Monday, November 3, 2014

Federal Laws and regulations About Auto Warranties

The Uniform Commercial Code, which governs contracts concerning consumer poducts, applies to new car warranties.


There are a number of laws that govern auto warranties for new and used cars at the federal and state level. Whereas state laws vary from state-to-state, federal laws are applicable everywhere whether the state laws are more stringent or less so. The primary federal law concerning auto warranties and consumers' rights is the Magnuson-Moss Warranty Act. However, the Uniform Commercial Code, which addresses contracts, also applies and there are other federal statutes and regulations, which address specific vehicle issues such as those requiring emission controls.


Magnuson-Moss Warranty Act


The Magnuson-Moss Warranty Act, often called the federal Lemon Law, was enacted in 1975 and covers new mechanical consumer products such as appliances and vehicles. It contains warranty requirements for new cars and gives auto buyers the ability to seek remedy. Under the Act, if a car has a defect that is not a result of normal wear-and-tear or the buyer's own action or negligence, the manufacturer must fix it without charge and within a reasonable amount of time. If the manufacturer cannot repair the defect after a reasonable number of attempts, they must provide the buyer with a refund of the purchase price or a replacement vehicle without charge.


Uniform Commercial Code


The Uniform Commercial Code (UCC) is the primary source of law concerning contracts in the purchase and sale of products, including warranties. The law has been enacted in all 50 states. It establishes requirements for express and implied warranties for all consumer goods including vehicles. Under the UCC, express warranties include all statements written about a product including those made in advertisements. For example, a car that is advertised as getting 32 miles per gallon is considered to be warrantied for that level of gas consumption. The UCC also creates expectations for new products, requiring that they perform as a consumer would reasonable expect them to. For example, the gas pedal on a new car would not be expected to stick and, if it did, that would be considered a defect even if the express warranty did not address it.


Emission Controls Car Warranty Law


Manufacturers are required by federal law to provide emission control coverage for new vehicles. This covers repairs to the emissions system that are required as the result of the vehicle failing an emission test during the first two years or 24,000 miles of vehicle use. Some emission control components are additionally covered for the first eight years or 80,000 miles. Emission tests vary state-to-state, but the manufacturer is required to make these repairs regardless of which state the car is purchased or tested in.