New car lemon law

A guide for consumers

Did you buy or lease a defective new car?

You may be able to get a refund or replacement under New York’s lemon law if the car meets two conditions:

Your new car is not in the condition described in your written warranty.
The manufacturer or its authorized agent cannot fix the car after a reasonable number of tries.

Your car may be covered under the lemon law

To qualify, all of the following must be true:

The car was covered by a lemon-law warranty when you first received it.
The dealer bought, leased, or transferred the car before it had 18,000 miles on it, or the dealer first received the car from the manufacturer less than two years ago.
The car was bought, leased, or transferred in New York state or is currently registered in New York state.
The car has been used mostly for personal purposes.

In addition, your car’s manufacturer must try a certain number of times to fix your car for any defect covered by the warranty, free of charge. You may be able to get a refund or replacement for your car if either of the following is true:

The manufacturer cannot fix your car after four repair efforts.
You are unable to use your car for a total of at least 30 days while the dealer is fixing it.

The manufacturer is not required to refund or replace your car if either of the following is true of the problem:

It does not greatly reduce your car’s value.
It resulted from abuse, neglect, or unauthorized modifications.

Find a problem with your car?

Immediately report any problems to the manufacturer or your dealer. If you report a problem to the dealer, the dealer must notify the manufacturer within seven days.
Keep careful records of all your complaints and copies of work orders, repair bills, and communications with the dealer or manufacturer.
If you have any problems having repairs done, contact the Department of Motor Vehicles at 1-518-474-8943.

Think you should get a replacement or refund?

You can participate in an arbitration program or sue the manufacturer in court. Read more about the arbitration process in the next section on the “New York state arbitration program for cars and other vehicles.

Keep in mind that the arbitrator or court may not decide in your favor.

Have more questions?

Check our frequently asked questions below.
Contact the Attorney General’s consumer help line at 1-800-771-7755.

What vehicles are covered

What does “primarily for personal use” mean?

The principal use is for personal, family, or household purposes. These would include, for example, using the car for household errands or to drive to and from work. It can also be used for business, as long as you drive the car for personal use more than half of the time.

Are motor homes covered?

Yes. Motor homes are covered under the law, except for defects in systems, fixtures, appliances, or other parts that are residential in character. Some items that are excluded from coverage: flooring, plumbing system and fixtures, roof, air conditioner, furnace, generator, electrical systems other than automotive circuits, side-entrance door, exterior compartments, and windows other than the windshield and driver and front passenger windows.

The law defines a motor-home manufacturer to include not only the manufacturer but also the assembler of the component parts of the motor home, including the chassis, engine, and residential portion. The assembler may be the dealer.

There are special-notice requirements with motor homes. According to these requirements, you must notify the motor-home manufacturer (which may be the dealer) earlier about your repair attempts or inability to use the vehicle than you do for a regular car.

Are motorcycles and off-road vehicles covered?

Effective September 1, 2004, motorcycles are covered. Off-road vehicles, such as snowmobiles and all-terrain vehicles (ATVs), are not.

Is a car covered if it is owned or leased by a business?

Yes, if the car is used primarily for personal, family, or household purposes.

More about defects and repairs

What if I suddenly become aware of a problem with my car?

Immediately report any defect or “condition” covered by the manufacturer’s warranty directly to the manufacturer or to its authorized dealer.

A condition is a general problem, such as difficulty in starting, repeated stalling, or a malfunctioning transmission that can result from a defect or one or more parts.

If you report the problem to the dealer, the law requires the dealer to forward written notice to the manufacturer within seven days.

What if the defect has been repaired? Can I still obtain a refund or a replacement car?

If you have met all the other legal requirements, you may still be entitled to relief under the law, if either of the following is true:

A defect remained even after the fourth repair attempt.
Because of the defect, you were unable to drive the car for a total of 30 days or more, even if the defect was subsequently repaired.

For example: Your car had a defective transmission that could not be fixed after four repairs. The fifth repair fully fixed the problem. You are still considered to have made a reasonable number of repair attempts and you may be entitled to relief.

What is “substantial impairment of value?”

This value depends on the facts of each case. In general, your complaint must be about a serious problem – for example, a defect in the engine that prevents you from operating the car. In some cases, a car with several smaller defects may be considered to have a substantial impairment of value.

What should I do if the dealer refuses to make repairs?

If the dealer refuses to make repairs within seven days of receiving notice from you, immediately notify the manufacturer in writing. Describe the car’s problem, state that the dealer has refused to make repairs, and send your complaint by certified mail, return receipt requested.

What does the manufacturer have to do when it receives my notice that the dealer refused to make repairs?

The manufacturer or its authorized dealer must begin repairs within 20 days of receiving your notice of the dealer’s refusal to make repairs.

Motor homes

How are the procedures different for motor-home owners?

Motor-home manufacturers must have one final chance to repair a defect before you can take advantage of the lemon law.

You can seek arbitration or start a lawsuit under the lemon law only after both of the following have happened:

The motor home has undergone two repair attempts or has not worked for 21 days because of the defect.
You have made a special notice by reporting the two unsuccessful repair attempts or 21 days to the manufacturer or its dealer by certified mail, return receipt requested.

Once you have given the manufacturer this notice, you can take advantage of the lemon law after either of the following:

The manufacturer has made one more repair attempt (for a total of three attempts) for the same defect.
Your motor home was out of service due to repair for one or more defects for at least nine more days (for a total of 30 days).

Note: If you have one unsuccessful repair attempt of a defect, continue traveling, and request a second repair shop try to fix the same problem, this counts as only one repair attempt.

What if the motor-home manufacturer did not tell me about these special-notice requirements?

You are required to make this special notice to the manufacturer only if:

The manufacturer or its authorized dealer has already provided you with a written copy of these requirements.
You acknowledged receipt of the notice in writing.

What if I did not give special notice after two failed repair attempts or 21 days of being unable to drive my motor home?

When determining your right to relief, the court or arbitrator will not consider any additional repair attempts or days out of service that happened before you gave special notice. They will consider additional repair attempts or downtime if they occur after you have complied with the notification requirements.

About refunds

If I win, how much will I receive?

The refund should include:

the price of the car (cash plus trade-in allowance), including all options
title and registration fees and any other governmental charges, less any lawful deductions

Other expenses or charges, such as loss of use, insurance premiums, and finance charges are not included by law.

What are the lawful deductions?

The manufacturer can deduct an amount for mileage over the first 12,000 miles. It cannot deduct anything for the first 12,000 miles of use. The deduction is calculated by taking the mileage in excess of 12,000 miles, times the purchase or lease price, divided by 100,000.

For example: If a defective car has 15,000 miles on its odometer and cost $20,000, the mileage deduction for use would be 3,000 miles, or 15,000 less 12,000. The deduction amount would be 3,000 times $20,000 divided by 100,000, or $600.

\frac{(15,000 miles - 12,000 miles) x $20,000}{100,000}

= $600

The manufacturer can also take a reasonable deduction for any damage not due to normal wear.

If I financed the car purchase, what happens to the refund?

The refund by the manufacturer is the same, whether the car was financed or not. However, if the car is financed, the refund is divided between you and the lender (the bank or finance company). The lender will most likely calculate how much you still owe and apply its part of the refund to that amount. The balance of the refund then goes to you.

If I leased the car, how is the refund calculated?

If the car is leased, the refund due from the manufacturer is divided between you and the leasing company. Your refund is the total of your downpayments (including any trade-in allowance), plus the total of the monthly lease payments you have already made, minus interest charges and any other service fees.

For example: You leased a new car under a three-year lease, with a $1,500 downpayment, and pay a monthly lease payment of $300. Of the $300 monthly payment, $100 is allocated as interest charges. After you make 12 monthly payments, you are granted a refund under the lemon law:

Deposit $1,500

Monthly payments (12 x $300) $3,600

Interest (12 x $100) (-$1,200)

Total refund $3,900

The refund will be $3,900.

If the monthly payment includes other service fees, such as insurance or other costs that are paid for your benefit, these amounts will also be deducted from your refund.

The leasing company’s portion of the refund is the balance of the lease price, as that term is defined by the law.

If a court or arbitrator finds that my leased car is a lemon, does that terminate my lease?

Yes. Once a finding has been made that a car is a lemon, your lease is terminated. You do not owe any early-termination penalties under the lease.

If I prove I have a lemon, can I recover sales tax?

Yes. State and local sales taxes are refunded directly by the New York State Commissioner of Taxation and Finance, who will determine the appropriate amount to be refunded. Complete and submit an application for refund of state and local sales tax (form AU-11) to the New York State Department of Taxation and Finance, Central Office Audit Bureau, Sales Tax, State Campus, Albany NY 12227. You can get this form through the manufacturer or directly from the Commissioner of Taxation and Finance.

You have three years from the date you receive the refund from the manufacturer to apply for the tax refund.

What is a “comparable replacement vehicle?”

This is a car of the same year and model and that has about the same mileage as your lemon. It will not be a brand-new car.

Legal concerns

Do I have to continue making car payments while pursuing my legal rights?

Yes. Unless otherwise advised by your lawyer, if your car is financed or leased, continue to make payments. If you fall behind in your payments, your car may be repossessed. If this happens, you may not be able to return the car to qualify for a refund or replacement car.

How can I prove I own a lemon?

You must be able to establish the necessary repair attempts or out-of-service days due to repairs. So, keep careful records of all complaints, copies of all work orders, repair bills, correspondence, and telephone and email communications.

Dealers are required by Department of Motor Vehicles (DMV) regulations to provide a legible and accurate written work order each time any repair work is performed on a car. This includes warranty work for which no charge is made. Contact the DMV 4 in Albany at 1-518-486-9786 if you have a problem obtaining your repair orders.

If I win in court, can I also recover attorney’s fees?

If you are successful, the court can award you reasonable attorney’s fees.

If I pursue a remedy under the lemon law, do I give up the right to other legal remedies?

No. The lemon law adds to your legal remedies. Ask your attorney to explain your options.

If I sign a seller’s contract, can I lose my rights under the lemon law?

No. Any contract clause that tries to waive your lemon-law rights is void.

What if the car I bought was previously returned by someone else as a lemon?

When you buy a car like this, the dealer must give you a written, conspicuous disclosure statement that includes:

IMPORTANT: This vehicle was returned to the manufacturer or dealer because it did not conform to its warranty and the defect or condition was not fixed within a reasonable time as provided by New York law.

This disclosure must also be printed on the car's certificate of title by the New York State Department of Motor Vehicles.

How can I get help or more information on the lemon law?

Contact the Office of the New York State Attorney General help line at 1-800-771-7755 or consult a lawyer.

If the car, motorcycle, motor home, wheelchair, or self-propelled farm equipment you bought or leased turns out to be defective, and if the dealer or manufacturer cannot fix it, you can pursue arbitration under New York’s lemon laws. An arbitrator hears from both you and the seller. The arbitrator decides whether you should receive a refund and, if so, how much you should receive.

How is the Attorney General involved?

The Office of the New York State Attorney General (OAG) is officially involved only in determining eligibility for arbitration, but can help answer your questions along the way.

Who manages the arbitration?

After OAG has initiated the process, the arbitration itself is done by the New York State Dispute Resolution Association (NYSDRA), which is not part of OAG. NYSDRA is contracted by OAG to administer the arbitration program. The arbitrators are volunteers who work through local Community Dispute Resolution Centers (CDRCs) .

These arbitrations are a program of the New York State Unified Court System’s Alternative Dispute Resolution program.

NYSDRA’s lemon-law program manager is available to answer questions about the process.

What vehicles and equipment are covered by this arbitration program?

This program is for the following items that you have bought:

new cars
new motorcycles
new motorhomes
new wheelchairs
new self-propelled farm equipment
used cars
used motorcycles

New York state has a separate arbitration program specifically for wear and tear on leased cars.

How does the arbitration program work?

There are 10 steps to the process:

You officially request arbitration
Our office (OAG) reviews your request and accepts or rejects it
The program administrator requests the filing fee from you
The administrator begins the arbitration process, appoints an arbitrator, and schedules a hearing
The administrator notifies the manufacturer or dealer, the manufacturer responds, and you reply
You or the manufacturer or dealer can request documents or witnesses during the pre-hearing discovery
You and the manufacturer or dealer meet with the arbitrator for the hearing
The arbitrator makes a decision
The administrator reviews the decision document to ensure it is complete and accurate
You and the manufacturer or dealer have 20 days to modify or appeal the decision

Who is involved in the arbitration process?

You – the consumer who bought or leased the car or other equipment
The lemon-law unit – the OAG unit that reviews your arbitration request
The administrator – NYSDRA’s lemon-law program manager, who manages the arbitration process, paperwork, and schedule
The arbitrator – the official in the local CRDC who hears from you and the manufacturer and decides how to resolve your claim
The manufacturer if your dispute involves a new car, motorcycle, motor home, wheelchair, or self-propelled farm equipment; or the dealer if the dispute involves a used car or used motorcycle
Any third parties – the people or businesses who may have been involved in the purchase or lease, such as a finance company, dealer, or reseller Witnesses – anyone else that you or the manufacturer invite to the hearing to provide evidence

Steps in the arbitration process

1: You request arbitration

If your car or other vehicle is defective and the manufacturer or dealer cannot repair it within a reasonable amount of time or after a reasonable number of attempts, you can request the Attorney General to start arbitration:

Download our form to request arbitration
Complete the form and return it to:
Attorney General’s Lemon Law Unit
28 Liberty St.
New York NY 10005

2: OAG reviews your application

We promptly review your submission. We send you a letter letting you know if we accepted or rejected your submission, and explaining our reasons:

We may reject your application because your claim is not eligible for arbitration – for example, if your car was not bought or registered in New York state. If this is the case, you cannot pursue arbitration.
We may reject your application because it has errors that can be corrected. If so, you can fix the errors and resubmit the form.
If we accept your application, we will let you know that we have forwarded your documents to the administrator (NYSDRA) to start the arbitration.

3: The administrator asks you to send a filing fee

The administrator receives your form and writes to you to ask you to pay the filing fee and requests your supporting documents:

If the administrator does not receive your payment after 30 days, it sends you a second notice.
If the administrator does not receive your payment after another 30 days, it closes your case.

4: The administrator starts your case, appoints an arbitrator, and schedules your hearing

The date the administrator receives your filing fee is considered the case filing date. This is when your arbitration officially begins, and is considered Day 1 . The following things now happen:

The administrator appoints an arbitrator.
The administrator schedules a hearing for a specific date no later than 35 days after the filing date.

Most arbitration hearings are done in person. The administrator schedules the hearing based on your preferred location and time of day. The form provides locations for your convenience.

You can also request a documents-only hearing, which does not require your presence. However, the hearing can be done this way only if the manufacturer agrees.

You may also request a virtual hearing if you are unable to attend an in-person hearing.

5: The administrator notifies the manufacturer or dealer of your claim, the manufacturer responds, and you reply

Within five days of the filing date, the administrator sends the manufacturer or dealer a copy of your request for arbitration and any supporting documents.

If your case involves a third party, such as a bank, finance company, or leasing company:

The administrator notifies the third party of your claim and the date of the hearing.
The administrator requests the third party to submit any relevant financial information before the hearing.

The manufacturer or dealer has 15 days from the filing date to respond to your claim. If you requested a documents-only hearing or a virtual hear, the manufacturer can object, and the administrator will then schedule an in-person hearing.

The administrator mails you any response from the manufacturer or dealer. You have until Day 25 to reply. If you do, the administrator mails a copy of your reply to the manufacturer or dealer.

6: Either party can request information or witnesses during pre-hearing discovery

Before the hearing, you or the manufacturer or dealer can request the arbitrator to ask the other party to supply specific documents or information, such as repair orders. Either of you can also request the arbitrator to subpoena a witness.

If either party ignores the arbitrator’s request for documents or witnesses, the arbitrator is allowed to interpret this as a refusal to cooperate. This refusal can count against that party when the arbitrator is weighing the evidence.

7: You, the manufacturer or dealer, and the arbitrator appear at the hearing

The hearing is not a formal court trial, so formal rules of evidence that would be used in a court do not apply. However, it has certain guidelines and a standard sequence of events:

You present your evidence and any witnesses.
The manufacturer or dealer presents its evidence and any witnesses.
You, the manufacturer or dealer, and the arbitrator, can question the other party or any witness. The arbitrator administers an oath or affirmation to each person who testifies.
Formal rules of evidence do not apply. The hearing is not run as strictly as a court case.
Each party has a full and equal opportunity to present its case.
A typical hearing lasts between one and two hours.
The arbitrator can examine, ride in, or drive the vehicle named in your claim. You and the manufacturer or dealer can be present and accompany the arbitrator on any examination or ride.

8: The arbitrator makes a decision

The arbitrator must render a decision:

within five days after the hearing date, if more time is not required to collect more documents
within 40 days after the hearing date if more time is required to gather extra documents

The decision must:

include the arbitrator’s signature and certification
contain a summary of the issues in dispute and the evidence presented by each side
include the arbitrator's findings
indicate whether or not the arbitrator, based on the stated findings, has decided that you qualify for relief under the lemon law

If the arbitrator finds that you are entitled to relief, the arbitrator must award either a refund or a comparable replacement vehicle, depending on what you requested. The decision must contain:

a calculation of the award, including any allowable deductions for excess mileage
a refund of your filing fee

Once you notify the manufacturer or dealer that you have accepted the decision, the manufacturer or dealer must comply within 30 days after the date of your acceptance.

If the manufacturer or dealer does not comply within 30 days after your acceptance of the decision, you are entitled to a penalty of $25-500 for each day of noncompliance.

If, after that, the manufacturer still refuses to comply, you can go to court within one year of the decision. The court can confirm the arbitrator’s decision and issue a judgment that can be enforced against the manufacturer or dealer. The court can also award attorney fees.

9: The administrator reviews your decision

The administrator reviews your decision for technical completeness and accuracy. If the administrator finds any errors, the arbitrator must approve any corrections.

When the decision is final, the administrator mails copies of the decision to you, the manufacturer or dealer, and OAG within 45 days of the filing date.

10: You and the manufacturer can modify or appeal the decision

If you or the manufacturer believe the arbitrator has made a mistake:

Either you or the manufacturer can request a modification within 20 days of receiving the decision.
The arbitrator must act upon the request within 30 days of receiving the decision.
You and the manufacturer or dealer are limited by law on what kinds of modifications you can make [Civil Practice Law and Rules (CPLR) section 7511(c)].
Both you and the manufacturer or dealer must accept the modified decision. If either of you is dissatisfied with the decision, you may be able to request a judge to review it (CPLR Article 75).
Either you, or the manufacturer or dealer, can start a lawsuit to vacate (reverse) the decision or modify an award within 90 days of receiving the decision (CPLR section 7511(b)].

(a) As used in this section:

(1) "Consumer" means the purchaser, lessee or transferee, other than for purposes of resale, of a motor vehicle which is used primarily for personal, family or household purposes and any other person entitled by the terms of the manufacturer's warranty to enforce the obligations of such warranty;

(2) "Motor vehicle" means a motor vehicle excluding off road vehicles, which was subject to a manufacturer's express warranty at the time of original delivery and either (i) was purchased, leased or transferred in this state within either the first eighteen thousand miles of operation or two years from the date of original delivery, whichever is earlier, or (ii) is registered in this state;

(3) "Manufacturer's express warranty" or "warranty" means the written warranty, so labeled, of the manufacturer of a new motor vehicle, including any terms or conditions precedent to the enforcement of obligations under that warranty.

(4) "Mileage deduction formula" means the mileage which is in excess of twelve thousand miles times the purchase price, or the lease price if applicable, of the vehicle divided by one hundred thousand miles.

(5) "Lessee" means any consumer who leases a motor vehicle pursuant to a written lease agreement which provides that the lessee is responsible for repairs to such motor vehicle.

(6) "Lease price" means the aggregate of:

(i) the lessor's actual purchase cost;

(ii) the freight cost, if applicable;

(iii) the cost for accessories, if applicable;

(iv) any fee paid to another to obtain the lease; and

(v) an amount equal to five percent of the lessor's actual purchase cost as prescribed in subparagraph (i) of this paragraph.

(7) "Service fees" means the portion of a lease payment attributable to:

(i) an amount for earned interest calculated on the rental payments previously paid to the lessor for the leased vehicle at an annual rate equal to two points above the prime rate in effect on the date of the execution of the lease; and

(ii) any insurance or other costs expended by the lessor for the benefit of the lessee.

(8) "Capitalized cost" means the aggregate deposit and rental payments previously paid to the lessor for the leased vehicle less service fees.

(b) (1) If a new motor vehicle which is sold and registered in this state does not conform to all express warranties during the first eighteen thousand miles of operation or during the period of two years following the date of original delivery of the motor vehicle to such consumer, whichever is the earlier date, the consumer shall during such period report the nonconformity, defect or condition to the manufacturer, its agent or its authorized dealer. If the notification is received by the manufacturer's agent or authorized dealer, the agent or dealer shall within seven days forward written notice thereof to the manufacturer by certified mail, return receipt requested, and shall include in such notice a statement indicating whether or not such repairs have been undertaken. The manufacturer, its agent or its authorized dealer shall correct said nonconformity, defect or condition at no charge to the consumer, notwithstanding the fact that such repairs are made after the expiration of such period of operation or such two year period.

(2) If a manufacturer's agent or authorized dealer refuses to undertake repairs within seven days of receipt of the notice by a consumer of a nonconformity, defect or condition pursuant to paragraph one of this subdivision, the consumer may immediately forward written notice of such refusal to the manufacturer by certified mail, return receipt requested. The manufacturer or its agent shall have twenty days from receipt of such notice of refusal to commence such repairs. If within such twenty day period, the manufacturer or its authorized agent fails to commence such repairs, the manufacturer at the option of the consumer, shall replace the motor vehicle with a comparable vehicle, or accept return of the vehicle from the consumer and refund to the consumer the full purchase price or, if applicable, the lease price and any trade-in allowance plus fees and charges. Such fees and charges shall include but not be limited to all license fees, registration fees and any similar governmental charges, less an allowance for the consumer's use of the vehicle in excess of the first twelve thousand miles of operation pursuant to the mileage deduction formula defined in paragraph four of subdivision (a) of this section, and a reasonable allowance for any damage not attributable to normal wear or improvements.

(c) (1) If, within the period specified in subdivision (b) of this section, the manufacturer or its agents or authorized dealers are unable to repair or correct any defect or condition which substantially impairs the value of the motor vehicle to the consumer after a reasonable number of attempts, the manufacturer, at the option of the consumer, shall replace the motor vehicle with a comparable vehicle, or accept return of the vehicle from the consumer and refund to the consumer the full purchase price or, if applicable, the lease price and any trade-in allowance plus fees and charges. Any return of a motor vehicle may, at the option of the consumer, be made to the dealer or other authorized agent of the manufacturer who sold such vehicle to the consumer or to the dealer or other authorized agent who attempted to repair or correct the defect or condition which necessitated the return and shall not be subject to any further shipping charges. Such fees and charges shall include but not be limited to all license fees, registration fees and any similar governmental charges, less an allowance for the consumer's use of the vehicle in excess of the first twelve thousand miles of operation pursuant to the mileage deduction formula defined in paragraph four of subdivision (a) of this section, and a reasonable allowance for any damage not attributable to normal wear or improvements.

(2) A manufacturer which accepts return of the motor vehicle because the motor vehicle does not conform to its warranty shall notify the commissioner of the department of motor vehicles that the motor vehicle was returned to the manufacturer for nonconformity to its warranty and shall disclose, in accordance with the provisions of section four hundred seventeen-a of the vehicle and traffic law prior to resale either at wholesale or retail, that it was previously returned to the manufacturer for nonconformity to its warranty. Refunds shall be made to the consumer and lienholder, if any, as their interests may appear on the records of ownership kept by the department of motor vehicles. Refunds shall be accompanied by the proper application for credit or refund of state and local sales taxes as published by the Department of Taxation and Finance and by a notice that the sales tax paid on the purchase price, lease price or portion thereof being refunded is refundable by the Commissioner of Taxation and Finance in accordance with the provisions of subdivision (f) of section eleven hundred thirty-nine of the tax law. If applicable, refunds shall be made to the lessor and lessee as their interests may appear on the records of ownership kept by the department of motor vehicles, as follows: the lessee shall receive the capitalized cost and the lessor shall receive the lease price less the aggregate deposit and rental payments previously paid to the lessor for the leased vehicle. The terms of the lease shall be deemed terminated contemporaneously with the date of the arbitrator's decision and award and no penalty for early termination shall be assessed as a result thereof. Refunds shall be accompanied by the proper application form for credit or refund of state and local sales tax as published by the department of taxation and finance and a notice that the sales tax paid on the lease price or portion thereof being refunded is refundable by the Commissioner of Taxation and Finance in accordance with the provisions of subdivision (f) of section eleven hundred thirty-nine of the tax law.

(3) It shall be an affirmative defense to any claim under this section that:

(i) the nonconformity, defect or condition does not substantially impair such value; or

(ii) the nonconformity, defect or condition is the result of abuse, neglect or unauthorized modifications or alterations of the motor vehicle.

(d) It shall be presumed that a reasonable number of attempts have been undertaken to conform a motor vehicle to the applicable express warranties, if:

(1) the same nonconformity, defect or condition has been subject to repair four or more times by the manufacturer or its agents or authorized dealers within the first eighteen thousand miles of operation or during the period of two years following the date of original delivery of the motor vehicle to a consumer, whichever is the earlier date, but such nonconformity, defect or condition continues to exist: or

(2) the vehicle is out of service by reason of repair of one or more nonconformities, defects or conditions for a cumulative total of thirty or more calendar days during either period, whichever is the earlier date.

(e) The term of an express warranty, the two year warranty period and the thirty day out of service period shall be extended by any time during which repair services are not available to the consumer because of a war, invasion or strike, fire, flood or other natural disaster.

(f) Nothing in this section shall in any way limit the rights or remedies which are otherwise available to a consumer under any other law.

(g) If a manufacturer has established an informal dispute settlement mechanism, such mechanism shall comply in all respects with the provisions of this section and the provisions of subdivision (c) of this section concerning refunds or replacement shall not apply to any consumer who has not first resorted to such mechanism. In the event that an arbitrator in such an informal dispute mechanism awards a refund or replacement vehicle, he or she shall not reduce the award to an amount less than the full purchase price or the lease price, if applicable, or a vehicle of equal value, plus all fees and charges except to the extent such reductions are specifically permitted under subdivision (c) of this section.

(h) A manufacturer shall have up to thirty days from the date the consumer notifies the manufacturer of his or her acceptance of the arbitrator's decision to comply with the terms of that decision. Failure to comply with the thirty day limitation shall also entitle the consumer to recover a fee of twenty-five dollars for each business day of noncompliance up to five hundred dollars. Provided, however, that nothing contained in this subdivision shall impose any liability on a manufacturer where a delay beyond the thirty day period is attributable to a consumer who has requested a replacement vehicle built to order or with options that are not comparable to the vehicle being replaced or otherwise made compliance impossible within said period. In no event shall a consumer who has resorted to an informal dispute settlement mechanism be precluded from seeking the rights or remedies available by law.

(i) Any agreement entered into by a consumer for the purchase of a new motor vehicle which waives, limits or disclaims the rights set forth in this section shall be void as contrary to public policy. Said rights shall inure to a subsequent transferee of such motor vehicle.

(j) Any action brought pursuant to this section shall be commenced within four years of the date of original delivery of the motor vehicle to the consumer.

(k) Each consumer shall have the option of submitting any dispute arising under this section upon the payment of a prescribed filing fee to an alternate arbitration mechanism established pursuant to regulations promulgated hereunder by the New York state attorney general. Upon application of the consumer and payment of the filing fee, all manufacturers shall submit to such alternate arbitration.

Such alternate arbitration shall be conducted by a professional arbitrator or arbitration firm appointed by and under regulations established by the New York state attorney general. Such mechanism shall insure the personal objectivity of its arbitrators and the right of each party to present its case, to be in attendance during any presentation made by the other party and to rebut or refute such presentation. In all other respects, such alternate arbitration mechanism shall be governed by article seventy-five of the civil practice law and rules; provided, however, that notwithstanding paragraph (i) of subdivision (a) of section seventy-five hundred two of the civil practice law and rules, special proceedings brought before a court pursuant to such article seventy-five in relation to an arbitration hereunder shall be brought only in the county where the consumer resides or where the arbitration was held or is pending.

(l) A court may award reasonable attorney's fees to a prevailing plaintiff or to a consumer who prevails in any judicial action or proceeding arising out of an arbitration proceeding held pursuant to subdivision (k) of this section. In the event a prevailing plaintiff is required to retain the services of an attorney to enforce the collection of an award granted pursuant to this section, the court may assess against the manufacturer reasonable attorney's fees for services rendered to enforce collection of said award.

(m) (1) Each manufacturer shall require that each informal dispute settlement mechanism used by it provide, at a minimum, the following:

(i) that the arbitrators participating in such mechanism are trained in arbitration and familiar with the provisions of this section, that the arbitrators and consumers who request arbitration are provided with a written copy of the provisions of this section, together with the notice set forth below entitled ''NEW CAR LEMON LAW BILL OF RIGHTS", and that consumers, upon request, are given an opportunity to make an oral presentation to the arbitrator;

(ii) that the rights and procedures used in the mechanism comply with federal regulations promulgated by the federal trade commission relating to informal dispute settlement mechanisms; and

(iii) that the remedies set forth under subdivision (c) of this section are awarded if, after a reasonable number of attempts have been undertaken under subdivision (d) of this section to conform the vehicle to the express warranties, the defect or nonconformity still exists.

(2) The following notice shall be provided to consumers and arbitrators and shall be printed in conspicuous ten point bold face type:

NEW CAR LEMON LAW BILL OF RIGHTS

(1) IN ADDITION TO ANY WARRANTIES OFFERED BY THE MANUFACTURER, YOUR NEW CAR, IF PURCHASED AND REGISTERED IN NEW YORK STATE, IS WARRANTED AGAINST ALL MATERIAL DEFECTS FOR EIGHTEEN THOUSAND MILES OR TWO YEARS, WHICHEVER COMES FIRST.

(2) YOU MUST REPORT ANY PROBLEMS TO THE MANUFACTURER, ITS AGENT, OR AUTHORIZED DEALER.

(3) UPON NOTIFICATION, THE PROBLEM MUST BE CORRECTED FREE OF CHARGE.

(4) IF THE SAME PROBLEM CANNOT BE REPAIRED AFTER FOUR OR MORE ATTEMPTS;OR IF YOUR CAR IS OUT OF SERVICE TO REPAIR A PROBLEM FOR A TOTAL OF THIRTY DAYS DURING THE WARRANTY PERIOD; OR IF THE MANUFACTURER OR ITS AGENT REFUSES TO REPAIR A SUBSTANTIAL DEFECT OR CONDITION WITHIN TWENTY DAYS OF RECEIPT OF NOTICE SENT BY YOU TO THE MANUFACTURER BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED; THEN YOU MAY BE ENTITLED TO EITHER A COMPARABLE CAR OR A REFUND OF YOUR PURCHASE PRICE, PLUS LICENSE AND REGISTRATION FEES, MINUS A MILEAGE ALLOWANCE ONLY IF THE VEHICLE HAS BEEN DRNEN MORE THAN 12,000 MILES. SPECIAL NOTIFICATION REQUIREMENTS MAY APPLY TO MOTOR HOMES.

(5) A MANUFACTURER MAY DENY LIABILITY IF THE PROBLEM IS CAUSED BY ABUSE, NEGLECT, ORUNAUTHORIZED MODIFICATIONS OF THE CAR.

(6) A MANUFACTURER MAY REFUSE TO EXCHANGE A COMPARABLE CAR OR REFUND YOUR PURCHASE PRICE IF THE PROBLEM DOES NOT SUBSTANTIALLY IMPAIR THE VALUE OF YOUR CAR.

(7) IF A MANUFACTURER HAS ESTABLISHED AN ARBITRATION PROCEDURE, THE MANUFACTURER MAY REFUSE TO EXCHANGE A COMPARABLE CAR OR REFUND YOUR PURCHASE PRICE UNTIL YOU FIRST RESORT TO THE PROCEDURE.

(8) IF THE MANUFACTURER DOES NOT HAVE AN ARBITRATION PROCEDURE, YOU MAY RESORT TO ANY REMEDY BY LAW AND MAY BE ENTITLED TO YOUR ATTORNEYS FEES IF YOU PREYAIL.

(9) NO CONTRACT OR AGREEMENT CAN VOID ANY OF THESE RIGHTS.

(10) AS AN ALTERNATIVE TO THE ARBITRATION PROCEDURE MADE AVAILABLE THROUGH THE MANUFACTURER, YOU MAY INSTEAD CHOOSE TO SUBMIT YOUR CLAIM TO AN INDEPENDENT ARBITRATOR, APPROVED BY THE ATTORNEY GENERAL. YOU MAY HAVE TO PAY A FEE FOR SUCH AN ARBITRATION. CONTACT YOUR LOCAL CONSUMER OFFICE OR ATTORNEY GENERAL'S OFFICE TO FIND OUT HOW TO ARRANGE FOR INDEPENDENT ARBITRATION.

(3) All informal dispute settlement mechanisms shall maintain the following records:

(i) the number of purchase price and lease price refunds and vehicle replacements requested, the number of each awarded in arbitration, the amount of each award and the number of awards that were complied with in a timely manner;

(ii) the number of awards where additional repairs or a warranty extension was the most prominent remedy, the amount or value of each award, and the number of such awards that were complied with in a timely manner;

(iii) the number and total dollar amount of awards where some form of reimbursement for expenses or compensation for losses was the most prominent remedy, the amount or value of each award and the number of such awards that were complied with in a timely manner; and

(iv) the average number of days from the date of a consumer's initial request to arbitrate until the date of the final arbitrator's decision and the average number of days from the date of the final arbitrator's decision to the date on which performance was satisfactorily carried out.

(n) Special provisions applicable to motor homes:

(1) To the extent that the provisions of this subdivision are inconsistent with the other provisions of this section, the provisions of this subdivision shall apply.

(2) For purposes of this section, the manufacturer of a motor home is any person, partnership, corporation, factory branch, or other entity engaged in the business of manufacturing or assembling new motor homes for sale in this state.

(3) This section does not apply to the living facilities of motor homes, which are the portions thereof designed, used or maintained primarily as living quarters and shall include, but not be limited to the flooring, plumbing system and fixtures, roof, air conditioner, furnace, generator, electrical systems other than automotive circuits, the side entrance door, exterior compartments, and windows other than the windshield and driver and front passenger windows.

(4) If, within the first eighteen thousand miles of operation or during the period of two years following the date of original delivery of the motor vehicle to such consumer, whichever is the earlier date, the manufacturer of a motor home or its agents or its authorized dealers or repair shops to which they refer a customer are unable to repair or correct any covered defect or condition which substantially impairs the value of the motor home to the consumer after a reasonable number of attempts, the motor home manufacturer, at the option of the consumer, shall replace the motor home with a comparable motor home, or accept return of the motor home from the consumer and refund to the consumer the full purchase price or, if applicable, the lease price and any trade-in allowance plus fees and charges as well as the other fees and charges set forth in paragraph one of subdivision (c) of this section.

(5) If an agent or authorized dealer of a motor home manufacturer or a repair shop to which they refer a consumer refuses to undertake repairs within seven days of receipt of notice by a consumer of a nonconformity, defect or condition within the first eighteen thousand miles of operation or during the period of two years following the date of original delivery of the motor home to such consumer, whichever is the earlier date, the consumer may immediately forward written notice of such refusal to the motor home manufacturer by certified mail, return receipt requested. The motor home manufacturer or its authorized agent or a repair shop to which they refer a consumer shall have twenty days from receipt of such notice of refusal to commence such repairs. If within such twenty-day period, the motor home manufacturer or its authorized agent or repair shop to which they refer a consumer, fails to commence such repairs, the motor home manufacturer, at the option of the consumer, shall replace the motor home with a comparable motor home, or accept return of the motor home from the consumer and refund to the consumer the full purchase price or, if applicable, the lease price, and any trade-in allowance or other charges, fees, or allowances. Such fees and charges shall include but not be limited to all license fees, registration fees, and any similar governmental charges, less an allowance for the consumer's use of the vehicle in excess of the first twelve thousand miles of operation pursuant to the mileage deduction formula defined in paragraph four of subdivision (a) of this section, and a reasonable allowance for any damage not attributable to normal wear or improvements.

(6) If within the first eighteen thousand miles of operation or during the period of two years following the date of original delivery of the motor home to such consumer, whichever is the earlier date, the same covered nonconformity, defect or condition in a motor home has been subject to repair two times or a motor home has been out of service by reason of repair for twenty-one days, whichever occurs first, the consumer must have reported this to the motor home manufacturer or its authorized dealer by certified mail, return receipt requested, and may institute any proceeding or other action pursuant to this section if the motor home has been out of service by reason of three repair attempts or for at least thirty days. The special notification requirements of this paragraph shall only apply if the manufacturer or its authorized dealer provides a prior written copy of the requirements of this paragraph to the consumer and receipt of the notice is acknowledged by the consumer in writing. If the consumer who has received notice from the manufacturer fails to comply with the special notification requirements of this paragraph, additional repair attempts or days out of service by reason of repair shall not be taken into account in determining whether the consumer is entitled to a remedy provided in paragraph four of this subdivision. However, additional repair attempts or days out of service by reason of repair that occur after the consumer complies with such special notification requirements shall be taken into account in making that determination. It shall not count as a repair attempt if the repair facility is not authorized by the applicable motor home manufacturer to perform warranty work on the identified nonconformity. It shall count as only one repair attempt for a motor home if the same nonconformity is being addressed a second time due to the consumer's decision to continue traveling and to seek the repair of the same nonconformity at another repair facility rather than wait for the initial repair to be completed.

(7) Nothing in this section shall in any way limit any rights, remedies or causes of action that a consumer or motor home manufacturer may otherwise have against the manufacturer of the motor home's chassis, or its propulsion and other components.

(8) (A) Each manufacturer shall require that each informal dispute settlement mechanism used by it provide, at a minimum, the following:

(i) that the arbitrators participating in such mechanism are trained in arbitration and familiar with the provisions of this section, that the arbitrators and consumers who request arbitration are provided with a written copy of the provisions of this section, together with the notice set forth below entitled "NEW MOTOR HOME LEMON LAW BILL OF RIGHTS", and that consumers, upon request, are given an opportunity to make an oral presentation to the arbitrator;

(ii) that the rights and procedures used in the mechanism comply with federal regulations promulgated by the federal trade commission relating to informal dispute settlement mechanisms; and

(B) Notwithstanding the provisions of paragraph two of subdivision (m) of this section, the following provisions shall apply for purposes of this subdivision:

The following notice shall be provided to consumers and arbitrators and shall be printed in conspicuous ten point bold face type:

NEW MOTOR HOME LEMON LAW BILL OF RIGHTS

(1) IN ADDITION TO ANY WARRANTIES OFFERED BY THE MANUFACTURERS, YOUR NEW MOTOR HOME, IF PURCHASED AND REGISTERED IN NEW YORK STATE, IS WARRANTED AGAINST ALL MATERIAL DEFECTS FOR EIGHTEEN THOUSAND MILES OR TWO YEARS, WHICHEVER COMES FIRST. HOWEVER, THIS ADDITIONAL WARRANTY DOES NOT APPLY TO THE LNING FACILITIES OF MOTOR HOMES, WHICH ARE THE PORTION THEREOF DESIGNED, USED OR MAINTAINED PRIMARILY AS LNING QUARTERS AND SHALL INCLUDE, BUT NOT BE LIMITED TO THE FLOORING, PLUMBING SYSTEM AND FIXTURES, ROOF AIR CONDITIONER, FURNACE, GENERATOR, ELECTRICAL SYSTEMS OTHER THAN AUTOMOTIVE CIRCUITS, THE SIDE ENTRANCE DOOR, EXTERIOR COMPARTMENTS, AND WINDOWS OTHER THAN THE WINDSHIELD AND DRIVER AND FRONT PASSENGER WINDOWS.

(2) YOU MUST REPORT ANY PROBLEMS TO THE MANUFACTURER, ITS AGENT, OR AUTHORIZED DEALER.

(3) UPON NOTIFICATION, THE PROBLEM MUST BE CORRECTED FREE OF CHARGE.

(4) IF, WITHIN THE FIRST EIGHTEEN THOUSAND MILES OF OPERATION OR DURING THE PERIOD OF TWO YEARS FOLLOWING THE DATE OF ORIGINAL DELIVERY OF THE MOTOR VEHICLE TO SUCH CONSUMER, WHICHEVER IS THE EARLIER DATE, THE MANUFACTURER OF A MOTOR HOME OR ITS AGENTS OR ITS AUTHORIZED DEALERS OR REPAIR SHOPS TO WHICH THEY REFER A CONSUMER ARE UNABLE TO REPAIR OR CORRECT ANY COVERED DEFECT OR CONDITION WHICH SUBSTANTIALLY IMPAIRS THE VALUE OF THE MOTOR HOME TO THE CONSUMER AFTER A REASONABLE NUMBER OF ATTEMPTS, THE MOTOR HOME MANUFACTURER, AT THE OPTION OF THE CONSUMER, SHALL REPLACE THE MOTOR HOME WITH A COMPARABLE MOTOR HOME, OR ACCEPT RETURN OF THE MOTOR HOME FROM THE CONSUMER AND REFUND TO THE CONSUMER THE FULL PURCHASE PRICE OR, IF APPLICABLE, THE LEASE PRICE AND ANY TRADE-IN ALLOWANCE,PLUS FEES AND CHARGES, AS WELL AS THE OTHER FEES AND CHARGES, INCLUDING BUT NOT LIMITED TO ALLLICENSE FEES,REGISTRATION FEES, AND ANY SIMILAR GOVERNMENTAL CHARGES, LESS AN ALLOWANCE FOR THE CONSUMER'S USE OF THE VEHICLE IN EXCESS OF TWELVE THOUSAND MILES TIMES THE PURCHASE PRICE, OR THE LEASE PRICE IF APPLICABLE, OF THE VEHICLE DIVIDED BY ONE HUNDRED THOUSAND MILES, AND A REASONABLE ALWWANCE FOR ANY DAMAGE NOT ATTRIBUTABLE TO NORMAL WEAR OR IMPROVEMENTS.

(5) SPECIAL NOTICE PROVISION: IF WITHIN EIGHTEEN THOUSAND MILES OR TWO YEARS, WHICHEVER COMES FIRST, THE SAME COVERED NONCONFORMITY, DEFECT OR CONDITION IN YOUR MOTOR HOME HAS BEEN SUBJECT TO REPAIR TWO TIMES OR YOUR MOTOR HOME HAS BEEN OUT OF SERVICE BY REASON OF REPAIR FOR TWENTY-ONE DAYS, WHICHEVER COMES FIRST, YOU MUST HAVE REPORTED THIS TO THE MOTOR HOME MANUFACTURER OR ITS AUTHORIZED DEALER BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, AND YOU MAY INSTITUTE ANY PROCEEDING OR OTHER ACTION PURSUANT TO THE LEMON LAW IF THE MOTOR HOME HAS BEEN OUT OF SERVICE BY REASON OF THREE REPAIR ATTEMPTS OR FOR AT LEAST THIRTY DAYS. THIS SPECIAL NOTICE REQUIREMENT SHALL ONLY APPLY IF THE MANUFACTURER OR ITS AUTHORIZED DEALER PROVIDES WRITTEN COPY OF THE REQUIREMENTS OF THIS PARAGRAPH TO YOU AND RECEIPT OF NOTICE IS ACKNOWLEDGED BY YOU IN WRITING. IF YOU FAIL TO COMPLY WITH THE SPECIAL NOTIFICATION REQUIREMENTS OF THIS PARAGRAPH, ADDITIONAL REPAIR ATTEMPTS OR DAYS OUT OF SERVICE BY REASON OF REPAIR SHALL NOT BE TAKEN INTO ACCOUNT IN DETERMINING WHETHER YOU ARE ENTITLED TO A REMEDY PROVIDED IN PARAGRAPH FOUR. HOWEVER, ADDITIONAL REPAIR ATTEMPTS OR DAYS OUT OF SERVICE BY REASON OF REPAIR THAT OCCUR AFTER YOU COMPLY WITH SUCH SPECIAL NOTIFICATION REQUIREMENTS SHALL BE TAKEN INTO ACCOUNT IN MAKING THAT DETERMINATION. NOTICE TO THE MANUFACTURER SHALL BE SENT TO THE FOLLOWING:

NOTICE TO THE DEALER SHOULD BE SENT TO THE FOLLOWING:

(6) A MANUFACTURER MAY DENY LIABILITY IF THE PROBLEM IS CAUSED BY ABUSE, NEGLECT, OR UNAUTHORIZED MODIFICATIONS OF THE MOTOR
HOME.

(7) A MANUFACTURER MAY REFUSE TO EXCHANGE A COMPARABLE MOTOR HOME OR REFUND YOUR PURCHASE PRICE IF THE PROBLEM IS NOT COVERED BY THE LEMON LAW OR DOES NOT SUBSTANTIALLY IMPAIR THE VALUE OF YOUR MOTOR HOME.

(8) IF A MANUFACTURER HAS ESTABLISHED AN ARBITRATION PROCEDURE, THE MANUFACTURER MAY REFUSE TO EXCHANGE A COMPARABLE MOTOR HOME OR REFUND YOUR PURCHASE PRICE UNTIL YOU FIRST RESORT TO THE PROCEDURE.

(9) IF THE MANUFACTURER DOES NOT HAVE AN ARBITRATION PROCEDURE, YOU MAY RESORT TO ANY REMEDY BY LAW AND MAY BE ENTITLED TO YOUR ATTORNEY'S FEES IF YOU PREVAIL.

(10) NO CONTRACT OR AGREEMENT CAN VOID ANY OF THESE RIGHTS.

(11) AS AN ALTERNATIVE TO THE ARBITRATION PROCEDURE MADE AVAILABLE THROUGH THE MANUFACTURER, YOU MAY INSTEAD CHOOSE TO SUBMIT YOUR CLAIM TO AN INDEPENDENT ARBITRATOR, APPROVED BY THE ATTORNEY GENERAL. YOU MAY HAVE TO PAY A FEE FOR SUCH ARBITRATION. CONTACT YOUR LOCAL CONSUMER OFFICE OR ATTORNEY GENERAL'S OFFICE TO FIND OUT HOW TO ARRANGE FOR INDEPENDENT ARBITRATION.

(o) At the time of purchase or lease of a motor vehicle from an authorized dealer in this state, the manufacturer shall provide to the dealer or leaseholder, and the dealer or leaseholder shall provide to the consumer a notice, printed in not less than eight point bold face type, entitled "New Car Lemon Law Bill of Rights". The text of such notice shall be identical with the notice required by paragraph two of subdivision (m) of this section.

Pursuant to General Business Law
Sections 198-a and 198-b

Section

300.1 Purpose
300.2 Definitions
300.3 Appointment of Administrator
300.4 Consumer's Request for Arbitration
300.5 Filing Date
300.6 Assignment of Arbitrator
300.7 Scheduling of Arbitration Hearing
300.8 Adjournments
300.9 Request for Additional Information or Documents
300.10 Representation by Counsel or Third Party
300.11 Interpreters
300.12 Hearing Procedure
300.13 Hearing on Documents Only
300.14 Defaults
300.15 Withdrawal or Settlement Prior to Decision
300.16 Decision
300.17 Record keeping
300.18 Miscellaneous Provisions

300.1 Purpose

(a) These regulations are promulgated pursuant to the "New York Lemon Law", General Business Law ("GBL") section 198-a, as amended by Chapter 799 of the Laws of 1986, and section 198-b, as amended by Chapter 609 of the Laws of 1989. They set forth the procedures for the operation of an alternative arbitration mechanism (the "Programs") as required by GBL §198-a(k) and GLB §198-b(f)(3).

(b) These regulations are designed to promote the independent, speedy, efficient and fair disposition of disputes concerning defective new and used motor vehicles.

300.2 Definitions

(a) Unless otherwise stated, terms used in these regulations are as defined in GBL §198-a or GBL §198-b.

(b) The term "Administrator" shall mean a professional arbitration firm or individual appointed by the Attorney General to administer the Program.

300.3 Appointment of Administrator

(a) The Attorney General shall appoint an Administrator or Administrators to a definite term not to exceed two years. The term shall be renewal.

(b) The following criteria shall be considered in the selection of an Administrator: capability, objectivity, non-affiliation with a manufacturer's arbitration program, reliability, experience, financial stability, extent of geographic coverage, and fee structure.

(c) The Attorney General shall give appropriate public notice at least 60 days prior to the expiration of an Administrator's term inviting any interested qualified party to apply in writing for the position of Administrator within 30 days from the date of public notice.

(d) Upon a vacancy occurring prior to the expiration of an Administrator's term, the time periods in subdivision (3) shall not apply and the Attorney General shall take appropriate steps to assure the continued administration of the Program.

300.4 Consumer's Request for Arbitration

(a) The Attorney General shall prescribe and make available "Request for Arbitration" forms for both GBL §198-a and GBL §198-b claims. To apply for arbitration under the Program, a consumer shall obtain, complete and submit the appropriate form to the Attorney General.

(b) Those consumers wishing a hearing on documents only shall so indicate on the form.

(c) For a GBL §198-a claim, the consumer shall indicate on the form his/her choice of remedy (i.e., either refund or comparable replacement vehicle), in the event the arbitrator rules in favor of the consumer. Such choice shall be followed by the arbitrator unless the consumer advises the Administrator in writing of a change in his/her choice of remedy prior to the arbitrator's rendering of a decision.

(d) Upon receipt, the Attorney General shall date-stamp and assign a case number to the form.

(e) The Attorney General shall review the submitted form for completeness and eligibility and shall either accept it or reject it.

(f) If the form is rejected by the Attorney General, the Attorney General shall promptly return the form, notifying the consumer in writing of the reasons for the rejection and, where possible, inviting the consumer to correct the deficiencies.

(g) If the form is accepted by the Attorney General, he shall refer it to the Administrator for processing. The Attorney General shall promptly notify the consumer in writing of the acceptance of the form and of its referral to the Administrator. Such notice shall also advise the consumer to pay the prescribed filing fee directly to the Administrator.

(h) If, after 30 days from the date of the notice of acceptance, the Administrator fails to receive the prescribed filing fee, the Administrator shall promptly advise the consumer in writing that unless such fee is received within 60 days from the date of the first notice, the form will be returned and the case marked closed. After such time, if the consumer wishes to pursue a claim under the Program, (s)he must submit a new form to the Attorney General.

(i) Participation in any informal dispute resolution mechanism that is not binding on the consumer shall not affect the eligibility of a consumer to participate in either Program.

300.5 Filing Date

On the day the Administrator received the prescribed filing fee, the Administrator shall date stamp the "Request for Arbitration" form. Such date shall be considered the "filing date".

300.6 Assignment of Arbitrator

(a) After the filing date, the Administrator shall assign an arbitrator to hear and decide the case. Notice of assignment shall be mailed to the arbitrator and the parties along with a copy of these regulations and GBL §198-a or GBL §198-b, whichever is applicable.

(b) The arbitrator assigned shall not have any bias, any financial or personal interest in the outcome of the hearing, or any current connection to the sale or manufacture of motor vehicles.

(c) Upon a finding by the Administrator, at any stage of the process, of grounds to disqualify the arbitrator, the Administrator shall dismiss the arbitrator and assign another arbitrator to the case.

(d) If any arbitrator should resign, die, withdraw or be unable to perform the duties of his/her position, the Administrator shall assign another arbitrator tot he case and the period to render a decision shall be extended accordingly.

(e) Arbitrators shall undergo training established by the Administrator and the Attorney General. This training shall include procedural techniques, the duties and responsibilities of arbitrators under the Programs, and the substantive provisions of GBL §198-a for those arbitrators hearing GBL §198-a claims, and the substantive provisions of GBL §198-b for those arbitrators hearing GBL §198-b claims.

300.7 Scheduling of Arbitration Hearings

(a) Each manufacturer of cars sold in New York shall notify the Attorney General in writing, within 10 days after the effective date of these regulations, or the name, address and telephone number of the person designated to receive notices under the GBL §198-a Program. Such information shall be presumed correct unless updated by the manufacturer.

(b) The arbitration shall be conducted as an oral hearing unless the consumer has requested, on the "Request for Arbitration" form, a hearing on documents only and both parties agree to a documents only hearing; provided, however, that the parties may mutually agree in writing to change the mode of hearing. Upon such change, the parties shall notify the Administrator who shall comply with the request and, where necessary, such request shall waive the 40 day limit in which a decision must be rendered.

(c) Within 5 days of the filing date, the Administrator shall send the manufacturer's designee or the dealer, as appropriate, a copy of the consumer's completed form along with a notice that it may respond in writing. Such response shall be sent in triplicate, within 15 days of the filing date, to the Administrator, who shall promptly forward one copy to the consumer.

(d) The consumer may respond in writing to the manufacturer's or dealer's submission within 25 days of the filing date. Such response shall be sent in triplicate to the Administrator, who shall promptly forward a copy to the manufacturer or the dealer.

(e) An oral hearing, when appropriate, shall be scheduled no later than 35 days from the filing date, unless a later date is agreed to by both parties. The Administrator shall notify both parties of the date, time and place of the hearing at least 8 days prior to its scheduled date.

(f) Hearings shall be scheduled to accommodate, where possible, time-of-day need of the consumer and the manufacturer or the dealer, including evening and weekend hours.

(g) Hearings shall also be scheduled to accommodate geographic needs of the consumer. Regular hearing sites shall be established at locations designated by the Administrator, including in the following areas: Albany, Binghamton, Buffalo, Nassau County, New York City, Plattsburgh, Poughkeepsie, Rochester, Suffolk County, Syracuse, Utica, Watertown, and Westchester. No hearing site established by the Administrator shall be discontinued without the approval of the Attorney General. In addition, where a regular site is more than 100 miles from the consumer's residence, a hearing must be scheduled at the request of the consumer at a location designated by the Administrator within 100 miles of the consumer's residence.

(h) In unusual circumstances, a party may present its case by telephone, provided that adequate advance notice is given to the Administrator and to the other party. In such cases, the arbitrator and both parties shall be included and the party requesting the telephonic hearing shall pay all costs associated therewith.

300.8 Adjournments

Either party may make a request to reschedule the hearing. Except in unusual circumstances, such request shall be made to the Administrator orally or in writing at least two business days prior to the hearing date. Upon a finding of good cause, the arbitrator may reschedule the hearing. In unusual circumstances, the arbitrator may reschedule the hearing. In unusual circumstances, the arbitrator may reschedule the hearing at any time prior to its commencement.

300.9 Request for Additional Information or Documents

(a) A party, by application in writing to the Administrator, may request the arbitrator to direct the other party to produce any documents or information. The arbitrator shall, upon receiving such request, or on his or her own initiative, direct the production of documents or information which she or he believes will reasonably assist a party in presenting his or her case to assist the arbitrator in deciding the case. The arbitrator's direction for the production of documents and information shall allow a reasonable time for the gathering and production of such documents and information.

(b) All documents and information forwarded in compliance with the arbitrator's direction shall be legible and received no later than three business days prior to the dates of the hearing. Each party shall bear its own photocopying costs.

(c) Upon failure of a party to comply with the arbitrator's direction to to produce documents and/or information, the arbitrator may draw a negative inference concerning any issue involving such documents or information.

(d) The term "documents" in this section shall include, but not be limited to, relevant manufacturer's service bulletins, dealer work orders, diagnoses, bills, and all communications relating to the consumer's claim.

(e) At the request of either party or on his or her own initiative, the arbitrator, when she or he believes it appropriate, may subpoena any witnesses to appear or documents to be presented at the hearing.

300.10 Representation by Counsel or Third Party

Any party may be represented by counsel or assisted by any third party.

300.11 Interpreters

Any party wishing an interpreter shall make the necessary arrangements and assume the costs for such service.

300.12 Hearing Procedure

(a) The conduct of the hearing shall afford each party a full and equal opportunity to present his/her case.

(b) The arbitrator shall administer an oath or affirmation to each individual who testifies.

(d) The arbitrator shall receive in evidence a decision rendered in a previous arbitration which was not binding on the consumer and give it such weight as the arbitrator deems appropriate.

(e) The arbitrator shall receive relevant evidence of witnesses by affidavit, and such affidavits shall be given such weight as the arbitrator deems appropriate.

(f) The arbitrator shall have discretion to examine or ride in the consumer's vehicle. Both parties shall be afforded the opportunity to be present and accompany the arbitrator on any such examination or ride.

(g) The consumer shall first present evidence in support of his/her claim, and the manufacturer or dealer, as applicable, shall then present its evidence. Each party may question the witnesses called by the other. The arbitrator may question any party or witnesses at any time during the hearing.

(h) The arbitrator shall maintain decorum at the hearing.

(i) The arbitrator may request additional evidence after the closing the hearing. All such evidence shall be submitted to the Administrator for transmission to the arbitrator and the parties.

300.13 Hearing on Documents Only

If the hearing is on documents only, all documents shall be submitted to the Administrator no later than 30 days from the filing date. The arbitrator shall render a timely decision based on all documents submitted.

300.14 Defaults

(a) Upon the failure of a party to appear at an oral hearing, the arbitrator shall nevertheless conduct the hearing and render a timely decision based on the evidence presented and documents contained in the file.

(b) If neither party appears at the hearing, the arbitrator shall return the case to the Administrator who shall close it and so notify the parties.

(c) In a documents-only hearing, where the manufacturer or the dealer, fails to respond to the claim, the arbitrator shall render a decision based upon the documents contained in the file.

300.15 Withdrawal or Settlement Prior to Decision

(a) A consumer may withdraw his/her request for arbitration at any time prior to decision. If the Administrator is notified by the consumer of his/her request to withdraw the claim within seven business days the filing date, the Administrator shall refund the filing fee.

(b) If the parties agree to a settlement more than seven business days after the filing date but prior to the issuance of a decision, they shall notify the Administrator in writing of the terms of the settlement. Upon the request of the parties, the arbitrator shall issue a decision reflecting the settlement.

300.16 The Decision

(a) The arbitrator shall render a decision within 40 days of the filing date which shall be in writing on a form prescribed by the Administrator and approved by the Attorney General. The decision shall be dated and signed by the arbitrator.

(b) In his/her decision, the arbitrator shall determine whether the consumer qualifies for relief pursuant to GBL §198-a or GBL §198-b, as appropriate. If the arbitrator finds that the consumer qualifies, (s)he shall award the specific remedies prescribed by the applicable statute.

(c) The decision shall specify the monetary award where applicable. A calculation of the amount, in accordance with GBL §198-a or GBL §198-b, as applicable, shall be included in the decision. The decision shall also award the prescribed filing fee to a successful consumer.

(d) The decision shall, where applicable, require that any action required by the manufacturer or the dealer, be completed within 30 days from the date the Administrator notifies the manufacturer or dealer, of the decision.

(e) The Administrator shall review the decision for technical completeness and accuracy and advise the arbitrator of any suggested technical corrections, such as computational, typographical or other minor corrections. Such changes shall be made only with the consent of the arbitrator.

(f) After review, the Administrator shall, within 45 days of the filing date, mail a copy of the final decision to both parties, the arbitrator, and the Attorney General. The date of mailing to the parties shall be date-stamped by the Administrator on the decision as the date of issuance.

(g) Failure to mail the decision to the parties within the specified time period or failure to hold the hearing within the prescribed time shall not invalidate the decision.

(h) The arbitrator's decision is binding on both parties and is final, subject only to judicial review pursuant to CPLR, Article 75. The decision shall include a statement to this effect.

300.17 Record keeping

(a) The Administrator shall keep all records pertaining to each arbitration for a period of at least two years and shall make the records of a particular arbitration available for inspection upon written request by a party to that arbitration, and shall make record of all arbitrations available to the Attorney General upon written request.

(b) The Administrator shall maintain such records and statistics for both Programs as are required by GBL §198-a(m)(3).

300.18 Miscellaneous Provisions

(a) All communications between the parties and the arbitrator, other than at oral hearings, shall be directed to the Administrator.

(b) If any provision of these regulations or the application of such provision to any persons or circumstances shall be held invalid, the validity of the remainder of these regulations and the applicability of such provision to other persons or circumstances shall not be affected thereby.