What is The Magnuson-Moss Warranty Act?
December 16, 2024
By: Robert Silverman
On Your Side: Car Issues by Jim Donovan
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 is a Federal Law that protects the buyer of any product which costs more than $25 and comes with an express written warranty. This law applies to any product that you buy that does not perform as it should.
Your car is a major investment, rationalized by the peace of mind that flows from its expected dependability and safety. Accordingly, you are entitled to expect an automobile properly constructed and regulated to provide reasonably safe, trouble-free, and dependable transportation – regardless of the exact make and model you bought.
Unfortunately, sometimes these principles do not hold true and defects arise in automobiles. Although one defect is not actionable, repeated defects are as there exists a generally accepted rule that unsuccessful repair efforts render the warrantor liable. Simply put, there comes a time when “enough is enough” – when after having to take your car into the shop for repairs an inordinate number of times and experiencing all of the attendant inconvenience, you are entitled to say, ‘That’s all,’ and revoke, notwithstanding the seller’s repeated good faith efforts to fix the car.
The rationale behind these basic principles is clear: once your faith in the vehicle is shaken, the vehicle loses its real value to you and becomes an instrument whose integrity is impaired and whose operation is fraught with apprehension. The question thus becomes when is “enough”?
As you know, enough is never enough from your warrantor’s point of view and you should simply continue to have your defective vehicle repaired – time and time again. However, you are not required to allow a warrantor to tinker with your vehicle indefinitely in the hope that it may eventually be fixed. Rather, you are entitled to expect your vehicle to be repaired within a reasonable opportunity. To this end, both the federal Moss Warranty Act, and the various state “lemon laws,” require repairs to your vehicle be performed within a reasonable opportunity.
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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