As far as M/M goes--yes, you're right of course. D/C has lots of lawyers. Lawyers are expensive. And for years, people have yelled, "You'll be hearing from my lawyer!", and never following through, because it's too much work--so the OEM laughs when they hear it. I'm not
quite so naive as to believe D/C will say, "Okay! We give! Please don't sue us!". Not quite.
Anyway. I'm not suggesting actually getting a lawyer and filing a civil claim--you'd lose more money than you made back, in all likelihood! No. Most states, if the suit is for under a few thousand dollars, you go through small claims court. Don't need a lawyer. The other guy can have one if he wants, in some places. No jury, either.
Again, I'm no lawyer, but I'd think if you explained something as clean cut as this to a judge, you'd come out okay. The law's pretty clear-cut. If we're talking engine mods, it's a little stickier. That's the kind of thing that needs expert testimony as to the history of the engine (lp failure rates, etc).
I hate this 'you touched it, it's not warranted anymore' stuff manufacturers try to pull. It's not legal. But no one actually wants to fight it.
I'd be really interested to see someone actually try it, though--see how D/C actually responds to a serious claim.
And in any case, negotiation (with a different dealer, if need be) should always come first. There's too many lawsuits in the country as it is.
--Ty