Skip NavigationSmall Claims Court: Consumer and Substantive Laws


§3.11 Vehicle Leasing—Governing Law

Lesson 3:
Vehicle Repairs, Sales, & Leases

The Vehicle Leasing Act [CC §§2985.7 et seq] applies to the leasing or bailment of motor vehicles for a term exceeding four months primarily for personal, family, or household purposes, whether or not the lessee bears the risk of the motor vehicle’s depreciation. [CC §2985.7(d).] The Act does not apply to leasing for agricultural, business, or commercial purposes; to a government or governmental agency or instrumentality [CC §2985.7(d)]; or to transactions regulated by the Rees-Levering Motor Vehicle Sales and Finance Act [CC §2990].

Automobile leasing is also covered by the federal Consumer Leasing Act [15 USC §§1667 et seq] and related federal regulations [12 CFR Pt 213 et seq, Regulation M]. The lessee is limited to one action against the lessor based on similar facts, either federal or state, but not both. [See CC §2989.]

    back        Back         page 27 of 100         Next        next