R & B Auto Center, Inc. v. Farmers Group, Inc.

Opinion

MOORE, J.

One might reasonably assume new car dealerships and used car dealerships are apples and oranges. But when a lemon is added to the mix, the lines can become blurred. When the Department of Motor Vehicles (DMV) classifies a used vehicle with a “title brand,” a purchaser of that used vehicle may sometimes bring suit under the lemon law, a procedure usually associated with defective new cars. (See the Song-Beverly Consumer Warranty Act, Civ. Code, § 1790 et seq.) Here, a car dealership licensed to sell only used cars sent out a bid for lemon law insurance, including coverage for…