Michigan Compiled Laws

Mich. Comp. Laws § 257.401a (2026)

“Owner” defined.

✓ current as of July 2026
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MICHIGAN VEHICLE CODE


Act 300 of 1949


257.401a “Owner” defined.

Sec. 401a.

    As used in this chapter, "owner" does not include a person engaged in the business of leasing motor vehicles who is the lessor of a motor vehicle pursuant to a lease providing for the use of the motor vehicle by the lessee for a period that is greater than 30 days.

History: Add. 1988, Act 125, Imd. Eff. May 23, 1988

Notes of Decisions
Cited in 7 cases (1 in the last 5 years), 1994–2022 · leading case: Hill v. Gen. Motors Acceptance Corp., 525 N.W.2d 905 (Mich. Ct. App. 1994).
Hill v. Gen. Motors Acceptance Corp., 525 N.W.2d 905 (Mich. Ct. App. 1994). · cites it 4× “[MCL 257.401a; MSA 9.2101(1).] While § 401 still imposes liability on "owners" of negligently operated vehicles, paragraph 2 reinforces § 401a by exempting from liability lessors who meet the criteria set forth in § 401a.”
State Farm Mut. Auto. Ins. v. Enter. Leasing Co., 549 N.W.2d 345 (Mich. 1996). · cites it 2× “§ 257.401a; M.S.A. § 9.2101(1); whereas someone who leases a vehicle with exclusive use for more than thirty days is considered an owner.”
Ball v. Chrysler Corp., 570 N.W.2d 481 (Mich. Ct. App. 1997). · cites it 2× “[MCL 257.401a; MSA 9.2101(1) (emphasis added).”
Ford Motor Credit Co. v. City of Detroit, 658 N.W.2d 180 (Mich. Ct. App. 2003). · cites it 2× “” MCL 257.401a reads: As used in this chapter, “owner” does not include a person engaged in the business of leasing motor vehicles who is the lessor of a motor vehicle pursuant to a lease providing for the use of the motor vehicle by the lessee for a period that is greater than…”
Est. of Madison C Cooke v. Ford Motor Co (Mich. Ct. App. 2020). · cites it 6× “The trial court concluded that Ford Motor is not a lessor because Ford Motor is not “in the business of leasing motor vehicles” within the meaning of the lessor exemption in the owner’s liability statute, MCL 257.401a. Rather, the court noted, this activity was incidental to its…”
Est. of Sanan Altaye v. Sa&r Trucking Co. Inc (Mich. Ct. App. 2020). · cites it 2× “4 A & R Express’s argument that it is excluded from being considered an owner of the 2006 Freightliner under MCL 257.401a is unavailing. MCL 257.401a provides that “ ‘owner’ does not include a person engaged in the business of leasing motor vehicles who is the lessor of a motor…”
Tyrone Rodgers v. Champs Auto Sales Inc (Mich. Ct. App. 2022). “ffective on June 30, 2016 because Harris and Simmons, as the purchasers, signed the application for title on that date: Upon the delivery of a motor vehicle and the transfer, sale, or assignment of the title or interest in a motor vehicle by a person, including a dealer, the…”
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