Warranties

Information

Warranties

Consumers have three basic legal provisions to try correcting non conforming vehicles. They are Warranty, UCC and MMWA.

  1. Repair of nonconforming vehicle
  2. Uniform Commercial Code (UCC)
  3. The Magnuson-Moss Warranty Act (MMWA)
  4. What if the manufacture cannot fix my new vehicle?
  5. Does this law apply to all vehicles?
  6. If they are unable to repair my vehicle, is it my choice whether to accept a reasonable replacement vehicle or receive my money back?
  7. If I chose to receive a refund, am I entitled to get all money I have paid on the vehicle back?
  8. How is the amount of the reasonable allowance to be deducted determined?
  9. What defenses can the manufacturer raise against bringing the goods in conformity?
  10. How many chances do I have to give them to fix my vehicle?
  11. Is the one (1) year time period ever extended?
  12. How do I notify the manufacturer of the problem with the vehicle?
  13. After notification of a problem with my vehicle how long do they have to return it to me?
  14. If the vehicle is not repaired within this period, what is my recourse?
  15. What can I recover if I win?
  16. If I lose what can it cost me?
  17. Do I have to use the informal dispute resolution procedure before filing suit?
  18. What is meant by "repair and replacement"?
  19. What happens to the warranty if I transfer my vehicle?

Repair of nonconforming vehicle.

If a new motor vehicle does not conform to all applicable express warranties, and the consumer reports the nonconformity to the manufacturer or its agent during the term of such express warranties or during the period of one (1) year following the date of original delivery of the motor vehicle to the consumer, whichever period expires earlier, the manufacturer or its agent shall make such repairs as are necessary to conform the vehicle to such express warranties, notwithstanding the fact that such repairs are made after the expiration of such term or such one-year period. This is commonly known as the Mississippi Lemon Law.

Both state and federal laws provide remedies for consumers who have purchased new automobiles and have had problems with them.

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Uniform Commercial Code (UCC)

Under the UCC, relief is based upon warranty protection under the sale of goods section. A purchaser who discovers defects in the car before acceptance may reject the car and recover the full purchase price, along with other damages. The problem with this remedy is that most defects will not become apparent until after acceptance and delivery of the car.

The purchaser is entitled to revoke an acceptance already made, but only under limited circumstances. The purchaser must first give the dealer an opportunity to remedy the defect. Only after there has been an unsuccessful attempt by the dealer to remedy the defect, can the purchaser revoke his or her acceptance.

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The Magnuson-Moss Warranty Act (MMWA)

The MMWA is a federal law intended to help consumers better understand the warranties accompanying the purchase of goods. The MMWA requires manufacturers to identify the type of warranty as either "full" or "limited." If the manufacturer offers a full warranty, the manufacturer must permit the customer to elect either a refund or replacement, without charge if the product contains a defect after the manufacturer makes a "reasonable" number of attempts to repair the defect. If the manufacturer offers only a limited warranty, such remedies are not available to the purchaser. Most automobile manufacturers offer only a limited warranty.

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What if the manufacture cannot fix my new vehicle?

Under Mississippi law if the manufacturer cannot conform the motor vehicle to any applicable express warranty by repairing or correcting any default or condition which impairs the use, market value, or safety of the motor vehicle to the consumer after a reasonable number of attempts, the manufacturer shall give the consumer the option of having the manufacturer either replace the motor vehicle with a comparable motor vehicle acceptable to the consumer, or take title of the vehicle from the consumer and refund to the consumer the full purchase price, including all reasonably incurred collateral charges, less a reasonable allowance for the consumer's use of the vehicle. This is what is commonly referred to as the lemon law.

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Does this law apply to all vehicles?

No, It only applies to new vehicles. It does not apply to motor cycles or mopeds. If it is a used car your contract, extended warranty, expressed warranties or implied warranties may apply.

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If they are unable to repair my vehicle, is it my choice whether to accept a reasonable replacement vehicle or receive my money back?

Yes, it is your option.

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No. The manufacturer is allowed to subtract a reasonable allowance for use when either a replacement or refund of the motor vehicle occurs.

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How is the amount of the reasonable allowance to be deducted determined?

A reasonable allowance is the sum of money arrived at by multiplying the number of miles driven by you time twenty (.20) cents.

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What defenses can the manufacturer raise against bringing the goods in conformity?

An affirmative defense that alleged nonconformity does not impair the use, market value or safety of the motor vehicle; a nonconformity is the result of abuse, neglect or unauthorized modifications or alterations of a motor vehicle by a consumer; a claim by a consumer was not filed in good faith; or any other affirmative defense allowed by law.

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How many chances must I give them to fix my vehicle?

The statute requires a reasonable number of attempts. It shall be presumed that a reasonable number of attempts have been undertaken to conform a motor vehicle to the applicable express warranties if during the period of one (1) year following the date of original delivery of the motor vehicle to a consumer either substantially the same nonconformity has been subject to repair three (3) or more times by the manufacturer or its agent and such nonconformity continues to exist; or the vehicle is out of service by reason of repair of the nonconformity by the manufacturer or its agent for a cumulative total of fifteen (15) or more working days, exclusive of downtime for routine maintenance as prescribed by the owner's manual, since the delivery of the vehicle to the consumer. The fifteen-day period may be extended by any period of time during which repair services are not available to the consumer because of conditions beyond the control of the manufacturer or its agent.

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Is the one (1) year time period ever extended?

The terms, conditions or limitations of the express warranty, or the period of one (1) year following the date of original delivery of the motor vehicle to a consumer, whichever expires earlier, may be extended if the motor vehicle warranty problem has been reported but has not been repaired by the manufacturer or its agent by the expiration of the applicable time period.

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How do I notify the manufacturer of the problem with the vehicle?

The manufacturer shall provide a list of the manufacturer's zone or regional service office addresses in the owner's manual provided with the motor vehicle. You must give written notification to the manufacturer of the need for the repair of the nonconformity, in order to allow the manufacturer an opportunity to cure the alleged defect. The manufacturer shall immediately notify the consumer of a reasonably accessible repair facility to conform the vehicle to the express warranty.

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After notification of a problem with my vehicle how long do they have to return it to me?

After delivery of the vehicle to the designated repair facility by the consumer, the manufacturer shall have ten (10) working days to conform the motor vehicle to the express warranty.

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If the vehicle is not repaired within this period, what is my recourse?

Upon notification from the consumer that the vehicle has not been conformed to the express warranty, the manufacturer shall inform the consumer if an informal dispute settlement procedure has been established by the manufacturer. However, if prior notice by the manufacturer of an informal dispute settlement procedure has been given, no further notice is required.

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What can I recover if I win?

If you prevails the court may allow you to recover as part of the judgment a sum equal to the aggregate amount of costs and expenses, including attorney's fees based on actual time expended, determined by the court to have been reasonably incurred by the plaintiff for or in connection with the commencement and prosecution of such action.

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If I lose what can it cost me?

Any claim by a consumer which is found by the court to have been filed in bad faith, or solely for the purpose of harassment, or in complete absence of a justiciable issue of either law or fact raised by the consumer, shall result in the consumer being liable for all court costs incurred by the manufacturer or its agent as a direct result of the bad faith claim.

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Do I have to use the informal dispute resolution procedure before filing suit?

Yes. Failure to comply may result in loss of your right to refund or replacement. If a manufacturer has established an informal dispute settlement procedure which complies in all respects with the provisions of 16 C.F.R., Part 703 concerning refunds or replacements shall not apply to any consumer who has not first resorted to such procedure.

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What is meant by "repair and replacement"?

The term "repair and replacement" means to restore to sound working condition by replacing or correcting what is inoperative.

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What happens to the warranty if I transfer my vehicle?

You may transfer your equity in the motor vehicle to another person upon agreement by the holder, and, in such event, the holder of the contract is entitled to charge and collect a transfer of equity fee. Transfer of equity fee shall be charged or collected unless the holder of the contract release the transferor from all further liability under such contract

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Last Review and Update: Nov 19, 2002
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