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Lemon Law Basics: Arkansas Lemon Laws
What Are My Rights Under Arkansas Lemon Law?
Who is covered by the Arkansas Lemon Law?
Arkansas lemon law covers vehicles that are purchased, licensed, or leased
in Arkansas, and which are designed for personal transportation on public
roads. Vehicular sections of mobile homes are also covered, though other
vehicles with a gross vehicle weight over 10,000 pounds are exempt. Motorcycles,
mopeds, and living areas of mobile homes are not covered. The consumer
must not have bought the vehicle for resale purposes.
What problems are covered by the Arkansas lemon law?
The Arkansas lemon law covers vehicles that do not conform to warranty
due to defects that affect the use, safety, or value of the vehicle. This
nonconformity must be the manufacturer's fault, and cannot be caused by
abuse, neglect, or modification by the owner. In order to qualify for
the Arkansas lemon law, the vehicle must fall under its Motor Vehicle
Quality Assurance (MVQA) period, which starts when the owner receives
delivery of the vehicle and ends two years later, or when the vehicle
reaches 24,000 miles, whichever comes first.
What is the process for filing a claim under Arkansas lemon law?
Before proceeding with settlement under Arkansas lemon law, the manufacturer
must have a reasonable chance to repair the vehicle. This is defined as
three unsuccessful attempts to repair the nonconformity, or one attempt
to repair a life threatening nonconformity, or if the vehicle has been
out of commission for repairs for a total of thirty days, or five attempts
to repair different problems which together add up to a serious nonconformity.
The owner must notify the manufacturer of intent to invoke Arkansas lemon
law by certified or registered letter. This notice must be sent within
two years of the original attempt to repair the nonconformity. The manufacturer
then has ten days to offer to make a final repair on the vehicle or progress
into settlement.
What is the settlement process under Arkansas lemon law?
Under Arkansas lemon law, a vehicle manufacturer is required to have a
settlement process in place, which the customer must attempt to use. If
the nonconformity falls under Arkansas lemon law, the manufacturer must
offer either a refund or a replacement vehicle. Refunds fall under three
categories - purchase price, collateral charges (which include finance
charges, sales tax, extended warranty charges and title tax), and incidental
costs (which include any charges that occurred as a result of the nonconformity,
like towing and alternative transportation). These are offset by a reasonable
fee for the use of the vehicle, calculated by dividing the number of miles
driven before the nonconformity was reported by 120,000 and multiplying
the result by the purchase price.
If the consumer is the owner of the vehicle, he or she is entitled to
all three of the refund categories, minus the offset. If the vehicle is
leased, the lessor receives a refund 105% of the purchase price plus collateral
charges, minus the offset. The lessee is entitled to the deposit and fees
paid for the rental plus incidental charges, minus the offset.
If replacement is chosen, the substituted vehicle must have the approximate
value as the original vehicle was when purchased. The manufacturer is
required to pay collateral and incidental charges to the consumer, and
the consumer is required to pay the offset to the manufacturer.
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