Lemon Law

Lemon Law Arbitration Programs by State: What Drivers Need to Know

(Texas, Pennsylvania, New Jersey, Maryland, Florida, Tennessee, California, Arizona, Wyoming)

One of the most confusing parts of filing a Lemon Law claim is whether you must first participate in a manufacturer’s arbitration program — such as BBB AUTO LINE — before filing a lawsuit.

The answer depends on your state and whether the manufacturer maintains a properly certified dispute resolution program.

Below is a detailed breakdown for the states your firm handles.


🇹🇽 Texas Lemon Law Arbitration Requirements

Is arbitration required?
Yes — but Texas uses a state administrative process, not traditional manufacturer arbitration.

Texas requires consumers to:

  • File a complaint with the Texas Department of Motor Vehicles (TxDMV)
  • Participate in the state-run administrative hearing process

You must exhaust this administrative remedy before filing a court action under the Texas Lemon Law.

However, claims under the Magnuson-Moss Warranty Act may proceed separately depending on the facts.


🇵🇦 Pennsylvania Lemon Law Arbitration Requirements

Is arbitration required?
It depends.

If the manufacturer maintains a state-certified informal dispute resolution program, the consumer must participate before filing suit.

If the manufacturer does not maintain a certified program, arbitration is optional.

Many manufacturers use BBB AUTO LINE in Pennsylvania, but certification status must be confirmed.


🇳🇯 New Jersey Lemon Law Arbitration Requirements

Is arbitration required?
Yes.

New Jersey requires consumers to go through:

  • The manufacturer’s certified arbitration program, or
  • The New Jersey Division of Consumer Affairs Lemon Law Unit arbitration process

Completion of arbitration is typically required before filing a lawsuit under the NJ Lemon Law.


🇲🇩 Maryland Lemon Law Arbitration Requirements

Is arbitration required?
Generally yes.

Maryland requires consumers to participate in:

  • A manufacturer-certified arbitration program (if available), or
  • The Maryland Attorney General’s Lemon Law Arbitration process

Consumers usually must complete arbitration before filing suit under state Lemon Law.


🇫🇱 Florida Lemon Law Arbitration Requirements

Is arbitration required?
Yes — mandatory.

Florida requires participation in:

  • The Florida New Motor Vehicle Arbitration Board (state-run program)

Consumers must complete this arbitration process before filing a Lemon Law lawsuit in court.


🇹🇳 Tennessee Lemon Law Arbitration Requirements

Is arbitration required?
Only if the manufacturer maintains a properly certified dispute resolution program.

If a certified program exists, the consumer must use it before filing suit.
If no certified program exists, the consumer may proceed directly to court.


🇨🇦 California Lemon Law Arbitration Requirements

Is arbitration required?
No.

California does not require consumers to use BBB AUTO LINE or manufacturer arbitration before filing a Lemon Law lawsuit.

Arbitration is optional.

Consumers may file directly in court, which is one reason California is considered highly consumer-friendly.


🇦🇿 Arizona Lemon Law Arbitration Requirements

Is arbitration required?
Generally required if a certified program exists.

Arizona law requires participation in a certified informal dispute resolution procedure before filing suit — but only if the manufacturer’s program complies with state requirements.

If no compliant program exists, arbitration is not mandatory.


🇼🇾 Wyoming Lemon Law Arbitration Requirements

Is arbitration required?
Typically yes — if a certified program exists.

Wyoming generally requires consumers to participate in a certified informal dispute resolution procedure before filing a Lemon Law lawsuit.


📊 Comparison Chart: Arbitration Required vs Optional

StateArbitration Required Before Filing Suit?Type of Process
Texas✅ YesState-run TxDMV administrative hearing
Pennsylvania⚖ DependsRequired if certified manufacturer program exists
New Jersey✅ YesManufacturer or state-run arbitration
Maryland✅ YesManufacturer or Attorney General arbitration
Florida✅ YesState-run arbitration board
Tennessee⚖ DependsRequired if certified program exists
California❌ NoArbitration optional
Arizona⚖ DependsRequired if certified program exists
Wyoming⚖ Generally YesRequired if certified program exists

⚠ Certification status and procedural rules can change. Always review the warranty booklet and state statute.

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