Legal Articles
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.

© Copyright 2006, 2005, 2004, 2003, 2002 by Russell Law Offices