Posted On: February 20, 2011 by McCoy, Turnage & Robertson

The California Lemon Law Protects Buyers Who Rely on Sales Brochures

Have you ever wondered whether those blue-sky promises by salesmen have legal significance? Under the California Lemon Law, they just might. It all comes down to whether the promises turned into an express warranty. That can happen when there is: (1) an affirmation of fact or promise which relates to the car and becomes a part of the bargain; or (2) a description of the goods which is made part of the “basis of the bargain.” (“Basis of the Bargain” is another way of saying “what you bargained for.”)

An early lemon law case discussed this very subject. In Keith v. Buchanan, 173 Cal. App. 3d 13 (1985), the buyer relied on a sales brochure that described the “Island Trader 41” as “a picture of sure-footed seaworthiness.” Based in part on that promise, the buyer, Mr. Keith, paid $75,000 for the vessel. There were no traditional warranty documents that came with the vessel, however, and when it failed to sail as promised, Mr. Keith brought suit. (Yes, the lemon law applies to boats.)

The trial court found that there was no warranty, but the California Court of Appeal reversed and said that the promises in the sales brochure rose to the level of an express warranty. The promise of “seaworthiness” was an affirmation of fact and not just an opinion or commendation (another way of saying “puffery” or “sales talk”). The Court of Appeal then agreed with Mr. Keith that the promise of “seaworthiness” had become part of the basis of the bargain. And that was all Mr. Keith needed to revive his lemon law claim.

So, if you walk into a car dealership and are presented with a glossy brochure, and the salesman confirms what the brochure says, you should be able to hold the dealership to those promises of a smooth ride, a luxurious interior, and great fuel economy.