Chrysler's bankruptcy is throwing a wrench into California's lemon law, which is intended to make it easier for consumers to get refunds for defective vehicles. As the automaker's bankruptcy grinds away, settlement checks from Chrysler to unhappy car buyers are bouncing and complaints are stymied in and out of court.
Consumer advocates say the situation could erode public confidence in buying new cars at precisely the time the automakers need customers in their showrooms. And Chrysler says it has yet to do anything to resolve the issue.
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