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Magnuson-Moss Act Applies to Auto Leases
By Patrick Russell, Esq.
Aug 24, 2005 - 4:19:00 PM
The Second District Court of Appeal in the case of Cerasani v. American Honda Motor Company, 2D04-2719 (Fla. 2DCA 2005), held that a lessee of an automobile is a consumer under the Magnuson-Moss Act. The Magnuson-Moss Act is a Federal Trade Commission Act that is intended to increase the enforceability of warranties and protect the ultimate users of products. In this case, Cerasani as a lessee sued Honda for breach of a warranty related to a new car lease. Apparently the automobile had mechanical problems and due to those problems Cerasani tried to revoke acceptance of the vehicle. Honda argued that Cerasani as a lessee and not a purchaser, was not protected by the Act. The Court specifically found that the lessee was a Category Two Consumer under the Act, or a person to whom the product was transferred during the duration of the written warranty. Additionally, the Court also found that the lessee was a Category Three Consumer under the Act, or a person entitled to enforce the terms of the warranty against the warrantor.
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