Arkansas
Lemon Law Summary
Vehicles Covered
Vehicle purchased or leased for transportation of persons or property, excluding living facilities of a mobile home or vehicles over 10,000 lbs.-but including motor homes. Excludes motorcycles and mopeds.
Repair Attempts
/ Day Out Of Service
1 repair attempt for a defect that may cause death or serious injury or 3 repair attempts, 30 calendar days out of service, or 5 repair attempts on separate occasions to repair any non conformities that together impair the use and value of the vehicle
Period
Of Coverage
2 years or 24,000 miles, whichever occurs last
Arkansas
Lemon Law
4-90-401. Title. This subchapter shall be known and may be cited as the
"Arkansas New Motor Vehicle Quality Assurance Act".
History. Acts 1993, No. 285, § 1; 1993, No. 297, § 1.
§ 4-90-402. Legislative determinations and intent. The Arkansas
General Assembly recognizes that a motor vehicle is a major consumer acquisition
and that a defective motor vehicle undoubtedly creates a hardship for the
consumer. The Arkansas General Assembly further recognizes that a duly
franchised motor vehicle dealer is an authorized service agent of the
manufacturer. It is the intent of the Arkansas General Assembly that a good
faith motor vehicle warranty complaint by a consumer be resolved by the
manufacturer within a specified period of time. It is further the intent of the
Arkansas General Assembly to provide the statutory procedures whereby a consumer
may receive a replacement motor vehicle, or a full refund, for a motor vehicle
which cannot be brought into conformity with the warranty provided for in this
subchapter. However, nothing in this subchapter shall in any way limit the
rights or remedies which are otherwise available to a consumer under any other
law.
History. Acts 1993, No. 285, § 2; 1993, No. 297, § 2.
§ 4-90-403. Definitions. As used in this subchapter, unless the
context otherwise requires:
(1) "Calendar day" means any day of the week other than a legal holiday;
(2) "Collateral charges" means those additional charges to a consumer wholly
incurred as a result of the acquisition of the motor vehicle. For the purposes
of this subchapter, collateral charges include, but are not limited to,
manufacturer-installed or agent-installed items, earned finance charges, sales
taxes, title charges, and charges for extended warranties provided by the
manufacturer, its subsidiary, or agent;
(3) "Condition" means a general problem that may be attributable to a defect
in more than one (1) part;
(4) "Consumer" means the purchaser or lessee, other than for the purposes of
lease or resale, of a new or previously untitled motor vehicle, or any other
person entitled by the terms of the warranty to enforce the obligations of the
warranty during the duration of the motor vehicle quality assurance period,
provided the purchaser has titled and registered the motor vehicle as prescribed
by law;
(5) "Incidental charges" means those reasonable costs incurred by the
consumer, including, but not limited to, towing charges and the costs of
obtaining alternative transportation which are directly caused by the
nonconformity or nonconformities which are the subject of the claim, but shall
not include loss of use, loss of income, or personal injury claims;
(6)"Lease price" means the aggregate of:
(A) The lessor's actual purchase costs; (B) Collateral charges, if
applicable; (C) Any fee paid to another person to obtain the lease; (D)
Any insurance or other costs expended by the lessor for the benefit of the
lease; (E) An amount equal to state and local sales taxes, not otherwise
included as collateral charges, paid by the lessor when the vehicle was
initially purchased; and (F) An amount equal to five percent (5%) of the
lessor's actual purchase price;
(7) "Lessee" means any consumer who leases a motor vehicle for one (1) year
or more pursuant to a written lease agreement which provides that the lessee is
responsible for repairs to such motor vehicle;
(8) "Lessee cost" means the aggregate deposit and rental payments previously
paid to the lessor for the leased vehicle;
(9) "Lessor" means a person who holds title to a motor vehicle leased to a
lessee under the written lease agreement or who holds the lessor's rights under
such agreement;
(10) "Manufacturer" means:
(A) Any person who is engaged in the business of constructing or assembling
new motor vehicles or installing, on previously assembled vehicle chassis,
special bodies or equipment which, when installed, form an integral part of the
new motor vehicle; or (B) In the case of motor vehicles not manufactured in
the United States, any person who is engaged in the business of importing new
motor vehicles into the United States for the purpose of selling or distributing
new motor vehicles to new motor vehicle dealers;
(11) "Motor vehicle" or "vehicle" means any self-propelled vehicle licensed,
purchased, or leased in this state and primarily designed for the transportation
of persons or property over the public streets and highways, but does not
include mopeds, motorcycles, the living facilities of a motor home, or vehicles
over ten thousand pounds (10,000 lbs.) gross vehicle weight rating. For purposes
of this definition, the limit of ten thousand pounds (10,000 lbs.) gross vehicle
weight rating does not apply to motor homes;
(12) "Motor vehicle quality assurance period" means a period of time that:
(A) Begins:
(i) On the date of original delivery of a motor vehicle; or (ii) In the
case of a replacement vehicle provided by a manufacturer to a consumer under
this subchapter, on the date of delivery of the replacement vehicle to the
consumer; and
(B) Ends twenty-four (24) months after the date of the original delivery of
the motor vehicle to a consumer, or the first twenty-four thousand (24,000)
miles of operation attributable to the consumer, whichever is later;
(13) "Nonconformity" means any specific or generic defect or condition or any
concurrent combination of defects or conditions that:
(A) Substantially impairs the use, market value, or safety of a motor
vehicle; or (B) Renders the motor vehicle nonconforming to the terms of an
applicable manufacturer's express warranty or implied warranty of
merchantability;
(14) "Person" means any natural person, partnership, firm, corporation,
association, joint venture, trust, or other legal entity;
(15) "Purchase price" means the cash price paid for the motor vehicle
appearing in the sales agreement or contract, including any net allowance for a
trade-in vehicle;
(16) "Replacement motor vehicle" means a motor vehicle which is identical or
reasonably equivalent to the motor vehicle to be replaced, as the motor vehicle
replaced existed at the time of the original acquisition; and
(17) "Warranty" means any written warranty issued by the manufacturer, or any
affirmation of fact or promise made by the manufacturer, excluding statements
made by the dealer, in connection with the sale or lease of a motor vehicle to a
consumer which relates to the nature of the material or workmanship and affirms
or promises that such material or workmanship is free of defects or will meet a
specified level of performance.
History. Acts 1993, No. 285, § 3; 1993, No. 297, § 3; 1995, No. 302, § 1.
§ 4-90-404. Notice by consumer - Disclosure by manufacturer, agent, or
dealer.
(a)
(1) A consumer must notify the manufacturer of a claim under this subchapter
if the manufacturer has made the disclosure required by subsection (b) of this
section.
(2) However, if the manufacturer has not made the required disclosure, the
consumer is not required to notify the manufacturer of a claim under this
subchapter.
(b)
(1) At the time of the consumer's purchase or lease of the vehicle, the
manufacturer, its agent, or an authorized dealer shall provide to the consumer a
written statement that explains the consumer's rights and obligations under this
subchapter.
(2) The written statement shall be prepared by the Consumer Protection
Division of the Office of the Attorney General and shall include the telephone
number of the Consumer Protection Division that the consumer can contact to
obtain information regarding his or her rights and obligations under this
subchapter.
(3) For each failure of the manufacturer, its agent, or an authorized dealer
to provide to a consumer the written statement required under this section, the
manufacturer shall be liable to the State of Arkansas for a civil penalty of not
less than twenty-five dollars ($25.00) nor more than one thousand dollars
($1,000).
(c)
(1) The manufacturer shall clearly and conspicuously disclose to the
consumer, in the warranty or owner's manual, that written notice of the
nonconformity is required before the buyer may be eligible for a refund or
replacement of the vehicle.
(2) The manufacturer shall provide the consumer with conspicuous notice of
the address and phone number for its zone, district, or regional office for this
state at the time of vehicle acquisition, to which the buyer must send
notification.
History. Acts 1993, No. 285, § 5; 1993, No. 297, § 5; 1995, No. 302, § 2.
§ 4-90-405. Required warranty repairs. If a motor vehicle does not
conform to the warranty and the consumer reports the nonconformity to the
manufacturer, its agent, or authorized dealer during the motor vehicle quality
assurance period, the manufacturer, its agent, or authorized dealer shall make
such repairs as are necessary to correct the nonconformity, even if the repairs
are made after the expiration of the term of protection.
History. Acts 1993, No. 285, § 4; 1993, No. 297, § 4.
§ 4-90-406. Failure to make required repairs.
(a)
(1) After three (3) attempts have been made to repair the same nonconformity
that substantially impairs the motor vehicle, or after one (1) attempt to repair
a nonconformity that is likely to cause death or serious bodily injury, the
consumer shall give written notification, by certified or registered mail, to
the manufacturer of the need to repair the nonconformity in order to allow the
manufacturer a final attempt to cure the nonconformity.
(2) The manufacturer shall, within ten (10) days after receipt of the
notification, notify and provide the consumer with the opportunity to have the
vehicle repaired at a reasonably accessible repair facility, and, after delivery
of the vehicle to the designated repair facility by the consumer, the
manufacturer shall, within ten (10) days, conform the motor vehicle to the
warranty.
(3) If the manufacturer fails to notify and provide the consumer with the
opportunity to have the vehicle repaired at a reasonably accessible repair
facility or fails to perform the repairs within the time periods prescribed in
this subsection, the requirement that the manufacturer be given a final attempt
to cure the nonconformity does not apply and a nonrebuttable presumption of a
reasonable number of attempts to repair arises.
(b)
(1)
(A) If the manufacturer, its agent, or authorized dealer has not conformed
the motor vehicle to the warranty by repairing or correcting one (1) or more
nonconformities that substantially impair the motor vehicle after a reasonable
number of attempts, the manufacturer, within forty (40) days, shall:
(i) At the time of its receipt of payment of a reasonable offset for use by
the consumer, replace the motor vehicle with a replacement motor vehicle
acceptable to the consumer; or
(ii) Repurchase the motor vehicle from the consumer or lessor and refund to
the consumer or lessor the full purchase price or lease price, less a reasonable
offset for use and less a reasonable offset for physical damage sustained to the
vehicle while under the ownership of the consumer.
(B) The replacement or refund shall include payment of all collateral and
reasonably incurred incidental charges.
(2)
(A) The consumer shall have an unconditional right to choose a refund rather
than a replacement.
(B) At the time of such refund or replacement, the consumer, lienholder, or
lessor shall furnish to the manufacturer clear title to and possession of the
motor vehicle.
(3) The amount of reasonable offset for use by the consumer shall be
determined by multiplying the actual price of the new motor vehicle paid or
payable by the consumer, including any charges for transportation and
manufacturer-installed or agent-installed options, by a fraction having as its
denominator one hundred twenty thousand (120,000) and having as its numerator
the number of miles traveled by the new motor vehicle prior to the time the
buyer first delivered the vehicle to the manufacturer, its agent, or authorized
dealer for correction of the problem that gave rise to the nonconformity.
History. Acts 1993, No. 285, § 6; 1993, No. 297, § 6; 1995, No. 302, § 3.
§ 4-90-407. Refunds.
(a)
(1) Refunds shall be made to the consumer and lienholder of record, if any,
as their interests may appear.
(2) If applicable, refunds shall be made to the lessor and lessee as follows:
(A) The lessee shall receive the lessee cost less a reasonable offset for
use; and
(B) The lessor shall receive the lease price less the aggregate deposit and
rental payments previously paid to the lessor for the leased vehicle.
(b) If the manufacturer makes a refund to the lessor or lessee pursuant to
this subchapter, the consumer's lease agreement with the lessor shall be
terminated upon payment of the refund and no penalty for early termination shall
be assessed.
(c) If a replaced vehicle was financed by the manufacturer, its subsidiary,
or agent, the manufacturer, subsidiary, or agent may not require the buyer to
enter into any refinancing agreement concerning a replacement vehicle that would
create any financial obligations upon the buyer beyond those of the original
financing agreement.
History. Acts 1993, No. 285, § 7; 1993, No. 297, § 7.
§ 4-90-408. Reimbursement of towing and rental costs. Whenever a
vehicle is replaced or refunded under this subchapter, the manufacturer shall
reimburse the consumer for necessary towing and rental costs actually incurred
as a direct result of the nonconformity.
History. Acts 1993, No. 285, § 10; 1993, No. 297, § 10.
§ 4-90-409. Option to retain use of vehicle. A consumer has the
option of retaining the use of any vehicle returned under this subchapter until
the time that the consumer has been tendered a full refund or a replacement
vehicle of comparable value.
History. Acts 1993, No. 285, § 11; 1993, No. 297, § 11.
§ 4-90-410. Presumption of reasonable attempts to repair - Extension of
time to repair in case of war, invasion, strike, fire, flood, or natural
disaster.
(a) A rebuttable presumption of a reasonable number of attempts to repair is
considered to have been undertaken to correct a nonconformity if:
(1) The nonconformity has been subject to repair as provided in §
4-90-406(a), but the nonconformity continues to exist;
(2) The vehicle is out of service by reason of repair, or attempt to repair,
any nonconformity for a cumulative total of thirty (30) calendar days; or
(3) There have been five (5) or more attempts, on separate occasions, to
repair any nonconformities that together substantially impair the use and value
of the motor vehicle to the consumer.
(b)
(1) The thirty (30) calendar days in subdivision (a)(2) of this section shall
be extended by any period of time during which repair services are not available
as a direct result of war, invasion, strike, fire, flood, or natural disaster.
(2) The manufacturer, its agent, or authorized dealer shall provide or make
provisions for the free use of a vehicle to any consumer whose vehicle is out of
service beyond thirty (30) days by reason of delayed repair as a direct result
of war, invasion, strike, fire, flood, or natural disaster.
(c) The burden is on the manufacturer to show that the reason for an
extension under subsection (b) of this section was the direct cause for the
failure of the manufacturer, its agent, or authorized dealer to cure any
nonconformity during the time of the event.
History. Acts 1993, No. 285, § 12; 1993, No. 297, § 12.
§ 4-90-411. Diagnosis or repair - Documentation.
(a) A manufacturer, its agent, or authorized dealer may not refuse to
diagnose or repair any vehicle for the purpose of avoiding liability under this
subchapter.
(b)
(1) A manufacturer, its agent, or authorized dealer shall provide a consumer
with a written repair order each time the consumer's vehicle is brought in for
examination or repair.
(2) The repair order must indicate all work performed on the vehicle,
including examination of the vehicle, parts, and labor.
History. Acts 1993, No. 285, § 13; 1993, No. 297, § 13.
§ 4-90-412. Resale of returned nonconforming vehicle. If a motor
vehicle has been replaced or repurchased by a manufacturer as the result of a
court judgment, an arbitration award, or any voluntary agreement entered into
between a manufacturer and a consumer that occurs after a consumer complaint has
been investigated and evaluated pursuant to this subchapter or a similar law of
another state, the motor vehicle may not be resold in Arkansas unless:
(1) The manufacturer provides the same express warranty the manufacturer
provided to the original purchaser, except that the term of the warranty need
only last for twelve thousand (12,000) miles or twelve (12) months after the
date of resale, whichever occurs first; and
(2) The manufacturer provides a written disclosure, signed by the consumer,
indicating that the vehicle was returned to the manufacturer because of a
nonconformity not cured within a reasonable time as provided by Arkansas law.
History. Acts 1993, No. 285, § 14; 1993, No. 297, § 14.
§ 4-90-413. Affirmative defenses. It is an affirmative defense to
any claim under this subchapter that:
(1) The nonconformity, defect, or condition does not substantially impair the
use, value, or safety of the motor vehicle;
(2) The nonconformity, defect, or condition is the result of an accident,
abuse, neglect,or unauthorized modification or alteration of the motor vehicle
by persons other than the manufacturer, its agent, or authorized dealer;
(3) The claim by the consumer was not filed in good faith; or
(4) Any other defense allowed by law that may be raised against the claim.
History. Acts 1993, No. 285, § 15; 1993, No. 297, § 15.
§ 4-90-414. Informal proceeding as precedent.
(a)
(1) Any manufacturer doing business in this state, entering into franchise
agreements for the sale of its motor vehicles in this state, or offering express
warranties on its motor vehicles sold or distributed for sale in this state,
shall operate, or participate in, an informal dispute settlement proceeding
located in the State of Arkansas which complies with the requirements of this
section. (2) The provisions of § 4-90-406(b)(1) and (2) concerning refunds
or replacement do not apply to a consumer who has not first used this informal
proceeding before commencing a civil action, unless the manufacturer allows a
consumer to commence an action without first using this informal procedure.
(3)
(A) The consumer shall receive adequate written notice from the manufacturer
of the existence of the procedure. (B) Adequate written notice may include
the incorporation of the informal dispute settlement procedure into the terms of
the written warranty to which the motor vehicle does not conform.
(b) The informal dispute procedure must be certified by the Consumer
Protection Division of the Office of the Attorney General as meeting the
following criteria:
(1) The informal dispute procedure must comply with the minimum requirements
of the Federal Trade Commission for informal dispute settlement procedures as
set forth in 16 C.F.R. § 703.1 et seq., as in effect on the date of adoption of
this subchapter, unless any provision of 16 C.F.R. § 703.1 et seq. is in
conflict with this subchapter, in which case the provisions of this subchapter
shall govern; (2) The informal dispute procedure must prescribe a reasonable
time, not to exceed thirty (30) days after the decision is accepted by the
buyer, within which the manufacturer or its agent must fulfill the terms of its
decisions; (3)
(A) No documents shall be received by any informal dispute procedure unless
those documents have been provided to each of the parties in the dispute at or
prior to the proceeding, with an opportunity for the parties to comment on the
documents either in writing or orally. (B) If a consumer is present during
the informal dispute proceeding, the consumer may request postponement of the
proceeding meeting to allow sufficient time to review any documents presented at
the time of the meeting which had not been presented to the consumer prior to
the time of the meeting;
(4)
(A) The informal dispute procedure shall allow each party to appear and make
an oral presentation within the State of Arkansas unless the consumer agrees to
submit the dispute for decision on the basis of documents alone or by telephone,
or unless the party fails to appear for an oral presentation after reasonable
prior written notice. (B) If the consumer agrees to submit the dispute for
decision on the basis of documents alone, then the manufacturer or dealer
representatives may not participate in the discussion or decision of the
dispute;
(5) Consumers shall be given an adequate opportunity to contest a
manufacturer's assertion that a nonconformity falls within intended
specifications for the vehicle by having the basis of the manufacturer's claim
appraised by a technical expert selected and paid for by the consumer prior to
the informal dispute settlement hearing; (6) A consumer may not be charged
with a fee to participate in an informal dispute procedure; and (7) Any
party to the dispute has the right to be represented by an attorney in an
informal dispute proceeding.
(c)
(1)
(A) The informal dispute procedure shall annually submit a pool of not less
than six (6) members who are appointed with the advice and consent of the
Consumer Protection Division of the Office of the Attorney General. (B)
Selected strictly by rotation, one (1) member shall hear disputes scheduled for
a particular session unless the consumer requests a panel of three (3) members,
in which case three (3) members shall hear disputes scheduled for a particular
three-member session. (C) If the informal dispute procedure deems it
appropriate to require the services of an independent investigator, such
investigator shall be selected from a pool of not less than four (4) members who
are appointed annually with the advice and consent of the Consumer Protection
Division of the Office of the Attorney General and from which the particular
investigator shall be selected strictly by rotation.
(2) Upon notification to the administrator of any informal dispute procedure
that a determination has been made by the Consumer Protection Division of the
Office of the Attorney General that a member of any pool is not conforming to
standards of fairness and impartiality, that member shall be immediately removed
from the pool.
History. Acts 1993, No. 285, § 16; 1993, No. 297, § 16.
§ 4-90-415. Enforcement - Exclusivity - Costs and expenses.
(a) A consumer may bring a civil action to enforce this subchapter in a court
of competent jurisdiction.
(b) This subchapter does not limit the rights and remedies that are otherwise
available to a consumer under any applicable provisions of law.
(c) A consumer who prevails in any legal proceeding under this subchapter is
entitled to recover as part of the judgment a sum equal to the aggregate amount
of costs and expenses, including attorney's fees based upon actual time expended
by the attorney, determined by the court to have been reasonably incurred by the
consumer for or in connection with the commencement and prosecution of the
action.
History. Acts 1993, No. 285, §§ 17-19; 1993, No. 297, §§ 17-19.
§ 4-90-416. Time limitation for commencement of action.
(a) An action brought under this subchapter must be commenced within two (2)
years following the date the buyer first reports the nonconformity to the
manufacturer, its agent, or authorized dealer.
(b) When the buyer has commenced an informal dispute settlement procedure
described in § 4-90-414, the two-year period specified in subsection (a) of this
section begins to run at the time the informal dispute settlement procedure is
being commenced.
History. Acts 1993, No. 285, § 20; 1993, No. 297, § 20.
§ 4-90-417. Deceptive trade practices. A violation of any of the
provisions of this subchapter shall be deemed a deceptive trade practice under §
4-88-101 et seq.
History. Acts 1993, No. 285, § 21; 1993, No. 297, § 21.
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