Minnesota lemon law
Discover exactly what is in the Minnesota lemon law...
The Minnesota lemon law
applies to both new and used passenger cars, pickup trucks, vans and recreational
equipment that are used at least 40% for personal, family or household purposes.
The Minnesota lemon law may apply to you if you've had to make repeated repairs
to the same defect, and if you are within the express warranty period or two
years, whichever comes first.
(By the way, you can click here if you want more info
on the lemon law).
The Minnesota lemon law is included below:
The Minnesota lemon law
325F.665 New motor vehicle warranties; manufacturer's duty to repair, refund,
or replace.
Subdivision 1. Definitions. For the purposes of this section, the following
terms have the meanings given them:
(a) "consumer" means the purchaser or lessee, other than for purposes
of resale or sublease, of a new motor vehicle used for personal, family, or
household purposes at least 40 percent of the time, a person to whom the new
motor vehicle is transferred for the same purposes during the duration of an
express warranty applicable to the motor vehicle;
(b) "manufacturer" means a person engaged in the business of manufacturing,
assembling or distributing motor vehicles, who will, under normal business conditions
during the year, manufacture, assemble or distribute to dealers at least ten
new motor vehicles;
(c) "manufacturer's express warranty" and "warranty" mean
the written warranty of the manufacturer of a new motor vehicle of its condition
and fitness for use, including any terms or conditions precedent to the enforcement
of obligations under that warranty;
(d) "lease" means a contract in the form of a lease or bailment for
the use of personal property by a natural person for a period of time exceeding
four months, used for personal, family, or household purposes at least 40 percent
of the time, whether or not the lessee has the option to purchase or otherwise
become the owner of the property at the expiration of the lease;
(e) "motor vehicle" means (1) a passenger automobile as defined in
section 168.011, subdivision 7, including pickup trucks and vans, and (2) the
self-propelled motor vehicle chassis or van portion of recreational equipment
as defined in section 168.011, subdivision 25, which is sold or leased to a
consumer in this state;
(f) "informal dispute settlement mechanism" means an arbitration process
or procedure by which the manufacturer attempts to resolve disputes with consumers
regarding motor vehicle nonconformities and repairs that arise during the vehicle's
warranty period;
(g) "motor vehicle lessor" means a person who holds title to a motor
vehicle leased to a lessee under a written lease agreement or who holds the
lessor's rights under such agreement; and
(h) "early termination costs" means expenses and obligations incurred
by a motor vehicle lessor as a result of an early termination of a written lease
agreement and surrender of a motor vehicle to a manufacturer under subdivision
4, including penalties for prepayment of finance arrangements.
Subd. 2. Manufacturer's duty to repair. If a new motor vehicle does not conform
to all applicable express warranties, and the consumer reports the nonconformity
to the manufacturer, its agent, or its authorized dealer during the term of
the applicable express warranties or during the period of two years following
the date of original delivery of the new motor vehicle to a consumer, whichever
is the earlier date, the manufacturer, its agent, or its authorized dealer shall
make the repairs necessary to conform the vehicle to the applicable express
warranties, notwithstanding the fact that the repairs are made after the expiration
of the warranty term or the two-year period.
Subd. 3. Manufacturer's duty to refund or replace. (a) If the manufacturer,
its agents, or its authorized dealers are unable to conform the new motor vehicle
to any applicable express warranty by repairing or correcting any defect or
condition which substantially impairs the use or market value of the motor vehicle
to the consumer after a reasonable number of attempts, the manufacturer shall
either replace the new motor vehicle with a comparable motor vehicle or accept
return of the vehicle from the consumer and refund to the consumer the full
purchase price, including the cost of any options or other modifications arranged,
installed, or made by the manufacturer, its agent, or its authorized dealer
within 30 days after the date of original delivery, and all other charges including,
but not limited to, sales or excise tax, license fees and registration fees,
reimbursement for towing and rental vehicle expenses incurred by the consumer
as a result of the vehicle being out of service for warranty repair, less a
reasonable allowance for the consumer's use of the vehicle not exceeding ten
cents per mile driven or ten percent of the purchase price, whichever is less.
If the manufacturer offers a replacement vehicle under this section, the consumer
has the option of rejecting the replacement vehicle and requiring the manufacturer
to provide a refund. Refunds must be made to the consumer, and lienholder, if
any, as their interests appear on the records of the registrar of motor vehicles.
Refunds shall include the amount stated by the dealer as the trade-in value
of a consumer's used motor vehicle, plus any additional amount paid by the consumer
for the new motor vehicle. A manufacturer must give to the consumer an itemized
statement listing each of the amounts refunded under this section. If the amount
of sales or excise tax refunded is not separately stated, or if the manufacturer
does not apply for a refund of the tax within one year of the return of the
motor vehicle, the department of public safety may refund the tax, as determined
under paragraph (h), directly to the consumer and lienholder, if any, as their
interests appear on the records of the registrar of motor vehicles. A reasonable
allowance for use is that amount directly attributable to use by the consumer
and any previous consumer during any period in which the use and market value
of the motor vehicle are not substantially impaired. It is an affirmative defense
to any claim under this section (1) that an alleged nonconformity does not substantially
impair the use or market value, or (2) that a nonconformity is the result of
abuse, neglect, or unauthorized modifications or alterations of a motor vehicle
by anyone other than the manufacturer, its agent or its authorized dealer.
(b) It is presumed that a reasonable number of attempts have been undertaken
to conform a new motor vehicle to the applicable express warranties, if (1)
the same nonconformity has been subject to repair four or more times by the
manufacturer, its agents, or its authorized dealers within the applicable express
warranty term or during the period of two years following the date of original
delivery of the new motor vehicle to a consumer, whichever is the earlier date,
but the nonconformity continues to exist, or (2) the vehicle is out of service
by reason of repair for a cumulative total of 30 or more business days during
the term or during the period, whichever is the earlier date.
(c) If the nonconformity results in a complete failure of the braking or steering
system of the new motor vehicle and is likely to cause death or serious bodily
injury if the vehicle is driven, it is presumed that a reasonable number of
attempts have been undertaken to conform the vehicle to the applicable express
warranties if the nonconformity has been subject to repair at least once by
the manufacturer, its agents, or its authorized dealers within the applicable
express warranty term or during the period of two years following the date of
original delivery of the new motor vehicle to a consumer, whichever is the earlier
date, and the nonconformity continues to exist.
(d) The term of an applicable express warranty, the two-year period and the
30-day period shall be extended by any period of time during which repair services
are not available to the consumer because of a war, invasion, strike, or fire,
flood, or other natural disaster.
(e) The presumption contained in paragraph (b) applies against a manufacturer
only if the manufacturer, its agent, or its authorized dealer has received prior
written notification from or on behalf of the consumer at least once and an
opportunity to cure the defect alleged. If the notification is received by the
manufacturer's agent or authorized dealer, the agent or dealer must forward
it to the manufacturer by certified mail, return receipt requested.
(f) The expiration of the time periods set forth in paragraph (b) does not bar
a consumer from receiving a refund or replacement vehicle under paragraph (a)
if the reasonable number of attempts to correct the nonconformity causing the
substantial impairment occur within three years following the date of original
delivery of the new motor vehicle to a consumer, provided the consumer first
reported the nonconformity to the manufacturer, its agent, or its authorized
dealer during the term of the applicable express warranty.
(g) At the time of purchase or lease, the manufacturer must provide directly
to the consumer a written statement on a separate piece of paper, in 10-point
all capital type, in substantially the following form: "IMPORTANT: IF THIS
VEHICLE IS DEFECTIVE, YOU MAY BE ENTITLED UNDER THE STATE'S LEMON LAW TO REPLACEMENT
OF IT OR A REFUND OF ITS PURCHASE PRICE OR YOUR LEASE PAYMENTS. HOWEVER, TO
BE ENTITLED TO REFUND OR REPLACEMENT, YOU MUST FIRST NOTIFY THE MANUFACTURER,
ITS AGENT, OR ITS AUTHORIZED DEALER OF THE PROBLEM IN WRITING AND GIVE THEM
AN OPPORTUNITY TO REPAIR THE VEHICLE. YOU ALSO HAVE A RIGHT TO SUBMIT YOUR CASE
TO THE CONSUMER ARBITRATION PROGRAM WHICH THE MANUFACTURER MUST OFFER IN MINNESOTA."
(h) The amount of the sales or excise tax to be paid by the manufacturer to
the consumer under paragraph (a) shall be the tax paid by the consumer when
the vehicle was purchased less an amount equal to the tax paid multiplied by
a fraction, the denominator of which is the purchase price of the vehicle and
the numerator of which is the allowance deducted from the refund for the consumer's
use of the vehicle.
Subd. 4. Manufacturer's duty to consumers with leased vehicles. A consumer who
leases a new motor vehicle has the same rights against the manufacturer under
this section as a consumer who purchases a new motor vehicle, except that, if
it is determined that the manufacturer must accept return of the consumer's
leased vehicle pursuant to subdivision 3, then the consumer lessee is not entitled
to a replacement vehicle, but is entitled only to a refund as provided in this
subdivision. In such a case, the consumer's leased vehicle shall be returned
to the manufacturer and the consumer's written lease with the motor vehicle
lessor must be terminated. The manufacturer shall then provide the consumer
with a full refund of the amount actually paid by the consumer on the written
lease, including all additional charges set forth in subdivision 3, if actually
paid by the consumer, less a reasonable allowance for use by the consumer as
set forth in subdivision 3. The manufacturer shall provide the motor vehicle
lessor with a full refund of the vehicle's original purchase price plus any
early termination costs, not to exceed 15 percent of the vehicle's original
purchase price, less the amount actually paid by the consumer on the written
lease.
Subd. 5. Resale or re-lease of returned motor vehicle. (a) If a motor vehicle
has been returned under the provisions of subdivision 3 or a similar statute
of another state, whether as the result of a legal action or as the result of
an informal dispute settlement proceeding, it may not be resold or re-leased
in this state unless:
(1) the manufacturer provides the same express warranty it provided to the original
purchaser, except that the term of the warranty need only last for 12,000 miles
or 12 months after the date of resale, whichever is earlier; and
(2) the manufacturer provides the consumer with a written statement on a separate
piece of paper, in 10-point all capital type, in substantially the following
form: "IMPORTANT: THIS VEHICLE WAS RETURNED TO THE MANUFACTURER BECAUSE
IT DID NOT CONFORM TO THE MANUFACTURER'S EXPRESS WARRANTY AND THE NONCONFORMITY
WAS NOT CURED WITHIN A REASONABLE TIME AS PROVIDED BY MINNESOTA LAW."
The provisions of this section apply to the resold or re-leased motor vehicle
for full term of the warranty required under this subdivision.
(b) Notwithstanding the provisions of paragraph (a), if a new motor vehicle
has been returned under the provisions of subdivision 3 or a similar statute
of another state because of a nonconformity resulting in a complete failure
of the braking or steering system of the motor vehicle likely to cause death
or serious bodily injury if the vehicle was driven, the motor vehicle may not
be resold in this state.
Subd. 6. Alternative dispute settlement mechanism. (a) Any manufacturer doing
business in this state, entering into franchise agreements for the sale of its
motor vehicles in this state, or offering express warranties on its motor vehicles
sold or distributed for sale in this state shall operate, or participate in,
an informal dispute settlement mechanism located in the state of Minnesota which
complies with the provisions of the Code of Federal Regulations, title 16, part
703, and the requirements of this section. The provisions of subdivision 3 concerning
refunds or replacement do not apply to a consumer who has not first used this
mechanism before commencing a civil action, unless the manufacturer allows a
consumer to commence an action without first using this mechanism.
(b) An informal dispute settlement mechanism provided for by this section shall,
at the time a request for arbitration is made, provide to the consumer and to
each person who will arbitrate the consumer's dispute, information about this
section as approved and directed by the attorney general, in consultation with
interested parties. The informal dispute settlement mechanism shall permit the
parties to present or submit any arguments based on this section and shall not
prohibit or discourage the consideration of any such arguments.
(c) If, in an informal dispute settlement mechanism, it is decided that a consumer
is entitled to a replacement vehicle or refund under subdivision 3, then any
refund or replacement offered by the manufacturer or selected by a consumer
shall include and itemize all amounts authorized by subdivision 3. If the amount
of excise tax refunded is not separately stated, or if the manufacturer does
not apply for a refund of the tax within one year of the return of the motor
vehicle, the department of public safety may refund the excise tax, as determined
under subdivision 3, paragraph (h), directly to the consumer and lienholder,
if any, as their interests appear on the records of the registrar of motor vehicles.
(d) No documents shall be received by any informal dispute settlement mechanism
unless those documents have been provided to each of the parties in the dispute
at or prior to the mechanism's meeting, with an opportunity for the parties
to comment on the documents either in writing or orally. If a consumer is present
during the informal dispute settlement mechanism's meeting, the consumer may
request postponement of the mechanism's meeting to allow sufficient time to
review any documents presented at the time of the meeting which had not been
presented to the consumer prior to the meeting.
(e) The informal dispute settlement mechanism shall allow each party to appear
and make an oral presentation in the state of Minnesota unless the consumer
agrees to submit the dispute for decision on the basis of documents alone or
by telephone, or unless the party fails to appear for an oral presentation after
reasonable prior written notice. If the consumer agrees to submit the dispute
for decision on the basis of documents alone, then manufacturer or dealer representatives
may not participate in the discussion or decision of the dispute.
(f) Consumers shall be given an adequate opportunity to contest a manufacturer's
assertion that a nonconformity falls within intended specifications for the
vehicle by having the basis of the manufacturer's claim appraised by a technical
expert selected and paid for by the consumer prior to the informal dispute settlement
hearing.
(g) Where there has been a recent attempt by the manufacturer to repair a consumer's
vehicle, but no response has yet been received by the informal dispute mechanism
from the consumer as to whether the repairs were successfully completed, the
parties must be given the opportunity to present any additional information
regarding the manufacturer's recent repair attempt before any final decision
is rendered by the informal dispute settlement mechanism. This provision shall
not prejudice a consumer's rights under this section.
(h) If the manufacturer knows that a technical service bulletin directly applies
to the specific mechanical problem being disputed by the consumer, then the
manufacturer shall provide the technical service bulletin to the consumer at
reasonable cost. The mechanism shall review any such technical service bulletins
submitted by either party.
(i) A consumer may be charged a fee to participate in an informal dispute settlement
mechanism required by this section, but the fee may not exceed the conciliation
court filing fee in the county where the arbitration is conducted.
(j) Any party to the dispute has the right to be represented by an attorney
in an informal dispute settlement mechanism.
(k) The informal dispute settlement mechanism has all the evidence-gathering
powers granted an arbitrator under section 572.14.
(l) A decision issued in an informal dispute settlement mechanism required by
this section may be in writing and signed.
Subd. 7. Effect and admissibility of decision by informal dispute settlement
mechanism. The decision issued in an informal dispute settlement mechanism required
by this section is nonbinding on the parties involved, unless otherwise agreed
by the parties. Any party, upon application, may remove the decision to district
court for a trial de novo. If the manufacturer is aggrieved by the decision
of the informal dispute settlement mechanism, an application to remove the decision
must be filed in the district court within 30 days after the date the decision
is received by the parties. If the application to remove is not made within
30 days, then the district court shall, upon application of a party, issue an
order confirming the decision. A written decision issued by an informal dispute
settlement mechanism, and any written findings upon which the decision is based,
are admissible as nonbinding evidence in any subsequent legal action and are
not subject to further foundation requirements.
Subd. 8. Treble damages for bad faith appeal of decision. If the district court
finds that a party has removed a decision of an informal dispute settlement
mechanism in bad faith, by asserting a claim or defense that is frivolous and
costly to the other party, or by asserting an unfounded position solely to delay
recovery by the other party, then the court shall award to the prevailing party
three times the actual damages sustained, together with costs and disbursements,
including reasonable attorney's fees.
Subd. 9. Civil remedy. Any consumer injured by a violation of this section may
bring a civil action to enforce this section and recover costs and disbursements,
including reasonable attorney's fees incurred in the civil action. In addition
to the remedies provided herein, the attorney general may bring an action pursuant
to section 8.31 against any manufacturer for violation of this section.
Subd. 10. Limitation on actions. A civil action brought under this section must
be commenced within three years of the date of original delivery of the new
motor vehicle to a consumer; except that, if the consumer applies to an informal
dispute settlement mechanism within three years of the date of original delivery
of a new motor vehicle to a consumer, and if the consumer is aggrieved by the
decision of the informal dispute settlement mechanism, then any civil action
brought under this section must be commenced within six months after the date
of the final decision by the mechanism.
Subd. 11. Remedy nonexclusive. Nothing in this section limits the rights or
remedies which are otherwise available to a consumer under any other law.
Subd. 12. Disclosure requirement. In addition to any investigative powers authorized
by law, the attorney general may inspect the records of the informal dispute
settlement mechanism upon reasonable notice, during regular business hours,
and may make available to the public information about the operation of the
mechanism, but data on an individual may not be disclosed without the prior
consent of the individual.
Subd. 13. Dealer liability. Nothing in this section imposes liability on a dealer
or creates an additional cause of action by a consumer against a dealer, except
for written express warranties made by the dealer apart from the manufacturer's
warranties. The manufacturer shall not charge back or require reimbursement
by the dealer for any costs, including, but not limited to, any refunds or vehicle
replacements, incurred by the manufacturer arising out of this section, unless
there is evidence that the related repairs had not been carried out by the dealer
in a timely manner or in a manner substantially consistent with the manufacturer's
published instructions.
You may be able to seek retribution under the Minnesota lemon law with one unsuccessful
repair of a completely failed braking or steering system likely to cause death
or substantial bodily injury, for up to the express warranty period or 2 years,
whichever occurs first.
325F.662 Sale of used motor vehicles.
Subdivision 1. Definitions. For the purposes of this section, the following
terms have the meanings given to them.
(a) "Consumer" means the purchaser, other than for purposes of resale,
of a used motor vehicle used primarily for personal, family, or household purposes.
(b) "Dealer" means a motor vehicle dealer or lessor, as defined in
section 168.27, subdivisions 2, 3, and 4, whether licensed or unlicensed, or
the dealer's or lessor's agent, who is engaged in the business of selling or
arranging the sale of used motor vehicles in this state; except that, the term
does not include a bank or financial institution, a business selling a used
motor vehicle to an employee of that business, a lessor selling, either directly
or indirectly, a leased used motor vehicle to that vehicle's lessee or a family
member or employee of the lessee, or a licensed auctioneer selling motor vehicles
at an auction if, in the ordinary course of the auctioneer's business, the sale
of motor vehicles is incidental to the sale of other real or personal property.
(c) "Motor vehicle" means a passenger automobile, as defined in section
168.011, subdivision 7, including pickup trucks and vans.
(d) "Used motor vehicle" means any motor vehicle which has been driven
more than the limited use necessary in moving or road testing a new motor vehicle
prior to delivery to a consumer. The term does not include a new motor vehicle
sold by a dealer franchised to sell the vehicle if the vehicle was driven for
demonstration purposes using dealer plates and if, when the vehicle was sold,
it carried a manufacturer's express warranty which provides coverage at least
as broad with respect to covered components and duration as that required by
this section.
(e) "Express warranty" means a dealer's written statement, as defined
in section 325G.17, subdivision 5, provided to a consumer in connection with
the sale of a used motor vehicle.
(f) "Buyer's Guide" means the window form required by the Federal
Trade Commission's "Used Motor Vehicle Trade Regulation Rule," Code
of Federal Regulations, title 16, section 455.2.
Subd. 2. Written warranty required. (a) Every used motor vehicle sold by a dealer
is covered by an express warranty which the dealer shall provide to the consumer.
At a minimum, the express warranty applies for the following terms:
(1) if the used motor vehicle has less than 36,000 miles, the warranty must
remain in effect for at least 60 days or 2,500 miles, whichever comes first;
(2) if the used motor vehicle has 36,000 miles or more, but less than 75,000
miles, the warranty must remain in effect for at least 30 days or 1,000 miles,
whichever comes first.
(b) The express warranty must require the dealer, in the event of a malfunction,
defect, or failure in a covered part, to repair or replace the covered part,
or at the dealer's election, to accept return of the used motor vehicle from
the consumer and provide a refund to the consumer.
(c) For used motor vehicles with less than 36,000 miles, the dealer's express
warranty shall cover, at minimum, the following parts:
(1) with respect to the engine, all lubricated parts, intake manifolds, engine
block, cylinder head, rotary engine housings, and ring gear;
(2) with respect to the transmission, the automatic transmission case, internal
parts, and the torque converter; or, the manual transmission case, and the internal
parts;
(3) with respect to the drive axle, the axle housings and internal parts, axle
shafts, drive shafts and output shafts, and universal joints; but excluding
the secondary drive axle on vehicles, other than passenger vans, mounted on
a truck chassis;
(4) with respect to the brakes, the master cylinder, vacuum assist booster,
wheel cylinders, hydraulic lines and fittings, and disc brakes calipers;
(5) with respect to the steering, the steering gear housing and all internal
parts, power steering pump, valve body, piston, and rack;
(6) the water pump;
(7) the externally-mounted mechanical fuel pump;
(8) the radiator;
(9) the alternator, generator, and starter.
(d) For used motor vehicles with 36,000 miles or more, but less than 75,000
miles, the dealer's express warranty shall cover, at minimum, the following
parts:
(1) with respect to the engine, all lubricated parts, intake manifolds, engine
block, cylinder head, rotary engine housings, and ring gear;
(2) with respect to the transmission, the automatic transmission case, internal
parts, and the torque converter; or, the manual transmission case, and internal
parts;
(3) with respect to the drive axle, the axle housings and internal parts, axle
shafts, drive shafts and output shafts, and universal joints; but excluding
the secondary drive axle on vehicles, other than passenger vans, mounted on
a truck chassis;
(4) with respect to the brakes, the master cylinder, vacuum assist booster,
wheel cylinders, hydraulic lines and fittings, and disc brake calipers;
(5) with respect to the steering, the steering gear housing and all internal
parts, power steering pump, valve body, and piston;
(6) the water pump;
(7) the externally-mounted mechanical fuel pump.
(e)(1) A dealer's obligations under the express warranty remain in effect notwithstanding
the fact that the warranty period has expired, if the consumer promptly notified
the dealer of the malfunction, defect, or failure in the covered part within
the specified warranty period and, within a reasonable time after notification,
brings the vehicle or arranges with the dealer to have the vehicle brought to
the dealer for inspection and repair.
(2) If a dealer does not have a repair facility, the dealer shall designate
where the vehicle must be taken for inspection and repair.
(3) In the event the malfunction, defect, or failure in the covered part occurs
at a location which makes it impossible or unreasonable to return the vehicle
to the selling dealer, the consumer may have the repairs completed elsewhere
with the consent of the selling dealer, which consent may not be unreasonably
withheld.
(4) Notwithstanding the provisions of this paragraph, a consumer may have nonwarranty
maintenance and nonwarranty repairs performed other than by the selling dealer
and without the selling dealer's consent.
(f) Nothing in this section diminishes the obligations of a manufacturer under
an express warranty issued by the manufacturer. The express warranties created
by this section do not require a dealer to repair or replace a covered part
if the repair or replacement is covered by a manufacturer's new car warranty,
or the manufacturer otherwise agrees to repair or replace the part.
(g) The express warranties created by this section do not cover defects or repair
problems which result from collision, abuse, negligence, or lack of adequate
maintenance following sale to the consumer.
(h) The terms of the express warranty, including the duration of the warranty
and the parts covered, must be fully, accurately, and conspicuously disclosed
by the dealer on the front of the Buyers Guide.
Subd. 3. Exclusions. Notwithstanding the provisions of subdivision 2, a dealer
is not required to provide an express warranty for a used motor vehicle:
(1) sold for a total cash sale price of less than $3,000, including the trade-in
value of any vehicle traded in by the consumer, but excluding tax, license fees,
registration fees, and finance charges;
(2) with an engine designed to use diesel fuel;
(3) with a gross weight, as defined in section 168.011, subdivision 16, in excess
of 9,000 pounds;
(4) that has been custom-built or modified for show or for racing;
(5) that is eight years of age or older, as calculated from the first day in
January of the designated model year of the vehicle;
(6) that has been produced by a manufacturer which has never manufactured more
than 10,000 motor vehicles in any one year;
(7) that has 75,000 miles or more at time of sale;
(8) that has not been manufactured in compliance with applicable federal emission
standards in force at the time of manufacture as provided by the Clean Air Act,
United States Code, title 42, sections 7401 through 7642, and regulations adopted
pursuant thereto, and safety standards as provided by the National Traffic and
Motor Safety Act, United States Code, title 15, sections 1381 through 1431,
and regulations adopted pursuant thereto; or
(9) that has been issued a salvage certificate of title under section 168A.151.
Subd. 4. Waiver. When purchasing a used motor vehicle, a consumer may waive
the express warranty for a covered part if:
(1) the dealer discloses in a clear and conspicuous typed or printed statement
on the front of the Buyers Guide that the waived part contains a malfunction,
defect, or repair problem; and
(2) the consumer circles this typed or printed statement and signs the Buyers
Guide next to the circled statement.
Subd. 5. Warranty automatic. If a dealer fails to give the express warranty
required by this section, the dealer nevertheless is considered to have given
the express warranty as a matter of law.
Subd. 6. Buyers guide requirements. In selling or offering to sell any used
motor vehicle, and in providing the express warranty required by this section,
a dealer shall comply in all respects with the Federal Trade Commission's "Used
Motor Vehicle Trade Regulation Rule," Code of Federal Regulations, title
16, part 455.
Subd. 7. Honoring of express warranties. (a) In accordance with section 325G.19,
subdivision 2, every express warranty in connection with the sale of a used
motor vehicle must be honored by the dealer according to the terms of the express
warranty.
(b) Following repair or replacement of a covered part, the dealer remains responsible
under the express warranty for that covered part for one additional warranty
period.
(c) By honoring the terms of the express warranty by repairing or replacing
a covered part, the dealer does not create an additional implied warranty on
any portion of the used motor vehicle.
(d) A dealer may limit the duration of implied warranties to the duration of
the express warranty.
Subd. 8. Refunds. (a) A refund, as provided under subdivision 2, must consist
of the full purchase price of the used motor vehicle and all other charges,
including but not limited to excise tax, registration tax, license fees, and
reimbursement for towing expenses incurred by the consumer as a result of the
vehicle being out of service for warranty repair, less a reasonable allowance
for the consumer's use of the vehicle not exceeding ten cents per mile driven
or ten percent of the purchase price, whichever is less. Refunds must include
the amount stated by the dealer as the trade-in value of any vehicle traded
in and applied to the purchase price of the used motor vehicle. Refunds must
be made to the consumer and lienholder, if any, as their interests appear on
the records of the registrar of motor vehicles.
(b) The amount of the excise tax to be paid by the dealer to the consumer under
paragraph (a) is the tax paid by the consumer when the vehicle was purchased
less an amount equal to the tax paid multiplied by a fraction, the denominator
of which is the purchase price of the vehicle and the numerator of which is
the allowance deducted from the refund for the consumer's use of the vehicle.
(c) A dealer must give the consumer an itemized statement listing each of the
amounts refunded under this subdivision. If the amount of excise tax refunded
is not separately stated, or if the dealer does not apply for a refund of the
tax within one year of the return of the motor vehicle, the department of public
safety may refund the excise tax, as determined under paragraph (b), directly
to the consumer and lienholder, if any, as their interests appear on the records
of the registrar of motor vehicles.
Subd. 9. Civil remedies. Any dealer who is found to have violated this section
is subject to the penalties and remedies, including a private right of action,
as provided in section 8.31. In addition, a violation of subdivision 7 is also
a violation of section 325F.69.
Subd. 10. Limitation on actions. A private civil action brought by a consumer
under this section must be commenced within one year of the expiration of the
express warranty.
Subd. 11. Remedy nonexclusive. Nothing in this section limits the rights or
remedies which are otherwise available to a consumer under any other law.
The Minnesota lemon law, like most state lemon laws, is not meant to attack
dealers or dealerships; it is aimed at the manufacturer.
