What if your Car Can’t be Repaired: Service Contract Breach

Often consumers call when their vehicles are no longer covered by the manufacturer’s factory warranty, but are covered under a “service contract.” Under Civil Code Section 1794(a), consumers can pursue a Court case if they are “damaged by a failure to comply with any obligation under [a]… service contract.” This is not a claim for a buyback, but rather damages such as diminution in value, cost of repair, and/or the cost of the service contract.

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