What Arbitration Programs Are Available To Me?

Manufacturer Sponsored Arbitration
Many manufacturers sponsor arbitration programs to hear and make decisions about consumer warranty problems. An owner with a defective vehicle must contact the manufacturer`s representative listed in the owner`s manual to try to solve the problem.

An owner may agree to resolve a problem through arbitration.
The arbitrator`s decision is binding on the manufacturer, but not the owner.
Owners may still pursue their Lemon Law rights through a lawsuit if not satisfied with an arbitration decision.

If the manufacturer sponsors an arbitration program, a buyer is not required to first participate in the program before a Lemon Law lawsuit can be filed in New Jersey. A buyer may also use the state arbitration program rather than the manufacturers.

State Arbitration
New Jersey has a state arbitration program run by the Division of Consumer Affairs. A buyer can submit a claim to the Division, and a hearing is then held. The Office of Administrative Law issues a decision, and the Director of the Division of Consumer Affairs then makes a final ruling. Once a final ruling is issued, the buyer cannot file a separate claim in Superior Court but the ruling itself can be appealed to the Appellate Division of the Superior Court.

Other New Jersey Lemon Law FAQs

Q: What Is The Lemon Law?
A: The Lemon Law applies to anyone who buys, leases or registers a new car or motorcycle in New Jersey. The intent of the law is to require the manufacturer of a new … More
Q: What Vehicles Are Covered Under The Lemon Law?
A: The following table summarizes what is covered, how many times the vehicle has to be repaired for the same defect and the warranty period. Vehicles Covered Repair … More
Q: What Are Covered Defects?
A: The Lemon Law applies to any defect, problem, or condition that substantially impairs a vehicles use, value, or safety. The Lemon Law does not apply to any defect or … More
Q: What Is The Covered Warranty Period?
A: The Lemon Law applies to problems or defects that are discovered within: Two years after delivery of the vehicle to the buyer; or The first 18,000 miles, whichever … More
Q: What Is Not Covered?
A: The Lemon Law does not cover vehicles registered for commercial use. The Lemon Law does not cover the living quarters of motor homes. The Lemon Law does not cover the … More
Q: How Long Should The Repair Take?
A: The Lemon Law allows the manufacturer a reasonable amount of time to repair or correct the defect. A reasonable amount of time means three repair attempts for the same … More
Q: Under What Conditions Do I Qualify For A Manufacturer Refund Or Replacement For My Lemon?
A: A buyer cannot get a refund or replacement of the vehicle unless the manufacturer has been unable to correct the problem within a reasonable time. The manufacturer is … More
Q: What Do I Have To Do In Order To File A Lemon Law Claim?
A: Before you can file a claim under the Lemon Law in the Division of Consumer Affairs, you must give the manufacturer one final chance to repair the defect. A letter to … More
Q: What Recourse Do I Have If The Manufacturer Rejects My Lemon Law Claim?
A: If the manufacturer does not accept your Lemon Law claim and will not refund your money or replace your vehicle, you have three choices. You may: ask for a hearing … More
Q: How Does The Arbitration Hearing Work?
A: The Lemon Law gives consumers the chance to have their cases heard before an administrative law judge in the Office of Administrative Law. You have the right to hire … More

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