Buying a new car is not something most people do without thought; it generally requires a large investment of time and money. We choose our purchase carefully, and we hope that it will suit our needs, without too much trouble, for years to come. Sometimes, however, things don’t work out that way. Every now and again, some unlucky buyer will end up with a vehicle that has a problem that simply cannot be repaired. These problem vehicles are universally known as “lemons.’

Every state has a “lemon law”, which requires vehicle manufacturers to either replace vehicles that are determined to be lemons with a new vehicle of comparable value or to refund the purchase price. The process for filing a claim under your state’s Lemon Law varies from state to state, but the process often results in a lawsuit, which can drag out the process for both parties.

An alternative to lawsuits that attempts to be fair to both parties in the dispute has been developed, this is known as arbitration. In many states, perhaps yours, arbitration is a required component of filing a lemon law claim. How does arbitration work?

Most states have assembled an arbitration panel, which consists of several individuals who are familiar with the auto industry, but not tied to it or employed by it in any way. Most owner’s manuals of new cars will outline the process of applying for arbitration; if not, you may contact your state’s Attorney

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