Michigan Lemon law Act 87 of 1986
AN ACT regarding warranties on new motor vehicles; to require certain repairs thereto;
and to provide remedies for the failure to repair such vehicles.
History: 1986, Act 87, Eff. June 25, 1986.
The People of the State of Michigan enact:
Michigan Lemon law MCL 257.1401. NEW MOTOR VEHICLE WARRANTIES
Michigan Lemon law Definitions.
Sec. 1. As used in this act:
“Consumer” means any of the following, but does not include a lessee of a new
motor vehicle:
1. A person who purchases 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 less than 10 new motor vehicles a year.
3. A person who purchases 10 or more new motor vehicles a year only if the
vehicles are purchased 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.
“Manufacturer” means any 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.
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“Manufacturer’s express warranty” means an express warranty as determined
under the uniform commercial code, Act No.174 of the Public Acts of1962, being
sections 440.1101 to 440.11102 of the Michigan Compiled Laws, offered by the
manufacturer on a new motor vehicle.
“Motor vehicle” means a motor vehicle as defined in section 33 of the Michigan
vehicle code, Act No. 300 of the Public Acts of 1949, being section 257.33 of the
Michigan Compiled Laws, that is designed as a passenger vehicle, but does not
include a motor home, bus, truck other than a pickup truck or van, or any vehicle
designed to travel on less than 4 wheels.
“New motor vehicle” means a motor vehicle that is purchased in this state or
purchased by a resident of this state and is covered by a manufacturer’s express
warranty at the time of purchase.
“New motor vehicle dealer” means a person who holds a dealer agreement for
the sale of new motor vehicles, who is engaged in the business of purchasing,
selling, exchanging, or dealing in new motor vehicles, and who has an
established place of business in this state; and an agent thereof.
“Person” means a natural person, or a sole proprietorship, partnership,
corporation, association, unit or agency of government, trust, estate, or other
legal entity.
“Resident of this state” means as follows:
1. For an individual, that the individual is a legal resident of this state.
2. For a sole proprietorship or partnership, that the sole proprietorship or
partnership was created pursuant to the laws of this state and its main
office is located in this state.
3. For a corporation, that the corporation is considered to be a domestic
corporation and was created under the laws of this state.
4. For an association, that the association was 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, that the unit or agency is located in
this state.
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6. For a trust, estate, or other legal entity, that the trust, estate, or other
legal entity was created pursuant to the laws of this state and is located
in this state.
History: 1986, Act 87, Eff. June 25, 1986.
Michigan Lemon law MCL 257.1402. Repair of defect or condition; report.
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 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:
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.
History: 1986, Act 87, Eff. June 25, 1986.
Michigan Lemon law MCL 257.1403. Replacement of motor vehicle or refund;
allowance for use; reimbursement for towing costs and costs for rental vehicle;
consent to replacement of security interest; presumption; performing repairs after
expiration of warranty; extension of time for repair services.
Sec. 3.
1. If a defect or condition which was reported to the manufacturer or new motor
vehicle dealer pursuant to section 2 continues to exist and the new motor
vehicle has been subject to a reasonable number of repairs as determined under
subsection (3), the manufacturer shall within 30 days have the option to 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 full purchase price including 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 not exceeding 10
cents per mile driven at the time of the initial report of the same defect or
conditions or 10% of the purchase price of the vehicle, whichever is less, 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 that amount
directly attributable to use by the consumer and any previous consumer prior to
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2. 3. his or her first report of a defect or condition that impairs the use or value of the
new motor vehicle to the manufacturer, its agents, or the new motor vehicle
dealer.Whenever a vehicle is replaced or refunded under the provisions of this
section, in those instances in which 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.
The provisions of this act shall not affect the obligations of a consumer under a
loan or sales contract or the secured interest of any secured party. The secured
party shall consent to the replacement of the security interest with a
corresponding security interest on a replacement motor vehicle which 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. Refunds 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.
It shall be presumed that a reasonable number of attempts have been
undertaken to repair any 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
and the defect or condition continues to exist. Any repair performed on
the same defect made pursuant to subsection (4) shall be included in
calculating the number of repairs under this section. The consumer or his
or her representative, prior to 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 shall have 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
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express warranty, or within 1 year from the date of delivery to the
original consumer, whichever is earlier. It shall be the responsibility of the
consumer, or his or her representative, prior to 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, to 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 shall have 5 business days to repair the
defect or condition.
4. Any repairs required to be made under this act shall be made even if the repairs
cannot be performed until after the expiration of the manufacturer’s express
warranty.
5. The term of an express warranty, and the1-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; or fire, flood, or
other natural disaster.
History: 1986, Act 87, Eff. June 25, 1986.
Michigan Lemon law 257.1404 Other legal remedies not limited or prohibited.
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.
History: 1986, Act 87, Eff. June 25, 1986.
Michigan Lemon law 257.1405 Informal dispute settlement procedure.
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, 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.
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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.
History: 1986, Act 87, Eff. June 25, 1986.
Michigan Lemon law 257.1406 Defects or conditions to which act inapplicable.
Sec. 6. This act does not apply to any defect or condition that is the result of either of
the following:
1. Any modification or modifications not installed or made by or for the
manufacturer.
2. Abuse or neglect of the new motor vehicle or damage due to an accident which
occurred after the new motor vehicle was purchased by the consumer.
History: 1986, Act 87, Eff. June 25, 1986.
Michigan Lemon law 257.1407 Waiver of rights and remedies prohibited; recovery of
costs, expenses, and attorneys’ fees.
Sec. 7.
1. 2. Any rights and remedies provided a consumer under this act may not be waived.
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.
History: 1986, Act 87, Eff. June 25, 1986
Michigan Lemon law 257.1408 Written statement to be included with title; type size;
form.
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Sec. 8. The secretary of state shall include with any title for a new motor vehicle a
written statement, in 10-point boldface 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. 2. 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 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.”
History: 1986, Act 87, Eff. June 25, 1986.
Michigan Lemon law 257.1409 Applicability 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.
History: 1986, Act 87, Eff. June 25, 1986.
Michigan Lemon law 257.1410 Effect.
Sec. 10. This act shall take effect 60 days after its enactment.
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