AUTOS: Well-Squeezed Lemons

Only last August, Chrysler announced that it would pay more than $16 million to 38,600 people across the U.S. whose “brand-new” cars had in fact sometimes been test-driven hundreds of miles with the odometers disconnected. Now investigators have discovered that the giant automaker sold, bought back and then resold 392 defective cars in New York without telling their new owners about their mechanically troubled past. Under the state’s so-called lemon law, automakers must notify the department of motor vehicles as well as any future buyers when they repurchase flawed automobiles.

Chrysler, which blames the mix-up on human error, agreed last week to pay affected customers up to $2 million for the twice-squeezed lemons. Depending on how long ago the cars were bought, the owners can choose between a full refund or a twelve-month service contract, reimbursement for all previous repair work and a payment of up to $1,000.