Lemon Law Demand Letter — Arkansas

LEMON LAW DEMAND LETTER

Under the Arkansas New Motor Vehicle Quality Assurance Act

Ark. Code Ann. §§ 4-90-401 through 4-90-417

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND OVERNIGHT DELIVERY — SIGNATURE REQUIRED

Date: [__/__/____]

To Manufacturer:
[________________________________] (Manufacturer Name)
ATTN: Customer Relations / Legal Department / Lemon Law Administration
[________________________________] (Manufacturer Address)
[________________________________] (City, State ZIP)

To Selling Dealer:
[________________________________] (Dealer Name)
ATTN: General Manager / Service Director
[________________________________] (Dealer Address)
[________________________________] (City, Arkansas ZIP)

Re: ARKANSAS LEMON LAW DEMAND — STATUTORY WRITTEN NOTICE
Consumer/Owner: [________________________________]
Vehicle: [____] (Year) [________________________________] (Make) [________________________________] (Model/Trim)
VIN: [________________________________]
Purchase/Lease Date: [__/__/____]
Current Odometer: [________________________________]

Dear Sir or Madam:

This firm represents [________________________________] ("Consumer") regarding the above-referenced vehicle. This letter constitutes the written notification required under Ark. Code Ann. § 4-90-406(a)(1) to the manufacturer — by certified or registered mail — allowing the manufacturer a final attempt to cure, before the Consumer proceeds to any informal dispute settlement procedure or civil action under the Arkansas New Motor Vehicle Quality Assurance Act ("Act"), Ark. Code Ann. §§ 4-90-401 through 4-90-417, and the federal Magnuson-Moss Warranty Act, 15 U.S.C. § 2301 et seq.

The vehicle qualifies as a "lemon" under Arkansas law. We demand repurchase or replacement in accordance with Ark. Code Ann. § 4-90-406(b).

I. ARKANSAS LEMON LAW — STATUTORY FRAMEWORK

A. Covered Vehicles (Ark. Code Ann. § 4-90-403(11))

Under § 4-90-403(11), "motor vehicle" means any self-propelled vehicle licensed, purchased, or leased in this state and primarily designed for the transportation of persons or property over the public streets and highways. The statute excludes:

• Mopeds;
• Motorcycles;
• The living facilities of a motor home;
• Vehicles over 14,000 pounds gross vehicle weight rating (the 14,000-lb limit does not apply to motor homes); and
• A vehicle over 10,000 pounds GVWR that has been substantially altered after its initial sale from a dealer.

(Coverage runs to a "consumer" — the purchaser or lessee of a new or previously untitled vehicle who has titled and registered it — under § 4-90-403(4).)

B. Motor Vehicle Quality Assurance Period (Ark. Code Ann. § 4-90-403(12))

Under § 4-90-403(12), the quality assurance period begins on the date of original delivery to the consumer (or delivery of a replacement vehicle) and ends on the later of:

• 24 months after the date of original delivery; or
• The first 24,000 miles of operation attributable to the consumer;
• whichever occurs later.

(Arkansas uses "whichever is later," which is more protective than the "whichever first" rule some states apply.) All defects in this vehicle arose within the quality assurance period.

C. Arkansas's Repair Thresholds and Rebuttable Presumption (Ark. Code Ann. §§ 4-90-406(a), 4-90-410)

Two provisions work together. The repair thresholds that trigger the consumer's written-notice/final-attempt right are set in § 4-90-406(a)(1); the rebuttable presumption of a reasonable number of repair attempts is established in § 4-90-410(a):

Critical distinction: The 5-attempt/separate-defects trigger (§ 4-90-410(a)(3)) is recognized in only a handful of states. Track all repair visits, not just those for a single recurring problem.

Extension of 30-day period: The 30-day out-of-service figure is extended by any period during which repair services are unavailable as a direct result of war, invasion, strike, fire, flood, or natural disaster (§ 4-90-410(b)); the manufacturer bears the burden of proving the extension caused its failure to cure (§ 4-90-410(c)).

D. Mandatory Written Notice to Manufacturer (Ark. Code Ann. § 4-90-406(a))

After 3 attempts to repair the same nonconformity (or 1 attempt for a nonconformity likely to cause death or serious bodily injury), the consumer must send written notification by certified or registered mail to the manufacturer, allowing a final attempt to cure (§ 4-90-406(a)(1)). Within 10 days after receipt, the manufacturer must notify and provide the consumer the opportunity to have the vehicle repaired at a reasonably accessible repair facility; after the vehicle is delivered there, the manufacturer has 10 days to conform it to the warranty (§ 4-90-406(a)(2)). If the manufacturer fails to do either within those periods, the final-attempt requirement is excused and a nonrebuttable presumption of a reasonable number of attempts arises (§ 4-90-406(a)(3)).

THIS LETTER CONSTITUTES THE REQUIRED STATUTORY WRITTEN NOTICE.

E. Informal Dispute Settlement Procedure (Ark. Code Ann. §§ 4-90-404(a), 4-90-414)

Under § 4-90-404(a)(1), the consumer must use the informal dispute settlement proceeding (§ 4-90-414) before bringing legal action — but only if the manufacturer made the written-rights disclosure required by § 4-90-404(b). If the manufacturer did not make that disclosure, the consumer is not required to use the IDSP before suing (§ 4-90-404(a)(2)). Where a qualifying program exists (e.g., BBB AUTO LINE) it is administered under 16 C.F.R. Part 703, under which the decision is not binding on the consumer, who may reject it and proceed to court.

II. VEHICLE AND WARRANTY INFORMATION

A. Vehicle Details

B. Warranty Status

All reported defects arose during the applicable warranty period and remain unresolved.

III. NONCONFORMITY DESCRIPTION

A. Primary Defect

B. Additional Defects (if asserting the 5-repair/separate-defects trigger)

IV. REPAIR HISTORY

Repair Attempt #1

Repair Attempt #2

Repair Attempt #3

(Copy and continue for additional repair attempts as needed)

Repair Summary

V. STATUTORY PRESUMPTION SATISFIED

Our client's vehicle qualifies under one or more of the following Arkansas lemon law triggers:

☐ Three-Repair Threshold (§ 4-90-406(a)(1) → § 4-90-410(a)(1)): The same nonconformity has been subject to repair [____] times (3 or more required), and the defect continues to exist.

☐ Serious Safety Defect (§ 4-90-406(a)(1) → § 4-90-410(a)(1)): A nonconformity likely to cause death or serious bodily injury has been subject to repair [____] time(s) (1 required). Nature of safety risk: [________________________________]

☐ Thirty-Day Out-of-Service (§ 4-90-410(a)(2)): The vehicle has been out of service by reason of repair for a cumulative total of [____] calendar days (30 or more required).

☐ Five-Repair / Separate Defects (§ 4-90-410(a)(3)): The vehicle has been subject to [____] repair attempts on separate occasions for nonconformities that together substantially impair its use and value (5 or more required).

VI. DEMAND FOR RELIEF

Pursuant to Ark. Code Ann. § 4-90-406(b), and exercising the Consumer's unconditional right to choose a refund rather than a replacement (§ 4-90-406(b)(2)(A)), we demand — to be provided within 40 days (§ 4-90-406(b)(1)):

Option A — Repurchase / Refund (Ark. Code Ann. § 4-90-406(b)(1)(A)(ii))

Arkansas Mileage Offset Formula (Ark. Code Ann. § 4-90-406(b)(3)):

(Actual price paid or payable, incl. transportation and installed options) × (Miles traveled before the vehicle was first delivered for correction ÷ 120,000)

Calculation: $[________________________________] × ([________________________________] miles ÷ 120,000) = $[________________________________]

Option B — Replacement (Ark. Code Ann. § 4-90-406(b)(1)(A)(i))

The manufacturer must provide a replacement motor vehicle acceptable to the consumer, at no additional cost (upon the consumer's payment of the reasonable use offset).

Consumer's preferred remedy: ☐ Repurchase/Refund ☐ Replacement

Additional Relief

1. Costs and Attorney's Fees (Ark. Code Ann. § 4-90-415(c)): A consumer who prevails in any legal proceeding under the Act is entitled to recover, as part of the judgment, the aggregate costs and expenses, including reasonable attorney's fees based on actual time expended. (The Act contains no multiple- or double-damages provision.)

2. Deceptive Trade Practice Tie-In (Ark. Code Ann. § 4-90-417): A violation of the Act is a deceptive trade practice, actionable under the Arkansas Deceptive Trade Practices Act (Ark. Code Ann. § 4-88-101 et seq.), which affords its own remedies.

3. Loan / Lease Payoff: Refunds are made to the consumer and any lienholder of record as their interests may appear (§ 4-90-407(a)); outstanding lien/lease obligation to be satisfied.

VII. ARBITRATION STATUS

☐ Manufacturer made the § 4-90-404(b) rights disclosure and maintains a qualifying IDSP: The consumer will submit the claim to the [________________________________] (BBB AUTO LINE / National Center for Dispute Settlement) program as required by § 4-90-404(a)(1), but reserves all rights to reject the decision and proceed to court.

☐ Manufacturer did not make the § 4-90-404(b) disclosure (or has no qualifying IDSP): The consumer is not required to use the IDSP before suing (§ 4-90-404(a)(2)) and may proceed directly to court.

☐ Consumer has already completed the IDSP process: Decision issued [__/__/____]; consumer ☐ accepted ☐ rejected the decision. This letter serves as notice prior to filing a civil action.

VIII. MANUFACTURER'S FINAL REPAIR OPPORTUNITY

Under Ark. Code Ann. § 4-90-406(a)(2), upon receipt of this notice the manufacturer must, within 10 days, notify the consumer of a reasonably accessible repair facility where the vehicle may be presented for a final repair attempt. The repair must be completed within 10 days after the vehicle is delivered to the designated facility.

If the manufacturer fails to respond within 10 days, or fails to complete the repair within 10 days after delivery of the vehicle, the final-attempt requirement is excused and a nonrebuttable presumption of a reasonable number of attempts to repair arises (§ 4-90-406(a)(3)).

IX. DOCUMENT PRESERVATION NOTICE

You are directed to immediately preserve all documents and records relating to this vehicle, including but not limited to:

• All warranty claims and repair orders
• Technical Service Bulletins (TSBs) related to the defect(s)
• Customer complaints regarding similar defects in same make/model/year
• All communications between the dealer and manufacturer regarding this vehicle
• Engineering analyses, field reports, and recall data
• The vehicle itself (do not destroy, sell, auction, or materially alter)

Spoliation of evidence may result in adverse inference instructions and sanctions.

X. RESPONSE DEADLINE

Please respond in writing within fifteen (15) days of the date of this letter with:

1. Whether you acknowledge the vehicle qualifies under the Act;
2. Your offer for repurchase or replacement;
3. Information regarding your IDSP, if applicable;
4. Designation of a final repair facility (if providing the final repair opportunity under § 4-90-406(a)(2)).

If we do not receive a satisfactory response:

☐ We will submit the claim to the manufacturer's IDSP
☐ We will file suit in the appropriate Arkansas court
☐ We will file a complaint with the Arkansas Attorney General, Consumer Protection Division

XI. STATUTE OF LIMITATIONS

Under Ark. Code Ann. § 4-90-416(a), any action under the Act must be commenced within two (2) years following the date the buyer first reports the nonconformity to the manufacturer, its agent, or authorized dealer. When the buyer has commenced an informal dispute settlement procedure (§ 4-90-414), that two-year period begins to run at the time the IDSP is commenced (§ 4-90-416(b)). Separate warranty claims may have different limitation rules and require claim-specific review.

XII. CONCLUSION

The manufacturer has had ample opportunity to repair this vehicle. The statutory thresholds have been met. Our client is entitled to a full refund or replacement under Arkansas law, together with the costs and reasonable attorney's fees available to a prevailing consumer under § 4-90-415(c).

We urge prompt resolution to avoid litigation.

Respectfully submitted,

[________________________________] (Law Firm Name)

By: _________________________________
[________________________________] (Attorney Name)
Arkansas Bar No. [________________________________]
[________________________________] (Street Address)
[________________________________] (City, Arkansas ZIP)
[________________________________] (Telephone)
[________________________________] (Email)

Attorneys for [________________________________]

ENCLOSURES:
☐ Copies of all repair orders and warranty claims
☐ Copy of purchase or lease agreement
☐ Copy of manufacturer's warranty
☐ Vehicle registration
☐ Photographs or video of defect(s)
☐ Prior correspondence with manufacturer or dealer
☐ Authorization to represent

cc: [________________________________] (Consumer)
[________________________________] (Lienholder, if applicable)
Arkansas Attorney General — Consumer Protection Division, 323 Center St., Suite 200, Little Rock, AR 72201

ARKANSAS-SPECIFIC NOTES

☐ Presumption Triggers (§ 4-90-410) — The rebuttable presumption arises via (a)(1) the § 4-90-406(a) thresholds (3 same-defect repairs, or 1 repair of a death/serious-injury defect) with the defect continuing; (a)(2) 30 calendar days out of service; or (a)(3) 5 separate-defect repair attempts. Track every repair visit — the 5-attempt/separate-defects trigger is often overlooked.

☐ Mandatory Written Notice (§ 4-90-406(a)(1)) — The consumer must send written notice by certified or registered mail before the statutory final-attempt clock runs. Failure to provide the notice may prevent eligibility for the Act's refund-or-replacement remedy. This letter is designed to satisfy that requirement.

☐ 10-Day Final Repair Window (§ 4-90-406(a)(2)) — After receiving the consumer's written notice, the manufacturer has 10 days to arrange a final repair opportunity, and the repair must be completed within 10 days of vehicle delivery; failure yields a nonrebuttable presumption (§ 4-90-406(a)(3)).

☐ 40-Day Replace/Refund Deadline (§ 4-90-406(b)(1)) — Once a reasonable number of attempts has failed, the manufacturer has 40 days to replace or repurchase; the consumer has an unconditional right to choose refund over replacement (§ 4-90-406(b)(2)(A)).

☐ Mileage Offset Uses 120,000 Divisor (§ 4-90-406(b)(3)) — The use offset divides miles driven before the vehicle was first delivered for correction by 120,000, times the actual price. More favorable to consumers than the 100,000 figure some states use.

☐ IDSP Exhaustion Turns on the § 4-90-404(b) Disclosure — Exhaustion of the informal dispute settlement procedure (§ 4-90-414) is required before suit only if the manufacturer gave the § 4-90-404(b) written-rights disclosure; if it did not, the consumer may sue directly (§ 4-90-404(a)(2)). Arkansas's Act contains no double- or treble-damages provision; any enhanced remedy requires a separate legal basis.

☐ New or Previously Untitled Vehicle Requirement — The Act's definition of "consumer" covers a purchaser or lessee of a new or previously untitled vehicle who has titled and registered it. A used-vehicle dispute may instead implicate other warranty, contract, tort, or consumer-protection law, depending on the facts.

☐ AG Consumer Protection Division — The Arkansas Attorney General's office maintains a Lemon Law guide and accepts complaints. Filing an AG complaint can prompt manufacturer response.

Sources and References

• Ark. Code Ann. §§ 4-90-401 through 4-90-417 — New Motor Vehicle Quality Assurance Act
• Ark. Code Ann. § 4-90-403 — Definitions ((11) motor vehicle / GVWR exclusions; (12) quality assurance period, ends the later of 24 mo/24,000 mi)
• Ark. Code Ann. § 4-90-404 — Notice/disclosure; IDSP-exhaustion prerequisite conditioned on the (b) rights disclosure
• Ark. Code Ann. § 4-90-406 — Failure to make required repairs (certified-mail notice + 10/10 final repair at (a); 40-day replace/refund, refund election, ÷120,000 offset at (b))
• Ark. Code Ann. § 4-90-407 — Refunds (to consumer/lienholder; lessor/lessee)
• Ark. Code Ann. § 4-90-410 — Rebuttable presumption (30 days out of service; 5 separate attempts; war/strike extension)
• Ark. Code Ann. § 4-90-414 — Informal dispute settlement procedure
• Ark. Code Ann. § 4-90-415 — Civil action; costs and reasonable attorney's fees to prevailing consumer (no double damages)
• Ark. Code Ann. § 4-90-416 — Time limitation (2 years from first report, or from IDSP commencement)
• Ark. Code Ann. § 4-90-417 — Deceptive trade practice
• 15 U.S.C. §§ 2301-2312 — Magnuson-Moss Warranty Act
• 16 C.F.R. Part 703 — FTC IDSP compliance standards
• Arkansas Attorney General, Consumer Protection Division: https://arkansasag.gov
• Arkansas AG Lemon Law Consumer Guide: https://media.ark.org/ag/Lemon-Law.pdf
• BBB AUTO LINE — Arkansas: https://bbbprograms.org/programs/dr/lemon-law/arkansas

This template is for informational purposes only and does not constitute legal advice. Laws change frequently; verify current requirements with a licensed Arkansas attorney.