This is true in theory, but in practice, it's pretty difficult to get by on... One of my good friends tried to invoke this act when he had some transmission issues, and brought it to the dealer under warranty. He had a CAI installed on his ride, and while most of us know that the CAI couldn't be the cause of a faulty transmission, the dealership didn't care. They wouldn't fix the car under warranty, and when he tried to contact the manufacturer, all he got was a runaround. Now... if he ever pursued this matter legally (which he didn't), he would probably win. However, in the meantime, he would have to fix his car and pay out of pocket... and then file a claim with the manufacturer for reimbursement. If they refused (which they probably would), he could then take legal action to recover the expenses. Of course, that will cost him legal fees and such, in addition to proving that the modification did not cause the damage/failure... so in the end, the net result would likely be nill. If you have any serious concerns about the effects of a mod on your warranty, I suggest you don't do it. You *could* bring your car back to stock before bringing it in for a repair/service under warranty, but I won't get into the "moral" issues of that! :donno:
As for me, the issue of the warranty doesn't concern me greatly... I keep my modding on the light side... and while I'm a spirited driver, I don't run my car into the ground.