Michigan Compiled Laws

Mich. Comp. Laws § 257.1401 (2026)

Definitions.

✓ current as of July 2026

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NEW MOTOR VEHICLE WARRANTIES

Act 87 of 1986

257.1401 Definitions.

Sec. 1.

As used in this act:

(a) "Consumer" means 1 or more of the following:

(i) A person who purchases or leases a new motor vehicle for personal, family, or household use and not for the purpose of selling or leasing the new motor vehicle to another person.

(ii) A person who purchases or leases less than 10 new motor vehicles a year.

(iii) A person who purchases or leases 10 or more new motor vehicles a year only if the vehicles are purchased or leased for personal, family, or household use.

(iv) Any other person entitled to enforce the provisions of an express warranty pursuant to the terms of that warranty.

(b) "Lessee" means a person who, under a lease, acquires the right to possession and use of a new motor vehicle.

(d) "Manufacturer" means a person who manufactures, assembles, or is a distributor of new motor vehicles and includes an agent of a manufacturer but does not include a new motor vehicle dealer.

(e) "Manufacturer's express warranty" means an express warranty as determined under the uniform commercial code, 1962 PA 174, MCL 440.1101 to 440.11102, offered by the manufacturer on a new motor vehicle.

(f) "Motor vehicle" means a motor vehicle as defined in section 33 of the Michigan vehicle code, 1949 PA 300, MCL 257.33, that is designed as a passenger vehicle, or sport utility vehicle, but does not include a motor home, bus, truck other than a pickup truck or van, or a vehicle designed to travel on less than 4 wheels.

(g) "New motor vehicle" means a motor vehicle that is purchased or leased in this state or purchased or leased by a resident of this state and is covered by a manufacturer's express warranty at the time of purchase or lease.

(h) "New motor vehicle dealer" means a person or that person's agent who holds a dealer agreement for the sale of new motor vehicles, who is engaged in the business of purchasing, leasing, selling, exchanging, or dealing in new motor vehicles, and who has an established place of business in this state.

(i) "Person" means a natural person, a sole proprietorship, partnership, corporation, association, unit or agency of government, trust, estate, or other legal entity.

(j) "Resident of this state" means as follows:

(i) For an individual, an individual who is a legal resident of this state.

(ii) For a sole proprietorship or partnership, a sole proprietorship or partnership created pursuant to the laws of this state and its main office is located in this state.

(iii) For a corporation, a corporation that is a domestic corporation and was created under the laws of this state.

(iv) For an association, an association created pursuant to the laws of this state and its main office is located in this state.

(v) For a unit or agency of government, a unit or agency of government located in this state.

(vi) For a trust, estate, or other legal entity, a trust, estate, or other legal entity created pursuant to the laws of this state and that is located in this state.

(k) "Lease price" means the actual vehicle sales price paid by the lessor including any cash payment by the consumer and the sum equal to any allowance for any trade-in but excludes debt from any other transaction as well as any manufacturer to consumer discount, rebate, or incentive appearing in the agreement or contract that the consumer received or that was applied to reduce the purchase or lease cost. Additionally, any sales tax, license and registration fees, and similar government charges not included elsewhere paid by the lessor on behalf of the lessee are included as a part of lease price.

(l) "Purchase price" means the actual vehicle sales price listed on the buyer's order including any cash payment by the consumer and the sum equal to any allowance for any trade-in but excludes debt from any other transaction as well as any manufacturer to consumer discount, rebate, or incentive appearing in the agreement or contract that the consumer received or that was applied to reduce the purchase cost. Additionally, any sales tax, license and registration fees, and similar government charges not included elsewhere paid by the consumer are included as a part of purchase price.

History: 1986, Act 87, Eff. June 25, 1986 ;-- Am. 1998, Act 486, Imd. Eff. Jan. 4, 1999

PopularName Notes:

Lemon Law

Notes of Decisions

Cited in 19 cases (1 in the last 5 years), 1991–2025 · leading case: Comput. Network, Inc. v. AM Gen. Corp., 696 N.W.2d 49 (Mich. Ct. App. 2005).

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Comput. Network, Inc. v. AM Gen. Corp., 696 N.W.2d 49 (Mich. Ct. App. 2005). · cites it 6× “IX Plaintiff additionally challenges the trial court's dismissal of its "lemon law" claim, MCL 257.1401 et seq. MCL 257.1402 provides: If a new motor vehicle has any defect or condition that impairs the use or value of the new motor vehicle to the consumer or which prevents the…”

Abela v. Gen. Motors Corp., 669 N.W.2d 271 (Mich. Ct. App. 2003). · cites it 4× “§ 257.1401 et seq.; and Michigan's Consumer Protection Act (hereinafter MCPA), M.”

Abela v. Gen. Motors Corp., 677 N.W.2d 325 (Mich. 2004). “As the Court of Appeals correctly ruled in this case, the Michigan warranties on new motor vehicles act, the “lemon law,” MCL 257.1401 et seq., and the Michigan Consumer Protection Act, MCL 445.”

Gorman v. Am. Honda Motor Co., 839 N.W.2d 223 (Mich. Ct. App. 2013). “As in the present case, the plaintiff brought claims of breach of express and implied warranty, a claim for violation of the MCPA, a claim under the lemon law, MCL 257.1401 et seq., and a claim for breach of the duty of good faith.”

Hines v. Volkswagen of Am., Inc, 695 N.W.2d 84 (Mich. Ct. App. 2005). “(hereafter defendant), appeals as of right a judgment and award of attorney fees and costs in favor of plaintiff in this action involving a claim under the Michigan warranties on new motor vehicles act or “lemon law,” MCL 257.1401 et seq. 1 We reverse and remand for further…”

Loretta Gayle Galea v. Fca US LLC, 917 N.W.2d 694 (Mich. Ct. App. 2018). “, and that the vehicle manufacturer violated Michigan's new motor vehicle warranties act, MCL 257.1401 et seq . Finally, plaintiff asserted holder liability against the finance company, U.”

Davis v. Forest River, Inc, 748 N.W.2d 887 (Mich. Ct. App. 2008). · cites it 4× “Second, Michigan's "lemon law," MCL 257.1401 et seq., explicitly excludes RVs and motor homes.”

Henderson v. Chrysler Corp., 477 N.W.2d 505 (Mich. Ct. App. 1991). · cites it 2× “MCL 257.1401 et seq.; MSA 9.2705(1) et seq.”

Zine v. Chrysler Corp., 600 N.W.2d 384 (Mich. Ct. App. 1999). “Even if that question were to be resolved in plaintiffs’ *290 favor, the trial court would have to determine for each class member who had purchased a new vehicle whether the vehicle was bought primarily for personal, family, or household use, MCL 257.1401(a)(i); MSA…”

Kraft v. Detroit Ent., LLC, 683 N.W.2d 200 (Mich. Ct. App. 2004). “, preempts Michigan’s lemon law, MCL 257.1401 et seq., the plaintiffs’ lemon law claim should have been resolved through binding arbitration); Martinez v Ford Motor Co, 224 Mich App *544 247 ; 568 NW2d 396 (1997) (holding that the plaintiffs state common-law tort claims were…”

Golden v. Gorno Bros., Inc., 274 F. Supp. 2d 913 (E.D. Mich. 2003). · cites it 2× “Count IV: Michigan Consumer Protection Act Count VII: Michigan Lemon Law— MCLA § 257.1401 et seq. Count X: Breach of Contract Count XI: Breach of Warranties Count XIV: Repudiation Count XV: Revocation of Acceptance Count XVI: Michigan Motor Vehicle Finance Act — MCLA § 492.”

Pack v. Damon Corp., 320 F. Supp. 2d 545 (E.D. Mich. 2004). “§ 257.1401 et seq.; M.S.A. § 9.2705(1) et seq.”

Show all 19 citing cases →

— Mich. Comp. Laws § 257.1401(a)(i) — 1 case

— Mich. Comp. Laws § 257.1401(f) — 1 case

Davis v. Forest River, Inc, 748 N.W.2d 887 (Mich. Ct. App. 2008). “Second, Michigan's "lemon law," MCL 257.1401 et seq., explicitly excludes RVs and motor homes.”

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