Mar 19 2009
The Arbitration Process of Auto Lemon Laws
“Lemon law” requires vehicle manufacturers to either replace vehicles that are determined to be lemons with a new vehicle of comparable value or to refund the purchase price. The process for filing a claim under your state’s Lemon Law varies from state to state, but the process often results in a lawsuit, which can drag out the process for both parties.
Arbitration is an lawsuits alternative attempting to be fair to both parties in the dispute has been developed, this is known as. It is possible that arbitration is a required component of filing a lemon law claim. How does arbitration work?
An arbitration panel consists of several individuals who are familiar with the auto industry, but not tied to it or employed by it in any way. Most owner’s manuals of new cars will outline the process of applying for arbitration; if not, you may contact your state’s Attorney General’s office. Arbitration participation process is often free; some states charge a nominal fee to file for an arbitration hearing. It is usually not necessary to have an attorney for the procedure, but you may hire one if you wish. There are a lot of attorneys specializing in Lemon Law cases; if you feel uncomfortable handling your claim yourself you may wish to consult with one. The process usually requires notifying the manufacturer in writing of the dispute and that your state’s arbitration panel be notified. Each side in the dispute presents their case, either in writing or orally, and the arbitration panel usually comes to a decision within 60 days. The vehicle owner is usually not bound by the decision and remains free to sue should the panel rule in favor of the auto manufacturer.
Arbitration is a fster and simpler alternative to lawsuits involving auto Lemon Law claims. If you think your car is a lemon and you might need to file a claim under your state’s Lemon Law, you should first check with your state’s Website , or contact your state’s Attorney General’s office.