Business Vehicles — Lemon Law in Arkansas

Arkansas Lemon Law covers business passenger vehicles under 10,000 pounds that are purchased or leased in Arkansas, as well as used vehicles that are sold by dealers within two years or 24,000 miles of the original purchase (whichever comes last). In order to be considered a "lemon," the vehicle must meet the following requirements:

• Does not conform to the manufacturer's express warranty
• Has substantial defects affecting the use, safety or value of the vehicle
• Has manufacturer's defects that occurred during the first two years from the original owner's delivery date or the first 24,000 miles on the odometer (whichever period ends last)
• Has been taken in three times for the same problem, has been taken in five times for a variety of problems, or if it has been out of service for 30 days due to a series of unrelated problems; if the defect is likely to cause death or serious bodily injury, the Lemon Law applies after the first repair attempt
• After the dealer has tried to repair the vehicle three times (or once in the event of a dangerous defect), the manufacturer has been notified and given an opportunity to repair the vehicle

Arkansas Lemon Law provides several options for a successful Lemon Law claimant. First, you may be awarded a replacement vehicle of the same year, make, and model. You may also qualify for a monetary award, which can include:

• The full contract price
• Credits and allowances for any trade-in vehicle
• Costs of any options and other modifications added by the manufacturer or its authorized dealer
• Costs of sales tax, license and registration fees, and finance charges
• Charges for renting a similar vehicle while the original vehicle was out of service because of the defect
• Expert fees
• Charges for extended warranty coverage provided by the manufacturer, its subsidiary, or agent
• Attorney's fees

The amount of the monetary reward may be reduced by a deduction for the total mileage on the vehicle. This amount is calculated by multiplying the total contract price by the mileage driven at the time the vehicle was first brought into the dealer or manufacturer for repair, and dividing by 120,000.

Before you file a Lemon Law claim and after the third repair attempt, you must first send a letter to the manufacturer, and give the manufacturer a final opportunity to fix the vehicle. The letter must be sent by certified mail, with a return receipt requested. Sample demand letter.

After receiving your letter, the manufacturer has 10 calendar days to schedule a final repair attempt, and 10 calendar days to repair your vehicle once it is in the shop. If the repair is not made, you can demand a replacement vehicle or refund. You must participate in the manufacturer's informal dispute procedure (although it is not binding for you) before you can file a Lemon Law claim.