SolveYourProblem eLearning Series: Car Lemon Laws
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Fight Back if Your Car is a Lemon!
( 27 pages )

What the Magnuson-Moss Act Requires

When the Magnuson-Moss Warranty Act was passed, Congress specified a number of requirements that warrantors are obligated to meet. Congress also directed the FTC to adopt some rules that are designed to cover other requirements.

The FTC adopted three Rules under the Act, which are: the Rule on Disclosure of Written Consumer Product Warranty Terms and Conditions (the Disclosure Rule), the Rule on Pre-Sale Availability of Written Warranty Terms (the Pre-Sale Availability Rule), and the Rule on Informal Dispute Settlement Procedures (the Dispute Resolution Rule).

Not to mention, the FTC has issued an interpretive rule that helps to clarify certain terms and explains some of the provisions of the Act. This section is going to summarize all of the requirements under the Act and the Rules.

The Act and the Rules set up three basic requirements that may apply to you, either as a warrantor or a seller.

These rules are as follows:

1. As a warrantor, you must designate, or title, your written warranty as either full or limited in a clear way.

2. As a warrantor, you have to state certain specified information about the coverage of your warranty in a single, clear, and easy-to-read document.

3. As a warrantor, you must make sure that your warranties are available where your warranted consumer products are sold so that consumers can read them before buying your product.

The titling requirement, which is established by the Act, basically applies to all written warranties on products that cost more than $10. However, the disclosure and pre-sale availability requirements, which were established by FTC Rules, apply to ALL written warranties on products costing more than $15.

What the Magnuson-Moss Act Does Not Allow

There are three limitations under the Magnuson-Moss Act. These involve any implied warranties, which are often referred to as “tie-in sales” provisions, and deceptive or misleading warranty terms. Let’s look at these next.

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