A California court ruled that a settlement agreement releasing a manufacturer from its legal duty to repurchase or replace a defective vehicle violates the Song-Beverly Act and is void. The court found that consumers cannot waive their statutory rights under this law, even if they voluntarily sign a settlement agreement. For subcontractors, this means settlement agreements that try to eliminate statutory obligations may be unenforceable if they conflict with consumer protection laws.
Never rely on a settlement agreement or release to eliminate statutory duties or consumer protection rights—courts will void them as against public policy.
If you settle a warranty dispute, ensure the agreement complies with applicable consumer protection statutes or it may be challenged and declared unenforceable.