Paige Emerich

Katie Stienmetz

Sabrey Pech

Consumer Issues

May 8, 2003

Lemon-Aid

After attending the consumer issues conference, the matter of public concern we will be analyzing is new car lemons in Wyoming. We are going to report on how this problem affects citizens of Wyoming, and explain how Wyoming’s culture makes this issue unique to this state.

Imagine this scenario. Mr. And Mrs. Murphy from Ten Sleep, Wyoming, purchased a Saab in Billings, Montana. Their car has continually malfunctioned and this has required them to drive the two or more hours to Billings to get the car repaired at the authorized dealer. This causes difficulties getting to work. It’s also difficult to simply find the time to drive to Billings and spend a day there waiting for the repairs to be completed. They are starting to believe they purchased a lemon. Wyoming Lemon laws state that a lemon is defined as such, after the same defect is reported and repaired three or more times. The Murphys have returned to the dealer multiple times with the same complaint. The dealer claims it’s repaired every time, but the car soon malfunctions again. The defect appears to be caused by other, seemingly un-related factors. The Murphys are concerned that the recurring problems will never be resolved, and they feel they are in a never-ending cycle. They don’t know what avenue to pursue next; whether it be continuing to return to the dealer, taking the repairs to another mechanic, or seeking legal action.

The above story is a good example of how Wyoming’s culture and demographics make the problem of new car lemons more difficult for Wyoming consumers to find redress. Wyoming consumers are limited by the large distances, small towns, and small populations that only support one, possibly two, car dealers thereby limiting the consumers’ choice of reliable vehicles. These factors also contribute to the lack of information available to consumers in Wyoming when they have these sorts of problems.

Lemon laws can negatively affect consumers in that consumers don’t always have access to full information about the vehicle they desire to purchase. While it is true that the internet is increasingly popular as a source of information, Wyoming is still a rural state. Being an agricultural community, Wyoming’s population is, in general, not as technologically advanced as other states. Although the technology and information is increasingly available to rural areas, many of these people are uncomfortable using it or finding the information that is out there.

This lack of information could lead to serious problems, such as a consumer buying a vehicle that does not meet minimum safety standards expected, or other problems such as a consumer buying a car that simply does not perform. These problems affect the consumer’s right to safety, such as if a consumer buys a vehicle that has the possibility of being declared a lemon and unsafe to drive. Other consumers are also affected by these vehicles being on the road, so it isn’t just the driver that is in danger. The consumer’s right to redress is also an issue, because even if the vehicle does have multiple defects, it isn’t always a simple process to get satisfaction when seeking redress. The consumer’s right to voice is affected because it isn’t always easy to get the manufacturers to talk about this issue honestly. Manufacturers are reluctant to publish information concerning hidden warranties or other possible defects in the car, because it might affect their business. They may also be reluctant to publish information about the number of lemons of each make and model of vehicle that have been reported for the same reason.

This leads to the issue of the consumer’s right to information, because when consumers are trying to be responsible and seek information, they don’t always get it when they need it to make an educated choice. The right to information is affected because if consumers knew about the fact that they may be purchasing a lemon, they wouldn’t choose to buy that if they knew all the details. There is not a lot of education available to teach consumers how to find out if a vehicle has been declared a lemon. The right to education is affected in this way.

In light of these facts, the issue at hand is what can be done to assist consumers in rural areas such as Wyoming when they suspect they’ve purchased a new car lemon?

The key players in this issue are consumers, car dealers, car manufacturers, the general public, and the members of the Legislature’s Transportation and Highways standing committees in the Senate and the House. Of all the groups mentioned, the main group to be advantaged by the selling of defective new vehicles would be the car manufacturers. The manufacturer seems so removed from the problem that it’s the dealer that gets a bad reputation, bad publicity, and blame for the defects. This is because, for the manufacturers, the bottom line is profit and they rarely have to replace a vehicle because people give up complaining at a lower level, such as at the dealer. Sixty percent of people purchasing high-priced durable goods do not complain when they experience problems. (Garman, 56) In a state like Wyoming, people generally don’t seek redress and the information that is available to them concerning their rights isn’t always easily accessible. People in remote areas don’t have the time and resources to research their rights and spend the time seeking redress with the manufacturer. While it’s true that urban citizens are busy as well, their work day often stops at five. This does not hold true in an agricultural community such as ours. However, they do go to the dealer because they trust and rely on their service as being satisfactory. Besides, our state is so small that people automatically assume they will not receive compensation and change because most companies do not consider Wyoming’s small population of consumers a priority.

The members of the Transportation and Highway committee in the Wyoming Senate are Bill Barton, who is the chairman, Tex Boggs, Rickard Erb, Gerald Geis, and Bill Vasey. Members of the House standing committee consists of Wayne Johnson, Bob Brechtel, Stan Cooper, Ross Diercks, Dave Edwards, Floyd Esquibel, Steve Harshman, Jene Jansen, and Tom Walsh. These are the people who are responsible for creating the legislation.

The Transportation and Highway committees in the Wyoming state legislature are in a difficult position because it is their responsibility to listen to consumers when they have a problem with a new car. It is also the responsibility of this committee to make laws that address this issue. However, it is also in their interest to protect businesses, which creates a gray area because it is hard to know how to help everyone.

Car dealers can get a bad reputation for selling a lemon, so they aren’t advantaged at all, even if they make money on the transaction in the first place. This could hurt their business in more than one way. Many rural citizens of Wyoming rely on word of mouth to make purchasing decisions. Therefore, it would be in a new car dealer’s best interest to make sure that their customers are satisfied with their new cars, and the service they receive. Studies have shown that “complaining consumers who have had their complaints resolved satisfactorily quickly tell 6 people. Those who are not satisfied tell 2 or 3 times as many people.”(Garman, 57)

In Wyoming, consumers have a more individualistic view of the marketplace. There is a “buyer beware” mindset, which creates an importance for each person to be responsible in their purchasing decisions. Even though we might not have the laws in place, the community culture of Wyoming is conducive to creating relationships with our legislative representatives, enabling us to get our concerns across to them more directly. Even within this group, two of the members have direct connections to local and state legislators and their families. This is very unique to Wyoming, as opposed to other more populated states, in which the legislators cannot have such close connections to the people in the communities they represent.

The Wyoming lemon laws concerning the number of times an attempt is made to repair a defective vehicle and where it is repaired are restrictive. The laws often create loop-holes through which dealers and manufacturers can avoid proper recourse and compensation to consumers. The Wyoming laws define a lemon as an unconformity which is “any defect that substantially impairs the use and fair market value of the motor vehicle to the consumer.” (Standards of the Wyoming Lemon Law, page 1) Wyoming Lemon Laws place a one year limit on the time in which the consumer has to report a defect or nonconformity to the dealer or manufacturer. If it is reported within this time period than the dealer or manufacturer is required to repair the motor vehicle. Then, if after a “reasonable number of attempts” (defined as more than three) have been made to repair a motor vehicle and it still does not conform, the manufacturer is required to replace or repurchase the vehicle from the title holder. Wyoming’s Lemon Laws consider more than three attempts to repair made by a dealer or mechanic authorized by the dealer, or the car being out of use for more than 30 days, to be reasonable to be declared a lemon. Although we found that surrounding have very similar laws in place, this does not mean ours has to remain the same. Wyoming has an opportunity to be proactive in this matter, rather than reactive. Wyoming could be the first to implement laws that are more conducive to our culture as a state.

Wyoming Lemon Laws say the repairs have to made “by the manufacturers, its agents, or authorized dealers.” This doesn’t, however, include a local mechanic, which may be the only feasible option for many Wyoming citizens. In this way, the law is too specific for our culture. If the car is malfunctioning, no matter what the problem is, it could endanger the passengers and the other travelers on the road. This is an unnecessary risk. This is the reason a law needs to be in place that says consumers can take the car to a local mechanic.

Even under the lemon laws which require a minimum of three repairs for one particular problem, if the car is a lemon it may have numerous problems that each require numerous repairs and therefore many costly and time consuming trips. This cost to the consumer may frustrate them to the point where they stop seeking redress with the dealer, and do not pursue it from the manufacturer. They may resort to the local “non-authorized” mechanic, whose repairs may not count towards the car’s designation as a lemon. In order to have their car in working condition this may become their only option. This then prevents them from getting the proper settlement or replacement vehicle by voiding Wyoming’s lemon law requirements.

Ways to improve the status quo are disseminating information through the dealers and mechanics about the issue to the public and giving people in rural areas more options for repair. This would affect the consumer right to information positively by providing citizens access to the information more readily. Ultimately, redress would be affected as the increased information and solution to this problem in rural areas could teach consumers how to go about the complaint process. There also needs to be an increased awareness of this issue in the legislature, bringing about a change in laws that would perhaps allow more people to be qualified to do repairs and designate vehicles as lemons.

Another way to improve the current status of this problem would be to suggest to a consumer group, such as the National Highway Traffic Safety Administration, that they approach car manufacturers and dealers with an option for rural consumer’s insurance. The insurance would allow rural consumers who live a certain distance from the dealer or manufacturer to obtain an authorized mechanic who would be qualified to designate a car a lemon. The consumer could pay an annual fee for this service which would bring a mechanic to them and help them avoid extensive towing or hauling fees. This could be marketed as an overall insurance package for car repairs or service, specific to rural consumers. This would make it easier for many people in Wyoming to seek redress when they are stuck with a new lemon. This creates a situation in which everybody wins. The consumer now has a feasible option in which to prove their case so that they can receive compensation. Also, it would not cost the manufacturer or dealer a substantial amount because consumers pay for this service.

As consumers ourselves, and residents of Wyoming, we think it is necessary to have this information readily available to us, as well as have the laws in place to help prevent us from being victims of fraud. The facts have been provided in this paper concerning current laws relevant to this issue. The names of legislators whose responsibility it is to address this topic and have the authority to bring about a change have also been provided. With the suggestions within this paper and the suggestions of others on this issue we can turn Wyoming’s new lemons into lemon-aid.

Word Count 2,224

References

(2003) US Consumer Product Safety Commission. 16, April, 2002. www.cpsc.gov

(2003) Sources of Applicable Law for Lemon Cars. 21, April, 2003. www.defect.com.

(2003) Magnuson/Moss Warranty Act Law Summary. 21, April, 2003. www.autopedia.com.

(2003) Consumer Strategies-Manufacturer Defenses. 21, April, 2003. www.defect.com.

(2003) Consumer Protection: State of Colorado’s Lemon Law, How it applies to You and Your Vehicle. 11, March, 2003. www.ago.state.co.us.

Garman, E.T. (2002). Consumer Economic Issues in America. (7^th ed.) U.S. Thomson Learning Custom Publishing.

Personal Interview: Paula Murphy, April 19, 2003.

Wyoming 2003-2004 Directory Fifty-Seventh Legislature (2003) Casper, WY Mountain States Lithographing Co.