Lemon law mi

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Michigan's Lemon Law - Avoid Getting Stuck with A Lemon

Consumer alert warning

(Download and print the designed version of this Consumer Alert)

Most new vehicles are reliable, but some will turn out to be lemons. For those, Michigan’s Lemon Law provides relief if you purchase or lease a defective vehicle. To help you understand your rights under Michigan’s Lemon Law, this alert provides answers to common Lemon Law questions. 

Questions and Answers About the Lemon Law

Question: Which vehicles are covered by Michigan’s Lemon Law?

Answer: The Lemon Law applies to passenger vehicles, sport utility vehicles, pickup trucks, and vans that are purchased or leased in Michigan or purchased or leased by a Michigan resident (regardless of whether the vehicle was purchased or leased in Michigan) and covered by a manufacturer’s express warranty at the time of purchase or lease.
The Lemon Law does not apply to motor homes, buses, trucks other than pickups and vans, motorcycles, or off-road vehicles.

Question: What about used vehicles?

Answer: This is tricky. Generally, the Lemon Law does not apply to used vehicles. But the Lemon Law does apply to a vehicle still “covered by a manufacturer’s express warranty at the time of purchase or lease,” if the problem is reported to the manufacturer or its authorized dealer within one year from the date of delivery to the original purchaser. Thus, the Lemon Law may apply to a “used” vehicle that meets these criteria. 

Question: To whom does Michigan’s Lemon Law apply?

Answer: The lemon law applies to a person who:

  1. Purchases or leases a new motor vehicle for personal, family, or household use and not to sell or lease the new motor vehicle to another person;
  2. Purchases or leases less than 10 new motor vehicles a year; 
  3. Purchases or leases 10 or more new motor vehicles a year only if the vehicles are purchased or leased for personal, family, or household use; or 
  4. Is entitled to enforce the provisions of an express warranty pursuant to the terms of that warranty. 

A “person” under the Lemon Law is a natural person, a sole proprietorship, partnership, corporation, association, unit or agency of government, trust, estate, or other legal entity.

Question: Under the Lemon Law, do I have a right to return my vehicle within three days of purchase?

Answer: No. Many consumers mistakenly believe that a “cooling off period” that allows you to cancel some written contracts in very limited circumstances applies to all purchases. On the contrary, as a general matter of contract law, consumers do not have the right to cancel a sale of goods or services. To learn more about the limited right to contract cancellation, read the Attorney General’s Consumer Alert, I Changed My Mind – Can I Cancel This Contract?

Some dealers offer extended test drives and allow customers to take vehicles home overnight or for a few days, but that is a promotional tactic and not a matter of contract law.

The remedies provided by the Lemon Law, which include the right to return your vehicle and receive a refund of the purchase or lease price, are not triggered until the vehicle is subjected to a reasonable number of repairs—which will occur well beyond three days after your purchase.

Question: What problems or defects does the Lemon Law cover?

Answer: The Lemon Law covers any defect or condition that impairs the use or value of the new motor vehicle to the consumer or prevents the new motor vehicle from conforming to the manufacturer’s express warranty. 

The Lemon Law does not cover any defect or condition that is the result of a modification not installed or made by or for the manufacturer, or abuse or neglect of the new motor vehicle, or damage due to an accident occurring after the new motor vehicle’s purchase or lease.

Question: What is the first step to recovering under the Lemon Law?

Answer: To recover under the Lemon Law, you must first report the problem to the manufacturer or its authorized dealer within the term of the warranty or one year from the date of delivery to the original purchaser, whichever comes first. After receiving timely notice of the problem, the manufacturer or its authorized dealer must repair the problem even if the repair cannot be performed until after the expiration of the manufacturer’s express warranty.

Question: What if the problem I reported to the manufacturer or its authorized dealer continues to persist?

Answer: You may be entitled to a refund of the purchase or lease price or a comparable replacement vehicle if the problem persists after a reasonable number of repair attempts.

Question: What is considered a reasonable number of repair attempts?

Answer: It is presumed that a reasonable number of repair attempts have been taken if one of the following occurs:

(a)  The same defect or condition continues to exist even though the vehicle has been subjected to repair a total of four or more times within two years of the date of the first attempt to repair the defect or condition; or 

(b)  The vehicle is out of service because of repairs for a total of 30 or more days or parts of days during the term of the manufacturer’s express warranty, or within one year from the date of delivery to the original consumer, whichever comes first. This option does not require the same problem to be the cause of the days out of service.

Question: My vehicle still isn’t fixed after a reasonable number of repair attempts, how do I get a refund or replacement?

Answer: You must give the manufacturer one last opportunity to repair the vehicle by giving the manufacturer written notice, by return receipt service, of the need to repair the vehicle. Notice can be given at any time after the third attempt to repair the same defect or condition or at any time after the vehicle has been out of service for at least 25 days in a repair facility.

After receiving notice, the manufacturer must notify you as soon as reasonably possible of a reasonably accessible repair facility to take your vehicle to have it repaired. After delivery of the vehicle to the designated repair facility, the manufacturer has five business days to repair the vehicle. If the vehicle is not repaired within five business days, you may receive a comparable replacement vehicle or a refund of the purchase or lease price.

If a manufacturer has established or participates in an informal dispute settlement procedure, the Lemon Law does not apply to any consumer who has not first resorted to such procedure, if the procedure does all the following:

  • Complies with the Magnuson-Moss warranty—federal trade commission improvement act, Public Law 93-637, 88 Stat. 2183, and 16 C.F.R. 703 (1975); 
  • Requires that the manufacturer be bound by a decision that the consumer agrees to;
  • Provides that the consumer is not obligated to accept the decision and may pursue the remedies provided by the Lemon Law; and
  • Requires the manufacturer to begin the process of implementing any final settlement not more than 30 days after the settlement has been reached.

Question: If the manufacturer offers a replacement vehicle, can I demand a refund instead?

Answer: Yes. As the buyer or lessee, you have the right to demand a refund or you may choose to accept a comparable replacement motor vehicle currently in production. If you are leasing the vehicle, and agree to accept a replacement vehicle, the lease agreement cannot be changed, except to substitute the vehicle identification number.

Question: What is considered the purchase or lease price for purposes of a refund under the Lemon Law?

 

Answer: The purchase price or lease price includes the cost of any options or other modifications installed or made by or for the manufacturer, and the amount of all other charges made by or for the manufacturer, less a reasonable allowance for your use of the vehicle and an amount equal to any appraised damage that is not attributable to normal use or to the defect or condition. 

Further, the manufacturer must reimburse you for towing costs and reasonable costs for a comparable rental vehicle that were incurred as a direct result of the defect or condition.

Question: What should I do to protect my rights under the Lemon Law?

Answer

  • Keep copies of all correspondence to and from the manufacturer and the dealer.
  • Keep copies of all work orders for repairs on the vehicle, including the date(s) the work was performed and the mileage on the vehicle at the time of the repair(s).
  • Follow all requirements of the warranty, including any requirement that the repairs must be done by an authorized dealer specified by the manufacturer.

The Better Business Bureau’s Auto Line

Through its AUTO LINE program, the Better Business Bureau (BBB) has helped almost two million consumers find a solution to their vehicle problems since its inception in 1978. If your auto manufacturer participates in the BBB AUTO LINE program, the BBB can help you negotiate with the manufacturer and, if necessary, hold an arbitration hearing.  If your manufacturer does not participate in the AUTO LINE program, the BBB will route your complaint to that manufacturer.

If you have a general consumer problem, or want to file a complaint:

Consumer Protection Division
P.O. Box 30213
Lansing, MI 48909
517-335-7599
Fax: 517-241-3771
Toll free: 877-765-8388
Online complaint form

The Attorney General provides Consumer Alerts to inform the public of unfair, misleading, or deceptive business practices, and to provide information and guidance on other issues of concern. Consumer Alerts are not legal advice, legal authority, or a binding legal opinion from the Department of Attorney General.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sours: https://www.michigan.gov/ag/0,4534,7-359-81903_20942-252777--,00.html

Before you take any of these steps, call Ron.

You must give the manufacturer one last opportunity to repair the vehicle by giving the manufacturer written notice, by return receipt service, of the need to repair the vehicle.  Notice can be given at any time after the third attempt to repair the same defect or condition or at any time after the vehicle has been out of service for at least 25 days in a repair facility.

After receiving notice, the manufacturer must notify you as soon as reasonably possible of a reasonably accessible repair facility to take your vehicle to have it repaired.  After delivery of the vehicle to the designated repair facility, the manufacturer has five business days to repair the vehicle.  If the vehicle is not repaired within five business days, you may receive a comparable replacement vehicle or a refund of the purchase or lease price.

If a manufacturer has established or participates in an informal dispute settlement procedure, the Lemon Law does not apply to any consumer who has not first resorted to such procedure, if the procedure does all of the following:

  1. Complies with the Magnuson-Moss warranty - federal trade commission improvement act, Public Law 93-637, 88 Stat. 2183, and 16 C.F.R. 703 (1975);
  2. Requires that the manufacturer to be bound by a decision that the consumer agrees to;
  3. Provides that the consumer is not obligated to accept the decision and may pursue the remedies provided by the Lemon Law; and
  4. Requires the manufacturer to begin the process of implementing any final settlement not more than 30 days after the settlement has been reached.
Sours: https://www.ronweissattorney.com/faqs/michigan-lemon-law-faq/
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Understanding Michigan Lemon Law

Michigan’s lemon law defines a “new motor vehicle” as one purchased or leased in Michigan or by a resident of Michigan, and is covered by a manufacturer’s express warranty at the time of purchase or lease. The lemon law also covers used motor vehicles transferred during the manufacturer’s express warranty period.

The Michigan lemon law covers consumers who buy or lease a new vehicle for personal, family or household use and not for the purpose of selling or leasing it to someone else. It covers people who buy or lease less than 10 vehicles a year. If they purchase 10 or more vehicles a year, the vehicles must not be used for business purchases. The person must be entitled to enforce the provisions of an express warranty pursuant to the terms of that warranty.

The lemon law covers any defect or condition that impairs the use or value of the new motor vehicle to the consumer. It also covers any problem that keeps the vehicle from conforming to the manufacturer’s express warranty. The law does not, however, cover any problem as a result of modifications made to the vehicle by someone other than the manufacturer. It also does not cover defects or conditions caused by abuse, neglect, or an accident occurring after the new vehicle’s purchase or lease.

The lemon law compels manufacturers to repair any defect or condition impairing the use or value of the vehicle to the consumer. Manufacturers must repair the vehicle if the consumer reports the defect or condition to the manufacturer within the warranty period or one year following the vehicle’s delivery to the consumer.

If the manufacturer can’t repair the problem, the law requires them to repurchase or replace the vehicle. Before the manufacturer does so, however, the vehicle in question must be subjected to a “reasonable number of repair attempts.” The Michigan lemon law defines that as four or more times for the same problem without success, or if the vehicle is in the shop for 30 days or more without successfully repairing the problem.

Before a consumer can take any further action, they must notify the manufacturer and allow them one final attempt to fix the problem. The notice must be sent in writing by the consumer or their representative any time after the third attempt to fix the same problem, or after the vehicle has been out of service for at least 25 days.

After receiving the notice, the manufacturer must notify the consumer as soon as possible of a reasonably accessible repair facility. The manufacturer then has five business days to fix the problem after receiving the vehicle from the consumer.

The consumer must go through a manufacturer’s “informal dispute settlement procedure,” i.e. arbitration, before pursuing further legal options. The Michigan lemon law requires a manufacturer’s arbitration process to comply with the Magnuson-Moss Warranty Act and requires the manufacturer to be bound by any decision reached by the arbitrator.

By pursuing a claim under the Magnuson-Moss Warranty Act, Michigan consumers can hire lawyers who will represent them without the vehicle owner having to pay any attorneys’ fees directly out of their pocket. This is because the federal Act provides that the vehicle manufacturer shall pay the claimants’ reasonable attorneys’ fees if the claimant prevails against the manufacturer.

Lemonlawusa.org encourages vehicle owners with a lemon to hire a lemon lawyer. You can bet the car manufacturers have legal counsel at the ready to help defend against lemon law claims both in arbitration and in court.

Ross said breach of warranty clients whose claims resolve successfully can use their awarded funds for any purpose they want. That can include paying off their outstanding auto loan, buying a new vehicle, or anything else.

If the client financed their vehicle, they must continue making their periodic payments throughout the life of their lemon law claim.  They must make these payments no matter if they still have the vehicle, the car is in the shop, or is entirely inoperable. Falling behind on payments could imperil their lemon law claim.

If the client has since paid off their auto loan, or they bought their vehicle outright, they can use their awarded funds as a down payment on a new vehicle. Conversely they could purchase outright a less expensive used vehicle. The decision lies entirely with the client.

The Michigan lemon law covers used vehicles if the vehicle is still covered by the manufacturer’s express warranty. However, most used vehicles are resold long after the manufacturer’s express warranty expires. If you are unsure about your specific situation, contact a lemon law lawyer and discuss the details of your case; you may have a valid claim.

Statutes of limitations for both the Michigan state lemon law and the federal Magnuson-Moss Warranty Act can keep you from getting the compensation you deserve if you wait too long. Contact the office of Allen Stewart P.C. today for your free initial consultation. Our lemon law attorneys have combined decades of experience taking on automotive manufacturers who fail to abide by warranties.

Sours: https://www.allenstewart.com/lemon-laws-by-state/michigan-lemon-law/
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MI Lemon Law FAQ

A number of Michigan drivers come to us with excellent questions about this state's Lemon Law. In response, we've put together this FAQ to answer the most commonly heard questions on the 1-800-LEMON-LAW Hotline.

How does the Michigan Lemon Law work?

Michigan's Lemon Law covers drivers whose vehicles suffer a non-conformity or defect within the first year or express warranty period, whichever comes first, that can't be repaired after repeated attempts (normally four) by the manufacturer's authorized dealership.

Does a problem always need to occur four times to be considered a lemon?

Not necessarily. If your car is in the shop 30 days or more in the first 12 months or in the express warranty period (whichever comes first), consecutive or not, we can file a claim under the Law.

What happens if I fall outside the 12 months/warranty period before my first problem exists? Does this mean I do not have a claim?

No. If you are having continuous problems and your car is under a manufacturer's warranty, we can still help under the Federal Magnuson–Moss Warranty Act. Please let us know about your repairs and we will have someone from our firm contact you and explain your rights. The representation is still completely cost-free.

How does the law offer cost-free representation?

The Michigan Lemon Law contains a fee-shifting provision which means that if the consumer prevails, the manufacturer must pay all attorney fees and legal costs on top of what you receive. If you submit a claim to Kimmel & Silverman and we accept your case, you will not pay anything out of pocket, win or lose.

The fee-shifting provision gives you equal footing when battling against a multi-billion dollar automobile manufacturer.

Are leased cars covered under the MI Lemon Law?

Yes, cars that are purchased and leased are both covered.

Are motorcycles covered under the MI Lemon Law?

No. Motorcycles are not covered under this Lemon Law.

I have had my car for only a few days and already I am having problems with it. Can I just return it to the dealership?

No. Problems can occur immediately, but if you are interested in opening a Michigan Lemon Law claim, you must follow proper procedures.

That means making an appointment to have your car examined/repaired and securing a repair invoice when you pick up your car. Make sure the invoice properly outlines all of the problems you disclosed to the service manager.

We also suggest you keep a personal log of your repair visits and hang on to these invoices. This does not mean that we can't help you if you don't have the invoices (we can subpoena them if necessary) but it does make your case move along smoother.

Never leave your car and keys at the dealer, claiming you don't want it any more. It could be seen as a voluntary repossession, which could have a negative impact on your credit. Instead, contact a consumer lawyer, be it us or someone else.

Are used cars covered under this Lemon Law?

Used cars are not covered. However, as mentioned earlier, the Magnuson–Moss Warranty Act, which provides the same cost-free representation as the MI Lemon Law, protects consumers with used cars who have repeated problems under an original or extended manufacturers warranty.

I have so many more questions about the Michigan Lemon Law. Who can I ask?

For more information on the Michigan Lemon Law, please call 1 800 LEMON LAW (1-800-536-6652) or email us, and we will get back to you as soon as possible.


Check out our other state lemon law pages like NJ lemon law, PA lemon law, and NY lemon law.

Get rid of your lemon! Call 1-800-LEMON-LAW (1-800-536-6652) for your FREE Lemon Law case review.

Sours: https://www.lemonlaw.com/michigan-lemon-law-questions.html

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Michigan's Auto Lemon Law

The law applies to privately owned passenger vehicles and those leased after January 1, 2000, used for personal, family or household purposes. Some business-type vehicles may also be covered. The law does not apply to larger trucks, motor homes, motorcycles, or off-road vehicles.

A defective vehicle is one in which the same problem has not been repaired after four attempts, or a vehicle that is out of service 30 days or more for repairs. The first report of the defect must be made within one year from the date of delivery to the original purchaser or lessee or during the term of the manufacturer's warranty, whichever period is shorter.

If the vehicle you purchase is defective, you may be entitled under state law to replacement of it or a refund of the cost of the lease. To obtain replacement or refund, you must first report the defect in writing to the manufacturer and you may be required to first arbitrate the dispute.

In order to protect your rights under Michigan's Lemon Law, follow these steps:

  • Keep copies of all correspondence to and from the manufacturer and the dealer.
  • Keep copies of all work orders for repairs on the vehicle, including the date(s) the work was performed and the mileage on the vehicle at the time of the repair(s).
  • Follow all requirements of the warranty, including any requirement that the repairs must be done by an authorized dealer specified by the manufacturer.

For more information regarding your rights under this law, consult an attorney or another qualified individual.

Sours: https://www.michigan.gov/sos/0,4670,7-127-96435_1611-23885--,00.html
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Michigan's Unique Lemon Law

Michigan's Lemon Law Protects Consumers From Buying 'Lemons' or Defective Vehicles

Every state has its own unique Lemon Law statute. Michigan's Lemon Law statute, MCL Section 257.1402 is officially titled "Repair of defect or condition" and, although in not the most simple manner, states as follows:

If a new motor vehicle has any defect or condition that impairs the use or value of the new motor vehicle to the consumer or which prevents the new motor vehicle from conforming to the manufacturer's express warranty, the manufacturer or a new motor vehicle dealer of that type of motor vehicle shall repair the defect or condition as required under section 3 if the consumer initially reported the defect or condition to the manufacturer or the new motor vehicle dealer within 1 of the following time periods, whichever is earlier:

  • (a) During the term the manufacturer's express warranty is in effect.
  • (b) Not later than 1 year from the date of delivery of the new motor vehicle to the original consumer.

So what does that all mean? Finding a good lemon lawyer is essential to defending your rights against big car manufacturers and dealerships.

In Layman's Terms, In Order to Qualify as a 'Lemon' in Michigan, the Car Must:

  • (1) have an issue that impairs the USE OR VALUE; and

  • (2) that issue VIOLATES the manufacturer's express warranty.

Does It Sound Like You Bought A Lemon?

If you are one of the unlucky car owners who recently purchased a vehicle and it turned out to be nothing but a disaster, and the manufacturer and dealer refused to repair the problem, Michigan Litigation Law may be able to help. As always in our high paced environment at Michigan Litigation Law, the resident Lemon Lawyer himself may feel that the details of your case would be better served by a colleague, and will let you know the same. As always at Michigan Litigation Law, treating the client fairly and maintaining our sterling reputation as a committed and competent law firm, is always priority one.

Sours: https://www.michiganlitigationlaw.com/lemon-lawyer

You will also be interested:

Michigan Lemon Law (257.1401 - 257.1410)

Vehicles Covered

Any new car, van or truck bought by a resident of Michigan for personal or family use.

Repair Interval and Coverage Period

  • 4 repair attempts or 30 business days out of service
  • Warranty period or 1 year..

Lemon vehicles in Michigan can get the squeeze by either the Michigan Lemon Law, the Magnuson-Moss Warranty Act (the federal lemon law), or both. Lemon-aid may include a refund, replacement or diminished value and/or incidental and consequential damages. Attorneys’ fees are also available meaning qualified consumers may receive Michigan lemon law attorney representation at no cost.

And even if your vehicle is too old or has too many miles to qualify under either of these lemon laws, the Truth In Lending Act and/or other related car buying laws may provide an avenue to recover cash damages that can help you trade out or pay for repairs.

Connect here for a free, no obligation Michigan Lemon Law case review. In most instances to qualify under a lemon law your vehicle must only have an unreasonable repair history under the warranty, including (but not limited to) 3-4 repair attempts for the same problem, 6 repairs total on the vehicle, or 30 days out of service by reason of repair.

Michigan Lemon Law (M.C.L.A. 257.1401 to M.C.L.A. 257.1410) Michigan Lemon Law Statutes. M.C.L.A. 257.1401. Definitions

Sec. 1. As used in this act:

  1. “Consumer” means 1 or more of the following:
    1. A person who purchases or leases a new motor vehicle for personal, family, or household use and not for the purpose of selling or leasing the new motor vehicle to another person.
    2. A person who purchases or leases less than 10 new motor vehicles a year.
    3. A person who purchases or leases 10 or more new motor vehicles a year only if the vehicles are purchased or leased for personal, family, or household use.
    4. Any other person entitled to enforce the provisions of an express warranty pursuant to the terms of that warranty.
  2. “Lessee” means a person who, under a lease, acquires the right to possession and use of a new motor vehicle.
  3. “Lessor” means a person who, under a lease, transfers the right to possession and use of a new motor vehicle.
  4. “Manufacturer” means a person who manufactures, assembles, or is a distributor of new motor vehicles and includes an agent of a manufacturer but does not include a new motor vehicle dealer.
  5. “Manufacturer’s express warranty” means an express warranty as determined under the uniform commercial code, 1962 PA 174, MCL 440.1101 to 440.11102, offered by the manufacturer on a new motor vehicle.
  6. “Motor vehicle” means a motor vehicle as defined in section 33 of the Michigan vehicle code, 1949 PA 300, MCL 257.33, that is designed as a passenger vehicle, or sport utility vehicle, but does not include a motor home, bus, truck other than a pickup truck or van, or a vehicle designed to travel on less than 4 wheels.
  7. “New motor vehicle” means a motor vehicle that is purchased or leased in this state or purchased or leased by a resident of this state and is covered by a manufacturer’s express warranty at the time of purchase or lease.
  8. “New motor vehicle dealer” means a person or that person’s agent who holds a dealer agreement for the sale of new motor vehicles, who is engaged in the business of purchasing, leasing, selling, exchanging, or dealing in new motor vehicles, and who has an established place of business in this state.
  9. “Person” means a natural person, a sole proprietorship, partnership, corporation, association, unit or agency of government, trust, estate, or other legal entity.
  10. “Resident of this state” means as follows:
    1. For an individual, an individual who is a legal resident of this state.
    2. For a sole proprietorship or partnership, a sole proprietorship or partnership created pursuant to the laws of this state and its main office is located in this state.
    3. For a corporation, a corporation that is a domestic corporation and was created under the laws of this state.
    4. For an association, an association created pursuant to the laws of this state and its main office is located in this state.
    5. For a unit or agency of government, a unit or agency of government located in this state.
    6. For a trust, estate, or other legal entity, a trust, estate, or other legal entity created pursuant to the laws of this state and that is located in this state.
  11. “Lease price” means the actual vehicle sales price paid by the lessor including any cash payment by the consumer and the sum equal to any allowance for any trade-in but excludes debt from any other transaction as well as any manufacturer to consumer discount, rebate, or incentive appearing in the agreement or contract that the consumer received or that was applied to reduce the purchase or lease cost. Additionally, any sales tax, license and registration fees, and similar government charges not included elsewhere paid by the lessor on behalf of the lessee are included as a part of lease price.
  12. “Purchase price” means the actual vehicle sales price listed on the buyer’s order including any cash payment by the consumer and the sum equal to any allowance for any trade-in but excludes debt from any other transaction as well as any manufacturer to consumer discount, rebate, or incentive appearing in the agreement or contract that the consumer received or that was applied to reduce the purchase cost. Additionally, any sales tax, license and registration fees, and similar government charges not included elsewhere paid by the consumer are included as a part of purchase price.

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Michigan Lemon Law Rights. M.C.L.A. 257.1402. Defect or Condition Impairing use or Value of New Motor Vehicle; Repair; Time Periods

Sec. 2. If a new motor vehicle has any defect or condition that impairs the use or value of the new motor vehicle to the consumer or which prevents the new motor vehicle from conforming to the manufacturer’s express warranty, the manufacturer or a new motor vehicle dealer of that type of motor vehicle shall repair the defect or condition as required under section 31 if the consumer initially reported the defect or condition to the manufacturer or the new motor vehicle dealer within 1 of the following time periods, whichever is earlier:

  1. During the term the manufacturer’s express warranty is in effect.
  2. Not later than 1 year from the date of delivery of the new motor vehicle to the original consumer.

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Michigan New Car Lemon Law. M.C.L.A. 257.1403. Continuation of Defect or Condition, Remedies

Sec. 3.

  1. If a defect or condition that was reported to the manufacturer or new motor vehicle dealer pursuant to section 21 continues to exist and the new motor vehicle has been subjected to a reasonable number of repairs as determined under subsection (5), the manufacturer shall within 30 days, do either of the following as applicable:
    1. If the new motor vehicle was purchased, either replace the new motor vehicle with a comparable replacement motor vehicle currently in production and acceptable to the consumer or accept return of the vehicle and refund to the consumer the purchase price. A consumer shall have the right to demand a refund.
    2. If the new motor vehicle was leased, the consumer has the right to a refund of the lease price paid by the consumer. The consumer may agree to accept a comparable replacement vehicle in lieu of a refund for the lease price paid. If the consumer agrees to accept a replacement vehicle, the lease agreement shall not be altered except with respect to the identification of the vehicle.
  2. The purchase price or lease price includes the cost of any options or other modifications installed or made by or for the manufacturer, and the amount of all other charges made by or for the manufacturer, less a reasonable allowance for the consumer’s use of the vehicle, and less an amount equal to any appraised damage that is not attributable to normal use or to the defect or condition. A reasonable allowance for use is the purchase or lease price of the new motor vehicle multiplied by a fraction having as the denominator 100,000 miles and having as the numerator the miles directly attributable to use by the consumer and any previous consumer prior to his or her first report of a defect or condition that impairs the use or value of the new motor vehicle plus all mileage directly attributable to use by a consumer beyond 25,000 miles. If a vehicle is replaced or refunded under the provisions of this section, if towing services and rental vehicles were not made available without cost to the consumer, the manufacturer shall also reimburse the consumer for those towing costs and reasonable costs for a comparable rental vehicle that were incurred as a direct result of the defect or condition.
  3. If a court or an alternative dispute settlement procedure described in section 5 2 determines that a consumer has provided sufficient evidence that the vehicle did not provide reliable transportation for ordinary personal or household use for any period beyond the first 25,000 mileage usage period of the vehicle, the court or the alternative dispute settlement procedure may reduce the vehicle usage deduction for mileage beyond the first 25,000 mileage usage period only for the period beyond the 25,000 mileage usage period that the court or alternative dispute settlement procedure determines that the vehicle did not provide useful transportation for ordinary personal or household use. To determine if the vehicle did or did not provide useful transportation for ordinary personal and household use, the court or the alternative dispute settlement procedure shall consider all of the following:
    1. The number of repairs.
    2. The cost of the repairs.
    3. The number of days the vehicle was out of service.
    4. Whether the vehicle’s need for repair significantly affected the consumer’s ability to use the vehicle for personal or household functions.
  4. The provisions of this act do not affect the obligations of a consumer under a loan, sales, or lease contract or the secured interest of a secured party. The secured party shall consent to the replacement of the security interest with a corresponding security interest on a replacement motor vehicle that is accepted by the consumer in exchange for the motor vehicle having a defect or condition pursuant to subsection (1), if the replacement motor vehicle is comparable in value to the original motor vehicle. If for any reason the security interest in the new motor vehicle having a defect or condition pursuant to subsection (1) is not able to be replaced with a corresponding security interest on a new motor vehicle accepted by the consumer, the consumer shall accept a refund. A refund required under this subsection or subsection (1) shall be made to the consumer and the secured party, if any, as their interests exist at the time the refund is to be made. The lessor, if any, shall be notified if a refund is made to a lessee under this act. A lessor shall not assess a fee for early termination of a lease under this act.
  5. It shall be presumed that a reasonable number of attempts have been undertaken to repair a defect or condition if 1 of the following occurs:
    1. The same defect or condition that substantially impairs the use or value of the new motor vehicle to the consumer has been subject to repair a total of 4 or more times by the manufacturer or new motor vehicle dealer within 2 years of the date of the first attempt to repair the defect or condition, and the defect or condition continues to exist. Any repair performed on the same defect made pursuant to subsection (6) shall be included in calculating the number of repairs under this section. The consumer or his or her representative, before availing himself or herself of a remedy provided under subsection (1), and any time after the third attempt to repair the same defect or condition, shall give written notification, by return receipt service, to the manufacturer of the need for repair of the defect or condition in order to allow the manufacturer an opportunity to cure the defect or condition. The manufacturer shall notify the consumer as soon as reasonably possible of a reasonably accessible repair facility. After delivery of the vehicle to the designated repair facility, the manufacturer has 5 business days to repair the defect or condition.
    2. The new motor vehicle is out of service because of repairs for a total of 30 or more days or parts of days during the term of the manufacturer’s express warranty, or within 1 year from the date of delivery to the original consumer, whichever is earlier. The consumer, or his or her representative, before availing himself or herself of a remedy provided under subsection (1), and after the vehicle has been out of service for at least 25 days in a repair facility, shall give written notification by return receipt service to the manufacturer of the need for repair of the defect or condition in order to allow the manufacturer an opportunity to cure the defect or condition. The manufacturer shall notify the consumer as soon as reasonably possible of a reasonably accessible repair facility. After delivery of the vehicle to the designated repair facility, the manufacturer has 5 business days to repair the defect or condition.
  6. Any repairs required to be made under this act shall be made even if the repairs need to be performed after the expiration of the manufacturer’s express warranty. The defect needing repair must be a continuation of the original attempt to repair the defect.
  7. The term of an express warranty, and the 1-year, 30-day, and 5-day periods of time provided for in this section shall be extended because repair services were not available to the consumer because of war, invasion, strike, fire, flood, or other natural disaster.

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Michigan Automobile Lemon Law. M.C.L.A. 257.1404. Effect on Other Warranty Remedies

Sec. 4. Nothing in this act shall be construed to limit or prohibit any other legal remedy of a consumer regarding a breach of a manufacturer’s express warranty or an implied warranty for a new motor vehicle.

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Michigan Vehicle Lemon Law. M.C.L.A. 257.1405. Informal Dispute Settlement Procedures

Sec. 5. If a manufacturer has established or participates in an informal dispute settlement procedure, the provisions of this act shall not apply to any consumer who has not first resorted to such procedure, if such procedure does all of the following:

  1. Complies with the Magnuson-Moss warranty–federal trade commission improvement act, Public Law 93-637, 88 Stat. 2183,1 and 16 C.F.R. 703 (1975). An informal dispute settlement procedure which the federal trade commission rules does not comply with 16 C.F.R. 703 (1975) shall be considered as not meeting the requirements of this subdivision.
  2. Requires that the manufacturer is bound by any decision reached if the consumer agrees to it.
  3. Provides that the consumer is not obligated to accept the decision and may pursue the remedies provided for under this act.
  4. Requires the manufacturer to initiate the process necessary to implement any final settlement not more than 30 days after the settlement has been reached.

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Michigan Lemon Law Statutes. M.C.L.A. 257.1406. Application of act; Exceptions

Sec. 6. This act does not apply to a defect or condition that is the result of either of the following:

  1. A modification not installed or made by or for the manufacturer.
  2. Abuse or neglect of the new motor vehicle or damage due to an accident that occurred after the new motor vehicle was purchased or leased by the consumer.

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Michigan Lemon Law Rights. M.C.L.A. 257.1407. Waiver of Rights and Remedies; Recovery of Costs, Expenses, and Attorneys’ Fees

Sec. 7.

  1. Any rights and remedies provided a consumer under this act may not be waived.
  2. A consumer who prevails in any action brought under this act may be allowed by the court to recover as part of the judgment a sum equal to the aggregate amount of cost and expenses, including attorneys’ fees based on actual time expended by the attorney, determined by the court to have been reasonably incurred by the consumer for or in connection with the commencement and prosecution of such action, unless the court in its discretion shall determine that such an award of attorneys’ fees would be inappropriate.

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Michigan New Car Lemon Law. M.C.L.A. 257.1408. Written Statement Included With Title or Other Documentation for Purchased or Leased Vehicle; Posting of Summary of act on Internet

Sec. 8.

  1. Until December 31, 1999 and after as provided in subsection (2), the secretary of state shall include with any title for a new motor vehicle a written statement, in 10-point boldfaced type, in substantially the following form: “IMPORTANT: IF THIS VEHICLE IS DEFECTIVE YOU MAY BE ENTITLED UNDER STATE LAW TO REPLACEMENT OF IT OR A REFUND OF ITS PURCHASE PRICE. TO OBTAIN REPLACEMENT OR A REFUND, YOU MUST FIRST REPORT THE DEFECT IN WRITING TO THE MANUFACTURER AND YOU MAY BE REQUIRED TO FIRST ARBITRATE THE DISPUTE. IN ORDER TO PROTECT YOUR RIGHTS UNDER THIS LAW, YOU SHOULD:
    1. KEEP COPIES OF ALL CORRESPONDENCE TO AND FROM THE MANUFACTURER AND THE DEALER.
    2. KEEP COPIES OF ALL WORK ORDERS FOR REPAIRS ON THE VEHICLE INCLUDING THE DATE(S) THE WORK WAS PERFORMED AND THE MILEAGE ON THE VEHICLE AT THE TIME OF REPAIR.
    3. KEEP COPIES OF ALL WORK ORDERS FOR REPAIRS ON THE VEHICLE INCLUDING THE DATE(S) THE WORK WAS PERFORMED AND THE MILEAGE ON THE VEHICLE AT THE TIME OF REPAIR.
  2. Beginning January 1, 2000, the secretary of state shall include with documentation for a purchased or leased new motor vehicle a written statement, in 10-point boldfaced type, in substantially the following form: “IMPORTANT: IF THIS VEHICLE IS DEFECTIVE YOU MAY BE ENTITLED UNDER STATE LAW TO REPLACEMENT OF IT OR A REFUND OF ITS PURCHASE PRICE OR LEASE PRICE, AS APPLICABLE. TO OBTAIN REPLACEMENT OR A REFUND, YOU MUST FIRST REPORT THE DEFECT IN WRITING TO THE MANUFACTURER AND YOU MAY BE REQUIRED TO FIRST ARBITRATE THE DISPUTE. IN ORDER TO PROTECT YOUR RIGHTS UNDER THIS LAW, YOU SHOULD:
    1. KEEP COPIES OF ALL CORRESPONDENCE TO AND FROM THE MANUFACTURER AND THE DEALER.
    2. KEEP COPIES OF ALL WORK ORDERS FOR REPAIRS ON THE VEHICLE INCLUDING THE DATE(S) THE WORK WAS PERFORMED AND THE MILEAGE ON THE VEHICLE AT THE TIME OF REPAIR.
    3. FOLLOW ALL REQUIREMENTS OF THE WARRANTY, INCLUDING ANY REQUIREMENT THAT THE REPAIRS MUST BE DONE BY AN AUTHORIZED DEALER SPECIFIED BY THE MANUFACTURER. IF YOU HAVE ANY QUESTIONS REGARDING YOUR RIGHTS UNDER THIS LAW, CONSULT AN ATTORNEY OR OTHER QUALIFIED INDIVIDUAL.”.
  3. Beginning January 1, 2000, the secretary of state shall include a summary of the provisions of this act on a database that is accessible to the public through the internet. As used in this section, “internet” means a worldwide interconnection of individual computers and computer networks and the facilities and equipment used to access those interconnected networks.

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Michigan Automobile Lemon Law. M.C.L.A. 257.1409. Application of act

Sec. 9. This act shall apply to all new motor vehicles that are sold to the original consumer on or after the effective date of this act.

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Michigan Vehicle Lemon Law. M.C.L.A. 257.1410. Effective Date

Sec. 10. This act shall take effect 60 days after its enactment.

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Consumer Protection Attorneys
  • Matthew Clark, Esq., MI Bar: P76690
  • Co-counsel, Weisberg Consumer Law Group PA (Managing Attorney Alex Weisberg, Florida Bar No: 0566551)
  • Jose Gill Attorney at Lawadmitted in the E.D. Michigan
  • Thompson Consumer Law Group PLLC (Managing Attorney Russell S. Thompson IV, Arizona Bar No: 029098)

To connect with these law firms for a FREE CASE REVIEW or more information:
Call: Toll Free (888) 565-3666
Email: [email protected]

In Michigan and through this site, Matthew Clark provides Lemon Law representation with Weisberg Consumer Law Group PA, and Thompson Consumer Law Group litigates claims under state and federal consumer financial protection laws dealing with vehicles. Click here for more information about these law firms and how they may be able to help you.

Sours: https://www.carlemon.com/michigan-lemon-law.html


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