Section 3361.1 - Automatic TransmissionsThe following minimum requirements specifying accepted trade standards for good and workmanlike rebuilding of automatic transmissions are intended to define terms that have caused confusion to the public and unfair competition within the automotive repair industry. The term "automatic transmission" shall also apply to the automatic transmission portion of transaxles for the purposes of this regulation, unless both the automatic transmission portion and the differential portion of the transaxle share a common oil supply, in which case the term "automatic transmission" shall apply to both portions of the transaxle. These minimum requirements shall not be used to promote the sale of "rebuilt" automatic transmissions when a less extensive and/or less costly repair is desired by the customer. Any automotive repair dealer who represents to customers that the following sections require the rebuilding of automatic transmissions is subject to the sanctions prescribed by the Automotive Repair Act. All automotive repair dealers engaged in the repair, sale, or installation of automatic transmissions in vehicles covered under the Act shall be subject to the following minimum requirements:
(a) Before an automatic transmission is removed from a motor vehicle for purposes of repair or rebuilding, it shall be inspected. Such inspection shall determine whether or not the replacement or adjustment of any external part or parts will correct the specific malfunction of the automatic transmission. In the case of an electronically controlled automatic transmission, this inspection shall include a diagnostic check, including the retrieval of any diagnostic trouble codes, of the electronic control module that controls the operation of the transmission. If minor service and/or replacement or adjustment of any external part or parts and/or of companion units can reasonably be expected to correct the specific malfunction of the automatic transmission, then prior to removal of the automatic transmission from the vehicle, the customer shall be informed of that fact as required by Section 3353 of these regulations. Before removing an automatic transmission from a motor vehicle, the dealer shall also comply with the provisions of section 3353(c), and disclose any applicable guarantee or warranty as provided in sections 3375, 3376 and 3377 of these regulations. If a diagnostic check of an electronic control module cannot be completed due to the condition of the transmission, the customer shall be informed of that fact and a notation shall be made on the estimate, in accordance with Section 3353 of these regulations.(b) When the word "exchanged" is used to describe an automatic transmission, it shall mean that the automatic transmission is not the customer's unit that was removed from the customer's vehicle. Whenever the word "exchanged" is used to describe an automatic transmission, it shall be accompanied by a word or descriptive term such as "new," "used," rebuilt," "remanufactured," "reconditioned," or "overhauled," or by an expression of like meaning.(c) Any automotive repair dealer that advertises or performs, directly or through a sublet contractor, automatic transmission work and uses the words "exchanged," "rebuilt," "remanufactured," "reconditioned," or "overhauled," or any expression of like meaning, to describe an automatic transmission in any form of advertising or on a written estimate or invoice shall only do so when all of the following work has been done since the transmission was last used:(1) All internal and external parts, including case and housing, have been thoroughly cleaned and inspected.(2) The valve body has been disassembled and thoroughly cleaned and inspected unless otherwise specified by the manufacturer.(3) All bands have been replaced with new or relined bands.(4) All the following parts have been replaced with new parts: (A) Lined friction plates(B) Internal and external seals including seals that are bonded to metal parts(E) Organic media disposable type filters (if the transmission is so equipped)(5) All impaired, defective, or substantially worn parts not mentioned above have been restored to a sound condition or replaced with new, rebuilt, or unimpaired parts. All measuring and adjusting of such parts has been performed as necessary.(6) The transmission's electronic components, if so equipped, have been inspected and found to be functioning properly or have been replaced with new, rebuilt, or unimpaired components that function properly.(7) The torque converter has been inspected and serviced in accordance with subsection (d) of this regulation.(d) The torque converter is considered to be part of the automatic transmission and shall be examined, cleaned, and made serviceable before the rebuilt, remanufactured or overhauled transmission is installed. If the torque converter cannot be restored to a serviceable condition, then the customer shall be so informed. With the customer's authorization, the converter shall be replaced with a new, rebuilt, remanufactured, reconditioned, overhauled, or unimpaired used torque converter. A torque converter shall not be represented as rebuilt, remanufactured, reconditioned, or overhauled unless the torque converter shell has been opened, all components of the overrunning clutch assembly have been inspected and replaced as required, all friction materials have been replaced as required, all rotating parts have been examined and replaced as required, the shell has been resealed, and the unit has been pressure tested.Cal. Code Regs. Tit. 16, § 3361.1
1. New section filed 6-9-78; effective thirtieth day thereafter (Register 78, No. 23).
2. Amendment of subsection (c) and new subsections (d) and (e) filed 10-27-82; effective thirtieth day thereafter (Register 82, No. 44).
3. Editorial correction of subsection (a) filed 2-22-83 (Register 83, No. 9).
4. Amendment of section and NOTE filed 2-13-2002; operative 3-15-2002 (Register 2002, No. 7).
5. Amendment of subsection (a) filed 5-2-2002; operative 6-1-2002 (Register 2002, No. 18).
6. Change without regulatory effect amending subsection (a) filed 2-8-2021 pursuant to section 100, title 1, California Code of Regulations (Register 2021, No. 7). Note: Authority cited: Sections 9882 and 9884.19, Business and Professions Code. Reference: Sections 9884.7(a), 9884.8, 9884.9(a) and 9884.19, Business and Professions Code.
1. New section filed 6-9-78; effective thirtieth day thereafter (Register 78, No. 23).
2. Amendment of subsection (c) and new subsections (d) and (e) filed 10-27-82; effective thirtieth day thereafter (Register 82, No. 44).
3. Editorial correction of subsection (a) filed 2-22-83 (Register 83, No. 9).
4. Amendment of section and Note filed 2-13-2002; operative 3-15-2002 (Register 2002, No. 7).
5. Amendment of subsection (a) filed 5-2-2002; operative 6-1-2002 (Register 2002, No. 18).
6. Change without regulatory effect amending subsection (a) filed 2-8-2021 pursuant to section 100, title 1, California Code of Regulations (Register 2021, No. 7).