November 7, 2002
Honorable Mark Pryor
Attorney General of Arkansas
323 Center Street Suite 200
Little Rock, AR 72201
Dear Attorney General Pryor:
The Center for Auto Safety has just completed a study of the lemon law in every state and the District of Columbia and has ranked each state based on the results. Arkansas finished 5th out of 51. With over 100,000 lemons bought back each year, a strong lemon law is vital to consumer protection. States with strong lemon laws force the auto companies to take back their lemons. States with weak lemon laws force consumers to eat their lemons.
The ranking was based on 10 different categories corresponding to fundamental elements of a strong lemon law, with each category worth a maximum of 10 points for a total of 100 points. The categories are:
1. number of repair attempts or days out of service before an automobile was considered a lemon,
2. whether law had a safety lemon provision and how protective it was,
3. the length of the presumption period or coverage of the lemon law,
4. whether law had a garden variety lemon provision to cover multiple different problems,
5. the offset for use of the car when determining a refund price,
6. if the consumer is eligible for a civil penalty or double or treble damages,
7. types of vehicles covered,
8. is there a state run arbitration program,
9. is the consumer compensated for their attorney fees, and
10. whether refund reimburses consumer for all costs of purchasing and owning lemon
Points were deducted for provisions that negated major rights under the lemon law including whether consumer (1) was liable for manufacturer's attorney fees, (2) lost rights under other laws, (3) had to file lemon lawsuit within short time, and (4) had to resort to manufacturer's unfair arbitration program before filing lemon lawsuit.
The biggest weaknesses in Arkansas' lemon law are that it (1) forces consumers to go through auto company arbitration programs before they can exert their lemon law rights in court unlike the 17 states which do not require such prior resort. Although Arkansas certifies the manufacturers' programs, state run arbitration programs provide fairer and swifter remedies than do the auto company run programs. (2) Arkansas lacks a civil penalty for auto manufacturers who willfully violate the lemon law. Examples of stronger provisions from other states are contained in the attached “Best State Lemon Law Provisions.”
We urge you to review this survey and use your authority to help improve Arkansas' lemon law.
Clarence M. Ditlow