Consumer Protection Act

What is the coverage of Lemon law?

• within twelve (12) months from the date of original delivery to the consumer, or up to twenty thousand (10,000) kilometers of operation after such delivery, whichever comes first

• within twelve (12) months from the date of original delivery to the consumer, or up to twenty thousand (20,000) kilometers of operation after such delivery, whichever comes later

• within twelve (12) months from the date of original delivery to the consumer, or up to ten thousand (10,000) kilometers of operation after such delivery, whichever comes first

• within twelve (12) months from the date of original delivery to the consumer, or up to twenty thousand (20,000) kilometers of operation after such delivery, whichever comes first

Answer explanation

The correct coverage of the Lemon law states it applies within twelve months from delivery or up to twenty thousand kilometers of operation, whichever comes first. This matches the last answer choice.

This refers to a motor vehicle that is identical or reasonably equivalent to the motor vehicle to be replaced, in terms of specifications and values, subject to availability, as the motor vehicle existed at the time of purchase?

• Brand new motor vehicle

• Second hand motor vehicle

• Comparative motor vehicle

• Comparable motor vehicle

Answer explanation

The term 'comparable motor vehicle' refers to a vehicle that is similar in specifications and values to the one being replaced, aligning with the question's definition. Other options do not fit this specific description.

What are the rights of consumers under the Philippine Lemon Law?

• When nonconformity is found on a brand new motor vehicle within six (6) months from its date of original delivery, a consumer may bring it before the concerned manufacturer, distributor, authorized dealer or retailer for repair.

• During repair and the period of availment of the Lemon Law rights, the consumer, as agreed with the concerned manufacturer, distributor, authorized dealer or retailer, shall not be provided with Daily Transport Allowance

• In case the final attempt to address the defect or nonconformity fails, the consumer may bring his/her complaint before the SEC

• In case the final attempt to address the defect or nonconformity fails, the consumer may bring his/her complaint before the DTI

Answer explanation

The correct choice highlights that if a nonconformity is found within six months of delivery, the consumer can seek repair from the manufacturer or dealer, which is a key right under the Philippine Lemon Law.

How many repair attempts before a consumer may issue a Notice of Availment of Lemon Law Rights to the concerned manufacturer, distributor, authorized dealer or retailer?

• 2

• 3

• 4

• 5

Answer explanation

A consumer may issue a Notice of Availment of Lemon Law Rights after 3 unsuccessful repair attempts. This is the threshold set to protect consumers from defective products.

John purchased a brand new Toyota Fortuner for P1,000,000 on February 20, 2018, today the total mileage of the said car is 25,000 kilometers, how much is the reasonable allowance for use?

• 200,000

• 250,000

• 150,000

• 100,000

Answer explanation

The reasonable allowance for use is typically calculated as 1% of the purchase price per year. For 5 years (2018-2023), that amounts to P1,000,000 x 5% = P250,000, making the correct answer P250,000.

When and where to appeal the decision of the DTI?

• Within 5 banking days from receipt of notice and filed with the DTI Secretary

• Within 10 days upon receipt of the decision and filed with DTI Secretary

• Within 15 days upon receipt of the decision and filed with DTI Secretary

• Within 15 days upon receipt of the decision and filed with the court of appeals

Answer explanation

The correct choice is 'Within 15 days upon receipt of the decision and filed with the court of appeals' because appeals must be made within this timeframe to ensure proper legal recourse.

Can a manufacturer, distributor, authorized dealer or retailer be held responsible for the resold motor vehicle?

• Yes because the responsibility of the manufacturer, distributor, authorized dealer or retailer does not end upon the sale of the resold motor vehicle to its first purchaser.

• No because the responsibility of the manufacturer, distributor, authorized dealer or retailer ends upon the sale of the resold motor vehicle to its first purchaser.

• Yes because the responsibility of the manufacturer, distributor, authorized dealer but not retailer does not end upon the sale of the resold motor vehicle to its first purchaser.

• No because the responsibility of the manufacturer, distributor, authorized dealer but not retailer ends upon the sale of the resold motor vehicle to its first purchaser.

Answer explanation

No, because the responsibility of the manufacturer, distributor, authorized dealer or retailer ends upon the sale of the resold motor vehicle to its first purchaser.

The following are reasons for price tag except?

• To provide buyers with adequate information and guide to enable them to compare quality and prices of goods, and patronize stores selling quality products at low prices.

• To discourage and minimize haggling which is a waste of time and energy of both buyer and seller.

• To strengthen the bargaining power of the buyers towards the sellers

• To expedite transactions and enable both the buyer and seller to use the time and energy for more productive endeavors.

Answer explanation

The correct choice, 'To strengthen the bargaining power of the buyers towards the sellers', is not a reason for price tags. Price tags aim to provide information, minimize haggling, and expedite transactions.

The following are characteristics of a Price Tag, except?

• A price tag should be clearly written

• State the price of the commodity per unit in pesos and centavos, Philippine currency

• Bear no erasures or alterations of any sort

• Allows erasure or alteration of any sort

Answer explanation

The correct choice is 'Allows erasure or alteration of any sort' because a price tag must be clear, accurate, and free from any changes to ensure transparency and trust in pricing.

This is a consumer right that provides the right to be protected against the marketing of goods or the provision of services that are hazardous to health and life?

• Right to basic needs

• Right to choose

• Right to information

• Right to safety

Answer explanation

The 'Right to safety' ensures consumers are protected from hazardous goods and services, directly addressing health and life risks. This makes it the correct choice for the question asked.