NADA Academy Common Questions
Dealership employees who attend NADA Academy will often need to reference their state’s rules and regulations for lemon law and warranty reimbursement. Please review the information below, with links to State of Michigan resources referencing these laws.
Michigan Lemon Law
The Lemon Law applies to passenger vehicles, sport utility vehicles, pickup trucks, and vans purchased or leased in Michigan. If the vehicle wasn’t purchased or leased in Michigan, it must have been purchased or leased by a Michigan resident. At the time of purchase or lease, it must have had a manufacturer’s express warranty. Generally, the Lemon Law does not apply to used vehicles. But the Lemon Law does apply to vehicles still “covered by a manufacturer’s express warranty at the time of purchase or lease.” The problem must be reported to the manufacturer or its authorized dealer within one year from the date it was delivered to the original buyer. If those criteria are met, the Lemon Law may apply to a “used” vehicle.
- More on this topic from the Michigan Attorney General’s office – Lemon Law Q&A.
- Michigan Legislation – New Motor Vehicle Warranties Act 87 of 1986 (“lemon law”)
Michigan Warranty Reimbursement
Motor Vehicle Franchise Act Act 118 of 1981 (excerpts pertaining to warranty reimbursement)
- 445.1577, Section 17 Dealer’s obligations for preparation, delivery, and warranty service; written specifications; compensating dealer for required warranty service; schedule of compensation; prohibited conduct; claims for labor and parts; payment; approval or disapproval; charge back for false or fraudulent claims; records of warranty repairs; compensation and claims for promotion events, programs, or activities; approval or disapproval of claims; meeting; disclosure of proprietary or confidential information; audit.
- 445.1577a, Section 17a Reasonable compensation for parts reimbursement and labor rates; factors.
