What is The Magnuson-Moss Warranty Act?
December 16, 2024
By: Robert Silverman
PHILADELPHIA (CBS 3) ―Are you having mechanical problems with your car? While state lemon laws can help, some Federal laws are designed to protect you too. In fact, the Magnuson-Moss Warranty Act may be your best bet.
Jan Jeffries bought a certified pre-owned Jaguar about a year ago. Almost immediately he had problems. The anti-lock brakes were malfunctioning and needed repeated repairs. While Jan’s mechanical problems weren’t covered by state lemon law, he was entitled to compensation under the Federal Magnuson-Moss act.
“If the vehicle is under warranty and you’ve had problems with it, subject to repair, and it has not been resolved, you have federal, Manguson-Moss warranty rights.” says attorney Craig Kimmel. The Magnuson-Moss Act applies to vehicles under their original or extended manufacturers warranty, and the car must be in the shop for 3 or more times for the same problem. Kimmel says, “We’re talking brakes, transmission, suspension, head lights, water leak, paint defect, any of these problems and more, those issues the consumer should step up and force the manufacturer to comply with the warranty and if they can’t, call a lawyer.”
That’s what Jan Jeffries did. He says, “I got $6,000 from Jaguar as compensation for what would ultimately be reduced value of the vehicle.”
What is The Magnuson-Moss Warranty Act?
The Magnuson-Moss Warranty Act, passed in 1975, is a federal law designed to protect consumers who buy products covered by warranties. Its main goal is to ensure warranties are easy to understand and that consumers know their rights when a product doesn’t perform as promised.
Main Points of the Act:
- Covers Written Warranties: This law applies to written warranties on consumer goods costing more than $15. While it doesn’t require companies to offer warranties, it establishes rules for those that do.
- Clear Disclosure: Manufacturers and sellers must provide detailed warranty information, such as:
- How long the warranty lasts.
- What is and isn’t covered.
- The process for resolving warranty claims.
- Types of Warranties:
- Full Warranty: Requires free repair or replacement of defective products within a reasonable time.
- Limited Warranty: Offers more restricted coverage with certain conditions.
- Prevents Misleading Practices: The Act prohibits deceptive warranty language and ensures implied warranties (like the implied warranty of merchantability) remain in effect unless explicitly disclaimed.
- Consumer Legal Remedies: If a company fails to honor its warranty, consumers can take legal action. In some cases, the law allows for the recovery of attorney’s fees, making it easier for consumers to pursue claims.
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Connection to Lemon Laws:
This law often complements state lemon laws. If a company fails to repair a defective product after multiple attempts, consumers may use the Magnuson-Moss Warranty Act to seek resolution, particularly with vehicles or high-value items.
Would you like help understanding its application to a specific scenario?
What Does The Magnuson-Moss Warranty Act Do?
Under the Magnuson-Moss Warranty Act, a warrantor should perform adequate repairs in at least two, and possibly three, attempts to correct a particular defect. Further, the Magnuson-Moss Warranty Act’s reasonableness requirement applies to your vehicle as a whole rather than to each individual defect that arises. Although most of the Lemon Laws vary from state to state, each individual law usually require a warrantor to cure a specific defect within four to five attempts or the automobile as a whole within thirty days.
If the warrantor fails to meet this obligation, most of the lemon laws provide for a full refund or new replacement vehicle. Further, this reasonable number of attempts/reasonable opportunity standard, whether it be that of the Magnuson-Moss Warranty Act or that of the Lemon Laws, is akin to strict liability (see TX Lemon Law) – once this threshold has been met, the continued existence of a defect is irrelevant and you are still entitled to relief.
One of the most important parts of the Magnuson-Moss Warranty Act is its fee shifting provision. This provision provides that you may recover the attorney fees incurred in the prosecution of your case if you are successful – independent of how much you actually win. That rational behind this fee shifting provision is to twofold: (1) to ensure you will be able to vindicate your rights without having to expend large sums on attorney’s fees and (2) because automobile manufacturers are able to write off all expenses of defense as a legitimate business expense, whereas you, the average consumer, obviously does not have that kind of economic staying power. Most of the Lemon Laws contain similar fee shifting provisions.
You may also derive additional warranty rights from the Uniform Commercial Code; however, the Code does not allow you in most states to recover your attorney fees and is also not as consumer friendly as the Magnuson-Moss Warranty Act or the various state lemon laws.
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