Montana Lemon Laws

Title 61, Chapter 4, Part 5

61-4-501 - Definitions

The following definitions are used through out this chapter:

  1. "Collateral charges" means all governmental charges, like, sales tax, property tax, license and registration fees, and fees in lieu of tax.
  2. "Consumer" is,
    • A purchaser who purchases a motor vehicle to fulfill his transportation needs
    • A buyer who acquires a vehicle not for the purpose of resale
    • Any person to whom such motor vehicle is transferred within warranty period
    • A person who can enforce the obligations of warranty
  3. "Incidental damage" means incidental and consequential damage as defined in 30-2-715.
  4. "Manufacturer" has the meaning applied to that word in 61-4-201.
  5. "Motor vehicle" is a self propelled vehicle used to travel from one terminus to the other and which doesn’t include,
    • Motorcycle or farm tractor
    • Trailer
    • Motor home
    • A motor vehicle with a gross loaded weight over twelve thousand (12,000) pounds.
  6. "Reasonable allowance for use" means the amount directly due to a buyer’s use of the vehicle other than those time periods when the vehicle is in custody of the manufacturer due to the nonconformity.
  7. "Warranty period" means the period ending 2 years after the date of the original delivery to the consumer of a new motor vehicle or during the first 18,000 miles of operation, whichever is earlier.

History: En. Sec. 1, Ch. 144, L. 1983; amd. Sec. 1, Ch. 744, L. 1985; amd. Sec. 2, Ch. 300, L. 1991; amd. Sec. 1, Ch. 360, L. 2003.

61-4-502 - Notice -- Warranty Enforceable After Warranty Period -- When

  1. If, within the express warranty period, the consumer notifies the manufacturer in writing about the nonconformity, the manufacturer shall be liable to correct such nonconformities and conform the vehicle to the applicable express warranties.
  2. The warranty period is extendable but only in case when the repair services are not available due to strike or fire, flood, or other natural disaster.
  3. It’s the duty of a manufacturer to give a written notification to the consumer that the claim will only be valid, if the consumer notifies the manufacturer in writing about the nonconformity.

History: (1)En. Sec. 2, Ch. 144, L. 1983; (2)En. Sec. 5, Ch. 144, L. 1983; amd. Sec. 2, Ch. 744, L. 1985.

61-4-503 - Replacement for Nonconformity to Warranty

  1. If the manufacturer has failed in removing the defects, after a reasonable number of attempts, that impairs the use and value of a motor vehicle, then it becomes obligatory to the manufacturer either to repair the nonconformities or to replace the vehicle with a vehicle of comparable market value.
  2. The refund amount will comprise of the full purchase price, plus reasonable collateral charges and incidental damages, less a reasonable allowance for the consumer's use of the motor vehicle.

History: En. Sec. 3, Ch. 144, L. 1983; amd. Sec. 3, Ch. 744, L. 1985.

61-4-504 - Reasonable Number of Attempts – Presumption

It’s a presumption that a reasonable number of attempts have been made to conform the automotive if,

History: En. Sec. 4, Ch. 144, L. 1983.

61-4-505 - Dealer Exemption -- Liability to Manufacturer

  1. This chapter doesn’t impose any legal responsibility on a dealer or creates a cause of action by a consumer against a dealer under 61-4-503.
  2. Montana lemon laws clearly states that “a dealer is not liable to a manufacturer for any refunds or vehicle replacements in the absence of evidence indicating that repairs made by the dealer were carried out in a manner inconsistent with the manufacturer's instructions”.

History: En. Sec. 8, Ch. 144, L. 1983; amd. Sec. 4, Ch. 744, L. 1985.

61-4-506 - Provisions Nonexclusive -- Applicability of U.C.C. -- Defenses

  1. The requirements stated in this part do not limit the rights or cures available to a consumer.
  2. All express warranties arising from the sale of a new motor vehicle are subject to the provisions of Title 30, chapter 2, part 3.
  3. It shall be an appropriate defense to a manufacturer that,
    • an alleged nonconformity does not affect the use, market value, or safety of the vehicle
    • the nonconformity is the result of abuse, neglect, or unauthorized modification or alteration of a motor vehicle by the consumer

History: En. Sec. 6, Ch. 144, L. 1983; amd. Sec. 5, Ch. 744, L. 1985.

61-4-507 - Exhaustion of Remedies under Federal Law

The restrictions imposed in 61-4-503 does not apply to any manufacturer who has initiated an informal dispute settlement procedure in compliance with the provisions of Title 16, Code of Federal Regulations, part 703, as those provisions read on October 1, 1983, unless the consumer has first resorted to that procedure without satisfaction.

History: En. Sec. 7, Ch. 144, L. 1983; amd. Sec. 6, Ch. 744, L. 1985; amd. Sec. 195, Ch. 483, L. 2001.

61-4-508 through 61-4-510 reserved.

61-4-511 - Manufacturer's Dispute Settlement Procedure -- Certification -- Prohibited Contents

  1. A manufacturer must submit a copy of the informal dispute settlement procedure to the department of administration. The department of administration shall approve and issue a certificate of the approval along with subpoenas requiring the presence of witnesses and the production of records, documents, or other evidence necessary for the investigation.
  2. According to Montana lemon laws, “an informal dispute settlement procedure shall provide a consumer and opportunity to appear and present evidence and, further, may not include any practices that:
    • delay a decision in any dispute beyond 60 days after the date on which the consumer initially resorts to the dispute settlement procedure
    • delay performance of remedies awarded in a settlement beyond 10 days after a decision, except that a manufacturer may have 30 days following the date of decision to replace a motor vehicle or make refund to the consumer as provided in 61-4-503
    • require the consumer to make the vehicle available for inspection by a manufacturer's representative more than once
    • fail to consider in decisions any remedies provided by this part
    • require the consumer to take any action or assume any obligation not specifically authorized under the federal regulations referred to in subsection (1)”.

History: En. Sec. 7, Ch. 744, L. 1985; amd. Sec. 13, Ch. 503, L. 1985; amd. Sec. 196, Ch. 483, L. 2001.

61-4-512 - Annual Audit -- Revocation or Suspension of Certification

  1. The manufacturer must submit an annual audit report to the department of administration, including the number of refunds and replacements made by the manufacturer during the period audited.
  2. The department of administration may, after notice and hearing as provided in Title 2, chapter 4, suspend or revoke the certification of a manufacturer's informal dispute resolution procedure upon a finding that the procedure is being used to create hardship to consumers. The department of administration shall notify the department of justice of any revocation or suspension of a certification. The department of administration may consider the revocation or suspension in licensing manufacturers under Title 61, chapter 4, part 2.

History: En. Sec. 8, Ch. 744, L. 1985; amd. Sec. 13, Ch. 503, L. 1985; amd. Sec. 197, Ch. 483, L. 2001.

61-4-513 and 61-4-514 reserved.

61-4-515 - Arbitration Procedure

  1. The department of administration will arrange a forum or arbitration procedure to resolve warranty issues between consumer and manufacturer and the procedure must conform to Title 27, chapter 5.
  2. Except as provided in 61-4-520, a consumer owning a motor vehicle that fails to conform to all applicable warranties may bring a grievance before an arbitration panel only if the manufacturer of the motor vehicle has not established an informal dispute settlement procedure that has been certified by the department of administration under 61-4-511

History: En. Sec. 10, Ch. 744, L. 1985; amd. Sec. 23, Ch. 744, L. 1985; amd. Sec. 198, Ch. 483, L. 2001.

61-4-516 - Selection of Arbitrator

The department of administration is responsible for choosing an arbitrator.

History: En. Sec. 11, Ch. 744, L. 1985; amd. Sec. 199, Ch. 483, L. 2001; amd. Sec. 2, Ch. 360, L. 2003.

61-4-517 - Implementation of Arbitration

  1. A consumer has the right to request for arbitration by filing a notice with the department of administration along with $50 filing fee within 5 days after receiving it.
  2. The department of administration shall decide whether the grievance claims the breach of any applicable warranty under this part. The department of administration shall refund the filing fee if it determines that a claim does not allege a warranty violation.
  3. The money earned by this act shall be deposited in a special revenue fund for the use of the department of administration in administering this part.

History: En. Sec. 12, Ch. 744, L. 1985; amd. Sec. 200, Ch. 483, L. 2001.

61-4-518 - Arbitration -- Role of Department Of Administration -- Expert

  1. For fair and judicious decision, the department of administration shall inspect, gather, and arrange all needed information. The department of administration may, issue subpoenas to gather the turnout of witnesses and the production of documents, papers, and records relevant to the dispute.
  2. The department of administration should send copies of all written evidence to a sovereign technical expert, if requested by the arbitrator. The expert, upon the wish of the arbitrator, may be present whenever oral testimony is presented.

History: En. Sec. 13, Ch. 744, L. 1985; amd. Sec. 13, Ch. 503, L. 1985; amd. Sec. 201, Ch. 483, L. 2001; amd. Sec. 3, Ch. 360, L. 2003.

61-4-519 - Action by Arbitrator -- Decision

  1. The decision is made by the arbitrator within 60 days in the light of all evidences gathered and discloses the results and reasoning to the parties.
  2. The judgment shall provide appropriate remedies, including
    • repair of the vehicle
    • replacement of the vehicle
    • refund
    • any other remedies available under the applicable warranties or 15 U.S.C. 2301 through 2312, as in effect on October 1, 1983
    • reimbursement of expenses and costs
  3. The decision must contain a fixed date for the performance and completion of all cures. After 10 days the department of administration will ask the dominating party about the performance of the awarded remedies.

History: En. Sec. 14, Ch. 744, L. 1985; amd. Sec. 23, Ch. 744, L. 1985; amd. Sec. 202, Ch. 483, L. 2001; amd. Sec. 4, Ch. 360, L. 2003.

61-4-521 through 61-4-524 reserved

61-4-525 - Notice on Resale of Replaced Vehicle

A motor vehicle which is returned to the manufacturer and which requires replacement or refund may not be sold in the state without a clear and conspicuous written disclosure of the fact that the vehicle was returned. The department of justice may prescribe by rule the form and content of the disclosure statement and a procedure by which the disclosure may be removed upon a determination that the vehicle is no longer defective.

History: En. Sec. 9, Ch. 744, L. 1985; amd. Sec. 13, Ch. 503, L. 1985.

61-4-526 - Records of Disputes

The department of administration shall maintain records of each dispute as it determines, including an index of disputes by brand name and model. The department of administration shall, at intervals of no more than 6 months, compile and maintain statistics indicating the record of compliance with arbitration decisions and the number of refunds or replacements awarded. The statistical summary must be considered by the department of administration in determining the issuance of any manufacturer license required under Title 61, chapter 4, part 2.

History: En. Sec. 15, Ch. 744, L. 1985; amd. Sec. 13, Ch. 503, L. 1985; amd. Sec. 204, Ch. 483, L. 2001.

61-4-527 through 61-4-530 reserved.

61-4-531 – Non-Delegable

The legal responsibilities and commitments contained in this part may not be passed on by any other person or entity.

61-4-532 - Rulemaking

The department of administration may approve rules to enforce the requirements of this part.

History: En. Sec. 18, Ch. 744, L. 1985; amd. Sec. 205, Ch. 483, L. 2001.

61-4-533 - Penalty

According to Montana lemon laws, “A violation of any provision of this part is an unfair or deceptive trade practice under Title 30, chapter 14, part 2, and the penalties provided in 30-14-224(1) apply”.

History: En. Sec. 19, Ch. 744, L. 1985.