- The Michigan Lemon Law is Act 87 of the Michigan Compiled Laws, Section 257.1401-1410. It applies to any new car that has a defect which the dealer repeatedly attempts to repair but either fails to, or cannot, correct. The law allows for legal remedy if the first repair occurred during the first year of ownership and the remaining three repairs for the same defect occurred over the next two years. You must provide the manufacturer a "last chance" letter, after the third attempted repair, if the condition still remains.
- A buyer can demand a refund of the purchase price or choose a replacement vehicle. If the buyer selects a replacement vehicle under a lease, the original lease continues in effect. Buyers can also recover attorneys' fees incurred in a lemon law action if they choose to retain counsel. Considering the complex nature of a lemon case and the availability of reimbursement for attorneys' fees, it is advisable to speak to a qualified attorney regarding your case.
- No dealer can include contractual provisions that circumvent or otherwise countermand the lemon law in Michigan under Section 257.1407. Where such clauses are present, they are void as they violate Michigan public policy.
- Michigan allows for non-binding (upon the consumer) mediation of the dispute, which is binding upon the manufacturer. If you are not happy with the results of the mediation, you still have the right to file suit.
- Michigan courts have repeatedly upheld the validity of the Michigan lemon law and found that a contractual relationship exists between the manufacturer and the consumer, even when the vehicle is sold through an independent dealership.
Lemon Law Generally
Remedies
Non-waiverable Rights
Mediation
Judicial Action
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