Arbitration is an informal legal process that California consumers may use to obtain a resolution of their lemon law case using a third party to review the evidence and impose a decision. Most manufacturers have an arbitration procedure which is described in their owner's manual. When a consumer opts for arbitration, typically using the Better Business Bureau's (BBB) procedure, the decision reached by the arbitrator is not binding on the consumer. It is, however, binding on the manufacturer unless the manufacturer and consumer have jointly reached another arrangement to settle the lemon law dispute.
Many automobile manufacturers offer an arbitration process certified by the Department of Consumers Affairs. The Arbitration Certification Program (ACP) approves and monitors participating automobile manufacturers to ensure compliance with California laws and regulations related to new vehicle warranties and manufacturer sponsored arbitration programs. One of the main goals of the ACP is to promote the use of alternative dispute resolution, such as arbitration, in lieu of court action to reduce the strain and cost on consumers and the court system.
Arbitration is highly dangerous for the lemon vehicle owner.
In California, arbitration is not a prerequisite for filing a lemon law claim or filing a lawsuit against a manufacturer. Hiring an experienced California lemon law lawyer is usually the best option. An experienced California lemon law attorney should be able to quickly screen your case to determine if your case has merit, and when retained, will fight to get you get the maximum legal recovery in a reasonable period of time.
If you purchased your vehicle in California and believe it may be a lemon, contact our Law Offices at 1-888-395-3666 for a free lemon law consultation.