Consumer Protection Brochure

Contract Issues | Consumer Warranties | Automobile Issues | Landlord/Tenant | Credit Issues | Deceptive/Misleading Ads | Contests/Sweepstakes/Lotteries | Preventio

Door to Door Sales

Selling door-to-door is a difficult task for the salesperson. Many people may be contacted before a single sale is made. Therefore, door-to-door salespeople have to make a larger commission on each item they sell, in order to make any profit. Items sold by door-to-door sales may, therefore, turn out to be more costly than they would be if purchased elsewhere. Here are some useful tips on how to deal with door-to-door salespeople:

• Take your time. Don't buy on the spot. It's best to do some comparison shopping first. A reputable salesperson will be willing to come back after you have done your comparison of prices and quality.

• Find out if the salesman has a solicitor's license. Ask to see the salesperson's solicitor's license. The license will usually be issued by the city where you live.

• Be careful about letting the salesperson into your home. A person who claims he or she is a salesperson may really be someone intending to burglarize your home or commit another crime. Once in, if the salesperson refuses to leave, threaten to call the police. If he or she still refuses to leave, place the call.

• Make checks payable to the company. If you are paying by check, make it payable to the company, not to the salesperson.

The law requires that the door-to-door salesperson must, at the time he or she first contacts you, make you aware that the purpose of the contact is to make a sale. The salesperson must tell you his or her name, the company name, and describe the kind of goods or services being sold. He or she must show you identification which contains the address of the business (B&P §17500.3). The salesperson will want you to sign a sales contract if you make the purchase. Here are some helpful tips which you should keep in mind before signing a sales contract:

• Don't sign anything until you know exactly what you are signing and understand it.

• Get all promises in writing and keep a copy. We suggest as well that you have the salesperson sign your written record of these promises stating, "seller and buyer have on this date agreed to the provisions as stated above."

• Look carefully at the contract to be sure it has no blank spaces or hidden/covered portions. If it does have blank spaces, cross or line them out so that the contract cannot be filled in with terms you have not agreed to after you leave.

• Make sure your copy of the contract is the same as the seller's.

Canceling Door to Door Sales Contract

You have the legal right to cancel your contract until midnight of the third "business" day (not Sundays or holidays) after the day you sign a door-to-door sales contract worth $25 or more, including any interest or service charges. This cancellation must be in writing. This three-day "cooling off" period gives you the chance to make some comparisons and to rethink your purchase (Civ. Code §1689.5). Assuming that there was a written sales agreement, the contract you have signed is required by law to be dated, signed by the buyer, and to contain near your signature an easily read and conspicuous statement notifying you that you can cancel the contract at any time prior to midnight of the third business day after you sign the contract. The law requires at the time you sign your contact, that you be provided with two copies of a "notice of cancellation" form attached to the contract, and the address to which the form should be mailed.

You may cancel the contract without penalty or obligation, by mailing the "notice of cancellation" within three business days of signing the contract. If you cancel, any payment you have made and any negotiable instrument you have signed must be returned within 10 days of receipt by the seller of your cancellation notice and before they pick up their merchandise (Civ. Code §1689.10).

If you cancel and make the goods available to the seller, but the seller does not pick them up within 20 days of the date of your notice of cancellation, you can either keep the goods or get rid of them without any further obligation. If you don't make the goods available to the seller, or if you tell the seller you will return the goods and then fail to do so, you remain liable for performance of all your obligations under the contract.

You do not have to use the notice of cancellation form to cancel the sale. A letter or telegram stating you are cancelling is sufficient to effect a cancellation, so long as it indicates your intention not to be bound by the contract. It is wise to send the notice, letter or telegram of cancellation by certified mail so you will have a receipt to prove you sent it on time. Your notice will be effective once it is deposited in the mail.

If you have not been given a notice of cancellation form, you have even longer to cancel the contract. Until you are given this form, you can cancel at any time. Once you are given the form, you have three days to cancel. It is important to remember that the three-day cancellation period we have discussed applies to purchases worth $25 or more (including interest, mailing, and other charges) in door-to-door sales contracts, or when a company calls you at home. The goods or services purchased must be for personal, family, or household use.


Telemarketing

Telemarketers are people who sell products and services over the telephone. Similar to door-to-door sales, you should not allow a sales person to rush you into purchasing a product over the telephone. While there are many telemarketers who are selling legitimate products, consumers pay billions of dollars each year to fraudulent companies.

Before you buy from a telemarketer, check on the reputation or credentials of the company. To do this, you can use any number of these methods:

• Ask the company to mail you information about themselves;

• Call the Better Business Bureau (listed in the white pages);

• Get the physical address of the company (Post Office Boxes may mean fraud);

• Check to see if the company is listed in the phone book (or ask directory assistance);

• If you are investing over the telephone, check with the Securities Exchange Commission to see if the company is registered. Also, get a prospectus from the company itself before committing yourself.

• If donating to a charity over the telephone, check with the Attorney General's Registry of Charitable Trusts before you donate, to be sure of the organization's status.

When and if you decide to buy, be extremely careful when you give the telemarketer your credit card or bank account numbers. Unless you are familiar with the company, it is not a good idea to give them these numbers.


Mail Order

When purchasing something through mail-order, you should be more careful than if you were to purchase from a store. As with any purchase, you should avoid impulse purchases. Give yourself time to do a little comparison shopping to compare prices, guarantees, return policies and the like. You should also check the business' reputation by asking around or by calling the local consumer protection agency or the Better Business Bureau. Here are some tips to follow to help you make a better purchase:

• When comparing mail-order prices, do not forget to include the applicable shipping and handling charges;

• Find out the seller's return policy (including who pays for return postage);

• Find out about the guarantee on the merchandise (including if the item can be repaired locally and if not, how long it will take to have the product returned;

• Find out how long it will take the business to deliver your order (If no date is stated, you must wait only 30 days);

• If you are unfamiliar with the company you are ordering from, make a small order to determine how it is handled by the company before you make a large one;

• Finally, if you have any doubts, ask the business for a more detailed description of the merchandise and/or the guarantee.

To protect yourself, you should keep a copy of your order form and any letters sent to or from the company. You should also pay by check, money order, or credit card rather than cash, to have a record of payment. Note: Do not give a credit card number to a company unless you have checked out its reputation. A final method of protection is to check the merchandise immediately upon arrival. If the product is not what you ordered, return it with a letter explaining the problem (be sure to keep a copy of the letter.)

Membership Plans:

A membership plan, like Book of the Month Club, is a form of mail order buying which provides, at regular intervals, a product such as candy, compact disks, tapes or books. For example, each month a book is sent out to Book of the Month Club members. Members are given advance notice of the book to be distributed in the next mailing. The book is then sent out to the member unless, within a reasonable time, the member returns a form saying not to send the book, or to send an alternate book for that month. The FTC specifically defines the rules of operation for these types of membership mail-order plans, in order to protect the consumer. The FTC regulations require that all advertising and other promotional materials for a membership plan must clearly state:

• The nature of the plan.

• Exactly how many items a subscriber has to buy over how long a period of time.

• How often the company sends offers.

• How the subscribing consumer can inform the company that a selection is not wanted.

• Whether billing charges include shipping and handling.

• That the subscriber has a right to cancel membership once the membership club contract has been fulfilled.

Additionally, membership plan regulations require that subscribers be provided at least 10 days to decide whether they want a selection sent to them by the club. If the subscribing consumer is not allowed at least 10 days for this decision, the seller must give full credit and pay shipping costs for the selection returned (Civ. Code §1584.6).

Unsolicited Goods:

If you receive something in the mail that you are certain you did not order, the law allows you to keep the merchandise without paying for it, unless the merchandise is related to your participation in a "membership" plan which is discussed below. This includes any merchandise selected by the company and offered to the consumer which will be mailed to him/her for sale or on approval unless he exercises an option to reject the offer of sale (Cal. Civ. Code §1584.5) This includes free samples, small articles which may be included in a charitable solicitation, and every other kind of un ordered merchandise you may receive through the mail. You are under no obligation to pay for or return these goods. You may want to send a letter to the seller of the un ordered merchandise you have received, stating that you intend to keep the merchandise as a free gift. Keep a copy of the letter. This will help you prove later, if necessary, that you did not order the merchandise and may clear up what was an honest mistake by the company in shipping you the merchandise. If you learn from the seller that un ordered merchandise was indeed sent due to an honest error, write to the seller and offer to return the merchandise if the seller pays postage and handling. Give the seller a reasonable time (i.e., 30 days) to pick up the goods or arrange to have them returned at no expense to you. Let the seller know in writing that, after a specified time has passed, you reserve the right to keep the goods or dispose of them as you wish.

Consumer Warranties

The Song-Beverly Consumer Warranty Act of 1970 (Civ. Code §1790 et seq.) defines the different kinds of warranties which may accompany new consumer goods (excluding clothing and consumables) purchased in California for use primarily for personal, family or household purposes. The goods must be purchased from a person or company engaged in the business of manufacturing, distributing or selling such goods at retail. A warranty is the manufacturer's or seller's promise to stand behind a product. A warranty may be written, verbal, or "implied" (that is, created by law, even though not oral or in writing). If you buy a new toaster, a written warranty may accompany the purchase. Sometimes, you will not find a written warranty attached to the toaster or in its packing box even though you may have been told by the store clerk that it was "warranted".

Express (Written) Warranties

Written warranties come with most major purchases of new goods, although they are not legally required. It is not necessary under the law that the written warranty use words such as "warrant" or "guarantee," but if these words are used, an express warranty is created. A written statement as to the value of your toaster, or an opinion that the toaster is a good one, for example, is not legally a warranty. Likewise, a written statement that it is the store's general policy that you, the customer, must be satisfied with the toaster, is not a warranty. The protection afforded by written warranties vary. Here are a few questions that you should ask about a warranty before buying the product.

What parts or repair areas are covered by the warranty?
  See what is excluded. (Some major problem areas may be excluded, thus requiring you to pay for the repairs)

Are any expenses excluded from coverage?

 For example, a warranty may require you to pay labor costs or shipping and handling.

How long does the warranty last?
 Some products take longer to exhibit their problems.

What will you have to do to get repairs?
  For example, the warranty might require expensive pre-conditions to repair, such as the requirement that you ship a heavy product to a factory for service.

What will the company do if the product fails?
  Find out if the company will repair it, replace it, or return your money. Repairs take time and it is nice to be able to get a refund and start over. California law does not require a manufacturer ti refund money - reapri or replace at their option.

Does the warranty cover consequential damages?
  Most warranties do not. This means the company will not pay for any damage the product caused, or for your time and expense in getting the damage repaired. For example, if your freezer breaks down and the food in it spoils, the company will not pay for the food you lost.

Are there any conditions or limitations on the warranty?
  Some warranties will only provide coverage if you maintain or use the product as directed. For example, the warranty may cover only personal uses, as opposed to business uses, of the product. Make sure the warranty meets your needs.

The Magnuson-Moss Act of 1975 requires warranties be available for you to read before you make a purchase. Under the law, a written warranty must be written in simple, easily understood language.

As purchaser of a new toaster, you have the right to have it repaired or serviced during the warranty period. The warranty period will be extended by law for the number of whole days the product (in this case, the toaster) had been out of your hands for warranty repair. If a defect exists in your toaster within the warranty period, the warranty will not expire until the defect has been fixed. The warranty period will also be extended by law if the warranty repairs have not been performed because of delays due to circumstances not within your control. If the warranty repairs did not remedy the defect, and you notify the manufacturer or seller of the failure of the repairs within 60 days after they were completed, the warranty period will again be extended by law (Civ. Code §1795.6)

If you make a reasonable number of attempts and the defect in your toaster is still not fixed, you can return the toaster for a replacement or refund, subject, in either case, to deduction of a reasonable charge for use.

At the time you buy the toaster, if it comes with a written warranty, the seller must provide you personally or by listing at the store with the name and address of all service and repair facilities located within California, or with the name, address, and phone number of a service and repair central directory within California, or with the toll free number of a service and repair facilities central directory outside California.

Remember, when you buy a product, save the sales slip and file it with your warranty -- you may need it to document the date of purchase, or if the warranty is limited to first purchasers, to prove you were the original buyer.

Verbal Warranties

Let's say your new toaster did not come with a written warranty. The salesperson who sold you the toaster may have made you a verbal promise that the store would make free repairs if needed. But, be careful here -- if the promise is not in writing, you may not get the service, so get it in writing!

"Implied" Warranties

Although written warranties are not required by law, another type of warranty is. That is the "implied" warranty, created by state law. The warranty of merchantability is the most common type of implied warranty. This warranty means that the seller promises that the product will do what it is supposed to do. That is, the law requires that your toaster will toast (Civ. Code §1792). If the sale is accompanied by an express warranty, the duration of the applicable implied warranty will be the same length of time as the express warranty, as long as the duration of the express warranty is reasonable. In no event shall an implied warranty have a duration of less than 30 days or more than three months following the sale of used goods to a retail buyer. When the express warranty does not state how long it is to run, an accompanying implied warranty will run in no case less than 30 days or more than three months. A warranty period may be extended if, when the product breaks down, the size, method of installment, or the nature of the break down prohibits you from delivering it to the service and repair facility. In this situation, the buyer must notify the manufacturer or its nearest service and repair facility within the state in writing of the need for service or repair of the product. Once the manufacturer receives notice of the broken goods, it can, at its option, service or repair the goods at the buyer's residence, pick up the goods for service and repair, or arrange to transport the goods to its service and repair facility. All reasonable costs of transporting the goods to the repair facility and of return to the consumer in this situation shall be paid by the manufacturer. During the repair period, the warranty is "tolled." This means that the warranty period ceases to run. This period begins once you have either delivered your toaster to the manufacturer or seller for service or repair or, (in the case of a large product where such delivery would be impractical, as discussed above), once you have notified the manufacturer or seller of the need for service or repair. The period runs up to and including the date upon which the repair or service is completed. The warranty period then begins to "run" once again. If you have fulfilled all the notice or delivery requirements, regardless of the stated warranty period, the period will not end if either or both of the following occur:

• the warranty service or repairs have not been performed due to circumstances beyond the buyer's control; and/or

• the service or repairs performed did not fix the product and the buyer notified the manufacturer or seller of this failure within 60 days after the repairs or service were completed. Once the problem is fixed, the warranty period will expire in accordance with its terms, including any extension to the warranty period for warranty repairs or service.

Waiver of Warranty

If the product you have purchased is accompanied by an express (written) warranty, the seller is providing you with a specific guarantee regarding the product. You may find that a product comes with a card, called a "warranty registration card." The card may ask for a range of information about you, including, for example, your age, yearly income or family size. The card may state that you are "required" to send in the card within a specified time in order for the warranty to be enforceable. If you do not send in the card within the specified time, the manufacturer in this situation is attempting to "waive" the express warranty accompanying the product. This is illegal under California law (Com. Code §2801). Any express and implied warranties accompanying the product are enforceable even though such a "warranty registration card" has not been returned to the product manufacturer.

Under the law, no implied warranty of merchantability shall be waived, except when consumer goods are sold on an "as is" or "with all faults" basis. In order for waiver of the implied warranty to be effective in this situation, a conspicuous, simple and clearly understandable writing must be attached to the goods informing you, prior to the sale, that (1) the goods are being sold on an "as is" or "with all faults" basis, (2) the entire risk as to the quality and performance of the goods is with you, the buyer, and (3) should the goods prove defective following purchase, you assume the entire cost of servicing or repair.

Resolving Disputes Involving Warranties

To review what we have discussed, if you are faced with any problems with a product or with obtaining the promised warranty service, here are a few helpful suggestions:

• Read your product instructions and warranty carefully. Do not expect features or performance that your product was not designed to give, or assume warranty coverage that was never promised. Having a warranty does not mean that you automatically get a refund if the product is defective. The company is entitled to try to fix it first. But if you reported a defect to the company during the warranty period and the product was not fixed, the company must still correct the problem.

• Discuss your complaint with the retailer. Disputes can usually be resolved at this level. But if you cannot reach an agreement, write the manufacturer. Your warranty should list the company's mailing address. Send all letters by certified mail and keep copies for your records.

• If none of these actions resolves your dispute, you may want to consider a lawsuit. Both federal and state law allow you to sue for damages or for any other type of relief the court awards, including legal fees. An attorney will be able to advise you whether to proceed with a lawsuit

Automobile Issues

New Cars: the Lemon Law

The "Lemon Law", part of the Song-Beverly Consumer Warranty Act (Civ. Code §1793.2) applies only to new cars, vans, or trucks sold in California or leased for terms exceeding four months. The vehicle must be leased or purchased primarily for personal, family, or household use. The Lemon Law does not apply to commercial or fleet vehicles, motorcycles, motor homes or off-road vehicles.

The Lemon Law provides that you are generally entitled to a refund if, within the first year or 12,000 miles (whichever comes first) the warranted problems cannot be fixed within a reasonable number of attempts. The dealer may be required to repurchase or replace a vehicle if a warranty repair cannot be completed within four attempts, or if the vehicle is out of service for more than 30 days, while being repaired for any number of reasons.

To obtain a replacement or refund, the "Lemon Law" requires that:

• The specific problem is covered by the warranty;

• The problem substantially reduces the use, value, or safety of the vehicle;

• You notify the manufacturer directly about the problems you are having with your vehicle, if you are required to do so;

• If the warranty requires, you must submit your dispute to a certified arbitration program, rather than the courts.

The Lemon Law favors the consumer in that it presumes you are entitled to a refund or replacement. Yet, if the manufacturer or its dealer has not made the required number of unsuccessful attempts (four or more) to repair your car, or if the manufacturer can prove no reasonable opportunity to repair, or that it has made a reasonable number of repair attempts, then the protection of the Lemon Law may not apply. Nor will the lemon law apply if you abused the car or damaged it in an accident. If the problem with your car pertains to safety, the dangerously defective car may be returned even before the requirements of the Lemon Law are met. A reasonable number of repair attempts may be as few as one or two in a situation involving violation of a vehicle equipment safety standard (such as brake failure or a steering wheel that locks). In this case you may want to consult a lawyer for advice.

Your responsibilities under the lemon law:

Your new car, whether purchased or leased, is covered by a warranty. In order to receive the benefits and protection of the warranty, you must make sure to service and maintain the car under the terms of the written warranty and owner's manual that comes with the car. For example, if you do not add oil when needed and the engine is damaged as a result, the warranty probably will not cover repair costs.

Also, you should check your warranty and owner's manual to see which repairs and service are required to be carried out by the dealer. You may invalidate your warranty if you perform do-it-yourself repairs and services. Keep copies of all your repair records to help prove that you have maintained the car as required by the warranty and/or owner's manual. Insist that work orders and final invoices for all car repairs and services list each of the repairs that were performed. This will show that the car is a "lemon" and that you have cared for the car as required by the warranty and owner's manual. If the dealer or manufacturer claims that a problem is the result of misuse or neglect, and you do not agree, you may wish to consult with an auto diagnostic center or competent mechanic in order to obtain an unbiased opinion of the cause of the problem. If you are required by your warranty or owner's manual to have repairs carried out by the dealer and you have a problem with your car, you must allow the dealer repair it, or at least give them the chance to do so. If they refuse to repair your vehicle, try to get it in writing then get it repaired by another mechanic.

If the first attempt at repair is not successful, let the dealer know right away. Then check your warranty. You may be required to notify the manufacturer directly of any need for further repair. The manufacturer's address should be included in your owner's manual, the warranty, or available from the dealer.

It is also a good idea to keep detailed notes of any phone or personal discussions you have about your car's problems. After an important conversation, write a short letter to the person you spoke with to confirm the contents of the discussion. You may want to send the letter by certified mail, return receipt requested. Keep a copy of the letter and the receipt. This letter may help you later to prove what was said and may help avoid or clear up misunderstandings.

Example

Let's say you have made repeated efforts to repair your car under the terms of your warranty and/or owner's manual. If you have obtained financing for the purchase of your car, or if you have leased, let your lender or leasing agency know about the problems and attempted repairs. Do not discontinue payments until consulting an attorney. If you haven't let the manufacturer know, as yet, about the problems you are having with your car, you should do so at this point. You should send letters to both the manufacturer and the dealer describing the problems and requesting needed further repairs. Make sure to include copies of all repair orders and invoices.

Dispute Resolution

If you wish to make use of the Lemon Law to obtain a refund or a replacement vehicle, some warranties require you to use what is called a "third party dispute resolution program." This program consists of arbitration panels set up to resolve difficult car repair problems and to avoid lawsuits. Before you can use the Lemon Law in court, you are required to take your complaint to an arbitration panel if you are notified in writing by the manufacturer that such a program is available (this information is found in the warranty or accompanying the warranty), and the program is "qualified." This means that the program complies with the Federal Trade Commission (FTC) guidelines and additional standards required by the Lemon Law.

Arbitration programs are free. You will normally submit your written complaint to the program or panel, along with copies of your service records for the car. If your account of what happened differs from that of the manufacturer, the arbitrators must allow you to submit additional information and explain your side of the story. Your case must normally be decided within 40 days of the time your complaint was received. You may either accept or reject the program's decision. If you accept, the manufacturer (or dealer) must comply with the decision of the arbitrator within 30 days. There is no appeal process available for the manufacturer (or dealer). If the manufacturer or dealer refuses to comply, it may be required to pay a penalty of up to three times your actual losses, reasonable attorney's fees, and court costs for intentional violation of the Song-Beverly Consumer Warranty Act. You may wish to consult a lawyer in this situation.

If you do not agree with the arbitrator's decision, you can reject it and go to court to assert your right to a replacement, refund, or other relief. You can also go to court if you have accepted the arbitrator's decision, but the manufacturer has not promptly complied with that decision within the 30-day limit.

You should be aware that, while your case is involved in arbitration, the time limit on your right to file a lawsuit is extended. In court, a judge may consider the arbitrator's decision in ruling on your case.

If your car's only defects are ones which do not substantially affect its use, value, or safety, you are not entitled to refund or replacement under the Lemon Law. But, if the defect is covered by your warranty, you have the right to have it repaired. If the manufacturer or dealer cannot or will not repair the defect, you can have the car repaired elsewhere, then file suit in Small Claims Court to recover reasonable repair costs from the manufacturer.


Used Cars: Buying From a Dealer

If you are buying a used car from a dealer, you may benefit from the Federal Trade Commission's "Used Car Rule" (16 CFR 455). The Rule requires all used car dealers to place a large sticker, called a "Buyer's Guide" in the window of each used car they offer for sale. The Buyer's Guide will provide you, the prospective purchaser, with the following information:

• Whether the vehicle comes with a warranty, and if so, the specific protection offered by the warranty;

• Whether the car is sold without warranty ("as is") or with "implied warranties" only.

• That you should ask to have the car inspected by your own mechanic before you buy;

• That you should get all promises made by the dealer in writing;

• What some of the major problems are that might occur in any car.

When you purchase the used car from the dealer, make sure you receive the original or an identical copy of the Buyer's Guide that the dealer placed in the window of the car you bought.

Warranty

Make sure that the Buyer's Guide indicates any changes in warranty coverage that you verbally negotiated with the dealer. The Guide becomes part of your sales contract and its provisions override any contrary provisions in the sale contract.

Dealers are required to post a Buyer's Guide on all used vehicles (except motorcycles). A used car is defined as one which has been driven further than the distance required to deliver it to the dealership as a new car or to test drive it.

One of two boxes will be checked on the Buyer's Guide. One will be marked "As Is -- No Warranty" and the other "Warranty."

As Is -- No Warranty - Means the used car is sold without a warranty. This means that, should you have problems with the car after you buy it, you will have to pay for the repairs yourself regardless of any oral statements made. The dealer has no further responsibility for the car once the sale is complete.

Written Warranty - If a written warranty is offered on a used car, this will be indicated on the Buyer's Guide. Before you purchase the car, read the warranty carefully to see what is and what is not covered. Check the percentage of repair costs the dealer will pay for labor and parts, check which specific systems are covered, and check the duration of the warranty for each covered system. A list of descriptive names for the major systems of a car is found on the back of the Buyer's Guide.

Note: If the dealer makes any promises to repair the car that are not listed on the Buyer's Guide, ask the dealer to add the promises, in writing, to both the Buyer's Guide and the sales contract.

Full/Limited Warranty

The warranty may be "full" or "limited." A "full" or "limited" warranty need not cover the entire vehicle. The dealer can specify only certain systems as covered under the warranty. A "full" warranty provides the following:

• Warranty service will be provided to anyone who owns the vehicle during the warranty period when a problem is reported.

• Warranty service will be provided without cost, including return of the vehicle or removal and re installation of the system covered by the warranty, when necessary.

• If the dealer is unable, after a reasonable number of attempts, to repair the vehicle or system covered by the warranty, the dealer will provide either a replacement or full refund, the choice being left up to you.

• Warranty service is provided without requiring you to return a warranty registration card.

If any of the provisions listed above are absent, the warranty is "limited." When you buy a car with a "limited" warranty, you should realize that there are costs or responsibilities that the dealer will not assume for systems covered by the warranty.

Manufacturer's Warranties

It is also possible that the original, unexpired manufacturer's warranty still applies. This will be indicated on the Buyer's Guide for the car. You should look at the specific provisions of the unexpired warranty before you buy, to see what is and what is not covered. The dealer is not required to offer it's own warranty in addition to the provisions of the unexpired warranty. For a more in depth discussion, see the section in this pamphlet on consumer warranties.

Mechanic's Inspection Before You Buy -- Before you buy a used car, you should ask the dealer whether you may have the car inspected by your own mechanic either at the car lot or elsewhere. It may not be possible for the dealer to allow such an inspection off premises, due to insurance or other regulations, but on premises inspections should present no such problems. An independent inspection will allow you to find out about the mechanical condition of the car before you buy it!

Service Contracts -- A service contract may be offered to you when you buy your car. This contract may be called an "extended warranty," although it is not a warranty which would be included in the price of the vehicle. The service contract comes at extra cost.

Before you pay for a service contract, make sure to do the following:

• Make sure that any warranty that comes with the car does not cover the repairs you would get under the service contract;

• Determine whether the car will need repairs, and the cost of those repairs;

• Find out how long the service contract will be in effect;

• Investigate the reputation of the dealer offering the service contract;

It is important to note that when you purchase a service contract within 90 days of buying a car, federal law prohibits the dealer from disclaiming implied warranties on the systems covered in that service contract. To illustrate: if you buy a car "as is", the car will not normally be covered by implied warranties. But, if you also buy a service contract covering the engine for six months, you automatically get implied warranties on the engine as well, which may give you additional protection beyond the scope of the service contract.


Used Cars: Buying From a Private Seller

If you buy a used car from a private individual, for example, through a classified newspaper ad, the sale is not covered by the FTC Used Car Rule we have discussed. Therefore, private sellers are not required to use the Buyer's Guide. In most private sales, the car is sold "as is" and there will be no written contract with specific repair provisions. The private seller, in these cases, will have no further responsibility for the car following the sale. If you do have a written contract from a private seller, the seller is under a legal obligation to fulfill any promises in the contract.

It is also possible that the car is covered by an unexpired manufacturer's warranty or a service contract. Before you buy, make sure to ask the seller to allow you to examine any manufacturer's warranty or service contract which is still valid for the car. As with a used car purchased from a dealer, it is important to have the car inspected by an independent mechanic before you buy.

Landlord/Tenant

There are three types of landlord/tenant relationships. These are periodic, term of years, and at will leases. An example of a periodic tenancy is the typical month to . The period of the lease does not need to be a month, but can be any length of time (3 months, 1 year, 5 year, etc.) When the lease period ends, a new lease period automatically begins, for the same length of time, unless either party tells the other party that the lease will end, so long as adequate notice is given.

A term of years lease is one that the start date and the stop date are set out in the agreement (lease). The length does not need to be a set number of years, but only a determinable number of days (30 days, 180 days, 1 year, 5 years). At the end of the lease period, no new lease exists, the landlord/tenant relationship has ended, unless both parties have agreed to continue the lease for another period.

An "at will" lease is usually a verbal agreement that the tenant will be allowed to stay at the residence until either party decides to end the relationship. If it is no longer the desire of either party to continue the lease, it is ended. This type of lease also ends automatically when either party dies.

Your rental or lease agreement does not have to be in writing unless you are leasing for a period longer than a year. Nevertheless, it is advantageous to put your agreement in writing, for both your and your landlord's protection.

When looking to lease a residence, you should carefully consider the advantages and disadvantages of each type of lease before you commit yourself. While a "term of years" lease does tie you to a long-term commitment, it offers you certain protection that a month-to-month (periodic) rental agreement does not provide.

Under a fixed term lease, you have the assurance that you can remain in the residence for a specified period of time and that the rent cannot be raised during this time unless the lease states otherwise. In contrast, under a periodic rental agreement, your landlord may be able to evict you, raise your rent or change other terms of the agreement. Note that the length of the notice period for raising the rent must be at least as long as the period between your rental payments, normally one month.

Know Your Landlord

It is possible that the person you talked with about renting or leasing may not be the landlord (owner), but, only the representative of the landlord or from a rental management company which has been hired by the landlord to manage the property. It is very important that you find out who your landlord is or who is legally empowered to act on his/her behalf. An agreement you make with a manager may not be honored by the landlord. Also, if you have problems with the manager, you may need to contact the landlord to help resolve the dispute.

If you are dealing with a multi-unit dwelling such as an apartment complex, by law, the owner or his/her representative must disclose the name and address of each person who is authorized to manage the premises, and each person who is an owner or who is authorized to act for or on behalf of the owner to receive legal notices and demands (Civ Code §1962 et seq.). If you have a written rental agreement or lease, this information must be contained in the rental or lease document. If you have only an oral agreement, and you make a written request, this information must be provided to you in writing. Even if you do not request the information, it must still be posted in two conspicuous places, such as hallways, lobbies or elevators.

Make Sure You Understand Your Agreement

It is worth your time to get every agreement and statement in writing, even in the case of an agreement of less than one year's duration, for which the law does not require a written agreement. Unfortunately, tenants have been taken advantage of because they didn't get their agreement in writing.

Deposits/Inventory Checklist

Normally, once you have located the place you hope to rent or lease, you will pay your landlord or his/her representative a "holding deposit". This deposit is usually non-refundable, but is applied to the first month's rent. It serves to "hold" the premises for you to the exclusion of other potential tenants, until you pay, for example, first month's rent and any required deposits. Make sure that the purpose of the holding "deposit" is clear and in writing.

Before you pay your first rental or lease payment and begin occupancy of the premises, you should closely inspect the condition of your prospective residence. You and your landlord (or your landlord's legal representative) should go through the premises together with an inventory checklist so that you are able to agree on the condition of things before you move in. Both you and your landlord should keep a copy of the checklist. Have the landlord sign the checklist so that later on you won't be blamed for causing any of the damage you found. When you move out, you should go through the premises again and make note of any changes. If it is possible, take pictures of any problem areas when you move in. This can be very helpful when it comes time to discuss the return of your cleaning and security deposit with your landlord.

If there are problems with the residence, try to have the landlord make a written promise to make all needed repairs by a certain date. If you can only get the landlord to give you an oral promise, try to find witnesses to his/her statements. The landlord may agree to reimburse you for labor and materials if you agree to carry out repairs. Again -- get it in writing!

Once you have completed your inspection of the property, and have decided to move in, you will normally be asked to pay a "security deposit". Under the law, a "security deposit" is defined as money held by the landlord as security for either: (1) compensation for unpaid rent; (2) repair of damages caused by the tenant (apart from ordinary wear and tear); (3) cleaning of the premises upon termination of the tenancy (if not satisfactorily cleaned by the tenant) (Civ. Code §1950.5(e)). Often, the landlord will request a variety of deposits: for example, security, cleaning, key, pet, parking, and last month's rent. All of these different deposits should be considered part of the security deposit. This is because, by law, the landlord cannot require more than two month's rent for the security deposit on an unfurnished apartment, and more than three month's rent on a furnished apartment, unless special circumstances exist (Civ. Code §1950.5(c)). In publicly subsidized housing, the maximum deposit is one month's rent. If the last month's rent is required, it is considered part of the security deposit, even if the landlord lists it separately -- this will help you avoid paying too high a security deposit.

Note that, by law, the landlord cannot automatically charge a tenant for painting and cleaning at the end of a tenancy because it is the landlord's "policy" to do such cleaning at the end of all tenancies. Additionally, the landlord is not legally permitted to deduct for ordinary wear and tear to the premises. Rather, he/she must prove that you damaged or damaged the premises beyond ordinary wear and tear, or left the premises dirty, if he or she wants to deduct from the security deposit (Civ. Code §1950.5(b)(2)).

If the landlord wants to charge you for any cleaning or repairs, he/she is legally required to provide you with an itemized list of the required repairs. You must receive the portion of the deposit owed you within three weeks of the date you move out (Civ. Code §1950.5(f)).

If you don't receive your refund within three weeks, you should contact your landlord, in writing, preferably by certified mail, return receipt requested, to find out why you haven't received a refund. Keep a copy of your letter.

If you disagree with your landlord's actions regarding your refund, you can file a lawsuit in the Small Claims Court. If you can show that your landlord's refusal to refund your deposit was intentional and in bad faith, rather than the result of an honest dispute, you may be able to collect "punitive damages" (i.e., money collected from the landlord in order to "punish" him/her) against your landlord (Civ. Code §1950.5(k)).

Sale of Your Apartment Building

Note also that if your landlord sells the premises while you are living there, he/she must, within a reasonable time and after deducting the proper amounts from your deposit, either: (1) transfer the remainder of your deposit to the new landlord, and notify you of the transfer and the new landlord's name and address; or (2) return the remainder of your deposit to you. The landlord must use either certified mail or personal delivery to notify you and must provide you with an itemized written account if he/she returns only a part of the deposit to you.

Moving Out -- When It's Your Decision

If you decide to move out, the law requires you to give a written 30-day notice if you have a month-to-month rental agreement, so long as your rental contract does not stipulate to a shorter notice period of not less than seven days. Your notice of departure does not have to correspond to a due date for rent. To illustrate this point, you can pay rent on June 1, give 30 days notice on June 10, and move out July 10. This means, of course, that you must pay rent for the first 10 days of July. You must pay for every additional day you remain on the premises (Civ. Code §1946). If proper notice is not given, you may be required to pay rent for the next rental period.

If you breach your month-to-month rental agreement, the landlord is under a legal obligation to make a reasonable effort to re-rent the premises. When a new tenant moves in, you are no longer responsible for the rent for the remainder of the 30-day period. The landlord can only charge you for the time the premises were vacant and for any expenses related to re-renting the apartment, such as advertising. (California Safety Center, Inc. v. Jax Car Sales of California, Inc., 164 Cal. App.3d 992 (1985)).

Eviction: When You're Forced to Move Out

If you have a month-to-month rental agreement, the landlord must give you written notice of eviction. If you do not comply with the notice, the landlord is not legally permitted to simply enter your residence and physically remove you or lock you out. Rather, the landlord must first sue to have you evicted, in a lawsuit called an "unlawful detainer" action. These suits are always filed in Municipal Court.

If you are served with a summons in an unlawful detainer action you will normally have only five days (including weekends) to file a written response before a decision may be entered against you. If you do not file a written response to your landlord's complaint, the landlord can request a "default" judgment from the court against you without a formal trial and without the judge ever hearing your side of the case. After a decision has been rendered by a judge, it is difficult for a tenant to avoid being evicted.

If you do respond to your landlord's unlawful detainer complaint within the required period of time, you and your landlord then go to court and each explain your side of the situation to the judge or jury.

If you lose your case, you must move out. If you refuse to move, the landlord is granted a "writ of possession," and a notice will either be delivered to you or posted on your door. Five days later, if you still haven't moved out, the Sheriff can physically evict you from the property.

Tenant's Defenses to Eviction

You were given insufficient notice.

By law, a landlord can give several types of written notice. The tenant, if given insufficient notice of eviction according to guidelines set out below, can defend against the landlord's attempt to evict him/her:

Three-day notice - Three-day notice is required when you haven't paid the rent, have damaged or destroyed the property, or have violated the rules of the rental agreement or lease. The three-day notice must clearly state why you are being evicted and what you must do in order to stay, if the problem is correctable. If you correct the problem or the landlord changes his/her mind, the three-day notice is canceled, the lease or rental agreement continues in effect, and you don't have to leave.

30-Day Notice - In a month-to-month rental agreement, 30 days notice is required and in a week-to-week rental agreement, seven (7) days notice is required. This is true unless you have agreed to receive less notice, with the least notice being seven (7) days. A 30-day notice is also required when your residence has been involuntarily sold, for example, at a judgment or foreclosure sale.
If your landlord voluntarily sells your residence, you should be aware that the new landlord is required to assume your lease or rental agreement under the same terms as your agreement with the previous landlord.

180-Day Notice - A 180 day notice is required when an apartment is being converted into a condominium. Notice may be given at any time during the conversion process. You are entitled by law to a 90-day first-option to buy the unit you are living in after final approval is given for the conversion, you get the first chance to buy the unit if you accept within ninety (90) days. If your building is being converted to condominiums, you may want to look into local ordinances which may provide you with additional protection.

Repair and Deduct Remedy

Your landlord may try to evict you, claiming that you did not pay all or any of your rent. You may defend against this eviction if you used the rent money to correct violations of building and/or housing codes in your residence. As a tenant under a rental agreement or lease, you have what is called an "implied warranty of habitability" as to your residence. This means that your landlord must keep the premises in a condition fit for human occupancy. You cannot sign away your right to this warranty of habitability. Your landlord is obligated by law to repair all problems which fall under his/her minimum obligations, unless the damage was caused by your own lack of care. A few examples of the landlord's minimum obligations, from California's Civil Code §1941, include that:

• There are no leaks when it rains, and no broken doors or windows.

• The plumbing works, including hot and cold water. There must be a working sewer or septic tank connection.

• The heater must work and be safe.

• The lights and wiring must work and be safe.

• Floors, stairs, and railings must be in good repair.

• Once rented, your place must be clean, without trash, garbage, or rats or other pests.

• The landlord must provide enough covered cans or bins for garbage.

If you have a problem with any of the above, you should first give your landlord oral or written notice of the problems. Although either form of notice is sufficient, it is preferable to give notice in writing, in order that you later have proof that such notice was given.

You should then wait a "reasonable" time for the needed repairs to be made. What is a reasonable time depends on the nature of the problem about which you have complained to the landlord. That is, if the problem is that you do not have heat in your place and it is during the cold months, a few days wait may be considered "reasonable." By law, 30 days is "presumed" reasonable. Thus, if you wait less than 30 days and the case goes to court, you are required to prove that the shorter waiting period was reasonable. If the repairs are not made by the landlord within a reasonable time, you may have them repaired yourself. Keep a record of the costs of the repairs, then deduct them from your next rental payment. This is called "repair and deduct."

If you make the repairs on your own after waiting a reasonable time for the landlord to do the repairs of which he/she was notified, you may not deduct more than one month's rent to pay for the repairs. Nor can you use this right to withhold rental payment to pay for repairs more than two times in a 12-month period. You cannot give up your legal right to repair and offset unless your rent was lowered because you agreed to do things your landlord is normally required to do (e.g., to repair your premises). Note that if you made an agreement of this nature under pressure in order to get your place, the agreement is not binding.

If your residence doesn't meet the required standards of habitability, you can stop paying rent until the needed repairs are made or you have the option of moving out without the responsibility to pay any further rent. HOWEVER, YOU SHOULD TALK TO A LAWYER BEFORE WITHHOLDING RENT OR MOVING OUT, BECAUSE THESE OPTIONS CAN BE VERY COMPLICATED. You will probably be advised by your lawyer to deposit the withheld funds into an "escrow" account, to show you are willing to pay the rent once the landlord carries out repairs. If your landlord takes you to court, you can argue that you have the right to withhold some rent to get the landlord to make repairs.

That The Eviction is "Retaliatory"(to punish)

If you have complained about the uninhabitable condition of your place or have given notice requesting the landlord to make repairs or you will deduct their costs from the rent, your landlord cannot evict you, decrease your service, or force you to leave involuntarily within six (6) months of your action if his/her purpose is to punish you for exercising your rights. The six (6) month period protection can be used only once in any 12-month period. Note that if you feel you have been unfairly treated after the six (6) months, you should consult a lawyer because in some cases, you may be protected for a longer period.

Additionally, it is illegal for the landlord to retaliate or threaten to retaliate against you at any time because you belong to a tenants' union or organization, or because you have lawfully exercised any of your legal rights. In these situations, there is no limit to the number of times you can use this protection, and no given time limit when your protection ends.

If your landlord has illegally retaliated against you by threatening eviction, you may sue him/her. If you win, the landlord could be liable for your actual damages (i.e., hotel costs), reasonable attorney's fees (if either you or the landlord requests these fees at the beginning of the lawsuit), and punitive damages from $100 to $1,000 if the landlord's retaliation was done with malice.

Credit Issues

Today, buying on credit is a common practice. Credit can also allow you to borrow money, or make a major purchase, such as buying a car. But remember, you should only use credit if you can afford it and can repay your debt.

How Can You Establish Credit?

If you have sufficient financial resources, there are several approaches you can take to start to build a "credit history". If you have never used credit before, you may want to open a savings or checking account in your name. You can also acquire credit or charge cards in your name, or establish a credit line at your bank. If you maintain active bank accounts, pay your charge card bills on time, and pay back your bank loan, you should find that your credit allowance will increase with time.

Lenders will often obtain information about your "credit worthiness" or "credit history" from a consumer reporting agency, such as a credit bureau. If the credit report is negative, you may have a difficult time obtaining credit. To find out if you have any credit history, ask your bank or other creditor the name and address of the credit reporting bureau that they use. You have the right to obtain a copy of your credit history report from the credit reporting bureau at anytime for a small fee, or for free if you have been denied credit based on your credit report.

What Can You Do If Your Credit Application is Denied?

Under the Fair Credit Reporting Act (15 USCS §1681 et seq.), if your credit application was denied because of information supplied by a credit bureau, that agency's name and address must be supplied to you.

While the law does not require that a creditor give you credit, it does force the creditor to act fairly and without discrimination against you because of: age (with limited exceptions), sex, marital status, race, color, religion, national origin, receipt of public income (i.e. welfare, social security), or because you have previously exercised your legal rights (such as filing billing errors). See the Equal Credit Opportunity Act (15 USCS §1691 et seq.).

You have the legal right to know what your credit report says. The credit bureau is required by law to tell you about every piece of information in the report, and in most cases, the sources of that information. If the credit bureau uses codes in your credit report, you must be given an explanation of the codes used. The credit bureau is not required to give you a copy of the report, although many will do so. If you find that the information contained in your credit report is inaccurate or incomplete, you should notify the credit bureau by mail and explain the reason you find your file to be inaccurate. You may wish to send this letter by certified mail, return receipt requested, in order to have proof that the bureau received your letter. Upon receipt of your letter, the credit bureau is required either to reinvestigate your history or notify you that it believes your dispute to be groundless and frivolous. The credit bureau must let you know within five days if it believes your dispute is frivolous and therefore will not reinvestigate your file. The bureau is required to state its exact reasons for its decision not to reinvestigate (15 USCS §1681(i)). If the bureau has made the decision not to reinvestigate, you have the legal right to file a statement of 100 words or less stating why you believe the information in your credit report to be inaccurate or misleading. The bureau is required by law to include your statement in your credit history and provide it to creditors who request information about you.

If the credit bureau finds that your dispute is valid and reinvestigates your file, it must correct your credit history and notify you that corrections have been made. You also have the right to request that the bureau send either the corrected information or your statement to anyone who has received a credit history on you within the last six months.

Consumer Credit Contracts

A Federal Trade Commission rule, the "Credit Practices Rule"(16 CFR 444 et seq.) in effect since March 1, 1985, covers consumer credit contracts. The Credit Practices Rule prohibits many creditors from including certain provisions in consumer credit contracts. It also requires creditors to provide a written notice to consumers before they co-sign obligations for others, about their potential liability if the other person fails to pay.

If you agree to be a cosigner for someone else's debt, you are guaranteeing to pay for that debt if that person fails to pay the debt. The Credit Practices Rule requires that you be given a notice explaining the responsibility you are undertaking to repay a debt which may include payment of late fees or collection costs, and the fact that, if the debt is ever in default, that fact may become part of your credit record. A creditor can charge a late fee if you do not make your loan payment on time. But, under the rule, it is now illegal for a creditor to charge you late fees or payments just because you have not as yet paid the late fee you owe.

Credit Cards

Now that you have obtained credit in the form of one or more credit cards, what do you do if you have a problem with inaccurate billings for purchases on your credit card, and what happens if your card is lost or stolen?

Disputed Amounts

Credit card billing errors do occur, but they are simple to resolve if you know your rights under the Fair Credit Billing Act (15 USCS §§1601, 1602, 1637, 1666 et seq.) Under the Act, if you feel a credit card billing error has occurred, you must write the bank or retailer who issued the card. Your notice must be received within 60 days after the bill containing the error was mailed. You should include the following information in your letter: your name and account number, the date, type and dollar amount of the charge you are contesting, and why you think there was a mistake.

Make certain you send your letter to the correct office address. You can often dete