MONTANA’S LEMON LAW The following summary of Montana’s Lemon Law is taken from Attorney General Austin Knudsen’s website. Although dealers are generally right in the middle of lemon law claims, resolution of those claims is the obligation of the manufacturer, not the dealer and involves an administrative process supervised by the AG’s office. The following information can be provided to your affected customers, or you can refer the customer to the AG’s website. The website is provided at the end of this article. WHAT THE LEMON LAW COVERS • Vehicles purchased, titled or leased in Montana, provided they are less than two years old and have 18,000 miles or less on the odometer. Motorcycles and the chassis of qualifying motor homes are included. • Substantial defects that impair the use, market value or safety of the vehicle WHAT THE LEMON LAW DOES NOT COVER • Vehicles purchased for business use • Vehicles over 10,000 lbs. GVW • Non-motorized and off-road vehicles • The “residential” portion of motor homes • Defects resulting from accident, abuse, neglect, modification or alteration by anyone other than the manufacturer or authorized dealer WARRANTY PERIOD The warranty period ends two years after the date of the vehicle’s original delivery to the consumer or after the first 18,000 miles of operation, whichever occurs first. This period can be extended for up to a year if a defect is reported, in writing, to the dealer or manufacturer during the warranty period but has not been cured by the expiration of the period. REQUIRED DOCUMENTATION Keep all records of warranty repairs and all written communications with dealers and manufacturers. Work orders provide the best proof as to when a problem was first reported. To prove that a vehicle is a lemon, be prepared to produce: • All purchase (or lease) documents • All maintenance records • All repair orders • Receipt for maintenance supplies • Certified letter of notification to the manufacturer (copy) • Any and all other documents relating to the defect THE LEMON LAW PROCESS Notify the manufacturer. If the problem is a substantial defect or condition that recurs or still exists after the third repair attempt, notify the manufacturer by certified mail, return receipt requested, of the need to repair the defect or condition on the fourth attempt. This notification procedure is not required under the Lemon Law, but does serve as notice to the manufacturer of your intentions. If the manufacturer fails to correct any substantial defect or condition following your written notification, the manufacturer must either refund the full purchase price — By R. J. “Jim” Sewell Jr., MTADA General Counsel 10 MONTANA AUTO DEALER
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