Minnesota lemon laws are stated in Minnesota Annotated Statutes, Chapter 325F-Consumer Protection; Products and Sales (Purchase of New Motor Vehicles). According to Section 325F.665 nonconformity to manufacturer’s express warranties that substantially affects use or market value of the vehicle will make the manufacturer liable to the buyer. The period within which the buyer should notify the nonconformity, and the manufacturer should repair the vehicle is either the term specified in the express warranty or two years of vehicle’s operation from the date of delivery, whichever happens earlier.
If the manufacturer is not able to repair the motor vehicle, the manufacture will have to replace the vehicle with a new comparable vehicle or repurchase and refund the price of the vehicle. When refunding, the manufacturer should pay the full purchase price which includes any modification cost on the vehicle done within 30 days of delivery, and all charges relating to a vehicle trade. Additionally, when making refund the manufacturer can deduct an amount attributable to the use of vehicle by the buyer before discovering the nonconformity. The amount deductible by the manufacturer should not be more than ten percent per miles operated by the vehicle or ten percent of the purchase price, whichever is lesser.
Minn. Stat. § 325F.665 reads in part:
“Subd. 2. Manufacturer’s duty to repair.
If a new motor vehicle does not conform to all applicable express warranties, and the consumer reports the nonconformity to the manufacturer, its agent, or its authorized dealer during the term of the applicable express warranties or during the period of two years following the date of original delivery of the new motor vehicle to a consumer, whichever is the earlier date, the manufacturer, its agent, or its authorized dealer shall make the repairs necessary to conform the vehicle to the applicable express warranties, notwithstanding the fact that the repairs are made after the expiration of the warranty term or the two-year period.
Subd. 3. Manufacturer’s duty to refund or replace.
(a) If the manufacturer, its agents, or its authorized dealers are unable to conform the new motor vehicle to any applicable express warranty by repairing or correcting any defect or condition which substantially impairs the use or market value of the motor vehicle to the consumer after a reasonable number of attempts, the manufacturer shall either replace the new motor vehicle with a comparable motor vehicle or accept return of the vehicle from the consumer and refund to the consumer the full purchase price, including the cost of any options or other modifications arranged, installed, or made by the manufacturer, its agent, or its authorized dealer within 30 days after the date of original delivery, and all other charges including, but not limited to, sales or excise tax, license fees and registration fees, reimbursement for towing and rental vehicle expenses incurred by the consumer as a result of the vehicle being out of service for warranty repair, less a reasonable allowance for the consumer’s use of the vehicle not exceeding ten cents per mile driven or ten percent of the purchase price, whichever is less. If the manufacturer offers a replacement vehicle under this section, the consumer has the option of rejecting the replacement vehicle and requiring the manufacturer to provide a refund….”