What is the Magnuson-Moss Warranty Act?

The Magnuson-Moss Warranty Act is a federal law that protects buyers when manufacturers fail to honor written warranties on consumer products. To qualify, the product must cost more than $25 and include an express written warranty. This act applies to consumer products like cars, motorcycles, electronics, and home appliances.

In vehicle warranty disputes, cars that cannot be repaired after repeated attempts are often referred to as lemons. These vehicles must have a recurring defect or warranty issue that impairs safety, value, or use, and cannot be repaired after a reasonable number of attempts. Because warranty and lemon law claims can be complex, many consumers choose to consult an attorney experienced in state lemon laws.

What are my rights under the Magnuson-Moss Warranty Act?

The Magnuson-Moss Act gives consumers considerable rights in dealing with manufacturers of lemon cars. This law guarantees that certain minimum warranty requirements must be met, and requires warrantors to disclose warranty terms before purchase.

When a warrantor fails to repair a car within a reasonable number of attempts, they may be liable to pay damages to the consumer. This remedy is known as a “cash and keep” settlement — meaning you keep possession of your vehicle and receive compensation from the manufacturer based on its diminished value. Your warranty remains valid, and you may continue to service the vehicle under its original terms.

Our firm has successfully argued to juries that manufacturers should be given three attempts to fix a defect under the Magnuson-Moss Act — and that continued repair attempts beyond those three should not be permitted. This is known as the “three strikes and you’re out” principle.

A consumer may pursue legal action in any court of general jurisdiction in the United States to enforce their rights under the Magnuson-Moss Act. Because attorney’s fees based on actual time spent are covered when a consumer prevails, manufacturers face significant financial pressure to resolve disputes before going to court.

To learn more about the Pennsylvania & New Jersey Lemon Law please call 1-800-MY-LEMON (1-800-695-3666) or email us.