How to Win California Lemon Law Arbitration for Car Defects

California’s Song-Beverly Consumer Warranty Act sets out strong remedies for consumers when manufacturers fail to fix warrantied vehicle defects after a reasonable opportunity. See Civ. Code § 1793.2, § 1793.22, and § 1794.

What California’s Lemon Law Covers

The Act applies when a covered defect substantially impairs the vehicle’s use, value, or safety and the manufacturer (or its authorized repair facility) cannot repair it after a reasonable number of attempts. Remedies can include repurchase (buyback) or replacement, plus incidental damages; in some cases, a civil penalty and attorney’s fees may be available. See Civ. Code § 1793.2 and § 1794(b)–(d).

Coverage generally includes new vehicles and certain used vehicles that are still covered by a manufacturer’s express warranty at the time of repair attempts. Small businesses may qualify if the vehicle has a gross vehicle weight rating under 10,000 pounds and the business has five or fewer vehicles registered in California. See Civ. Code § 1793.22.

Arbitration vs. Lawsuit: Which Path?

Manufacturers often offer an informal dispute resolution or arbitration program. These programs can be faster and less formal than court, and some are free. However, discovery is limited and outcomes can vary.

Under California’s Song-Beverly Act, you generally are not required to complete a manufacturer’s informal dispute program before filing suit. See the statutory framework at Civ. Code § 1793.22. Separately, the federal Magnuson–Moss Warranty Act may require consumers to use a warrantor’s FTC-compliant informal dispute settlement mechanism for certain federal warranty claims if the warranty makes that a prerequisite. See 15 U.S.C. § 2310(a) and 16 C.F.R. Part 703. Consult counsel to choose the best path for your goals and timeline.

How Manufacturer Arbitration Programs Work

After you file a claim, a neutral reviews documents, holds a hearing (often by phone or video), and issues a written decision. You will typically need to show:

• The defect is covered by the manufacturer’s warranty.
• The defect substantially impairs use, value, or safety.
• The manufacturer had a reasonable opportunity to repair.
• You followed warranty procedures (e.g., presenting the vehicle to an authorized facility).

Program rules vary by automaker (filing requirements, hearing format, deadlines, whether decisions are nonbinding on consumers). Read the program rules closely.

Key Evidence to Gather

• Purchase or lease agreement and finance documents
• All warranty booklets, service contracts, and recall notices
• Repair orders and invoices for every visit (dates, mileage in/out, technician notes)
• Vehicle history reports and any technical service bulletins provided to you
• Photos, videos, and logs showing the defect, frequency, and safety concerns
• Communications with the dealer or manufacturer (emails, texts, letters, call logs)
• Towing, rental, and out-of-pocket expense receipts related to the defect
• A timeline summarizing each defect occurrence and repair attempt

Proving a ‘Reasonable Number’ of Repair Attempts

Courts consider the totality of the circumstances: number of repair attempts, severity (especially safety-related issues), time out of service, and whether the defect persists or recurs. Ensure every symptom you report appears on the repair order.

Understanding the Tanner Presumptions

California creates presumptions that a reasonable number of repair attempts occurred if, within the first 18 months or 18,000 miles (whichever comes first):

• The same nonconformity has been subject to repair four or more times; or
• A defect likely to cause death or serious bodily injury has been subject to repair two or more times; or
• The vehicle has been out of service for repair for a cumulative total of more than 30 days.

Additional conditions apply (including direct notice to the manufacturer if required by the warranty). See Civ. Code § 1793.22(b)–(c).

Preparing Your Arbitration Claim

• Request a complete set of repair records from the service department.
• Create a concise chronology of issues, repair attempts, and days out of service.
• Identify the relief you seek: repurchase, replacement, or other statutory/warranty remedies.
• Complete the claim form accurately and attach labeled exhibits.
• Explain how the defect affects safety, use, or value, and why further repairs are unlikely to help.
• Practice a short, fact-focused statement for the hearing.

At the Hearing: Tips to Strengthen Your Case

• Be polite and stick to the documented record.
• Direct the neutral to key repair orders and dates.
• Address gaps (e.g., parts backlogs) and why they aren’t your fault.
• If the manufacturer alleges misuse or modification, rebut with receipts, photos, or expert statements.
• Emphasize persistent safety-related symptoms (e.g., stalling, brake, steering, airbag, or charging issues).

Possible Outcomes and Remedies

If you prevail, remedies can include:

• Repurchase (buyback), reduced by the statutory usage offset: purchase price × miles at first repair attempt ÷ 120,000. See Civ. Code § 1793.2(d)(2)(C).
• Replacement with a comparable vehicle. See § 1793.2(d).
• Incidental damages such as towing and rental car costs. See § 1794(b).
• Attorney’s fees for prevailing consumers, and in willful cases a civil penalty up to two times actual damages. See § 1794(c)–(d).

If you do not prevail, or the award is insufficient and the program is nonbinding on consumers, you may still pursue court remedies (subject to program rules and any agreements you sign).

When to Involve an Attorney

An attorney can assess eligibility, secure missing records, calculate restitution (including the statutory usage offset), and present your case effectively. Prevailing consumers may recover reasonable attorney’s fees. See Civ. Code § 1794(d).

Practical Do’s and Don’ts

• Do report defects promptly and return to an authorized dealer for each repair.
• Do ensure every symptom is written on the repair order and get a copy before leaving.
• Do keep a defect log and all receipts.
• Don’t skip scheduled maintenance that could provide a defense.
• Don’t make modifications that affect the systems at issue without advice.
• Don’t wait to seek help if safety issues persist.

FAQ

Is arbitration required before filing a California lemon law lawsuit?

No. Under the Song-Beverly Act, consumers generally are not required to use a manufacturer’s informal dispute program before filing suit. Some federal warranty claims may be affected by Magnuson–Moss if the warranty requires an FTC-compliant program.

How is the usage offset calculated in a buyback?

Purchase price × miles at the first repair attempt ÷ 120,000. This reduces the repurchase amount to account for pre-defect use.

Does the 30-day out-of-service rule guarantee a buyback?

It creates a presumption of a reasonable number of repair attempts within 18 months or 18,000 miles, but the manufacturer can try to rebut it. Evidence still matters.

Can small businesses use the lemon law?

Yes, if the vehicle is under 10,000 pounds GVWR and the business has five or fewer vehicles registered in California.

Are arbitration decisions binding?

Many programs are nonbinding on consumers, meaning you can still sue if you disagree. Check the specific program rules.

Next Steps

Gather your records, consider whether arbitration or a lawsuit best fits your situation, and contact our California lemon law team for a free evaluation. Contact us.

Disclaimer (California): This blog provides general information about California law and is not legal advice for your specific situation. Laws change and outcomes vary. Reading this post does not create an attorney-client relationship. Consult a qualified attorney about your matter.

References

• Cal. Civ. Code § 1793.2
• Cal. Civ. Code § 1793.22
• Cal. Civ. Code § 1794
• 15 U.S.C. § 2310(a)
• 16 C.F.R. Part 703