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Michigan Lemon Laws were amended in 1999 and came into force in a modified form since then. For the first time, provisions were made to protect the consumer who leases a new vehicle. Prior to this only the buyers of new vehicle had rights if their new vehicle turned out to be a lemon. Lemon law protects the consumers incase they are stuck with a new vehicle with defects which do not meet the standards of a new vehicle .Consumer’s rights are vital and must be protected so as to ensure consumer sovereignty. The lemon law of Michigan encompasses all motorized vehicles in Michigan. The dealers as well as the manufacturers come under the purview of lemon laws statues of Michigan. How and when can lemon laws be invoked A new vehicle is considered lemon if it has more than one defect and the same exists even after four or more attempts have been made to repair the vehicle within two years from the date of its first repair. Or the vehicle is not in use as it was being repaired for more than a total of 30 days. An engine, transmission, brake or steering defect may render the car as a definite lemon. Non the less a persistent defect, such as a water leak, noxious odor, or paint problem may also be a defect or condition entitling the consumer to relief under the lemon law. Lemon Law Procedure: The consumer is advised to inform the dealer via notification by return receipt service that one last chance to repair the vehicle is being given to him. It is important that the defect is inherent and persistent in nature because of which the vehicle is not meeting the standards proposed by the manufacture at the time of delivery. The last chance letter must be sent to the manufacturer before the fourth attempt or before the expiry of the thirty day period. After the last chance letter the manufacturer has a maximum of five business days to repair the defect. Replacement or refund of the lemon vehicle: The buyer or the lessee has the option to get a replacement or a refund for the lemon vehicle. If the buyer opts to get a suitable replacement from the manufacturer then he may do so. If the lessee opts for the same only the vehicle identification number can be changed, any further alterations to the lessee agreement cannot be made. Incase the buyer or the lessee wants to go in for a refund then the purchase price for the vehicle is the actual vehicle sales price listed on the buyer's order including any cash payment, trade-in allowance, sales tax, license and registration fees and other government charges. The lease price refers to the actual sales price paid by the lessor which includes the same additions as the purchase price. Arbitration and court proceedings: The consumer need not go for out of court settlement with the manufacturer. Even if he does, and is not contended with the outcome, he may still bring in a suit against the manufacturer in court. Moreover the manufacturer's arbitration process must be in accordance with Federal Trade Commission regulations. The decision so arrived is a binding on the manufacturer but not on the consumer. The court empowers any one party who wins the decision to recover all legitimate litigation expenses, court and attorney fees from the other party. The lemon laws of the state empowers the manufacturer to, before refunding, deduct an amount for consumer's private use of such vehicle. Alternate remedies available: The Lemon Law is only one law protecting buyers and lessees. Consumers may also pursue claims under the Michigan Consumer Protection Act, Michigan Uniform Commercial Code, Federal Magnuson-Moss Warranty Act, and other contract remedies. For more information, consumers may contact the Attorney General's Consumer Protection Division The US federal law governing lemons is officially called The Magnuson-Moss Warranty Act, however, most American states each have their own lemon law.
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