or reasonably equivalent to the motor vehicle
to be replaced, in terms of specifications and values, subject to
availability, as the motor vehicle existed at the time of purchase.
2. Repurchase. The manufacturer, distributor, authorized dealer or
retailer shall accept the return of the motor vehicle and pay the
consumer the purchase price plus the collateral charges. Collateral
charges refer to the fees paid to the Land Transportation Office (LTO)
for the registration of a brand new motor vehicle and other incidental
expenses such as, but not limited to, the cost of insurance pertaining
to the vehicle, chattel mortgage fees and interest expenses if
applicable.

Within what period may a consumer avail of his rights

under the Lemon Law?
The consumer may invoke his rights under the Lemon Law within the
Coverage Period which is 12 months from the date of the delivery of the

motor vehicle, or for as long as the motor vehicle has not run more than
20,000 km after such delivery, whichever comes first.4
Conclusion: It clearly then appears that a helicopter or a helicopter receiver
is not covered by the provisions of the Philippine Lemon law.

4 RA 10642, sec.3, par(h)