Montana Lemon Law: Your Complete Legal Guide
What Vehicles Are Covered
Under MCA 61-4-501, Montana's lemon law covers specific types of vehicles.
Covered Vehicle Types
- Passenger motor vehicles: Vehicles propelled by their own power
- Motor homes: The nonresidential portion only
- Vehicles designed for highway use: Must be designed primarily to transport persons or property on public highways
- Vehicles sold or registered in Montana: Must have Montana connection
Requirements for Coverage
- Must be used for personal, family, or household purposes
- Cannot have been brought into nonconformity by abuse, neglect, or unauthorized modifications
- Must be covered by manufacturer's express warranty
Vehicles Not Covered
- Trucks with 15,000 pounds or more gross vehicle weight rating
- Components, systems, fixtures, appliances, furnishings, accessories, and features designed for residential purposes (in motor homes)
- Off-road vehicles not designed for highway use
Montana's Lemon Law Presumption
Under MCA 61-4-504, Montana law creates a presumption that a reasonable number of repair attempts have been made when certain conditions are met.
The Lemon Law Presumption Applies When:
| Condition | Requirement | Details |
|---|---|---|
| Repair Attempts (Same Problem) | 4 or more attempts | Same nonconformity continues to exist during warranty period |
| Days Out of Service | 30 or more business days | Cumulative total during warranty period after notification |
| Warranty Period | 2 years or 18,000 miles | Whichever is earlier from date of original delivery |
Written Notice Requirement: Under MCA 61-4-502, consumers must provide written notice to the manufacturer or its agent during the warranty period. The manufacturer must clearly disclose this notice requirement in the warranty or owner's manual, including the name and address where notification must be sent.
Extension of Time: The warranty period is extended for periods when repair services are unavailable due to war, invasion, strike, fire, flood, or other natural disaster.
What Qualifies as a Substantial Nonconformity?
The defect or condition must "substantially impair the use and market value or safety" of the vehicle. Examples include:
- Engine or transmission failures
- Brake system malfunctions
- Steering defects affecting safety
- Electrical system problems
- Chronic starting or stalling issues
- Safety system failures
Consumer Remedies: Replacement vs. Refund
Under MCA 61-4-503, Montana's lemon law provides specific remedies when a vehicle cannot be conformed to warranty.
Primary Remedy: Replacement Vehicle
The manufacturer shall replace the vehicle with:
- A new motor vehicle of the same model and style
- A vehicle of equal value
- If the same model is unavailable, a comparable motor vehicle of similar market value
Alternative Remedy: Full Refund
As an alternative to replacement, the manufacturer may offer a refund including:
- Full purchase price: The total amount paid for the vehicle
- Collateral charges: Sales tax, property tax, license fees, registration fees, and fees in lieu of tax
- Incidental damages: As defined in UCC § 30-2-715
- Less usage deduction: Reasonable allowance for consumer's use
Usage Deduction Formula:
Usage Deduction = (Total Contract Price x Miles Driven Before Return) / 100,000
The deduction covers use before the manufacturer's acceptance of return.
Refund Distribution: Refunds must be paid to the consumer and to any lienholder, in proportion to their interests.
How to File a Lemon Law Claim in Montana
Filing a successful lemon law claim in Montana requires following specific procedures.
Step 1: Document Everything
- Keep all repair orders and invoices
- Record dates your vehicle was in the shop
- Document the symptoms experienced
- Save all correspondence with dealer and manufacturer
- Keep receipts for incidental expenses
Step 2: Provide Written Notice
Send written notice to the manufacturer during the warranty period at the address specified in the warranty or owner's manual. Include:
- Your contact information
- Vehicle information (VIN, make, model, year)
- Description of the nonconformity
- Repair history summary
Step 3: Allow Reasonable Repair Attempts
Give the manufacturer or its authorized dealer an opportunity to repair the vehicle. Track all repair attempts and days out of service carefully.
Step 4: Verify Presumption Requirements
Confirm that your situation meets one of the presumption thresholds (4+ repair attempts or 30+ business days out of service) within the warranty period.
Step 5: Pursue Remedy
If the manufacturer fails to provide relief, you may need to pursue legal action. Montana's lemon law does not specifically require arbitration, but some manufacturers may have dispute resolution programs.
Manufacturer Defenses
Under MCA 61-4-501, the definition of "consumer" excludes persons who brought the vehicle into nonconformity through certain conduct.
Recognized Defenses
| Defense | Description | Consumer's Response |
|---|---|---|
| Abuse | Nonconformity resulted from vehicle abuse | Document proper vehicle use |
| Neglect | Problem caused by failure to maintain vehicle | Provide maintenance records |
| Unauthorized modifications | Aftermarket alterations caused the defect | Show problem existed before modifications |
| No substantial impairment | Defect does not substantially impair use, value, or safety | Document impact on vehicle operation |
| Insufficient notice | Consumer did not provide required written notice | Keep copies of all written communications |
Used Vehicle Protections
Montana's lemon law primarily protects buyers of new vehicles during the warranty period.
Used Vehicles With Potential Coverage
- Transferred warranty rights: Persons who receive vehicles during the warranty period may have rights
- Remaining warranty coverage: If the vehicle is still within the 2-year/18,000-mile warranty period
Other Remedies for Used Vehicles
- UCC warranty claims
- Montana Consumer Protection Act claims
- Common law fraud claims
- Federal Magnuson-Moss Warranty Act claims
More Montana Laws
Sources and References
- Montana Lemon Law Statutes (MCA 61-4-501 to 61-4-507)(leg.mt.gov).gov
- Montana Department of Justice: Consumer Protection(dojmt.gov).gov
- Montana Motor Vehicle Division(doj.mt.gov).gov