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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.

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