The Montana lemon law covers most consumer vehicles, including cars, vans and light trucks. Exempted vehicles are those that exceed 10,000 pounds gross vehicle weight, the residential portion of motorhomes, non-motorized vehicles, and those vehicles that are designed exclusively for off road use. As with all auto lemon laws with which we are familiar, the statute also exempts any vehicle that has defects resulting from neglect, abuse, or unauthorized modification.

What qualifies a vehicle as a lemon in the state of Montana? The vehicle must:

• Have a defect that impairs the use, market value or the safety of the vehicle in question. Minor defects in appearance or performance are not covered.
• The defect must be covered by the vehicle’s warranty.
• The vehicle must have been subject to repair by the manufacturer or dealer four or more times during the warranty period for the same defect. Unlike many other states, Montana does not have a one-time repair solution for defects that are likely to cause death or injury, such as a steering or braking problem.
• Alternatively, the vehicle must have been out of service for a period of 30 or more cumulative days for repairs and the problem still exists.
• This defect must have been reported to the manufacturer during the first 18,000 miles or two calendar years from the purchase date of the vehicle.

Montana does not appear to have a used car lemon law. The state urges buyers of used cars to shop with caution.

An owner of a vehicle that qualifies as a lemon must contact the manufacturer. If the manufacturer is unwilling to provide either a refund or replacement as a remedy, the owner should contact the state. Previously, the lemon law was administered by the Montana Department of Administration; this is being transferred to the Attorney General’s department. Those with concerns should see the State of Montana’s Website for further details.

The state will recommend that you submit your dispute to a state-certified dispute resolution program. The state maintains an arbitration program where each side, or its representatives, states their case before an independent and impartial third party. This arbitrator will listen to both sides of the argument and rule in favor of one side or the other.

The statute states that it is expected that both parties will abide by the arbitrator’s decision “in good faith” but does not explicitly state that the decision is binding. Both sides do appear to have the option of addressing the issue further in court, should they be dissatisfied with the arbitrator’s ruling.

Should the arbitrator rule in favor of the vehicle owner, the owner shall be entitled to an identical replacement vehicle, if possible, or a similar, comparable replacement vehicle. At the owner’s request, the manufacturer may also refund the purchase price of the vehicle. That refund will be subject to an adjustment based upon the consumer’s prior use of the vehicle.

Vehicles returned to the manufacturer under the lemon law may not be resold in the state without a clear and conspicuous written disclosure of the fact that it was returned as defective.

Further information on the Montana lemon law is available from the Website of the State of Montana.

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