Article

Magnuson - Moss Warranty Act

November 2010, Auto Dealer Today - WebXclusive

by Jennifer Murphy Bloodworth - Also by this author

The Magnuson - Moss Warranty Act "requires manufacturers and sellers of consumer products to provide consumers with detailed information about warranty coverage.” [1] The Act establishes “three basic requirements that may apply to you, either as a warrantor or a seller.

A. As a warrantor, you must designate, or title, your written warranty as either ‘full’ or ‘limited.’
B. As a warrantor, you must state certain specified information about the coverage of your warranty in a single, clear, and easy-to-read document.
C. As a warrantor or a seller, you must ensure that warranties are available where your warranted consumer products are sold so that consumers can read them before buying.” [1]

Penalties for non-compliance: “The Act allows warranties to include a provision that requires customers to try to resolve warranty disputes by means of the informal dispute resolution mechanism before going to court. … Most Magnuson-Moss lawsuits are brought in state court. However, major cases involving many consumers can be brought in federal court as class action suits under the Act.” [1]

“If a consumer finally prevails … he may be allowed by the court to recover as part of the judgment a sum equal to the aggregate amount of cost and expenses (including attorneys’ fees based on actual time expended).” [2]

Helpful link(s)/Source(s):
1. http://www.ftc.gov/bcp/edu/pubs/business/adv/bus01.shtm
2. http://www.law.cornell.edu/uscode/15/usc_sec_15_00002310----000-.html

Please note: This is not legal advice and dealers should always seek the assistance of qualified legal counsel.


From "19 Laws, Rules and Regulations That Can Cost You More Than Money" in the September 2010 issue of Auto Dealer Monthly.

Your Comment

Please note that comments may be moderated. 
Leave this field empty:
Your Name:  
Your Email:  

Blog

On-the-Point

Jim Ziegler
Objects in the Rearview Mirror

By Jim Ziegler
The past is right behind us and the future is coming fast. The Alpha Dawg plots a course for your store’s success and shares advice for Elon Musk, Johan de Nysschen, and pre-owned managers.

The Big Talent Drain

By Jim Ziegler
The Alpha Dawg tackles the shortage of talent in the managerial ranks and reflects on Amazon’s rumored foray into vehicle sales, the imminent used-car correction, Hyundai’s plan for the Genesis brand, and the untimely passing of Tammie LeBleu.

A Faster Horse

By Jim Ziegler

Strangers in the Mall

By Jim Ziegler

Opening Observations

Over the Curb