Michigan Lemon Law Attorneys

Michigan Lemon Law 101

Michigan Lemon Law – MCLA 257.1401, Et Seq.

Michigan’s lemon law covers new passenger cars and trucks purchased after June 25, 1986. Claims are filed against the manufacturer or distributor, not the dealership.

What Qualifies as a Lemon?

A vehicle qualifies as a lemon if it has a defect that substantially impairs its value and persists despite a reasonable number of repair attempts. The law presumes a reasonable number of attempts have occurred if:

• The vehicle has been out of service for at least 30 days (or parts of days) within the first year of ownership, or
• The vehicle has undergone four or more repair attempts for the same problem, with the first attempt occurring within the first year of ownership.

Who We Represent in Lemon Law Cases

For more than 35 years, The Liblang Law Firm P.C. has stood up for vehicle owners facing serious defects, unfair dealer practices, and warranty disputes. Every case is different, but the people we serve share one thing in common: they need clear answers and a strong advocate. 

• Vehicle Owners and Lessees Unsure Which Protections Apply: You bought or leased a vehicle with a serious defect but aren’t sure whether Michigan Lemon Law, federal warranty law, the Uniform Commercial Code, or another consumer-protection law fits your vehicle, warranty, purchase, and repair history.
• Consumers Whose Vehicle Problems Continue After Repairs: The same defect keeps coming back, multiple issues have made the vehicle unreliable, or it has spent long stretches in the shop, and you need to know whether your repair history supports a claim.
• Consumers Whose Vehicle May Not Fit the Standard Lemon Law: You own a used or certified pre-owned vehicle, motorcycle, ATV, RV, motor home, or large truck with unresolved warranty problems, and even when standard Michigan Lemon Law coverage is limited, another state or federal warranty claim may offer a remedy.
• Vehicle Buyers Who Suspect Problems With the Sale or Dealer’s Conduct: You believe the dealer hid important vehicle history, misrepresented the condition, changed the financing terms, failed to pay off a trade-in, or added charges you never agreed to.

If any of these situations sound familiar, you don’t have to sort out the details alone. We will review your vehicle, warranty, and paperwork, then explain the options that give you the best chance at a fair outcome.

Required Steps Before Filing a Claim

Once a vehicle has been out of service for 25 days, or repaired for the same problem three times, the buyer must notify the manufacturer by certified mail. The manufacturer must then identify a reasonably accessible repair facility and complete repairs within five business days of receiving the vehicle. If repairs are not completed in time, the buyer is entitled to a refund or replacement vehicle. MCLA 257.1403(1).

Refunds and Replacements

The refund or replacement must occur within 30 days of the final repair attempt. A refund covers the purchase price, sales taxes, transfer fees, finance interest, and dealer-installed accessories, minus a statutory offset for use. The offset is calculated as follows:

• Step 1. Calculate consumer mileage (CM): mileage at first repair, minus miles at delivery, miles driven to and from the shop, and miles put on by the repair facility.

• Step 2. Identify the purchase price (PP): the vehicle’s price before taxes, title, and registration.

• Step 3. Calculate the offset: CM ÷ 100,000 × PP = Offset.

Alternative Dispute Resolution (ADR)

If the manufacturer has an ADR program that meets federal Magnuson-Moss guidelines, the buyer must use it before filing suit to preserve their right to recover costs and attorney fees. The ADR result is binding only on the manufacturer. If the ADR does not produce appropriate relief, the consumer can pursue their claim in court. The lemon law does not replace other remedies available under state or federal law.

Practice Tip: Shortly after filing suit, consider filing a motion for summary disposition under Ayer v Ford Motor Company, 200 Mich. App 337 (1993). Even if the motion is denied, it compels the defendant to present its strongest evidence early, allowing you to focus discovery on weakening their defense.

Uniform Commercial Code

The warranty provisions of the Uniform Commercial Code (UCC) can be used alongside, or instead of, a lemon law claim. Key remedies include revocation of acceptance (MCLA 440.2608) and recovery of costs and attorney fees as incidental or consequential damages (MCLA 440.2719). These remedies also apply to vehicle leases under Article 2A of the Code.

Revocation of Acceptance

A buyer may revoke acceptance if the defect is difficult to discover, or if it remains unresolved after reasonable repair attempts and substantially impairs the vehicle’s value. In Colonial Dodge v Miller, 420 Mich 452 (1984), the Michigan Supreme Court established that “substantial impairment” is a subjective standard, measured from the buyer’s perspective.

Key Advantages of the UCC Over Lemon Law

1. Revocation is available upon proof of substantial impairment, without requiring four repair attempts or 30 days out of service.
2. Buyers do not need to go through the manufacturer’s ADR program to recover costs and attorney fees.
3. There are no formal notice requirements as conditions precedent to relief. Filing the complaint constitutes sufficient notice (King v Taylor Chrysler Plymouth, 184 Mich. App 204 (1990)).
4. The UCC applies to new and used vehicles, as well as a broader range of products, including boats, motor homes, motorcycles, snowmobiles, ATVs, commercial vehicles, and farm equipment.

Practice Tip: Always include UCC claims alongside a lemon law claim. This protects your client if a technical defect undermines the lemon law claim.

Magnuson-Moss Warranty Act

The Magnuson-Moss Warranty Act strengthens state warranty rights for consumers. It applies to all consumer goods valued at $25 or more and covers both express written warranties and implied warranties under state law. The act prohibits sellers from disclaiming the implied warranty of merchantability when a product is sold with a written warranty or service contract. It also eliminates the privity defense, allowing consumers to bring claims directly against a remote manufacturer.

Under the act, consumers may seek a refund or replacement, along with costs and attorney fees. Michigan courts have confirmed that attorney fees must reflect the remedial nature of the act, so attorneys can obtain a reasonable return on these cases.

ADR Requirements Under Magnuson-Moss

Before filing suit, consumers may be required to go through the manufacturer’s ADR process, but only if the ADR program meets Magnuson-Moss guidelines and the warranty itself clearly states that ADR is required before legal action. Under federal regulations, this statement must appear “on the face of the warranty,” defined as:

1. The first page of the warranty text, whether the warranty is a single sheet or multi-page document.
2. The page where the warranty text begins, if the warranty appears within a longer document such as a use and care manual.

The ADR process must be completed within 40 days of the consumer notifying the ADR mechanism of the dispute. In practice, motorcycle warranty documents rarely include the required ADR statement, so the ADR requirement seldom applies.

The Federal “Holder” Rule: Preservation of Consumer Claims and Defenses

When a dealer arranges financing for a vehicle purchase, the Federal Trade Commission’s “holder rule” makes the finance company subject to all claims and defenses the consumer has arising from the transaction. This means a buyer or lessee of a defective vehicle can assert claims against the seller, the manufacturer, and the finance company. Finance companies must include a notice of the holder rule in the contract. The consumer’s damages against the finance company are limited to amounts paid under the contract.

Practice Tip: In many cases, seek a temporary restraining order or preliminary injunction to stop the finance company from reporting adverse credit information or repossessing the vehicle during litigation. If the finance company files a counterclaim, include the holder rule and relevant UCC provisions as affirmative defenses. These provisions grant the buyer a security interest in the vehicle and permit withholding of payment.

If the finance company repossesses the vehicle in violation of a court order, or after receiving notice of the consumer’s intent to withhold payment, include a count for conversion in the complaint. This can result in treble damages, plus costs and attorney fees. Additional causes of action may include wrongful repossession, wrongful acceleration of debt, and violations of the Michigan Collection Practices Act, the Fair Debt Collection Practices Act, and the Fair Credit Reporting Act.

Other Statutes

Other statutes that should be reviewed in preparing consumer claims include (1) the Michigan Consumer Protection Act, MCLA 445.901, et seq; (2) the Motor Vehicle Service and Repair Act, MCLA 257.1301, et seq; and (3) the Garage Keeper Liability Act, MCLA 256.54.

Why Choose The Liblang Law Firm P.C.?

Founded in 1982, The Liblang Law Firm P.C. is Michigan’s most respected and most experienced lemon law firm. Lead attorney Dani K. Liblang is Board Certified by the National Board of Trial Advocacy (NBTA) and has earned the “Super Lawyer” designation every year since 2006. The firm also holds the Martindale-Hubbell AV rating, the highest distinction awarded for legal ability and professional ethics.

Our approach is straightforward: we handle the legal work, keep you informed at every stage, and fight to get you the maximum settlement you are entitled to. In most cases, the law provides for attorney fees on top of your settlement, meaning you typically pay little to nothing out of pocket.

Find Out If You Have a Case

You do not have to accept a defective vehicle. If your car has spent too much time in the shop with no real fix, The Liblang Law Firm P.C. is ready to review your situation. Contact us to set up a consultation. There is no cost and no obligation.

Frequently Asked Questions About Michigan Lemon Law