Michigan § 445.1578 Liability for damage to new motor vehicles; rejection of new motor vehicle by dealer; credit.

Michigan Statutes

§ 445.1578 — Liability for damage to new motor vehicles; rejection of new motor vehicle by dealer; credit.

Michigan § 445.1578

Ch. 445TRADE AND COMMERCE

Act 118 of 1981MOTOR VEHICLE FRANCHISE ACT (445.1561-445.1583)

This text of Michigan § 445.1578 (Liability for damage to new motor vehicles; rejection of new motor vehicle by dealer; credit.) is published on Counsel Stack Legal Research, covering Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Mich. Comp. Laws § 445.1578 (2026).

Text

MOTOR VEHICLE FRANCHISE ACT (EXCERPT) Act 118 of 1981 445.1578 Liability for damage to new motor vehicles; rejection of new motor vehicle by dealer; credit. Sec. 18.

(1)Notwithstanding the terms, provisions, or conditions of any agreement, a new motor vehicle dealer is solely liable for damages to new motor vehicles after acceptance from the carrier and before delivery to the ultimate purchaser. Acceptance by the new motor vehicle dealer shall occur when the new motor vehicle dealer signs a delivery receipt for any motor vehicle.

(2)Notwithstanding the terms, provisions, or conditions of any agreement, the manufacturer or distributor is liable for all damages to motor vehicles before delivery to a carrier or transporter.

(3)The new motor vehicle dealer is liable for damages to new motor

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MOTOR VEHICLE FRANCHISE ACT (EXCERPT) Act 118 of 1981 445.1578 Liability for damage to new motor vehicles; rejection of new motor vehicle by dealer; credit. Sec. 18. (1) Notwithstanding the terms, provisions, or conditions of any agreement, a new motor vehicle dealer is solely liable for damages to new motor vehicles after acceptance from the carrier and before delivery to the ultimate purchaser. Acceptance by the new motor vehicle dealer shall occur when the new motor vehicle dealer signs a delivery receipt for any motor vehicle. (2) Notwithstanding the terms, provisions, or conditions of any agreement, the manufacturer or distributor is liable for all damages to motor vehicles before delivery to a carrier or transporter. (3) The new motor vehicle dealer is liable for damages to new motor vehicles after delivery to the carrier only if the dealer selects the method of transportation, mode of transportation, and the carrier. In all other instances, the manufacturer or distributor is liable for new motor vehicle damage. (4) If the new motor vehicle dealer rejects a new motor vehicle pursuant to this section, the manufacturer or distributor shall credit the dealer's account within 10 business days after receipt of the notice of rejection.