Case Digest (G.R. No. 214122)
Facts:
On November 12, 2008, Spouses Miamar A. Bernardo and Genaro F. Bernardo, Jr. purchased a 2008 BMW 320i from Autozentrum Alabang, Inc., an authorized dealer of Bayerishe Motoren Werke (BMW) A.G. and represented as a brand‐new vehicle, for ₱2,990,000. Within a year, the car suffered repeated malfunctions—namely, failures of the ABS brake system, steering column, electric warning and door lock systems, air conditioning unit, wishbone component, and fuel tank leakage—which were serviced under warranty by Asian Carmakers Corporation (“ACC”), the local service center. In September 2010, ACC discovered that one rear tire lacked Running Flat Technology (RFT) as required, prompting Autozentrum to replace it. Throughout these events, the Spouses repeatedly requested replacement or refund. On January 17 and 26, 2011, they formally demanded rescission or reimbursement. Autozentrum’s aftersales manager replied on January 29, claiming the car was “certified pre‐owned” and under legal review.Case Digest (G.R. No. 214122)
Facts:
- Sale of Vehicle
- On 12 November 2008, Spouses Miamar A. Bernardo and Genaro F. Bernardo, Jr. (Spouses Bernardo) purchased a 2008 BMW 320i sports car for ₱2,990,000 from Autozentrum Alabang, Inc. (Autozentrum), an authorized domestic dealer of BMW vehicles.
- Autozentrum represented the vehicle as brand new and certified it for delivery under warranty.
- Series of Defects and Customer Demands
- 12–26 October 2009: Spouses Bernardo brought the car to BMW Autohaus (Asian Carmakers Corp. service center) for malfunctioning ABS brake and steering column; following release, warning and door-lock systems failed, prompting a second visit and repair.
- March 2010: Air-conditioning unit malfunctioned; repaired under warranty.
- September 2010: Under insurance claim, two front wishbone-damaged wheels were replaced; service center discovered a rear tire lacking Running Flat Technology (RFT) and Autozentrum replaced it.
- 13 January 2011: Fuel tank leak; Asian Carmakers Corp. replaced the tank at no cost.
- 17 and 26 January 2011: Spouses Bernardo demanded replacement or refund in letters to Autozentrum; 29 January 2011 reply by Autozentrum’s Aftersales Manager Ron T. Campilan claimed the car was “certified pre-owned.”
- 24 February 2011: Spouses Bernardo filed a DTI complaint against Autozentrum, Asian Carmakers Corp., and Bayerishe Motoren Werke A.G. for violations of Articles 50(b) & (c) and 97 of RA 7394 (Consumer Act).
- 23 September 2011: Supplemental complaint alleged new malfunctions (electrical and engine smoke); vehicle towed to and retained by Autozentrum since 8 August 2011.
Issues:
- Whether the DTI Hearing Officer gravely abused discretion and/or exceeded authority in finding Autozentrum liable under Article 97 of the Consumer Act.
- Whether the Hearing Officer gravely abused discretion in ruling that Autozentrum violated Article 50(b) and (c) of the Consumer Act for deceptive sales.
- Whether the Hearing Officer abused discretion and/or exceeded authority in ordering Autozentrum alone to refund the entire purchase price of the vehicle.
- Assuming a violation of Articles 50 and/or 97, whether the Hearing Officer abused discretion in imposing administrative fines.
- Whether the DTI Appeals Committee erred in affirming the Hearing Officer’s decision and modifying the refund amount.
- Whether the Court of Appeals erred in affirming with modification the DTI resolutions and in denying Autozentrum’s motion for reconsideration.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)