Since the passage of the Magnuson-Moss Warranty Act in 1975, automobile manufacturers have been encouraged to create Alternative Dispute Resolution mechanisms. DeMars & Associates has over 10 years of experience in assisting automobile manufacturers in creating programs that meet FTC 703 guidelines.
What is a Certified Mechanism?
The majority of state lemon laws make provisions for manufacturers to offer third-party dispute resolution programs. There are a number of public policy reasons for such programs, including reduction in litigation and speedy resolution of disputes.
There are a number of advantages for manufacturers who choose to participate in a certified program.
Saves money: Manufacturers can often avoid being hit with double or even triple damages plus court costs and attorneys fees when concerns are resolved through an independent dispute resolution process.
Saves time: Disputes can be resolved in less than 90 days, as opposed to two years or more for a court case.
Saves customers/business resolution: Provides another opportunity for resolution of disputes before a customer needs to file in court.
Informal: In most states, the informal dispute resolution process is not forced to apply the lemon law presumption, although it is often used as a guideline, and the arbitrators are trained in its application.
Fair: The overriding consideration for arbitrators deciding disputes in the automobile warranty arena is fairness to all shareholders — the consumer, the manufacturer , and the dealer. CAP participants have an equal voice.