Identification

• The Arkansas lemon laws are contained in Title 4, Subtitle 7, Chapter 90, Subchapter 4 of the Arkansas Code. Created by the New Motor Vehicle Quality Assurance Act of 1993, the law contains 17 parts, which describe the legislative intent, definition of terms, required notices and disclosures, and remedies under the Arkansas lemon laws. The laws also address the subsequent resale of vehicles returned to the manufacturer under the provisions, limit the time period in which claims can be filed, and establish affirmative defenses for a manufacturer.
  
  

Significance

• In Arkansas, lemon laws establish a "quality assurance period" defined by the greater of 24 months or 24,000 periods from the date of original delivery of the vehicle. During this period, the manufacturer is obligated to repair a vehicle that does not comply with any express or implied warranty applicable to the vehicle, or any condition that substantially impairs the value, use, or safety of the vehicle not caused by abuse, neglect or alteration by an unauthorized facility.
  
  

Types

• The lemon laws in Arkansas apply to new or substantially refurbished motor vehicles. The statute defines motor vehicle as any self-propelled vehicle primarily designed for the transportation of persons or property on public streets and highways, but not including mopeds, motorcycles, the living facility portion of a motor home, or any vehicle with a gross vehicle weight rating more than 10,000 lbs. The vehicle portion of the motor home is covered, however, and the 10,000 lb. limit does not apply to this type of vehicle.
  
  

Function

• The owner of a vehicle must make three good faith attempts to repair a nonconforming condition, or one attempt to repair a condition likely to cause serious injury or death. After these efforts, the owner must notify the manufacturer by certified or registered mail of the vehicle's condition, past repair attempts, and thus provide a final opportunity to make repairs. Within 10 days of receiving notification, the manufacturer must provide the opportunity for the owner to have the vehicle repaired at an authorized and reasonably accessible facility, upon which the manufacturer has an additional 10 days to conform the vehicle.
  
  

Benefits

• If the manufacturer does not comply with the obligations described above, it must either replace the vehicle or repurchase it within 40 days. When repurchasing the vehicle, the manufacturer is allowed to deduct a reasonable offset for damage or wear sustained under ownership by the consumer, but the purchase price must also reflect all collateral costs--such as repair costs, taxes, registration fees, finance costs and extended warranty fees--and incidental damages, such as the costs of alternative transportation. If the vehicle was leased, both the lessor and the lessee are able to collect against the manufacturer.