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That is why I have decided to include those laws in this guide. You should know this. If you include such a requirement in your warranty, your dispute resolution mechanism must meet the requirements as they are stated in the FTC's Rule on Informal Dispute Settlement Procedures (the Dispute Resolution Rule). Many dealers simply dont have the resources anymore and the mechanics that they need are not around in order to properly diagnose and address a concern.


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If your case does get to court, you can expect that you will also have to come up with more money before doing so. For the purposes of this guide, I have included the statutes for Californias lemon laws. In this sense at least, you should feel at ease.

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Arkansas Lemon Law Resource

The Facts about Lemon Laws

Every state in America now has a Lemon Law that is built to protect consumers from dealerships. It allows the car buyer to exchange the messed up vehicle for a new one or to have the manufacturer buy it back from them.

In most states, the Lemon Law only applies to problems that pop up during the first year or 12,000 miles of ownership. You can obtain the rules and procedures if you need to make a claim under the Lemon Law in your state by calling the administrator of the state which you can find in the phone book.

Once you've established that the manufacturer is going to buy back your car, the battle will switch over and become about the vehicle's value. You want the per-mile charge to be as little as possible so that you can get the most for your money on the return.

The best way that you can guard against getting a lemon in the first place is to buy a car that has a good repair record in the first place. Seems pretty simple right? Well, it can be if you know what to do. Generally you can get an amount of repairs when you submit a VIN number to websites that can check the accident and repair rate for you. I will give you more on that later.