Free Arkansas Lemon Law FAQs | Free Arkansas Lemon Law Legal Documents

Can The Manufacturer Resell Or Re-Lease A Lemon Vehicle?

Tue, 29 May 2007 21:19:00 GMT

Yes, but the dealer or leasing company must give the consumer who buys such a vehicle a written notice stating that the vehicle was returned to the manufacturer because of a nonconformity not cured within a reasonable time.

On occasion, vehicles are repurchased by the manufacturer before there is any action under the Lemon Law. The written notice is not necessarily given to consumers who purchase these types of buy back vehicles. So, if you are purchasing a used vehicle, ask if it was repurchased by the manufacturer because it was involved in a Lemon Law dispute.

Getting Your Vehicle Repaired

Tue, 29 May 2007 21:19:00 GMT

It is very important that you report any defect or condition directly to the manufacturer or to the dealer immediately. It is also important that you keep all repair receipts and a complete record of all contacts with the manufacturer and dealer.

You have the right to receive a dated, detailed statement each time the vehicle is returned for repair. This statement should include any charges for parts and labor, a general description of the problem, the odometer reading at the time you brought the vehicle in for repair and also when you pick up the car, as well as a list of all work performed. It should also state the date the vehicle was brought in for repair and the date you picked up the vehicle. Be sure you are given these statements (it`s the law) and that you keep them on file. A chart is provided below for your convenience.

How Can I Assert My Rights?

Tue, 29 May 2007 21:19:00 GMT

If the manufacturer does not accept your Lemon Law claim and will not refund your money or replace your vehicle, you must file for a hearing through the manufacturer`s informal dispute settlement program before you can use the Lemon Law in court, if the manufacturer provides notice to you that the program is available and if the program is certified by the Arkansas Attorney General.

You will not have to pay any fee to use the settlement program. Usually, you submit your complaint in writing to the program with copies for your records. Generally, your case must be decided within 40 days after the time your complaint is received. You may accept or reject the program`s decision. If you accept, the manufacturer must also accept and has 30 days to comply. There is no appeal process for the manufacturer.

If you do not agree with the program`s decision, you can reject it and go to court to assert your right to a replacement, refund or other relief. If you go to court, the judge may consider the program`s decision in deciding your case.

You are required to use the informal dispute program only if you want to use the Lemon Law`s standard of reasonable attempts to repair. You may have other causes of action or rights outside of the Lemon Law. It is a good idea to consult an attorney regarding these options.

If you win in the Manufacturer`s Informal Dispute Procedure or if your win in court, you can receive the following:

refund of vehicle purchase price or leasing costs, including sales tax
manufacturer or dealer installed accessories
finance charges (if any)
reasonable attorney`s fees
reasonable costs of a rental vehicle while your vehicle is out of service because of the defect

How Do I Get A Refund Or Replacement From The Manufacturer?

Tue, 29 May 2007 21:19:00 GMT

Replacement  The manufacturer may offer to replace your original vehicle; however, you do not have to accept the offer. You may say NO and demand a refund.

If you do accept a replacement vehicle, and the original vehicle was financed by the manufacturer, its subsidiary or agent, the manufacturer must make sure that you are not required to enter into any refinancing agreement that would create any financial obligations upon you beyond those of the original financing agreement. It is still up to you to have the title and registration transferred to your new vehicle.

Refund For Purchased Vehicles  If you choose to receive a refund, you will receive the full purchase price of your original motor vehicle, minus a reasonable allowance for vehicle use.

The full refund includes, but is not limited to:

credits and allowances for any tradein vehicle
costs of any options and other modifications added by the manufacturer or its authorized dealer
costs of sales tax, license and registration fees, and finance charges.
charges for renting a similar vehicle while the original vehicle was out of service because of the defect
expert fees and
charges for extended warranty coverage`s provided by the manufacturer, its subsidiary or agent.

The reasonable allowance for vehicle use equals the purchase price multiplied by the mileage at the time the vehicle was first brought to the dealer or manufacturer for repair of the defect divided by 120,000 miles. For example, the reasonable allowance for a $12,000 vehicle with 10,000 miles would be calculated as:

12,000 X 10,000 = 120,000,000
120,000,000/120,000 = 1,000

In this example, the reasonable allowance for vehicle use is $1,000. You may also be charged for any physical damage the vehicle has sustained.

Refund for Leased Vehicles  If your vehicle is leased, you can receive a full refund for any leasing fees less a reasonable allowance for vehicle use. Under the Lemon Law, your lease agreement ends when you return the vehicle. You cannot be charged any penalties for ending the lease early.

How Long Should The Repair Attempt Process Take?

Tue, 29 May 2007 21:19:00 GMT

The Lemon Law allows the manufacturer a reasonable number of attempts to repair or correct the defect. A reasonable number means three (3) repair attempts for the same defect or a total of 30 cumulative days out of service because of a series of defects or repairs. Also, a reasonable number of attempts to repair may consist of five (5) or more attempts, on separate occasions, to repair varying nonconformities that together substantially impair the use and value of your vehicle.

Final repair attempt. Before you can file a claim under the Lemon Law, you must give the manufacturer one final chance to repair the defect. You must send a letter to the manufacturer (not the dealer) by certified mail, return receipt requested, stating that you may have a claim and that you are giving the manufacturer one last chance to repair the defect.

This letter should be mailed after the third unsuccessful repair attempt. Consult your owner`s manual for address information. Keep a photocopy of the letter for your records and your certified mail receipt as proof that the letter was received by the manufacturer.

After receiving your letter, the manufacturer has ten (10) calendar days to schedule a final repair attempt. If the manufacturer does not schedule the final repair attempt timely, or if the defect is not repaired within ten (10) days after the scheduled repair attempt, or you have a right to demand a replacement vehicle or a refund.

You must maintain a copy of your letter and the return receipt verification before you can file a claim under the Lemon Law.

Under What Conditions Does The State Consider My Vehicle A Lemon?

Tue, 29 May 2007 21:19:00 GMT

The law creates what is known in legal terminology as a presumption; the Lemon Law presumes that you are entitled to a refund or replacement if the manufacturer or its dealer has made a certain number of unsuccessful attempts to repair nonconformities that substantially impair the use, value or safety of your vehicle (four or more repair attempts, or more than 30 days out of service).

However, there is an exception (or in legal terminology, the presumption is rebuttable). If the manufacturer can prove that it has not had a reasonable opportunity to repair your car, you may not be entitled to a refund or replacement vehicle. For example, if the manufacturer can prove that the number of repair attempts was not unreasonable because you did not follow the terms of the warranty, or some event (such as a labor strike) prevented timely repairs, the Lemon Law might not help you. In addition, if you abused the car or damaged it in an accident, the Lemon Law might nor apply.

Dangerously defective vehicles may be returned in an even shorter period of time. If the problem involves a defect that is likely to cause death or serious bodily injury (such as brake failure or a steering wheel that locks) the Lemon Law may apply if the problem is not promptly corrected after the second attempt.

What If My Problem Does Not Fit The Requirements Of My State's Lemon Law?

Tue, 29 May 2007 21:19:00 GMT

You still may be able to invoke the Lemon Law as long as you can justify that the number of repair attempts or days out of service you encountered were unreasonable.

You may also have other rights under other state and federal laws, such as the following: the federal MagnusonMoss Warranty Act, the Uniform Commercial Code (UCC), your service contract or extended warranty, secret warranties, implied warranties, express warranties, unfair and deceptive acts and practices (UDAP), or strict liability and negligence. Consult an attorney, the South Dakota Office of the Attorney General, or the Center for Auto Safety to determine which remedy would be best for your situation.

What Is The Law On Odometer Rollbacks?

Tue, 29 May 2007 21:19:00 GMT

It is illegal to tamper with an odometer. It is also illegal to sell or advertise any device for tampering with an odometer. Additionally, it is unlawful to operate a vehicle with a disconnected or nonfunctional odometer with the intent to defraud.

When a vehicle is sold, the seller must give the buyer a written odometer statement disclosing the following information: the vehicle`s true mileage at the time of transfer; the date of transfer; the buyer`s and seller`s names and addresses; the vehicle`s make, year, and body type; and the vehicle identification number. If the seller knows that the mileage has exceeded the mechanical limit of 99,999 miles, he or she must provide that information to the buyer.

Take Precautions

Know the reputation of the person or dealer who is selling the car.
Obtain the odometer mileage statement before completing the transaction.
Don`t fool yourself. A car that is ten years old will rarely have less than 100,000 miles on the odometer.

What Vehicles Are Covered Under The Lemon Law?

Tue, 29 May 2007 21:19:00 GMT

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 Interval and Coverage Period

Any selfpropelled vehicle licensed, purchased, or leased and primarily designed for the transportation of persons or property over the public streets and highways, but does not include mopeds, motorcycles, the living facilities of a motor home, or vehicles over 10,000 pounds GVW. The 10,000 pound limit does not apply to motor homes.

1 repair attempt for a defect that might cause death or serious injury or 3 repair attempts for the same defect or 5 repair attempts for separate problems, or 30 calendar days out of service.

2 years after the original delivery date of the vehicle or 24,000 miles, whichever occurs last.

Note:

Generally, the term Repair Attempts, as it relates to Lemon Law, refers to one or more attempts to fix the same defect although some states consider a vehicle to be a lemon if it required the specified number of repairs within the coverage period.

A car is out of service while being repaired or waiting for parts.

Warranty Period refers to the Manufacturer`s Express Warranty. Where the Coverage Period lists more than 1 option, the period applies to that option which occurs first.

This is only a summary, to get the complete Lemon Law Statute select your state from the combo box menu on the right side of this page, and click Get Statute.

Where Can I Get More Information?

Tue, 29 May 2007 21:19:00 GMT

If you have questions or want more information on your rights under the Arkansas New Motor Vehicle Quality Assurance Act (The Lemon Law), call or write:

Who Is Covered Under The Lemon Law?

Tue, 29 May 2007 21:19:00 GMT

Any consumer who buys or leases, and registers a new motor vehicle in the State of Arkansas is covered by the Lemon Law.

If the vehicle is transferred to someone else during this period, that owner or person leasing the vehicle is also covered under the Lemon Law.

Who Pays For The Repairs?

Tue, 29 May 2007 21:19:00 GMT

Most manufacturers` warranties on purchased vehicles cover repairs for at least the first year following the original delivery date or the first 12,000 miles, whichever comes first.

If repairs are needed after your warranty has ended, you must pay for the repairs. Check your warranty booklet to find out the details of your particular coverage. If you are leasing a vehicle, check your leasing contract to find out who is responsible for repair bills.

Repair costs to cure defects that occurred while under the warranty coverage should be covered by your warranty, or if later proven to be a lemon under the law may be reimbursed. For this reason, remember to keep your receipts.

Free Lemon Law Attorney FAQs

Sun, 29 Nov 2009 22:11:23 GMT

Free Lemon Law Attorney FAQs