Lemon Law Settlement and Release and Confidentiality Clause
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December 2, 2021
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June 6, 2022
When a consumer receives a vehicle repurchase offer from the vehicle manufacturer, the vehicle manufacturer almost always requires the consumer to sign a Settlement and Release. It is not unusual for the Settlement and Release to contain various clauses, one of them being a confidentiality clause. The Song Beverly Consumer Warranty Act does not require a consumer to sign a Settlement and Release as a condition to repurchase a consumer’s vehicle by the vehicle manufacturer. See generally, CA Civil Code 1792, et seq. and Goglin v. BMW North America LLC. Nevertheless, signing a Settlement and Release has become industry standard when a vehicle manufacturer repurchases a vehicle under California’s lemon law. But did you know that a confidentiality clause prohibiting the disclosure of the non-financial terms of the transaction is actually prohibited by the Song Beverly Consumer Warranty Act? See CA Civil Code Section 1793.26.
Whether a consumer should sign a Settlement and Release containing certain types of clauses is left to the consumer and their attorneys. In fact, before signing any type of document by the vehicle manufacturer or dealership, the consumer should consult with a knowledgeable California lemon law attorney. After all, the Song Beverly Consumer Warranty Act provides for attorneys’ fees to be paid by the vehicle manufacturer if the consumer prevails.
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Luis Aguirre California Lemon Law Attorney 26060 Acero Suite 111
Mission Viejo, CA 92691 Telephone: 949.342.6199.
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