Source: https://www.lemonlawamerica.com/arkansas-lemon-law/
Timestamp: 2019-04-22 16:27:53+00:00

Document:
Arkansas Lemon Law 4-90-401. Title.
History. Acts 1993, No. 285, § 1; 1993, No. 297, § 1.
Arkansas Lemon Law 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.
Arkansas Lemon Law 4-90-403. Definitions.
“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. .
Arkansas Lemon Law 4-90-404. Notice by consumer – Disclosure by manufacturer, agent, or dealer.
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.
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).
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.
§ 2.Arkansas Lemon Law 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.
§ 4.Arkansas Lemon Law 4-90-406. Failure to make required repairs.
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 non rebuttable presumption of a reasonable number of attempts to repair arises.
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.
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.
§ 3.§Arkansas Lemon Law 4-90-407. Refunds.
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.
§ 7.§ Arkansas Lemon Law 4-90-408. Reimbursement of towing and rental costs.
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, § 10; 1993, No. 297, § 10.
§ Arkansas Lemon Law 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.
§ Arkansas Lemon Law 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.
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.
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.
§ 12.§ Arkansas Lemon Law 4-90-411. Diagnosis or repair – Documentation.
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.
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.
The repair order must indicate all work performed on the vehicle, including examination of the vehicle, parts, and labor.
§ 13.§ Arkansas Lemon Law 4-90-412. Resale of returned nonconforming vehicle.
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.
§ 14. § Arkansas Lemon Law 4-90-413. Affirmative defenses.
Any other defense allowed by law that may be raised against the claim.
History. Acts 1993, No. 285, § 15; 1993, No. 297, § 15.
§ Arkansas Lemon Law 4-90-414. Informal proceeding as precedent.
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.
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.
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.
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.
Any party to the dispute has the right to be represented by an attorney in an informal dispute proceeding.
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.
§ Arkansas Lemon Law 4-90-415. Enforcement – Exclusivity – Costs and expenses.
A consumer may bring a civil action to enforce this subchapter in a court of competent jurisdiction.
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.
§ 17-19.§ Arkansas Lemon Law 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.
§ Arkansas Lemon Law 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.
The narrative information on Magnuson-Moss, UCC and Arkansas lemon laws on these pages is provided by Marshall Meyers, attorney.
Additional narrative information on Magnusson-Moss, UCC and Arkansas lemon laws on these pages is provided by T. Michael Flinn, attorney.

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