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:
“Consumer” means any of the following, but does not include a lessee of a new motor vehicle:
“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.
“Manufacturer’s express warranty” means an express warranty as determined under the Uniform Commercial Code, Act No. 174 of the Public Acts of 1962, 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:
History: 1986, Act 87, Eff. June 25, 1986.
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 one of the following time periods, whichever is earlier:
History: 1986, Act 87, Eff. June 25, 1986.
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:
A reasonable allowance for use is that amount directly attributable to use by the consumer and any previous consumer prior to 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 one of the following occurs:
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 four 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 their representative, prior to availing themselves 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 five business days to repair the defect or condition.
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 express warranty, or within one year from the date of delivery to the original consumer, whichever is earlier.
It shall be the responsibility of the consumer or their representative, prior to availing themselves 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 five business days to repair the defect or condition.
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.
The term of an express warranty, and the one-year, 30-day, and five-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.
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.
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:
History: 1986, Act 87, Eff. June 25, 1986.
This act does not apply to any defect or condition that is the result of either of the following:
History: 1986, Act 87, Eff. June 25, 1986.
History: 1986, Act 87, Eff. June 25, 1986.
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:
- 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.
- 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.
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.
This act shall take effect 60 days after its enactment.
Information in this document is provided as a public service by the consumer advocacy firm of Kimmel & Silverman for informational purposes only. This document is provided as-is and we make every effort to provide complete and accurate information. However, we do not guarantee accuracy, completeness, timeliness or correct sequencing of the information. Information on our website should not be construed as legal advice, as each case and fact pattern may alter the course of advisable action.