Arkansas Lemon Law Guide

1 A Consumer s GuideTo TheArkansas Lemon LawThe Arkansas New Motor Vehicle QualityAssurance ActCompiled by theOffice of the Attorney General323 Center Street, Suite 200 Little Rock, Arkansas 72201(501) 682 20071-800-482-8982 SOA, CLC, GDC. This Guide represents the ConsumerProtection Division s interpretation of the Arkansas NewMotor Vehicle Quality Assurance Act (Act 297 of 1993).This Guide is just that, a Guide . If you have a questionor are uncertain about a particular aspect of this law,contact the Office of the Attorney General at the numberor address listed on the back of this This GuideWho Is Covered Under The Lemon Law? .. 4Is Your Vehicle A Lemon ? .. 5 Getting Your Vehicle Repaired .. 6 Who pays? .. 6 How long should the repair take?

2 7 Final repair attempt .. 7 Getting Your Refund Or Replacement .. 9 Replacement .. 9 Refund For Purchased Vehicles .. 9 Refund for Leased Vehicles .. 10 Enforcing Your Rights .. 11 What Amounts Can Be Awarded To You IfYou Win? .. 12 Can The Manufacturer Resell or Re-Lease a Lemon Vehicle? .. 12 Solving Problems with New Vehicles: AReview .. 13 Contact Record .. 14 Sample Letter to the Manufacturer .. 15 Further Help and Information .. 16 Who Is Covered Under The LemonLaw?Any consumer who buys, leases, or licenses anew motor vehicle in the State of Arkansas iscovered by the Lemon Law during the timeperiod described consumer is protected during the term ofthe manufacturer s warranty for up to two (2)years after the original delivery date of thevehicle OR for the first 24,000 miles, whicheveroccurs last.

3 If the vehicle is transferred tosomeone else during this period, that owner orperson leasing the vehicle is also coveredunder the Lemon : The Lemon Law does NOT coverthe living quarters of mobile homes. The LemonLaw does NOT cover vehicles over 10,000pounds gross vehicle weight rating. However,motor homes over 10,000 pounds gross vehicleweight rating are Your Vehicle A Lemon ?The law creates what is known in legalterminology as a presumption; the Lemon Lawpresumes that you are entitled to a refund orreplacement if the manufacturer or its dealerhas made a certain number of unsuccessfulattempts to repair nonconformities thatsubstantially impair the use, value or safetyof your vehicle (four or more repair attempts,or more than 30 days out of service).

4 However, there is an exception (or in legalterminology, the presumption is rebuttable). Ifthe manufacturer can prove that it has not hada reasonable opportunity to repair your car, youmay not be entitled to a refund or replacementvehicle. For example, if the manufacturer canprove that the number of repair attempts wasnot unreasonable because you did not followthe terms of the warranty, or some event (suchas a labor strike) prevented timely repairs, theLemon Law might not help you. In addition, ifyou abused the car or damaged it in anaccident, the Lemon Law might not defective vehicles may bereturned in an even shorter period of time. Ifthe problem involves a defect that is likely tocause death or serious bodily injury (such asbrake failure or a steering wheel that locks) theLemon Law may apply if the problem is notpromptly corrected after the second Your Vehicle RepairedIt is very important that you report any defector condition directly to the manufacturer or tothe dealer immediately.

5 It is also important thatyou keep all repair receipts and a completerecord of all contacts with the manufacturer have the right to receive a dated, detailedstatement each time the vehicle is returned forrepair. This statement should include anycharges for parts and labor, a generaldescription of the problem, the odometerreading at the time you brought the vehicle infor repair and also when you pick up the car,as well as a list of all work performed. It shouldalso state the date the vehicle was brought infor repair and the date you picked up thevehicle. Be sure you are given thesestatements (it s the law) and that you keep themon file. A chart is provided on page 14 of thisbooklet for your pays?

6 Most manufacturers warranties on purchasedvehicles cover repairs for at least the first yearfollowing the original delivery date or the first12,000 miles, whichever comes repairs are needed after your warranty hasended, you must pay for the repairs. Checkyour warranty booklet to find out the details ofyour particular coverage. If you are leasing avehicle, check your leasing contract to find outwho is responsible for repair costs to cure defects that occurred whileunder the warranty coverage should becovered by your warranty, or if later proven tobe a Lemon under the law may be this reason, remember to keep long should the repair take?The Lemon Law allows the manufacturer a reasonable number of attempts to repair orcorrect the defect.

7 A reasonable number means three (3) repair attempts for the samedefect or a total of 30 cumulative days out ofservice because of a series of defects orrepairs. Also, a reasonable number of attemptsto repair may consist of five (5) or moreattempts, on separate occasions, to repairvarying nonconformities that togethersubstantially impair the use and value of repair attemptBefore you can file a claim under the LemonLaw, you must give the manufacturer one finalchance to repair the defect. You must send aletter to the manufacturer (not the dealer) bycertified mail, return receipt requested, statingthat you may have a claim and that you aregiving the manufacturer one last chance torepair the defect.

8 A sample letter is shown inthe back of this letter should be mailed after the thirdunsuccessful repair attempt. Consult yourowner s manual for address a photocopy of the letter for your recordsand your certified mail receipt as proof thatthe letter was received by the receiving your letter, the manufacturer hasten (10) calendar days to schedule a final repairattempt. If the manufacturer does not timelyschedule this final attempt to repair, themanufacturer cannot later assert that it did nothave a reasonable opportunity to repair yourvehicle. When a final attempt to repair has notbeen scheduled timely, or if the defect is notrepaired within ten (10) days after thescheduled repair attempt, you have a right todemand a replacement vehicle or a refund.

9 Youmay make this demand directly to themanufacturer or by filing a claim with themanufacturer s informal dispute should be able to find the address to fileyour demand in the owner s manual or warrantypapers that came with your vehicle. If youcannot locate the information, contact theConsumer Protection division of the ArkansasOffice of Attorney must maintain a copy of your letter andthe return receipt verification before youcan file a claim under the Lemon Your Refund Or ReplacementReplacementThe manufacturer may offer to replace youroriginal vehicle; however, you do not have toaccept the offer. You may say NO and demanda you do accept a replacement vehicle, andthe original vehicle was financed by themanufacturer, its subsidiary or agent, themanufacturer must make sure that you are notrequired to enter into any refinancingagreement that would create any financialobligations upon you beyond those of theoriginal financing agreement.

10 It is still up to youto have the title and registration transferred toyour new For Purchased VehiclesIf you choose to receive a refund, you willreceive the full purchase price of your originalmotor vehicle, minus a reasonable allowancefor vehicle use .The full refund includes, but is not limited to: credits and allowances for any trade-invehicle costs of any options and othermodifications added by the manufactureror its authorized dealer costs of sales tax, license and registrationfees, and finance charges for renting a similar vehicle whilethe original vehicle was out of servicebecause of the defect expert fees and charges for extended warranty coverage sprovided by the manufacturer, itssubsidiary or agent.