Lemon laws in the state of Michigan are also called the Magnuson-Moss
Warranty Act. This law is designed to allow consumers to receive
compensation for defective motor vehicles. Motor vehicles are extended
to include automobiles, trucks, motorcycles, recreational vehicles,
boats, and other consumer products like appliances and computers.
Section 257.1401 of the Michigan lemon law states the specific
definitions for words associated with defective motor vehicles. These
include five verifications of consumer, lessee, lessor, manufacturer,
manufacturer's express warranty, motor vehicle, new motor vehicle, new
motor vehicle dealer, person, resident of the state, lease price, and
purchase price.
Defects
A defective motor vehicle can vary greatly in problems. In order to
qualify for lemon compensation, motor vehicles must have defects that
alter the market value of the vehicle or defects that will hinder the
safety of the passengers. If a defect is cosmetic or appliance related,
the defect will most likely not qualify. Also in order to qualify the
motor vehicle must undergo a reasonable number of repair attempts prior
to being reported as a lemon.
These repair attempts normally include three or four attempts and must
be for the same recurring defect and not several defects. Upon request
the manufacturer is required by Michigan law to attempt a repair on the
motor vehicle. If the manufacturer, dealer, or agent cannot conform the
vehicle to factory standards or to the market value, compensation may
be issued.
Prior to this attempt the consumer must prove that a reasonable number
of repair attempts were made and all were made while the vehicle was
under the manufacturer's express warranty. The lemon must also be
reported to the manufacturer prior to the expiration of the express
warranty. Manufacturers, agents, and dealers are required to attempt a
repair following the expiration of the express warranty if the motor
vehicle was submitted prior to expiration.
A motor vehicle also may not receive a repair attempt if one year has
passed since the date of delivery to the original consumer. The
reasonable number of repair attempts may be waived if the motor vehicle
has been out of use due to repairs for longer than thirty days. These
days may be added up during the express warranty's time period.
Refunds
If the manufacturer, agent, or dealer cannot conform the motor vehicle
to the proper standard compensation will ensue in the form of either
refund or replacement. A refund will be administered and include the
full purchasing price of the motor vehicle, registration fees,
licensing fees, government fees, collateral charges, taxes, and all
other fees associated with purchasing the vehicle. If the motor vehicle
has neglect or abuse, such compensation may be subtracted from the
refunded total. A refund is automatically required if the manufacturer
is unable to repair the defect in thirty calendar days.
When a motor vehicle is to be replaced the replacement vehicle is to be
the same market value as the lemon vehicle. If cosmetic alterations,
such as paint or stereo system, have been included on the lemon
vehicle, the dealer, agent, or manufacturer is not required to replace
or refund those additions.