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As we have written elsewhere, most auto manufacturers offer an arbitration program in virtually all states. This program allows lemon law disputes to be heard by an ostensibly neutral third party, who will examine evidence from each party in the case and will issue a ruling in favor of one party or the other. Alaska law requires that a vehicle owner with a defective vehicle must submit to an arbitration program if the manufacturer of his vehicle makes one available within the state. The results of the arbitration proceeding are binding upon the manufacturer, but the owner need not abide by the decision if he or she should be dissatisfied with it.
Should a vehicle qualify under the statute as defective, the owner will be entitled to a suitable replacement with a “new, comparable vehicle”. Alternatively, at the owner’s option, the manufacturer will buy the vehicle back from the owner for the full purchase price. This will include the price of the vehicle, plus registration fees, taxes, transportation fees, dealer added options and dealer preparation fees.
An adjustment can be made to the above sum to compensate the manufacturer for wear, tear, and prior miles driven. This amount is determined using straight line depreciation over a seven year period. Most states use some sort of mileage figure to determine the amount of use, so this is a bit unusual when compared to other states’ laws. The net effect is the same, however.
If you are experiencing concerns with your automobile, SUV or van, you may discover that you need legal representation. LegalMatch can help find an experienced attorney near your home. Confidentiality is secure, all lawyers are licensed, and the service costs you nothing.
Anyone with a defective vehicle is encouraged to keep records of all transactions and conversations with dealers and manufacturers. This would include receipts from all repair attempts on the vehicle.
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