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What About Arbitration?

Many auto manufacturers have established dispute resolution programs for customers with warranty problems. Some require you to use these programs before you go to court. Some do not. Read your warranty to see if the manufacturer has established a "dispute resolution" program and if you must use it before going to court. Ford and Chrysler operate their own programs. As of October 1, 1992, the following manufacturers participate in an arbitration program run by the Better Business Bureau: Acura, Audi, General Motors (all divisions), Honda, Infiniti, Isuzu, Nissan, Saab/Scania, Saturn, Sterling, and Volkswagen. If your warranty requires you to use the dispute resolution program, follow the instructions in the warranty to start the procedure. If your warranty does not require dispute resolution, decide if you want to try it.

Other North Carolina Lemon Law FAQs

  • Q: What Is The Lemon Law?
    A: The 1987 General Assembly enacted a lemon law to give better remedies to North Carolina consumers who buy or lease a new car that is a lemon. The lemon law (a) defines … More
  • Q: What Vehicles Are Covered Under The Lemon Law?
    A: The lemon law does not apply just to passenger cars. It covers any new motor vehicle other than a house trailer, provided that the vehicle does not have a gross … More
  • Q: When Is A Car A Lemon?
    A: A vehicle is a lemon if it is seriously defective and could not be repaired in a reasonable number of attempts. Seriously Defective A serious defect is any defect or … More
  • Q: What Remedies Are Available To The Consumer?
    A: If the manufacturer has not fixed the vehicle after a reasonable number of attempts, the purchaser or leasing consumer is entitled to choose a comparable, new … More
  • Q: What Steps Should I Take?
    A: When you buy your car, read your warranty and owner`s manual carefully. Follow all maintenance guidelines. When you notice a defect, take the vehicle to an authorized … More
  • Q: When Should I Consider Seeing An Attorney?
    A: If arbitration fails, or if you did not have to use arbitration and did not want to, you should consider seeing a private attorney. Many people are reluctant to do … More
  • Q: Where Can I Get More Information About The Lemon Law?
    A: North Carolina Department of Justice Consumer Protection Division P.O. Box 629 Raleigh, NC 27602­0629 919­733­7741 www.jus.state.nc.us/cpframe.htm North … More

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