Purchasers of Vehicles from Private Party Sellers Have No Standing Under the Song-Beverly Consumer Warranty Act

By Chariese Solorio, Sarah M. Nakamoto, and Madeline Ward*

In Dagher v. Ford Motor Co. (2015) 238 Cal.App.4th 905, the plaintiff purchased a used vehicle in a private sale from the original purchaser. The vehicle had over 12,500 miles and two years left on its five-year express manufacturer’s warranty. Id. at 912. After the purchase, plaintiff had dealers perform several warranty repairs on the vehicle’s engine that he considered unsuccessful. Id. at 911. He brought an action under the Song-Beverly Consumer Warranty Act (the “Act”) and contended that the statutory right, or standing to sue, was transferred to him along with ownership of the vehicle and its express warranty. Id. Not so. Id. at 926.

Since the Act creates more and different statutory rights than the express contractual transfer could have conferred on the plaintiff, the court determined that he would have to individually qualify under the Act’s definitions of “buyer,” “seller,” and “consumer goods” to assert those additional enforcement remedies. Id. at 926.Under Civil Code §1791(b), a “buyer” or “retail buyer” is “any individual who buys consumer goods from a person engaged in the business of manufacturing, distributing, or selling consumer goods at retail.” Id. at 913. Under §1791(l), a “retail seller,” “seller,” or “retailer” is “any individual, partnership, corporation, association, or other legal relationship that engages in the business of selling or leasing consumer goods to retail buyers.” Id. In Dagher, since plaintiff purchased the vehicle in a private sale he did not qualify as a buyer under §1791(b) because the seller was not a “retail seller,” “seller,” or “retailer.” Id. at 923-924.

Dagher underscores the importance of the “retail seller” requirement under the Act and makes clear that, a buyer of a vehicle purchased from a private party is not entitled to remedies available under the Act. Id. at 927.

*Madeline Ward is a 2023 summer associate in Snell & Wilmer’s Orange County office and is not admitted to practice law. She is anticipated to graduate from University of California, Los Angeles School of Law in May 2024.