(TX, PA, NJ, MD, FL, TN, CA, AZ, WY)
Arbitration requirements vary significantly by state. In some states, participation in a certified manufacturer dispute program is mandatory before filing suit. In others, it is optional.
Below is a general overview (always subject to case-specific review and updates in the law).
🇹🇽 Texas
Arbitration Required?
Yes — but Texas is unique.
Texas Lemon Law claims are filed through the Texas Department of Motor Vehicles (TxDMV) administrative process first. This is not manufacturer-run arbitration — it is a state-administered hearing process.
Consumers must:
- File a complaint with TxDMV
- Go through the administrative hearing process
You cannot file directly in court under the Texas Lemon Law without first exhausting the administrative remedy.
However, separate claims under the Magnuson-Moss Warranty Act may proceed differently.
🇵🇦 Pennsylvania
Arbitration Required?
Only if the manufacturer has a state-certified informal dispute resolution program.
If the manufacturer’s arbitration program is properly certified under Pennsylvania law, the consumer must participate before filing suit.
If not certified, arbitration is optional.
Most major manufacturers use BBB AUTO LINE, which may be certified in PA.
🇳🇯 New Jersey
Arbitration Required?
Yes — for state Lemon Law claims.
New Jersey requires participation in either:
- The manufacturer’s certified informal dispute resolution program, OR
- The state-run Lemon Law Unit arbitration process
You must complete the administrative process before filing a lawsuit under the NJ Lemon Law.
🇲🇩 Maryland
Arbitration Required?
Yes — generally required.
Maryland requires consumers to participate in:
- The manufacturer’s certified arbitration program (if available), OR
- The Maryland Attorney General’s Lemon Law arbitration program
Completion is typically required before pursuing court action under state Lemon Law.
🇫🇱 Florida
Arbitration Required?
Yes — mandatory for Lemon Law claims.
Florida requires consumers to go through:
- The Florida New Motor Vehicle Arbitration Board (state-run program)
You must complete this process before filing a Lemon Law lawsuit in court.
🇹🇳 Tennessee
Arbitration Required?
Only if the manufacturer maintains a certified informal dispute resolution program.
If the manufacturer has a properly certified program, the consumer must participate before filing suit.
If no certified program exists, the consumer may proceed directly to court.
🇨🇦 California**
Arbitration Required?
No — arbitration is optional.
California does not require consumers to use BBB AUTO LINE or any manufacturer program before filing a Lemon Law lawsuit.
Consumers may:
- File directly in court
- Or choose arbitration voluntarily
This is one reason California is considered one of the most consumer-friendly Lemon Law states.
🇦🇿 Arizona
Arbitration Required?
Generally required if a certified program exists.
Arizona requires participation in a certified informal dispute resolution procedure before filing suit — but only if the manufacturer has one that complies with state law.
If not properly certified, arbitration may not be mandatory.
🇼🇾 Wyoming
Arbitration Required?
Yes — typically required.
Wyoming generally requires participation in a certified informal dispute resolution procedure before filing a Lemon Law lawsuit, if one exists.
📊 Comparison Chart: Arbitration Required vs Optional
| State | Arbitration Required Before Filing Suit? | Notes |
|---|---|---|
| Texas | ✅ Yes (State Administrative Process) | Must file with TxDMV first |
| Pennsylvania | ⚖ Depends | Required if certified program exists |
| New Jersey | ✅ Yes | Must complete state/manufacturer arbitration |
| Maryland | ✅ Yes | Participation generally required |
| Florida | ✅ Yes | State-run arbitration mandatory |
| Tennessee | ⚖ Depends | Required if certified program exists |
| California | ❌ No | Arbitration optional |
| Arizona | ⚖ Depends | Required if certified program exists |
| Wyoming | ⚖ Generally Yes | If certified program exists |
⚠ Always review the specific warranty booklet and manufacturer program certification status.
