Before lemon law arbitration, know what the carmaker wants
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Is the carmaker pushing you into its own arbitration program while your car keeps failing? Call with the repair orders in hand; the review costs nothing, and the fee is zero unless you win.
How lemon law arbitration works
- You file a short claim with the program named in your warranty booklet.
- Both sides send papers. The maker must answer "fully and promptly."
- The program decides within 40 days and explains why.
- If the maker must act, the program checks with you within 10 working days that it did.
These steps come from 16 CFR Part 703, the federal rule for warranty dispute programs. Decisions "shall not be legally binding on any person," so you can still sue.
State programs
Some states run their own boards. The table shows the program each state names.
| State | Program named by the state |
|---|---|
| Alaska | manufacturer programs must have the approval of the Attorney General |
| California | In some cases |
| Delaware | manufacturer's program certified by Division of Consumer Protection |
| Florida | Florida New Motor Vehicle Arbitration Board |
| Georgia | In some cases |
| Hawaii | In some cases |
| Idaho | manufacturer must offer arbitration program |
| Iowa | manufacturer’s certified program, if certified by the attorney general |
| Maine | In some cases |
| Maryland | manufacturer offers arbitration, optional for consumer |
| Minnesota | manufacturer must offer in-state arbitration program |
| Nebraska | informal dispute resolution process (arbitration) |
| New Hampshire | No |
| New York | Office of the New York State Attorney General arbitration program |
| North Dakota | manufacturer's program if compliant with FTC rules |
| Pennsylvania | manufacturer's dispute settlement program if one exists |
| South Carolina | manufacturer's informal dispute settlement procedure required first |
| Texas | Texas Department of Motor Vehicles hearing |
| Vermont | Motor Vehicle Arbitration Board |
| Washington | In some cases |
| Wisconsin | must use certified manufacturer arbitration before suing if available |
New in California
Under SB 26, signed on April 2, 2025, carmakers can choose a newer process, the old statutes, or a state-certified arbitration program, per the state consumer affairs page.
When to skip lemon law arbitration
A program will not pay your attorney. A court case under the federal law can make the maker pay "court costs and reasonable attorneys' fees," per the FTC. Call before you accept any arbitration offer. Not on you under the federal rule for carmaker programs. You can still go to court if you do not like the result. Arbitration is free and fast. A lawsuit can pay more and makes the maker pay your attorney when you win. Call before you file either. Sometimes. Some warranties and some states require the maker program before a lawsuit. Your attorney reads the warranty booklet for you.Questions owners ask
Is a lemon law arbitration decision binding?
Arbitration or a lawsuit?
Do I have to use arbitration first?
Statutes and data
What to do now
First, call with your repair orders in hand so the review starts with the facts. Every week you wait is another week of driving a car you cannot trust.
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