Lemon Law for California

The arbitration process is a relatively simple way of resolving disputes in the lemon law. Both you and the manufacturer agree to allow a neutral third party (an arbitrator) to decide whether a reasonable number of repair attempts has been made and how to resolve the problem.

The arbitration process has some advantages compared to court trials.

• It is free and faster.
• Decisions are made within 40 days after the program receives your application.
• An arbitrator may request an inspection and written report on your vehicle’s condition by an independent expert at no cost to you.
• You have the option to present your case orally. The oral presentation is open to the public, so you can bring a family member or friend for support.
• You can accept or reject the decision. If you accept it, the manufacturer must also accept it.
• If you reject the decision, you can still pursue your rights in court. However, before you decide to sue, you should consider consulting with a lemon law attorney.

Possible decisions in the arbitration process are made on a case-by-case basis and may include:

• An additional repair attempt; or
• Vehicle replacement; or
• A refund of the purchase price; or
• Reimbursement for incidental expenses; or
• No award.

If you are dissatisfied with the arbitration decision you can reject it and either file a court action against the manufacturer or after an additional warranty repair attempt re-file your arbitration case.

Lemon law arbitration process is not that complicated compared to court trials, because a judge and a jury are not needed to decide on the matter. Individuals hearing the case have a legal background so they know what details to look at in making a decision. 

If you want arbitration, you need to complete the form, have copies of all the designated documents including the written request to the manufacture to get a refund or replacement, file for a request for arbitration within 1 to 2 years of the vehicle’s original delivery date and pay the filing fee. You will be sent an exlanation letter, in case your request for arbitration is denied.  If it is approved, the only thing to do now is show up on the date of the hearing. 

Arbitration does not need counsel but if you are not comfortable, then you can hire someone. The arbitrator will ask your  lemon law category, when the hearing begins. 

Your claim can be based on one or more defects that have to be backed up by the documents like repair work and maintenance reports. These papers will show the exact nature of the problem, the mileage of the vehicle, the dates which the vehicle was in and out of the shop.  

Within a matter of days, the panel should already be able to come up with a judgment. If they rule in your favor, then chances are you will be given the choice whether to get a replacement vehicle or get a refund.  

If the appeal is denied, this is the only time that you can bring this matter to the court. You will have to get a lawyer for this so he or she can brief you on how this is done. The end result is the same because if you win, you can get your money back or another car.

Customers deciding to withdraw the claim can do this only once because you are not allowed to re-file later on the same grounds. 

Lemon law has two kinds of arbitration. The first is the state sponsored while the second is a program set up by the manufacturer. You don’t have to go through the one organized by the manufacturer if it is not certified by the state so if the state sponsored one does not produce anything good, then it is time to settle this in court. 

“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.

What is considered a reasonable number of repair attempts will depend on the circumstances including the seriousness of the defect. For example, one or two repair attempts may be considered reasonable for serious safety defects such as brake failure, depending on the exact situation.
A special provision, often called the “Lemon Law,” helps determine what is a reasonable number of repair attempts for problems that substantially impair the use, value, or safety of the vehicle.
The “Lemon Law” presumption is a guide, not an absolute rule. A judge or arbitrator can assume that the manufacturer has had a reasonable number of chances to repair the vehicle if all of the conditions are met. The manufacturer, however, has the right to try to prove that it should have the chance to attempt additional repairs, and the consumer has the right to show that fewer repair attempts are reasonable under the circumstances.
Be sure to check your warranty and owner’s manual for instructions. You may be required to directly notify the manufacturer of the problem(s). It is a good idea to send your written notice to the manufacturer at the address shown in the warranty or owner’s manual by certified mail, return receipt requested so that you have proof that your letter was received. Keep a copy of all correspondence.
If the manufacturer maintains a state-certified arbitration program, the consumer must submit the warranty dispute to the arbitration program before the consumer can take advantage of the presumption in court. Arbitration is an alternative to court proceedings. The consumer may assert the presumption during arbitration. Information about any arbitration should be described in the warranty or owner’s manual.

Consumers bringing evidence and substantial documentation  to the arbitration hearing tend to do better than those with little evidence to support their claims. The types of documentation that can help include:

• ads abd brochures containing vehicle info (an arbitration panel is likely to make the manufacturer live up to its claims)

• records of vehicle service showing how often you took the car into the shop, and

• any other documents showing your attempts to get the dealer to repair your car, including old calendars and phone records.

It is important to take the arbitration seriously and be as prepared as possible. Although usually you can appeal a bad arbitration decision in court, the decision can greatly influence your case. For example, the manufacturer may be able to use the arbitration decision as evidence against you.

This whole process can take a long time. Most lemon laws allow you to keep using your car while pursuing a claim. But be careful: Never use your car if doing so poses a safety risk. Even if you can drive your car safely, some courts may view your case less favorably if they know that you were able to keep driving your car.

Alternative dispute resolution process that many automobile manufacturers make available to purchasers of their vehicles who may want to pursue their Lemon Law rights, is called “Arbitration”. To enforce the Lemon Law, a consumer shoul not use the manufacturer’s arbitration process. A consumer can choose to use a Lemon Law attorney.

An arbitration hearing does not always mean a “win” or “lose” outcome for the consumer.  As the “reasonable” solution to the problem(s), the arbitrator may “award” another repair attempt for the vehicle’s manufacturer, even though the consumer feels that they have provided the manufacturer or its dealership with more than enough repair attempts.  The arbitrator may reject the consumer’s claim, in case the arbitrator does not feel that the consumer’s problem is “substantial”. The arbitrator will often ask to test drive the consumer’s vehicle in an attempt to duplicate the consumer’s complaint. If the problem is of an intermittent nature this can result in a denial of the consumer’s claim. An arbitrator may order an additional repair attempt, typically infuriating the vehicle owner. The consumer should know that an arbitrator’s opinion or decision is not a binding determination of the consumer’s Lemon Law rights.

The consumer does not have to use the manufacturer’s arbitration process to enforce the Lemon Law.  It is important to know that while the arbitrator’s decision is admissible in any later court proceeding and may be used against the consumer by the automobile manufacturer.

Often the automobile manufacturer may make an offer to the consumer to “resolve” his/her Lemon Law claim. Such an offer by the manufacturer may not follow the requirements of the Lemon Law and may provide the consumer with substantially less than the Lemon Law would otherwise provide the consumer.

When you purchased or leased your new vehicle, it came with a warranty book or other printed pamphlet on what steps to take in resolving complaints you have with your vehicle. These “steps” are designed to “assist” the consumer in resolving their complaints.

Consumers should be aware, however, that these “steps” are often what the automobile manufacturer suggests, and not a full representation nor description of what consumer rights protection the California Lemon Law provides. These warranty books will also mislead the consumer with wording like “within 18 months or 18,000 miles”, suggesting a “lemon law” claim must be filed within this time frame.

NONSENSE. You have the entire warranty period (usually 3 years/36,000 miles or 4 years/50,000 miles) in which to institute a “lemon law” claim. Or “inform” that Arbitration is “the next step in the lemon law process” (it is not, California has no requirement for arbitration to pursue a lemon law claim). In certain situations a valid lemon law claim can be filed after the warranty has expired if the vehicle is still suffering from the same non-conformity.

Sometimes the “instructions” on “your responsibilities” were printed in these books before potential amendments to California’s Lemon Law were enacted.  Keep in mind that these warranty books are written by the automobile manufacturer to best serve the manufacturer.  They are not without important content, but a consumer should get a “balanced” view of their individual procedural requirements from a legal standpoint from an expert Lemon Law attorney.

“Arbitration” is an “alternative dispute resolution process” that many automobile manufacturers make available to purchasers of their vehicles who may want to pursue their Lemon Law rights. A consumer does not have to use the manufacturer’s arbitration process to enforce the Lemon Law. A consumer can choose to use a Lemon Law attorney.

An arbitration hearing is not necessarily a “win” or “lose” outcome for the consumer. The arbitrator may “award” another repair attempt for the vehicle’s manufacturer as the “reasonable” solution to the problem(s), even though the consumer feels that they have provided the manufacturer or its dealership with more than enough repair attempts. In addition, if the arbitrator does not feel that the consumer’s problem is “substantial,” the arbitrator may reject the consumer’s claim. Often times the arbitrator will ask to test drive the consumer’s vehicle in an attempt to duplicate the consumer’s complaint, however, if the problem is of an intermittent nature this can result in a denial of the consumer’s claim. A very common arbitrator’s decision is to order an additional repair attempt, typically infuriating the vehicle owner. The consumer needs to be aware that an arbitrator’s decision or opinion is not a binding determination of the consumer’s Lemon Law rights.

It is important for the consumer to know that a manufacturer’s arbitration process is VOLUNTARY in California. In other words, the consumer does not have to use the manufacturer’s arbitration process to enforce the Lemon Law. It is also important to be aware that while the arbitrator’s decision is not binding on the consumer, the decision is admissible in any later court proceeding and may be used against the consumer by the automobile manufacturer.

Often times in the course of the arbitration process, the automobile manufacturer may make an offer to the consumer to “resolve” his/her Lemon Law claim. However, such an offer by the manufacturer may not follow the requirements of the Lemon Law and may provide the consumer with substantially less than the Lemon Law would otherwise provide the consumer.

If you are considering, or have already applied for arbitration, you should consider calling our offices prior to any arbitration hearing taking place. In addition, if you have already completed the arbitration process and would like to know if you received or have been awarded your full Lemon Law entitlement, you should consider calling our office for a arbitration award review. 

For assisting with defective vehicle problems, most manufacturers have established guidelines. Mostrequire that anyone with a lemon law complaint must first of all submit to arbitration before filing a lawsuit in court. Arbitration consists of stating your case before an impartial panel of people who will listen to both sides of the case and determine an outcome based on the merits of the information provided. Arbitration panels tend to lean in favor of the manufacturer, while are supposed to be impartial. 

If you remain unsatisfied after arbitration you can then file suit in the courts. Consumers should buy cars only from reputable dealers and should read the warranty carefully and save all documentation related to the car and to any repair work for their records. If you have problems with your new car you should begin to keep the following records: a description of defects and details of contacts (including the date and name of the person with whom you spoke); a log of the amount of time the car was out of service and complete written records of routine service.