Lemon Law Arbitration | NYS Dispute Resolution Association

Lemon Law Arbitration

Have A Lemon?

In NYS, the New Car, Used Car, Wheelchair, and Farm Equipment Lemon Laws provide a legal remedy for buyers or lessees of new and used cars that turn out to be lemons. If your car does not conform to the terms of the written warranty and the manufacturer or its authorized dealer is unable to repair the car after a reasonable number of attempts, you may be entitled to a full refund.

Unlike other available lemon law mediation programs, the NYSDRA-administered, Lemon Law Arbitration program is the only program that is managed under, and carries the force of, the New York State Attorney General’s Office.

Additionally, the reach of the New York State Attorney General Lemon Law Arbitration program is very broad. A dealer/manufacturer/leasing company, etc. is not required to be affiliated with or registered in any way with the New York State Attorney General Lemon Law Arbitration program in order to be a subject party to a lemon law claim. Consumers can bring a claim against any dealer/manufacturer/leasing company located anywhere in the state of New York.

Another key and important difference between the New York State Attorney General Lemon Law Arbitration program is that decisions rendered under the Attorney General’s Lemon Law Arbitration program are legally binding and enforceable. Decisions secured under other programs are not legally binding.

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New/Leased Cars, Motor Homes and Motorcycles

A new vehicle that was purchased, leased or registered in New York State for personal use and which shows a serious problem or defect that is not corrected after four or more repair attempts, or is out of service due to repair for at least 30 days, within the first 18,000 miles or two years (whichever comes first), may be eligible for the Lemon Law Arbitration Program. If successful, the consumer will be entitled to either a full refund of the purchase price (less an allowance for mileage over 12,000 miles), or a comparable replacement vehicle. The consumer will also be awarded a return of the $250.00 arbitration filing fee for an arbitrator’s award in his or her favor.

Used Cars and Motorcycles

A vehicle purchased or leased from a New York State dealer (one who sold or offered to sell three or more cars within the previous twelve-month period) for personal use with more than 18,000 miles is also subject to Lemon Law coverage depending on the mileage at the time of purchase (as follows):

Miles At Purchase Duration of Warranty

18,000-36,000 90 days or 4,000 miles

36,001-79,999 60 days or 3,000 miles

80,000-100,000 30 days or 1,000 miles

If a part covered by the law is the subject of a serious defect that remains uncorrected after three or more repair attempts or the vehicle is out of service for at least 15 days within the applicable statutory period, the consumer may be eligible for Lemon Law relief through the arbitration program.

If successful, the consumer will be entitled to a refund of the purchase price as well as the return of the $120.00 arbitration filing fee.

Lease Excess Wear and Damage Law Program

New York’s Lease Excess Wear and Damage Law provides a legal remedy for consumers who lease a new or used motor vehicle and dispute excess wear and damage charges levied against them by the leasing company upon termination of the lease. The Lease Excess Wear and Damage Program enables a consumer/lessee to contest (1) whether damage to the leased vehicle exists, (2) whether such damage constitutes "excess” wear and damage above normal wear and damage, (3) the amount of the charges sought by the lessor for excess wear and damage, and (4) whether the lessor complied with lease-end notice and vehicle access requirements.

If successful, the consumer is not required to pay for excess damage and will be entitled to a refund of the $75.00 arbitration filing fee.

Wheelchairs

A new wheelchair that was purchased or leased in New York State and which manifests a serious problem or defect that is not corrected after three or more repair attempts, or is out of service due to repair for at least 30 days within the first year of ownership, may be eligible for Lemon Law relief through the arbitration program. If successful, the consumer will be entitled to either a full refund of the purchase price of the wheelchair, or a comparable replacement wheelchair. The successful consumer will also be awarded a return of the $100.00 arbitration filing fee.

Farm Equipment Lemon Law Arbitration Program

In partnership with the NYS Attorney General, NYSDRA will be rolling out an arbitration program for defective new farm equipment soon. The program will provide a legal remedy for New York residents who have bought or leased new farm equipment that turns out to be a lemon.

Farm Equipment Lemon Law Arbitration Program Regulations