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The lemon law in the State of Minnesota is the "Motor Vehicle Warranty Statute". This statute is enacted to compel the manufacturers to honor their own warranties and commitments given at the time of the sale of the vehicle. This statute covers all new and leased vehicles in the state of Minnesota. Manufacturer's duties In case the consumer reports to the manufacturer a defect in his vehicle, and if the vehicle is within the manufacturer's warranty or is within two years of its delivery, then the manufacturer either himself of through his dealer must make the necessary repairs to the vehicle at his cost. In case the manufacturer or his authorized agent fails to rectify the problem even after repeated attempts at repairs, then the consumer gets the option of either demanding the refund of the amount paid by him, or asking for a replacement vehicle. If the vehicle is replaced, then it should be replaced with an identical or a comparable vehicle. In case the buyer demands a refund from the consumer, then the manufacturer must refund not only the contract price, but also all the incidental expenses like taxes, registration fees, license fees, etc. that are borne by the consumer for the said vehicle. It would be just to say that the manufacturer made an effort to rectify the defect, if the vehicle has been repaired for the same problem at least four (4) times within the warranty period, or the vehicle has remained out of commission due to such repairs for at least thirty (30) days during the warranty period. In case the vehicle in question is a leased vehicle, then the lessee is not entitled, under this law for a replacement. He is entitled only for a refund from the manufacturer. Once he receives the refund, the lease agreement terminates. Resale of exchanged vehicle If the manufacturer wishes to resale the returned vehicle, then he must first give the new buyer a clear warning about the circumstances of the resale of the vehicle. This should be accompanied by a detailed list of the defect and the work done in the vehicle. The manufacturer must also give the new owner the same warranty extended to the previous owner, the difference being that this time the warranty period may be only twelve (12) months or 12000 miles from the date of resale, whichever comes first. If however the defect is of such a nature that it would cause the driver of the vehicle serious injury or even death in case of use of the vehicle, then such vehicle is not permitted to be resold. Informal dispute resolution mechanism of the manufacturer The Act mandates that all the vehicle manufacturers who operate in the State must establish or at least agree to participate in an informal dispute resolution mechanism for the settlement of the disputes arising out of warranty issues. Once such a mechanism is established and is operative in the state, then the consumers are mandated to approach it first for resolution of their outstanding issues. Option Of civil remedies If the consumer, after exhausting the arbitration, is still unsatisfied, then he/she may bring about a civil suit against the manufacturer. If he/she is successful, then he can get along with damages the cost of the suit and attorney fees also. Such action must be initiated within a period of three years from the date of delivery of the vehicle. Such period however is halted for the time taken for arbitration. This Act does not bar the consumer to file an action in a civil court under any other law for the time being in force. 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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