Lemon
With A Twist
Job, the biblical
hero who endured various afflictions with fortitude and faith, might
just have a modern-day boating counterpart in BoatUS member,
Warner E. Busam, Jr., of Folsom, PA.
Busam and his
family spent $50,000 on a new 30-ft. cruiser in 1996. It was their
second boat and when they bought it they felt ready for the challenge
of operating a larger, more powerful vessel. Their enjoyment has
been all but destroyed by a combination of 58 different warranty
claims, poor dealer service, mysterious corrosion of the outdrives
and unexplained alteration of the boat's Hull Identification Number.
"We have a
boat we are paying for but we haven't had much fun in the sun. In
fact, we've hardly been able to use the boat at all," said Busam,
51, father of three teenagers. "The dealer told me we should worry
about one thing at a time. But he didn't tell me how long a time
frame he had in mind."
A lawsuit is
out of the question because of the expense, Busam says, and no state
has yet enacted a boat "lemon" law to help consumers when problems
persist or when vessels are out of service for repair for substantial
periods while the warranty is in effect.
Boat "lemon"
laws are currently being considered in Busam's home state, Pennsylvania,
as well as in Florida and New York. Proposed bills would hold manufacturers
- not dealers - responsible for warranty problems on new boats and
marine engines. The Pennsylvania bill is sponsored by state Rep.
Harry A. Readshaw, a BoatUS member.
The marine
industry has opposed "lemon" laws in part because they think that
such laws may make some unreasonable boat owners even more unreasonable.
But, in an effort to protect companies from frivolous attacks, existing
auto "lemon" laws and the bill under consideration in Florida impose
fines on consumers who file claims that are not in good faith.
In addition,
most "lemon" laws would stipulate that boat builders and engine
makers are not responsible for correcting problems with components
like radios, galley equipment and electronic gear made by other
companies. This is a major concern to builders who are unwilling
to be held responsible for another company's problems.
As with auto
"lemon" laws, most boat "lemon" law legislation would protect consumers
when defects, conditions and nonconformities that substantially
impair the use, value and safety of a vessel can not be corrected
after three attempts per defect or if the boat is out of service
for repairs for 45 or more days. Ultimately, a manufacturer could
be required to either replace a boat or engine or refund the purchase
price, less an offset for reasonable use. Such problems would have
to be items normally covered by the written warranty and would have
to be reported to the manufacturer within a prescribed time frame.
The most serious
of the defects described by Busam, severe corrosion of the twin
stern drives, became apparent in late 1997. Electrolysis from stray
electrical current from either Busam's vessel or neighboring boats
- the usual suspect for this type of damage - has been ruled out
by the surveyor who inspected the boat.
Now, experts
are examining the sacrificial zincs supplied by the engine manufacturer
to see if they are somehow defective. Until the cause is determined,
however, Busam won't know whether the outdrives' replacement, estimated
as costing over $17,000, will be covered by the boat builder or
the engine maker. In the meantime, the boat's performance is severely
impacted - a criterion of the "lemon" definition.
Other problems
which have likewise defied explanation include the water from an
unknown source that collects in the bilge and on the galley floor.
With a bilge pump that has a record of working unreliably, this
could cause the boat to sink. Likewise, as-yet undiagnosed wiring
problems affect the boat's navigation lights and result in console
lights remaining on even after they've been switched off. Either
of these problems could define the boat as a "lemon" because they
have been the subject of repeated repairs.
"Lemon" laws
also take into account the inconvenience of owning an auto - or
boat - which spends weeks in the shop for multiple problems.
Busam's list,
headed "Things That Have Gone Wrong With The Boat," contains 58
items, many that point to lack of quality control at the factory,
including mis-wired bilge pump and trim tabs and ill-fitting cabinets,
hatches and doors. In addition, the heater/air conditioner doesn't
work despite numerous repair attempts and virtually all the hold-down
snaps for carpeting and canvas tops pulled out before the boat was
a year old.
Some of the
issues Busam complains of have been repaired several times, to no
avail. The boat has been out of service for all but a month since
he took delivery. Again, this fits the "lemon" criterion for days
out of service.
In terms of
the boat's value, the dozens of problems will make it hard to sell,
even in as-is condition. The end result is that Busam must continue
to work with the builder or sell the boat at a loss. "I would lose
my shirt," he says. Loss of value is another standard against which
"lemons" are measured.
Throughout
the Busam family's ordeal, the boat builder has authorized all warranty
work to be performed locally, first by the retail dealer and later
by several other dealers after Busam grew dissatisfied when the
retail dealer caused more damages in the course of working on the
boat.
In conversations
with BoatU.S., the builder didn't comment on why the Busam boat
had so many warranty problems, nor did he discuss why more than
half of the boat's original 58 problems - admittedly, many of them
fairly easy to fix - still haven't been corrected after two years.
As it now stands,
the company will not replace the boat even though new problems arise
and the old ones are not getting fixed.the The boat builder has,
however, agreed to pay for repairs made by a marina of Busam's choice,
provided the builder has the opportunity to approve repair estimates
before work begins. Busam submitted estimates to the builder but
told BoatUS several weeks later that he still hadn't received
authorization to proceed.
Most boat owners,
including Busam, understand that new vessels have glitches, bugs
and kinks that need to be worked out. After all, building boats
is still very much a hands-on process. What boating consumers don't
understand is why it is so difficult to get seemingly simple problems
corrected. If delays and mistakes keep boats off the water during
prime summer weather, it should be no surprise to boat builders
when consumers grow impatient.
Busam's story
is not unique. The BoatUS Consumer Protection Bureau hears from
hundreds of boat owners each year who experience similar frustrations
with many different makes of boats.
Reputable boat
builders constructing quality boats usually have systems in place
to resolve warranty problems before they escalate. These companies
make it clear to dealers that warranty work takes top priority and
they reward dealers financially when customers give them high marks.
Unfortunately, this is not the norm. If there is a weak link, it
is usually that manufacturers do not provide adequate financial
back-up to dealers to get the job done right. Good work or bad,
most dealers are reimbursed for warranty work at rates substantially
lower than regular hourly shop rates.
"Lemon" laws
represent a definitive clarification of the responsibilities of
boat manufacturers and dealers. The symbiotic relationship between
auto makers and their dealers, in which dealers maintain highly
skilled mechanical staffs and factories provide comprehensive back-up
support, is one that coexists comfortably with car "lemon" laws
in every state.
By allowing
manufacturers a reasonable amount of time to correct defects, by
limiting dealers' liabilities for factory defects they did not create
and by recognizing the right of consumers to expect fair value for
money spent, "lemon" laws provide a mechanism for resolving disputes
fairly. The auto industry long ago learned that their economic survival
requires a common sense approach to giving customers what they want
in terms of reliability, value and service.
In Busam's
case, who is at fault? Who should be responsible? Although the manufacturer
has continued to authorize various dealers to make repairs as new
problems arise, the fact is not all the problems are getting fixed.
The manufacturer has blamed the original dealer for not being able
to correct factory defects and has also implied that the boat owner
is unreasonable in his expectations. On the other hand, boat dealers
complain bitterly that reimbursement for warranty work is inadequate.
They are often unable to correct defects that never should have
left the factory.
Regardless
of who is at fault, the result is that the Warner Busams of the
boating community find themselves in possession of bona fide "lemons,"
getting bounced back and forth between the boat builder and the
dealer.
"There is no
doubt that this boat is a "lemon" and that a "lemon" law would have
helped in this case by giving Busam a mechanism with which to resolve
this situation," said BoatUS President Richard Schwartz. "Unfortunately,
people like the Busams may just give up, get out of boating and
tell all their friends and relatives what a bad experience they
had."
"The sad thing
is that the marine industry gets a black eye when manufacturers
and dealers fail to do the right thing," said Schwartz.
The Missing
Link
While none
of the problems described by Busam constitutes a safety defect which
would justify a defect recall under federal boat manufacturing laws,
a marine surveyor retained to examine the boat discovered that the
Hull Identification Number (HIN) on the transom had been ground
out. The area was puttied over and new numbers applied.
If this was
done after the boat left the factory - and neither the boat builder,
nor the retail dealer in Lancaster, PA, can explain when or why
this happened - it could constitute a violation of federal boat
manufacturing laws which prohibit HIN changes once boats enter the
stream of commerce.
Investigating
further, the surveyor asked the boat manufacturer for the location
of the second HIN, required by law to be hidden somewhere inside
the boat to deter thieves. He was given several possible sites,
none of which panned out. Then, Busam says, factory personnel admitted
that they don't usually put hidden numbers in their boats.
Federal HIN standards
require a so-called "hidden" or duplicate HIN. The U.S. Coast Guard,
which administers recreational boat manufacturing standards, has the
authority to require manufacturers to recall boats which do not comply
with those standards. The Coast Guard is looking into Busam's complaint.
The end result could be a recall of all boats of the same make which
do not contain hidden hull numbers. They will also investigate why
the transom HIN was altered.
(c) Copyright
BoatUS Magazine, September 1998
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