Warranty Denial

I've noticed a fair amount of discussion of warranty claims denial due to aftermarket parts such as chips, etc. I thought those of you who were not already aware might be interested to know that unless the non-stock part can be proved to have directly caused the failure this is illegal according to US Federal Law. An exerpt follows:

1.The Magnuson-Moss Warranty Act (15 U.S.C. 2302(C))

This federal law regulates warranties for the protection of consumers. The essence of this law concerning aftermarket auto parts is that a vehicle manufacturer may not condition a written or implied warranty on the consumers using parts or services which are identified by brand, trade, or corporate name (such as the vehicle makers brand) unless the parts or service are provided free of charge. The law means that the use of an aftermarket part alone is not cause for denying the warranty. However, the law's protection does not extend to aftermarket parts in situations where such parts actually caused the damage being claimed under the warranty. Further, consumers are advised to be aware of any specific terms or conditions stated in the warranty which may result in its being voided. The law states in relevant part:
"No warrantor of a consumer product may condition his written or implied warranty of such product on the consumers using, in connection with such product, any article or service (other than article or service provided without charge under the terms of the warranty) which is identified by brand, trade or corporate name...." (15 U.S.C. 2302(C))

Thanks for the reminder. Also, more info can be found here:

http://www.sema.org/fedleg/warranty/atta.html

If the chip in your ecu fails while the vehicle is under warranty, the ecu is replaced without charge, no?

VW is within their rights to deny warranty coverage to chipped vehicles.

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Mike

Mike, I understand what your saying.

This is not however the intent of the US Law and as such the courts will not accept this.

If the ECU was fried by improper installation of the chip, yes they could deny the claim. If your ECU died because of a faulty solder joint somewhere else in the unit VW would have to replace it.

If the higher than stock boost causes you to blow a head gasket they could deny the claim.

If you warped the front brake rotors they would have to replace them.

Bottom line: if the chip doesn't directly result in the failure they have to honor your claim.


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Gene K

I'm not sure that you have the burden of proof correct. Generally, the moving party has the burden of going forward unles there is something that shifts the burden. I believe that in a warranty claim that the burden of going forward would be on the person with the warranty claim who would have to prove by a preponderance of the evidence that:
1. there was a failure (you would think that this would be easy)
2. that there was a defect in materials or workmanship which caused the failure.

This second element is more problematic to prove. The manufacturer generally does a good job at figuring out what happened because it is in their best interest. And there is a threat of costs and attorney fees under most state statutes if the manufacturer is wrong.

If you and the manufacturer disagree about the cause of the failure then it is generally a battle of the experts in an arbitration proceeding. This is where the parties hire an arbitrator and their experts either write reports and the arbitrator reads them and makes the decision or they show up and tell the arbitrator what went wrong and why.

Sometimes the arbitrator can't tell what happened and, in those cases, the owner loses for failing to prove their case.