Online Library - General Laws - Lemon Laws

Manufacturer’s obligations

The manufacturer has to at the time of the sale inform clearly to the consumers, that in case a defect is encountered in the vehicle during the warranty period, then such defect has to be notified in writing to the manufacturer.

If the vehicle does encounter a defect, and the manufacturer is informed about it, then he has to take steps to rectify it as soon as possible at his cost.

If the defect persists even after a reasonable number of repair attempts, then the manufacturer can either replace the vehicle with an identical or similar one, or he can refund the price paid for the vehicle to the owner.

In case the refund option is exercised, then the manufacturer has to refund not only the price paid, but also all incidental charges that the consumer has incurred on account of the defect.

The manufacturer has to make at least four repair attempts before exercising the above options. He may keep the vehicle un-operational for repairs for an aggregate of thirty days during the warranty period.

The manufacturer is not permitted to hold the dealer responsible for any defect in the vehicle during the warranty period.

Defenses available to the manufacturer

The manufacturer will have a good defense against the consumer’s claim, if he can prove that the defect was caused due to some abuse of misuse of the vehicle by the owner.

Dispute settlement

In the event that the manufacturer has set up an informal arbitration procedure for warranty disputes, then the consumer has to seek remedy there before going to the court.

In case the consumer is not satisfied with the above, then he can appeal to the arbitration panel set up be the department of administration.

The award of this arbitration can be challenged by either of the parties in a court of adequate jurisdiction.

The US federal law governing lemons is officially called The Magnuson-Moss Warranty Act, however, most American states each have their own lemon law.


Contact Us \|	You are here: Library > General Laws > Lemon Laws > Montana Lemon Laws