The Better Business Bureau Arbitration Process

California Lemon Law requires that automobile manufacturers provide customers with a way to settle differences over car claims. In your car owner’s manual, there will likely be contact information for an arbitrator. Most California manufacturers use the Better Business Bureau Auto line to settle claims.

When you contact the manufacturer, they will send you to the Better Business Bureau’s Auto Line. From there, you fill out a claim form and provide any documents that support your case. Your claim gets forwarded to the manufacturer, who then has to respond with how they plan to resolve the issue.

When you receive the response, you decide if it is satisfactory. If it is, then your arbitration goes no further, and you receive the benefits that were decided upon, thanks to the requirements of lemon law.

If you are unsatisfied with what the manufacturer proposes, then the Better Business Bureau will start the formal arbitration process. The arbitration through the Better Business Bureau Auto Line is free.

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When you are in arbitration, you will be given the opportunity to explain the details of your lemon law claim to an impartial judge in the Better Business Bureau offices. It is in your best interest to bring along any documents that might support your claims concerning routine maintenance, vehicle warranty sort out work, and correspondence with the manufacturer over your lemon law claim.

Within 40 days of your arbitration hearing, your case will be decided upon. If you are still unhappy with the results, you can take your case to formal court with a lemon law attorney. If the manufacturer is unhappy that they are required to replace your vehicle or refund your money- too bad for them as they are legally bound to the decision of the arbitrator!

Requirements to Qualify for Lemon Law Protection

While every state has it’s own specific list of requirements to meet in order to obtain protection under lemon law, the requirements are similar. California Lemon Law covers both new and used vehicles, as well as motor homes.

There must be a problem with the vehicle that exists within the first year, or within the first 12,000 of your automobile warranty period. You must have attempted to get it fixed by the manufacturer. The problem must be one that is not fixed within a sensible number of attempts, or one that would possibly cause danger or prevent you from using your vehicle to be covered under lemon law.

If these circumstances are met, than you probably can get a replacement vehicle or refund as provided by California Lemon Law. If your vehicle has been taken to the distribution outlet for the same problem four times, or your vehicle has been held at the dealership for a cumulative total of 30 days or more, you get a replacement vehicle or refund.

Additionally, in some other states, lemon law also provides for incidental fees related to the case to be payed for by the manufacturer/dealer.

So, What Is Lemon Law?

The automobile lemon law is designed to protect consumers from irreparable manufacturer’s problems in cars that should be covered by a car warranty.

Back in 1972, when consumer demand for lemon law protection started to swell, more than 1 million people were found to have paid for vehicles that had many defects that dealers could not, or fixnot, correct. Connecticut and California were the first states to take up an automobile lemon law, and other states were quick to follow.

Today, with the increased accountability demanded by lemon laws, that number has dropped to about 100,000 new cases a year.

What Protection Is Given By Lemon Law?

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Although every American state has an automobile lemon law, the specifics of each law vary widely. On the whole, you are a candidate for protection under the lemon law if you have a major problem (or, in some cases, a string of minor problems) that falls under your car guarantee. A problem is usually considered serious when it threatens the use, value, or safety of the vehicle. Examples of major problems that would probably be covered under lemon law include brake failure, transmission problems, and frequent situations where the automobile won’t start. The lemon law in most states will not cover situations like funny noises, loose cup holders, and flaking paint.

The type of vehicle is also important when it comes to protection under the lemon law. In some states, leased vehicles are covered as well as purchased vehicles. Some states exclude automobiles purchased for business purposes or special kinds of vehicles such as RVs and motorcycles. Even used vehicles may be covered by the lemon law, if they come with a car guarantee.

Some unscrupulous automotive dealers write a clause in the sales contract that states that no lemon law claims can be made against the vehicle. These provisions, however, are not legally valid and can be ignored. As long as your vehicle has a car service contract and qualifies under the other automobile lemon law provisions, you will be covered no matter what you signed.

Before the automobile lemon law applies, you must give the manufacturer sufficient opportunity to correct the problem. In most cases, this is defined as a precise number of repair attempts (for example, four attempts to repair the same problem) or a certain amount of time when the vehicle is off the road (for example, four weeks). A life-threatening vehicular defect may require only one attempt at repair before falling under the lemon law.

What Should I Do If I Qualify for the Automobile Lemon Law?

If you believe that you qualify for protection under the lemon law, you must make a claim with the manufacturer within a certain period of time. In most states, the case will then be brought for arbitration with the manufacturer. If you win your automobile lemon law case, you will usually receive a replacement vehicle or a refund of your purchase price minus a fee for vehicle use.

The Texas lemon law was put into effect by the Texas legislature in 1983.

The Texas Department of Transportation’s Motor Vehicle Division and its Motor Vehicle Board administer it. The Texas lemon law is an automobile law that helps customers who buy or lease new vehicles and have frequent problems getting their vehicles properly repaired, repurchased, or replaced.

The lemon law applies to cars, trucks, SUVs, vans, motorcycles, motor homes, all-terrain vehicles and tow-able recreational vehicles. It does not apply to used, program cars, or repossessed vehicles.

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The Texas lemon law does not cover any problems caused by the owner’s disregard, abuse or unauthorized changes to the vehicle. The automobile lemon law also does not cover any problems that do not have a considerable effect on the use or market value of the vehicle.

So, how do you know if your car is a lemon? Your vehicle may be a lemon if you purchased or leased a new vehicle from a licensed dealer in Texas. Additionally your car must have a severe defect covered by the manufacturer’s guarantee. You must report the defect within a reasonable timeframe, or before the warranty expires. You must give the dealer or manufacturer a reasonable time to fix the defect (usually four attempts to fix the defect with no result warrants further action). You must send the manufacturer of the vehicle written notification about the defect. The defect must be one that continues to impair the vehicle’s use, value, or safety. And, finally, you must make a lemon law complaint and pay any filing fees.

The first thing to do if you believe your vehicle falls under the Texas lemon law is to take it to the distribution outlet where you purchased it. If they cannot repair the defect after a fair amount of time, you should send a letter of notification to the manufacturer.

Simply let the manufacturer know about the defect and offer them a chance to fix your vehicle before filing an automobile lemon law complaint. Make sure you keep a copy of your letter and any response, including fix invoices.

If you decide to file an automobile lemon law complaint, you will need to send all of these documents to your lawyer, or if filing yourself, to the Texas Department of Transportation. If you wish to file a complaint, you must send the written complaint to the Department of Transportation along with a filing fee.

You will be reimbursed for the fee if you win your case at the Texas lemon law hearing. If you only want your vehicle repaired, there is no filing fee involved.

The Texas Department of Transportation then contacts the dealer and manufacturer about your complaint. The manufacturer will then send a qualified individual to your original dealership to see about solving the problem, if possible.

If your vehicle is still not repaired, the Texas Department of Transportation will send an expert to the dealership to try and resolve the problem. If this does not resolve the problem, an automobile lemon law hearing will be necessary.

Most states have an automobile lemon law in place to protect car buyers. These also insure that car manufacturers work to help purchasers if certain problems repeatedly occur during the car service contract period.

A lemon law will not guarantee that you will not face the inconvenience of dealing with a lemon. But it does protect your investment if you do purchase a car that is classified by your state’s law as a lemon.

If you are having difficulty with your car while still under guarantee, you should research the law in your particular state. Determine whether the problems that you are having might warrant protection under the state law. The lemon law will both describe the obligations of the car manufacturer and help you decide whether or not your vehicle truly is a lemon.

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Again, this varies from state to state. So, it is important to research the information for the applicable state. A law that applies to one state may or may not be similar to the laws of another state.

For example, repeated defects with items covered under the car guarantee may not necessarily constitute that car being a lemon under the your state’s law. While the manufacturer will still be obliged to attempt to fix the items covered under the car service contract, the lemon law of your state that might guarantee you a replacement or refund may not apply.

The law may only apply to certain car guarantee items. In some states, it applies only when a dangerous condition exists. And it only applies then after it cannot be repaired in a reasonable effort. Other states may be more favorable to the buyer. In those states, the law may apply to car service contract items that do not necessarily create a dangerous driving condition.

A lemon’s legal definition varies from state to state depending on the specific law. Many car buyers make the incorrect assumption that just because they are unhappy with their car that they are protected under the lemon law. But this isn’t always true.

The lemon law may require that the manufacturer try unsuccessfully to correct a particular problem multiple times before the car is officially declared a lemon.
Some states require only one failed repair attempt for severe issues, such as a faulty braking system. However, most states require that the manufacturer attempt to repair less grave problems two to four times before the car is declared a lemon under the lemon law.

Also, problems that result from improper maintenance or mistreatment will not be covered under the car service contract or under the automobile lemon law.
You, as the car owner, should take care to uphold your obligations under the guarantee. For instance, the vehicle must be serviced at specified intervals. Failure to do so, or to retain documents proving the service, could result in you being held responsible for the car’s defects. If you are found at fault, it is likely that you will not be protected by either the car guarantee or the lemon law.

Buying a car is a major investment, second only to buying a home. Before the emergence of the California Lemon Law, consumers felt they had little to no options for recourse if the car they purchased turned out to be a lemon.

A “lemon” is a vehicle that requires extensive repairs before the car guarantee period ends, or one that has major problems that could cause injuries or death if they’re not fixed. Car dealers try to pass these “lemons” off as safe, reliable vehicles, and don’t disclose the issues that could occur when driving the vehicle.

These “bad” dealers hope the issues won’t appear until after the car service contract period expires. This causes a multitude of safety concerns that the driver isn’t even aware of. California lemon law protects you by offering protection without your having to enter into costly court battles, during and after the car warranty period.

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The original version, enacted in 1970, allowed for consumers to receive a new car or a refund if the car they purchased could not be fixed after a sensible number of attempts. The trouble with this first version of the Lemon Law was that customers and car dealers differed on the number of automobile warranty repairs they considered “reasonable”. Would you think taking your newly purchased car in for repairs 30 times within the car warranty period a reasonable number? Of course not, but unfortunately, many car dealers felt that was reasonable.

The most recent protections to customers provided under the Lemon Law allow consumers to obtain a refund or replacement vehicle if the vehicle needs repairs within the car guarantee period of 18 months or 18,000 miles. Also, if a new car is purchased that has mechanical defects that could cause injuries or death, Lemon Law automatically guarantees a refund or replacement vehicle if the car has not been successfully repaired in two attempts or less.

Lemon law helps give you peace of mind when making such a large investment, both financially and in regards to safety.

As Lemon Laws became more strict between the years 1996 and 2001, California consumers who purchased vehicles considered to be “lemons” received close to one billion dollars in relief under the the law. Furthermore, customers of California have a program that works side by side with the Lemon Law.

Do you suspect your newly bought vehicle is a lemon? Before rushing into a costly court battle, start with the California Arbitration Certification Program. If the manufacturer where you purchased the vehicle participates in the program, you can save time and expense by entering arbitration under the Lemon Law. The California Arbitration Certification Program helps customers like you receive fast and fair results.

California lemon law has become so successful and beneficial to customers that it is now the model for other states to create their own versions. In fact, in 1989 the Minnesota Attorney General wrote, “State new car lemon laws are the single most important advance in consumer protection in the last decade”.