December 11, 2007
Court bars tax refunds to manufacturers for lemon cars
The State Supreme Court has rejected DaimlerChrysler Corp's. attempt to obtain tax refunds from the state for "lemon" cars returned to the manufacturer.
DaimlerChrysler sued the state for denying its claim for a refund of state sales tax it paid to consumers pursuant to the state's lemon law.
Under the law, consumers may return a materially defective new motor vehicle that cannot be repaired to the manufacturer, which, in turn, must refund to the consumer the vehicle's contract price, collateral charges and sales tax.
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