Business Vehicles — Lemon Law in Idaho

Idaho Lemon Law covers new passenger vehicles, SUVs, vans, and trucks under 12,000 pounds, as well as used vehicles that are sold during the new car warranty period with manufacturer's warranties that are purchased, leased, or licensed in Idaho. In order to be considered a "lemon," the business vehicle must be used for personal business reasons and 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 and are reported during the first two years from the delivery date, the first 24,000 miles on the odometer, or before the express warranty expires (whichever comes first)
• Has been taken in one time for a steering or braking system failure that could cause death or serious bodily injury; has been taken in for the same defect four times for the same defect; or the vehicle has been in for service for a cumulative total of 30 business days AND the warranty has expired, or two years from the delivery date have passed, or the vehicle has exceeded 24.000 miles (whichever comes first)
• You have notified the manufacturer via certified mail and the manufacturer has had the opportunity to make a final repair attempt

If you want to pursue a claim under Idaho's Lemon Law, you must notify the manufacturer of the problem with your vehicle before the expiration of the written warranty, the vehicle is driven 24,000 miles, or two years from the date of delivery passes. The manufacturer has the opportunity to fix it one last time. You must send the notice via certified mail, with a return receipt requested. Sample demand letter.

If the problem still isn't fixed after the final repair attempt, you must file a request for arbitration with the manufacturer's dispute resolution process (if the manufacturer requires it). You must file your request within one year after the Lemon Law rights period has ended.

In Idaho, when you participate in a manufacturer's arbitration program, you can do so either through an oral hearing or a documentary hearing.

In an oral hearing, an arbitrator who is trained and experienced in dealing with Lemon Law claims will preside over your hearing. Both you and a representative from the manufacturer speak before the arbitrator. You will speak first. The attorneys for the manufacturer can question you; when the attorneys for the manufacturer speak, you can question them. You can bring and question witnesses. You should bring your vehicle to the hearing unless it is inoperable or unsafe to drive. While the arbitration hearing is less formal than an actual court proceeding, you need to come prepared to present your case. You will need the records that outline all of the work done on your car and all of the diagnosed problems; an odometer reading; copies of correspondence with the dealer and/or manufacturer; statements from mechanics or other experts; statements from witnesses; appraisals or estimates of the resale value of the vehicle with its defects; proof that the manufacturer has had the opportunity for one final attempt at repair; and a variety of financial records. It is also important that you have your records in chronological order and ready to present to the arbitrator in an organized fashion.

You must prove to the arbitrator that the claims you are making are true, and that the defect negatively impacts the use, market value, or safety of the vehicle. It is absolutely vital that you bring proof of each and every point you plan on making. A "he-said-she-said" argument will never result in a ruling in your favor.

The documentary hearing is not done in person. Instead, you file paperwork that goes over your case point by point. The arbitrator makes it decision based on the paperwork submitted; neither side can present oral testimony.

After the hearing, the arbitrator must issue a decision. If the arbitrator decides in your favor, the arbitrator may give you the choice of a replacement vehicle or a refund, which can include:

• The full purchase price of the vehicle, not to exceed 105% of the manufacturer's suggested retail price
• Sales tax
• License and registration fees
• Reimbursement for towing and rental car expenses

The amount of the refund may be reduced by a deduction for your use of the vehicle before the arbitration hearing, which is calculated by multiplying the mileage by the purchase price, and dividing that amount by 120,000. Attorney's fees are not awarded during the arbitration process.

You and the manufacturer are not bound by the decision of the arbitrator. Within 30 days of receiving the decision, you or the manufacturer can apply for removal of the decision to the district court for trial. If no application is made during that time period, either side may ask the district court to issue an order confirming the decision.

If you or the manufacturer do decide to remove the arbitrator's decision to court, and the court finds that either side acted in bad faith, the court may award the winning side three times the actual damages, attorney fees, and court costs.

Wherever you are in the Lemon Law claim process, it is generally in your best interest to have an attorney represent you. After all, vehicle manufacturers have teams of lawyers that do nothing but fight Lemon Law claims. As you consider your options, imagine the difference between going up against a team of lawyers on your own, versus having a Lemon Law attorney speak on your behalf. Also keep in mind that being represented by a Lemon Law attorney won't cost you a dime if you go to court; the law says that the car manufacturer has to pay your attorney's fees in successful Lemon Law claims.