California governor says bill to create a buyer's 'Bill of Rights' would have been too costly.
SAN FRANCISCO (Reuters) - Gov. Arnold Schwarzenegger vetoed a bill Thursday that would have created a California used-car buyer's "Bill of Rights" and strengthened protections against buying a lemon car.
The law would have regulated conditions if the seller provided financing for the car such as a limit on interest rate mark-ups and would have created certain disclosure obligations. The bill would have also made it unlawful to add costs after the terms of a sale were agreed upon.
Sponsors alleged that used-car dealers often engage in fraudulent activity.
In a veto message, Schwarzenegger complained about vague terms in the legislation such as "certified" used cars and "qualified technicians" that would make it difficult to enforce the law. But he said the do*****ent would provide a useful basis for future legislation on the issue.
"These terms will likely cause the Department of Motor Vehicles to be involved in costly investigations over unenforceable and conflicting definitions," he wrote.
The bill had once included a provision that would have given buyers a three-day money-back guarantee, but that was removed by the California state senate.
Consumer and labor groups had backed the legislation while the California Motor Car Dealers Association argued against its passage.