RECTO LAW o B.

To Examine Goods Before

- Installment Sales Law, Art 1484-1486 Remedies (Seller) Accepting
- Personal property o Exact fulfillment upon the buyer  GR: BUYER
- payable in several installments failure to pay (Remedy of specific  EX: agreement/stipulation.
performance) o C. To the Fruits
Applies to: o Rescind the sale, should the buyer’s  GR: BUYER at the time to
o Sale of property by installment failure to pay cover two or more deliver
o Contracts purporting to be leases of installments (Remedy of  EX: agreement ng parties
personal property with option to cancellation)
buy, when the lessor has deprived o Foreclose the chattel mortgage on Lease of personal property w/option to
the lessee of the possession or the thing sold, if one has been buy
enjoyment of the thing constituted, should the buyer’s – expenses bago the transfer ng title-buyer
failure to pay cover two or more **unless caused by the fault of the seller
Requisites installments. (Remedy of forclosure)
o Personal property/movable (stocks **1 installment, not paid = 1st remedy LEMON LAW
and incorporeal rights considered lang ang pwede i-demand ni seller… - Batas para sa mga buyer ng brand new
movable) **Remedies ay alternative hindi four-wheeled vehicles, RA 10642
o Payable in installments cumulative kaya kahit alin lang sa tatlo.
o Fail to pay 2 or more installments Automatic rescission  Lemon car – vehicles w/substantial defect
o Chattel mortgage(security / - If the vendee upon the expiration of the Conditions:
accessory contract)has been period fixed for the delivery of the thing 1. Brand New Car from an authorized
executed purchased, refused to receive it w/o dealership in the Philippines
justifiable cause. 2. Four-wheeled
Recto law do not apply on: - If he failed to pay the price unless granted a 3. W/i 12months, sira pa rin after four
o Sale of real property/immovables. longer period w/n w/c to pay. attempts to repair
o price is payable in full at the time of 4. Meets the specification of the
the contract. Rights (Buyer) manufacturer
o The exclusivity of the remedies o A. Specific Performance  Included Vehicles:
- If the seller isn't making - Crossovers
does not apply when the first
moves to sell the property - SUVs
chosen remedy is not successful
- Pickups
due to no fault of the seller. after an offer is accepted,
- Vans
so buyer can submit a - AUVs
notice to perform. - Sedans
 - Coupes from being liable doon sa consumer/owner ng judgment of their
- Convertibles car. chosen arbiter to
- Station Wagons settle their dispute.
 Defects covered under the Lemon Law
- Vehicles na may factory defects
 After 4 unsuccessful repair attempts  Adjudication.
consumer can avail his rights  isang legal
 Excluded non-conformity - 1st: notify the seller, magbibigay ka
- Non-compliance by the consumer authority na ang
ng “Notice of Availment” na
of the obligations under the magdedesisyon, si
gagamitin mo na ang karapatan
warranty mo under lemon law DTI can enter again
- Modifications upon the motor - 2nd: sa loob ng 30 days or 1 month in this scene.Ito ay
vehicle which were not allowed by dalhin ang vehicle kay Dealer for bagong proceeding
the manufacturer or distributor; the last chance of repair na, dapat within
- Abuse/neglect of the motor vehicle - 3rd: kung hindi pa rin naayos, twenty (20)
consumer may then file complaint working days.
- Damage to the vehicle due to
sa DTI **If after the decision of the adjudi-
accident or force majeure.
cation officer kung may defect nga ba
**If isa sa mga nakalista ang ginawa ng consumer sa
talaga yung sasakyan, at isa sa mga
sasakyan hindi na magiging applicable ang Lemon Law.
 Consumer is entitled to parties (consumer & dealer) ay hindi
compensation for the unavaila- pabor sa naging decision mg nasabing
 Period w/i which a customer can avail of bility of the motor vehicle during officer may rights sila na umapila which
his rights under the Lemon Law the period it is under repair. is 15 days.
- 12 months mula ng ma-deliver - a reasonable daily
- as long as the motor vehicle has not transportation allowance  Consequences if DTI rules ay pabor
run more than 20,000km - amount to be agreed upon kay consumer
**whichever comes first & dapat not operated on The consumer may –
by the parties
Philippine highway before 12 months or 20,000km 1. Return the motor vehicle to the
- service vehicle at the
option of the Seller Seller, who must in turn return the
 Pre-requisite/pre-condition before a full purchase price, plus collateral
*any disagreement on this matter
consumer can invoke rights under the damages.
shall be resolved by the DTI.
Lemon Law 2. Have the motor vehicle replaced
 The motor vehicle brought in for repair  Proseso after mag file ng reklamo by the Seller with a similar motor
with the Seller at least four (4) separate sa DTI vehicle in terms of specification and
times for the same complaint.  Arbitration values, subject to availability
**within 30 days following the final attempt to 3. Purchase a vehicle with a higher
 The parties would
repair, if the motor vehicle has not been
then have the value or specifications from the
returned for the same non-conformity, the
repair will be deemed successful. Kapag nag- option to enter into same Seller, in which case, the
lapse na yung 30 days, it is assumed na naayos arbitration, and consumer must pay the difference
na yung sasakyan and yung dealer is free na rely on the in cost.
 magbabayad sila ng at
**Kapag, may strong evidence na may defect nga ang least 100,000 as damages.
sasakyan, magfafavor ang DTI sa customer. Uutusan ng
DTI ang manufacturer or dealer na palitan ang sasakyan
with the same unit pag dating sa specs at market value at
REMEMBER
tanggapin ang defective vehicle habang nirerefund ang
customer para sa purchase price at iba pang ginastos  The Philippine Lemon Law
nito. Kapag gusto ng customer na ibang model ng is only applicable to new
sasakyan o high-end spec variant sasagutin ni vehicles.
customer ang price difference.  The vehicle must be bought
from an authorized dealer.
 It gives the dealer a right to
 Consequences if DTI rules ay pabor fix the vehicle.
kay consumer  If the dealer wasn’t able to
fix the vehicle, the
 The consumer shall be consumer/owner of the
ordered to reimburse the vehicle can write a letter of
costs of the Seller in complaint on the DTI.
determining the validity of
the complaint.
** Kapag wala naman makitang proof ang DTI na ang car
ay defective, the DTI will side the manufacturer or
dealer. Ang magbabayad ng lahat ng nagsatos ng
manufacturer or dealer sa pagvalidate ng complaint ay si
customer.

 When Seller is authorized to resale

the returned vehicle:
 Kapag napagkasunduan ng
dealer or manufacturer at
customer na kunin ulit ang
defective vehicle para
ibenta sa ibang tao dapat
maging transparent sila sa
susunod na buyer tungkol
sa problema or defect nung
sasakyan kung hindi
ididisclose ang mga
nararapat na information