Lemon Law

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Lemon Law And Arbitration

If you're like most people, you probably don't really recognize the difference between an arbitration and a court hearing.

What is Arbitration?

Arbitration is defined as "the process by which the parties to a dispute submit their differences to the judgment of an impartial person or group appointed by mutual consent or statutory provision."

So in regards to lemon law, an arbitration is when you, the car buyer, attempt to receive a refund or replacement vehicle by using an arbitration committee. Most states have companies that you can use specifically for such arbitrations. The judgement of the arbitration group is final.

Arbitration has several advantages over court hearings. As California Lemon Law observes, arbitration offers time and cost savings over court hearings. The final decision should be decided upon much faster with arbitration. Disadvantages of using arbitration in place of court hearings to decide your case include few options for appealing the decision.

California Lemon Law Arbitration

California was the first state to enact a law to protect customers in the event that they purchased a vehicle that turned out to be what is considered a "lemon". In the beginning, hearings over California lemon law cases were all handled in court. Later, arbitration became a common way to handle defects that resulted with cars still under their car service contract.

If your vehicle is still under its car warranty, and you've had to return it several times for put right work, your problem lies within the lemon law jurisdiction. Rather than schedule a court hearing that will cost you a lot of time and money, California Lemon Law required automobile manufacturers, beginning in 1986, to provide a means to settle claims.

In the vehicle's owner manual, if the Better Business Bureau Auto Line is listed as the arbitrator, as many California manufacturers do, you contact the manufacturer first with your car issues. You will then contact the Auto Line as defined by the owner's manual, request and complete a claim form. The BBB forwards the claim to the manufacturer, and the manufacturer is given opportunity to resolve the issue.

If you are happy with the resolution proposed, it's settled. If you are not satisfied, the Bureau begins the arbitration which means you get to explain the details to an arbitrator at the BBB offices. Bring all of your records of correspondence and put right work. The manufacturer has a chance to speak, and then a decision will be made concerning your claim. Arbitration decisions are normally made within 40 days of filing the claim for lemon law protection.

Arbitration decisions are binding to the manufacturer, but not to you- the customer. What does that mean exactly? If you are not satisfied with the results of the arbitration, than you can take the case into court. If the manufacturer is not happy with the arbitration results because they are required to replace your vehicle or issue a refund. They msy not take the case to court as they are bound to the arbitrators decision.

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We've got more about California Lemon Law Arbitration and the lemon laws in general at Lemon Law Advice Made Easy

The Lemon Law in Texas

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If you are experiencing repeated problems with your car after it has been brought in the shop and you purchased or leased this from a licensed Texas dealer or lease company, the Texas Lemon Law may be able to help you get it refund or have it replaced.

The Texas lemon law was first enacted in 1983. It is administered by the Texas Department of Transportation's Motor Vehicle Division and the Motor Vehicle Board.

Vehicles that are covered by the Texas lemon law include cars, trucks, motorcycles, motor homes and ATVs. It also covers new and demonstrator vehicles that develop problems covered by a manufacturer’s written warranty. If you happen to own a towable recreational vehicle, it must first be titled and registered in Texas to be eligible.

Your used vehicle may also be covered under the Lemon Law if it is still within the manufacturer’s original warranty and not an extended service contract or if the problem started while it was still under warranty and it continues to exist.

To know if the Texas lemon law is applicable, your vehicle must meet certain conditions. The vehicle must have an abnormal condition or serious defect, the defect is covered by the manufacturer’s warranty, the defect is reported to the dealer during the warranty term, you must give the manufacturer a letter stating the problem and ample time to repair the problem and the problem still persists after everything was done.

There is nothing in the lemon law that states the number of times that the customer has to wait before filing a complaint. For many, four times seems to be sufficient. This may happen two times to repair the same problem of defect within the first 12 months or 12,000 miles whichever comes first or twice more during the 12 months or 12,000 miles after the second repair was done without any improvement.

Some will tell you to undergo the serious safety hazard test where the vehicle in question was once brought into the shop during the first 12 months or 12,000 miles whichever comes first and once during the 12 months or 12,000 miles after the first repair attempt.

The Texas lemon law may also apply if the vehicle has been out of service for a total of 30 days or more during the first 24 months or 24,000 miles and there were at least two repair attempts during the first 12 months of 12,000 miles after this was delivered to you with no changes in the vehicle’s condition.

If you happen to experience one of these three scenarios, you must file your Lemon law complaint as soon as possible so the Motor Vehicle Board will be able to help you.

A hearing will be conducted and before going in, be sure to prepare all the necessary documents so you can prove your case in front of the Administrative law judge. You should present your own testimony since you are the owner of the vehicle, the testimony of witnesses, receipts, letters and other documents which are needed.

A decision with regards to your case will be made within 150 days after receiving the complaint and paying for the filing fee. If no decision is made during that period, you can make your argument in court as though the Lemon law process were complete.