Kentucky’s lemon law is unusual in that it is accompanied by an arbitration law that is independent of the lemon law. Most lemon laws allow for vehicle owners to seek relief for defective vehicles through an arbitration program, where the consumer’s complaints are read or heard by an impartial panel that decides if the vehicle qualifies as a lemon. Some states require arbitration for lemon law cases; others make it an option for the vehicle’s owner.

Kentucky has separate arbitration and lemon law, so it is possible for a vehicle owner who is unhappy with their car or truck to have an arbitration hearing even if their vehicle does not qualify as a lemon under the lemon law.

The lemon law covers new vehicles with no more than two axles. Motorcycles, motor homes, conversion vans, and farm equipment are not covered. Leased vehicles are covered under the law. Eligible vehicles must be less than 12 months old and have fewer than 12,000 miles. The law defines a lemon as a vehicle that has had at least four unsuccessful attempts to repair a problem or defect that substantially affects the use, safety or value of the vehicle. Defects caused by abuse, neglect or alteration or unauthorized modification of the vehicle do not qualify.

 A vehicle also qualifies if a problem or nonconformity keeps the vehicle out of service for a total of 30 days during the warranty period. Should the vehicle be declared a lemon, the manufacturer is required to repurchase the vehicle. The refund of the purchase price must include the full amount paid, including finance charges, sales tax, license fees, registration fees and any other incidental charges. The manufacturer is permitted to adjust this amount to compensate for prior use of the vehicle.

This is a nice change from virtually all other states’ laws, which usually provide an option for either replacement with a comparable vehicle or a refund. Often, the choice to replace or refund is made by the manufacturer. This statute seems quite reasonable; if the consumer wants a comparable vehicle, he or she may elect to purchase one with the refunded purchase price.

Arbitration in lemon law cases in Kentucky is mandatory, but the decision of the arbitration panel is not binding on the vehicle owner. If the owner is unhappy with the results of the arbitration hearing, the owner may elect to sue.

Under certain circumstances, owners of vehicles that do not qualify for lemon law protection may be eligible to file for an arbitration hearing. These vehicles must have a least four wheels and be used primarily for family, personal or household purposes and must still have the original owner. The dispute must have occurred during the first two years of ownership or during the first 25,000 miles, whichever comes first.

The car must have been purchased in Kentucky by a Kentucky resident.

If you are having difficulties with your automobile, truck or van, you may find that you need an attorney. LegalMatch can help find an experienced attorney for you in your area. Confidentiality is secure, all attorneys are licensed, and inquiries are free.

Details can be found the Kentucky Lemon Law page