Minnesota Lemon Law Guide: Your Rights Under Minnesota Lemon Law

If you have recently purchased or leased a new or lightly used vehicle in Minnesota and find yourself constantly returning to the dealership for repairs, you may be protected under the state's lemon law. Navigating the complexities of vehicle warranties and consumer protection laws can be overwhelming, but understanding your rights is the first step toward resolving the issue. This comprehensive guide will explain the Minnesota Lemon Law, what qualifies as a lemon, the claims process, and how you can seek a refund or replacement vehicle.

What Is the Minnesota Lemon Law?

The Minnesota Lemon Law is officially found in the Minnesota Statutes under Section 325F.665 (Minn. Stat. § 325F.665). This statute was enacted to protect consumers who purchase or lease motor vehicles that fail to conform to the manufacturer's express warranties. The law requires manufacturers to honor the time and mileage provisions of their written warranties and provides specific mechanisms for consumers to obtain a refund or a replacement vehicle if their vehicle turns out to be a "lemon."

The primary purpose of the Minnesota Lemon Law is to ensure that consumers are not stuck with defective vehicles that substantially impair their use or market value. It holds manufacturers accountable for the quality of their vehicles and provides a structured process for resolving disputes. The Minnesota Attorney General's Office plays a crucial role in consumer protection and provides resources and guidance for consumers dealing with lemon vehicles. You can find more information on the Attorney General's consumer protection page regarding car laws and warranties.

Which Vehicles Qualify Under Minn. Stat. § 325F.665?

Not every vehicle with a defect qualifies as a lemon under Minnesota law. The statute outlines specific criteria regarding the types of vehicles covered, their condition at the time of purchase or lease, and the timeframe within which the defects must be reported.

New vs. Used Vehicle Coverage

The Minnesota Lemon Law primarily covers new motor vehicles. However, it also extends protection to lightly used vehicles that are still covered under the original manufacturer's warranty. For a used vehicle to be covered, the defect must occur and be reported while the original manufacturer's warranty is still in effect.

Leased Vehicle Coverage

Consumers who lease vehicles are afforded the same protections under the Minnesota Lemon Law as those who purchase vehicles outright. The law applies to leased vehicles if the lease term is longer than four months. If a leased vehicle is determined to be a lemon, the lessee is entitled to a refund of the amounts paid under the lease, subject to certain deductions, rather than a replacement vehicle.

Mileage and Time Limitations

To be eligible for protection under the Minnesota Lemon Law, the defect or nonconformity must be reported to the manufacturer, its agent, or its authorized dealer within the term of the applicable express warranty or within two years following the date of original delivery of the vehicle to the consumer, whichever comes first. If the defect is reported within this timeframe, the manufacturer's duty to repair extends to the end of the third year following the original delivery date.

Vehicle Types Covered

The Minnesota Lemon Law covers a variety of motor vehicles, provided they are used at least 40 percent of the time for personal, family, or household purposes. Covered vehicles include:

• Passenger automobiles
• Pickup trucks and vans
• The self-propelled motor vehicle chassis or van portion of a recreational vehicle (RV)
• The self-propelled motor vehicle chassis or van portion of an ambulance

It is important to note that the law does not cover the living areas or other amenities added to an RV chassis by the RV manufacturer.

What Qualifies as a "Lemon" in Minnesota?

A vehicle is considered a lemon under Minnesota law if it has a defect or condition that substantially impairs its use or market value, and the manufacturer or its authorized dealers are unable to repair the defect after a "reasonable number of attempts."

Number of Repair Attempts Required

The law presumes that a reasonable number of repair attempts have been made if the same nonconformity has been subject to repair four or more times by the manufacturer, its agents, or its authorized dealers, and the defect continues to exist. This is often referred to as the "presumption" threshold.

Days Out of Service Threshold

Alternatively, a vehicle may qualify as a lemon if it has been out of service due to warranty repairs for a cumulative total of 30 or more business days during the warranty term or within the first two years of ownership, whichever comes first.

Substantial Impairment Standard

For a defect to qualify under the lemon law, it must substantially impair the use or market value of the vehicle to the consumer. Minor issues, such as a rattling noise or a cosmetic flaw that does not affect the vehicle's functionality or value, typically do not meet this standard. Furthermore, the defect cannot be the result of abuse, neglect, or unauthorized modifications or alterations by anyone other than the manufacturer or its authorized dealer.

Safety Defect Provisions

Minnesota law includes a special provision for severe safety defects. If the nonconformity results in a complete failure of the braking or steering system and is likely to cause death or serious bodily injury if the vehicle is driven, the presumption of a reasonable number of attempts is met if the defect has been subject to repair at least once and continues to exist.

The Minnesota Lemon Law Claims Process

If you believe your vehicle qualifies as a lemon, there are specific steps you must follow to pursue a claim under the Minnesota Lemon Law.

Required Steps

1. Report the Defect: You must report the defect to the manufacturer, its agent, or its authorized dealer within the warranty period or two years of original delivery, whichever is earlier.
2. Allow Repair Attempts: You must give the manufacturer or dealer a reasonable opportunity to repair the defect, as defined by the presumption thresholds (four attempts, 30 days out of service, or one attempt for a severe safety defect).
3. Written Notification: Before you can claim a refund or replacement, you must provide written notification to the manufacturer or authorized dealer, stating that the vehicle is a lemon and that you are seeking a refund or replacement. This gives the manufacturer one final opportunity to cure the defect.

Documentation Requirements

Keeping meticulous records is essential for a successful lemon law claim. You should maintain copies of:

• The purchase or lease agreement
• All repair invoices and work orders (ensure they show the dates the vehicle was brought in and returned, and a description of the problem and work performed)
• Correspondence with the manufacturer or dealer, including the written notification sent via certified mail with a return receipt requested

Arbitration Requirements

Automobile manufacturers doing business in Minnesota are required to offer an informal dispute settlement mechanism, or arbitration program, located in the state. If the manufacturer requires it, you must first submit your dispute to their arbitration program before filing a lawsuit under the lemon law. The arbitration process provides a faster and less formal way to resolve disputes, and you have the right to make oral presentations, submit documents, and be represented by an attorney during the proceedings.

Timeline Expectations

The timeline for resolving a lemon law claim can vary depending on whether the dispute is settled through arbitration or requires litigation. Arbitration decisions are typically rendered within a few months. If you must file a lawsuit, the law allows you to do so within three years of the date of original delivery of the vehicle, provided you first reported the defect within the warranty period.

Remedies and Compensation Under Minnesota Law

If your vehicle is determined to be a lemon, the Minnesota Lemon Law provides specific remedies to compensate you for your loss.

Vehicle Replacement

If you purchased the vehicle, the manufacturer may offer to replace it with a comparable new motor vehicle. However, as the consumer, you have the option to reject the replacement vehicle and demand a full refund instead.

Repurchase and Refund

If you opt for a refund, or if you leased the vehicle, the manufacturer must refund the full purchase price or the amount you actually paid on your lease. The refund must include:

• The cost of any options or modifications installed by the manufacturer or dealer within 30 days of delivery
• Sales or excise tax
• License and registration fees
• Reimbursement for towing and rental vehicle expenses incurred due to warranty repairs

The manufacturer is allowed to deduct a reasonable allowance for your use of the vehicle. This deduction cannot exceed 10 cents per mile driven or 10 percent of the purchase price, whichever is less.

Incidental Damages

In addition to the refund or replacement, you are entitled to reimbursement for incidental expenses directly related to the vehicle being out of service, such as towing charges and rental car costs.

Attorney's Fees Provisions

If you are forced to file a lawsuit to enforce your rights under the Minnesota Lemon Law and you prevail in court, the law allows the court to award you reasonable attorney's fees, costs, and disbursements. This fee-shifting provision makes it possible for consumers to hire legal representation without bearing the financial burden upfront.

Civil Penalties for Willful Violations

If a court determines that the manufacturer acted in bad faith when appealing an arbitration decision, the prevailing consumer may be entitled to receive three times the actual damages, plus attorney's fees and court costs.

When to Hire a Minnesota Lemon Law Attorney

While you can navigate the arbitration process on your own, hiring an experienced Minnesota lemon law attorney can significantly improve your chances of a successful outcome, especially if the manufacturer is resistant to your claim.

Complexity of Claims

Lemon law claims can be legally and technically complex. An attorney understands the nuances of Minn. Stat. § 325F.665, knows how to gather and present the necessary evidence, and can effectively argue your case before an arbitrator or a judge.

Manufacturer Resistance Patterns

Automobile manufacturers have teams of lawyers dedicated to minimizing their liability in lemon law cases. They may argue that the defect does not substantially impair the vehicle's value, that the problem was caused by your negligence, or that they have not been given a reasonable number of repair attempts. An attorney can anticipate these defenses and counter them effectively.

Fee Structure

Most lemon law attorneys work on a contingency fee basis, meaning they only get paid if you win your case. Furthermore, because the Minnesota Lemon Law includes a fee-shifting provision, the manufacturer is often required to pay your attorney's fees if you prevail in court. This allows you to obtain skilled legal representation without paying out of pocket.

What to Look for in an Attorney

When seeking a lemon law attorney in Minnesota, look for someone with a proven track record of handling cases under Minn. Stat. § 325F.665. They should be knowledgeable about the state's specific requirements, familiar with the various manufacturer arbitration programs, and willing to take your case to court if necessary.

Frequently Asked Questions About Minnesota Lemon Law

Does the Minnesota Lemon Law cover used cars?

Yes, the Minnesota Lemon Law covers used cars, provided they are still under the original manufacturer's warranty at the time the defect occurs and is reported. The law does not cover used cars that are no longer under the manufacturer's warranty, although other consumer protection laws may apply.

How long do I have to file a lemon law claim in Minnesota?

You must report the defect to the manufacturer or dealer within the warranty period or two years of original delivery, whichever comes first. If you need to file a lawsuit, you must do so within three years of the date of original delivery.

Do I have to go through arbitration before suing?

If the manufacturer offers an arbitration program that complies with state and federal regulations, and they require you to use it, you must submit your dispute to arbitration before filing a lawsuit under the Minnesota Lemon Law.

What if the dealer says they can't duplicate the problem?

If the dealer claims they cannot duplicate the problem, continue to document every instance the issue occurs. Take videos or photos if it is safe to do so, and keep a detailed log of the dates, times, and conditions under which the defect manifests. You may also want to seek an independent appraisal or inspection.

Can I get a refund for a leased vehicle?

Yes, leased vehicles are covered under the Minnesota Lemon Law if the lease term is longer than four months. If your leased vehicle is a lemon, you are entitled to a refund of the amounts you paid under the lease, minus a reasonable allowance for use, rather than a replacement vehicle.