Posts Categorized: Lemon law

Todd Murray featured in Kare 11 story about fraudulent sale of damaged cars

Kare 11 recently ran an investigative report about how Minnesota’s lax vehicle title laws could lead to a surge in flood cars and other damaged vehicles being sold in Minnesota. Our own Todd Murray was featured in the story and shared his insights about this issue.

 

 

 

 

 

Minnesota’s Lemon Law: An Overview

Most people use the term “lemon” to describe any vehicle that has repeated problems. But in Minnesota the “lemon law’ is a statute that protects buyers of new vehicles that have problems that can’t be fixed.

There are five basic elements to a lemon law claim in Minnesota:

  • (1) The defect has to arise and be reported to the manufacturer or authorized dealer within two years of the date of purchase or within the term of the manufacturer’s warranty, whichever date is earlier. Although there are certain circumstances where this time period can be extended, in general, the lemon law doesn’t protect you against problems that crop up after two years.
  • (2) You have to give the manufacturer a reasonable opportunity to fix the defect. If you’ve given the manufacturer four or more opportunities to fix the same problem, or if they’ve had your vehicle for 30 or more days, the law presumes that they have had a reasonable opportunity to fix the issue. On one of these attempts, you have to give the manufacturer written notice of the problems. Also, if the problem affects the steering or braking systems, you may only have to allow one repair attempt.
  • (3) The defect has to still be present after the manufacturer has had a reasonable opportunity to fix it. In Minnesota, at least, the court is going to want to know whether there is still a problem.
  • (4) The problem has to substantially impair the use or value of the vehicle. This is a subjective test that is fact-specific and is usually decided on a case-by-case basis.
  • (5) The defect can’t be caused by your negligence or misuse of the vehicle. You can’t abuse or neglect your vehicle and then blame the manufacturer for not being able to fix it.

Before starting a lawsuit under Minnesota’s lemon law, you have to engage in an Alternative Dispute Resolution process if the manufacturer offers one. The manufacturer of your vehicle will be able to give you information about their informal dispute process. This ADR process is not binding, though, and you can bring a lawsuit in court if you believe the ADR result is unjust.

If you bring a successful lemon law claim, you have the choice of a refund or replacement. The refund has to include the full purchase price of the vehicle, although there may be an offset for the mileage you’ve driven the vehicle. If you elect a replacement vehicle, it has to be one of comparable to the one you’re returning. In addition, the manufacturer has to pay for your attorney fees and costs for bringing the lawsuit. This is important because most lemon law attorneys are able to take the case on a contingency fee, where you pay no attorney fees out of pocket.

“As is” isn’t a license to rip you off on a used car

Dealers can't hide behind an as-is disclaimer when they knew the car was bad

Photo by Jennifer – flickr.com

We get a lot of calls from people who have unknowingly bought cars from dealers with serious defects. Generally, when a car is sold it comes with an “implied warranty” that the car will be fit to drive.

But when a consumer lets the dealer know that the car is no good and they want their money back, the dealer will often insist that the car was sold “as is,” and so it’s “not my problem.” But the dealers don’t understand the law–there are many reasons a buyer will have remedies even when the car is sold as is. I’ll break down a few of them here. (more…)

Lemon law: What to do if your car is defective

We discussed Minnesota’s lemon law in a previous post. If you think you might have a lemon, we have a few tips that might make it easier to win your case, if you’re not able to resolve your issue out of court.

1. Read your owner’s manual. You want to make sure you’re maintaining your car properly. When you bring your lemon law case, the manufacturer might accuse you of failing to maintain your vehicle properly, and argue that the problem is your fault. If you’ve kept up with the scheduled maintenance (and you can prove it) and you haven’t abused the car, you shouldn’t have any problems. If you can’t find your owner’s manual, you might be able to get an online copy. (more…)

What is the Minnesota Lemon Law?

Friedman Iverson - Minnesota lemon law

Photo by Rob Bertholf – flickr.com

Minnesota’s lemon law protects you against a new car (sold with a written warranty) that has a problem that affects the use or value of the vehicle. Under the lemon law, for any problem that arises within two years of purchase,  the manufacturer must replace or a refund a vehicle if a serious problem can’t be fixed within a “reasonable” number of attempts.

Minnesota lemon law presumption

In order to use the lemon law, the manufacturer must have made a reasonable number of attempts to repair the vehicle. You don’t have to meet the lemon law presumption to have a case, but it sure helps. The presumption means that a particular number of attempts will be assumed to be reasonable. (more…)