Lemon Law Arbitration
State lemon laws will vary by state and will cover used, leased, and new cars used for non commercial purposes. The attempts at repair must have taken place within the period of the warranty. In some cases, the vehicle owner may have problems receiving compensation or a replacement of equal value. This will require the owner filing a motor vehicle lemon law dispute. When a dispute is filed, there will be a legal process called Lemon Law Arbitration.
After completing the specified number of repairs, you must send a letter and documentation to the manufacturer and dealer outlining the problem so that they have one more chance to correct the problem. If the situation is not resolved, you have the right to sue the manufacturer. This process will include arbitration. Lemon law arbitration is a right that can be enforced through an arbitration process overseen by the Department of Consumer Protection (DCP). When filing for arbitration, you must include: copy of the repair history, copy of the purchase invoice or lease agreement, proof of insurance, the completed Demand For Arbitration Form, copy of the manufacturer’s warranty, all repair receipts and work orders that includes the dates when the car was in for repair, and the copy of the vehicle’s registration.
As well, you must be able to show the vehicle has had the specified number of repair attempts mandated by your state during the first 18,000 miles or two years of service. The numbers can vary from state to state. You must also show that the vehicle has been out of service for a total of 30 days during the same period and the defect remains, and that the defect negatively impacts your ability to drive, decreases the value of the car, or will likely cause death or serious physical injury if the vehicle is driven. It is important to check your state’s lemon law statutes.
By law, manufacturers and dealers are required to provide compensation or a vehicle of equal value if a car is defective. Unfortunately, this does not always happen, therefore you have to make sure your rights are protected. If you purchase a vehicle that turns out to be a ‘lemon,’ you should consult with a Lemon Law Attorney. This is especially important if you have to file a demand for arbitration. Because the law can be confusing for the novice, an experienced attorney will defend your rights and make sure you receive the appropriate compensation