What Is Arbitration?

Arbitration is an informal process that is used to obtain speedy resolution of a warranty dispute without going to court, and it is legally binding on the manufacturer only. At an arbitration hearing, you and the manufacturer testify before an impartial arbitrator about the condition and repair history of the vehicle. The arbitrator will decide what is fair based on the facts of the case.

Arbitration is a quick and does not require an attorney. Cases take less than 40 days once you have supplied the repair and service information for the arbiter’s consideration.

Arbitration does not require that a vehicle be a “lemon,” but it must be under warranty. The arbiter’s decision is binding on the manufacturer only; that is, you may accept or reject the arbiter’s decision. If you accept, the manufacturer will have to do as the arbiter decides. If you reject, then nothing will happen. The manufacturer will do nothing, and you are free to sue in court, if you wish.

Lemon Law Criteria: Is My Car A Lemon?

A "lemon" is a motor vehicle with a defect which substantially impairs the use or market value and cannot be repaired after reasonable attempts. The vehicle must be:

• purchased in Nebraska,
• under warranty and
• less than one year old when notice is sent to the manufacturer.

The vehicle may be used for any purpose: business, family, household or personal purposes. It may be any size, from a motorcycle to a semi-truck. It may be leased from a dealer in Nebraska.

The vehicle cannot be a trailer or self-propelled motor home.

A vehicle is presumed to be a lemon if

• the vehicle has been sent to the dealer four or more times for repair of the same problem, or
• you has been without the use of the vehicle for 40 or more days total.

A manufacturer, however, is allowed to argue that the problem does not substantially impair the use or market value of the vehicle or that the problem is a result of abuse, neglect, or unauthorized modifications of the vehicle.

The Following Manufacturers are Certified by the Nebraska DMV

You will have to notify the manufacturer of your vehicle by certified mail to begin the lemon law claim. The claim will be arbitrated through the BBB AUTO LINE and application may be made on the internet. The BBB Auto Line phone number is: 1-800-334-2406

• Hyundai
• Isuzu
• Ford
• Kia
• Nissan And Infiniti
• General Motors (GM)
• Volkswagen and Audi
• Land Rover
• Porsche

General Motors prefers that you use the following addresses to notify them, by certified letter, about your lemon law claim.

• Buick Motor Division, P.O. Box 33136, Detroit MI 48232-5136
• Cadillac Motor Car Division, P.O. Box 33169, Detroit MI 48232-5169
• Chevrolet Motor Division, P.O. Box 33170, Detroit MI 48232-5170
• Hummer H2, P.O. Box 33177, Detroit MI 48232-5177