New Hampshire Code of Administrative Rules Arb - New Motor Vehicle Arbitration Board
đ New Hampshire Administrative Rules: Arb â New Motor Vehicle Arbitration Board
đš Overview
âArbâ refers to the rules adopted by the New Motor Vehicle Arbitration Board (NMVAB), an administrative body in New Hampshire that handles disputes under the stateâs âLemon Lawâ (RSA 357-D).
This board provides consumers with a faster, less expensive alternative to the court system when they have problems with defective new vehicles that cannot be repaired after a reasonable number of attempts.
The administrative rules under Title Arb regulate how the board functions, how claims are filed, the standards for decisions, and how hearings are conducted.
đ Core Concepts of the Lemon Law (RSA 357-D)
Before diving into the Arb rules, it's important to understand the legal foundation:
The law applies to new motor vehicles (passenger cars and light trucks) under manufacturerâs warranty.
A vehicle is a âlemonâ if it has a nonconformity (defect) that:
Substantially impairs use, value, or safety, and
Is not repaired after a reasonable number of attempts (usually 3â4), or
The vehicle is out of service for 30 or more calendar days.
The Arb rules govern how the Arbitration Board enforces this process.
đ Key Provisions of Arb Rules
1. Arb 100 â Organization and Authority
Establishes the structure of the Board.
Sets the appointment process for board members (including a consumer representative and an automotive expert).
Describes the Boardâs jurisdiction over vehicle lemon law claims.
2. Arb 200 â Filing Procedures
Details how consumers can file a Request for Arbitration.
Lists required documents (proof of purchase, repair orders, warranty, etc.).
Includes deadlines: The request must usually be filed within 1 year of the warrantyâs expiration or within 2 years of the delivery date.
3. Arb 300 â Pre-Hearing and Investigation
Allows the Board to review documentation before scheduling a hearing.
The manufacturer may submit a defense or argue the defect is not substantial or was repaired.
4. Arb 400 â Hearings
Hearings are informal but allow:
Testimony from both sides
Vehicle inspection
Presentation of repair records and expert opinions
Rules allow the Board to examine the vehicle if necessary.
5. Arb 500 â Board Decisions
If the Board finds the vehicle is a lemon, it can order the manufacturer to:
Replace the vehicle, or
Refund the purchase price (less a reasonable usage deduction)
Decisions must be issued within 30 days after the hearing.
6. Arb 600 â Appeals
If either party is dissatisfied, they may appeal to the superior court, but the manufacturer must comply with the arbitration ruling first (âcomply and contestâ rule).
âď¸ Key Legal Principles & Case Law
While specific case names are rarely cited in administrative rules, New Hampshire courts have addressed lemon law arbitration disputes in several important ways:
â 1. Arbitration Boardâs Authority Is Final Unless Arbitrary or Unlawful
Principle:
Courts will not reverse the Boardâs decision unless it was:
Arbitrary,
Unsupported by evidence,
Or contrary to law.
đ§ Why this matters: The Board has wide discretion to interpret whether a defect is substantial, or whether repair attempts were reasonable.
â 2. Substantial Impairment is a Mixed Question of Fact and Law
Principle:
Whether a defect âsubstantially impairsâ the use, value, or safety of the vehicle depends on both:
Technical evidence (e.g., engine stalling, brake failure), and
Consumer experience (e.g., fear of driving, repeated breakdowns).
Courts give deference to the Boardâs assessment of this balance.
â 3. âComply and Contestâ Rule Upheld
Principle:
Under RSA 357-D and Arb 600 rules, if a manufacturer appeals, they must first comply with the Boardâs order (e.g., buy back the car), then seek judicial review.
Courts have upheld this to ensure the process isnât abused to delay justice for consumers.
â 4. Board Can Consider Informal Evidence
Principle:
Arb hearings are not bound by formal rules of evidence. The Board may consider:
Photographs,
Emails between dealer and customer,
Expert letters,
Consumer testimony.
This is legally valid, as long as both sides have a fair chance to respond.
â 5. Administrative Rules Must Be Followed
Principle:
If a manufacturer or consumer misses a deadline, or fails to submit required documents, the Board may dismiss the claim or rule against the party. Courts will uphold this as part of procedural fairness.
đ ď¸ Example Scenario
Letâs say:
A buyer purchases a new SUV.
Within 3 months, the transmission fails multiple times.
The dealer ârepairsâ it 4 times, but the problem recurs.
The buyer files under Arb rules.
At the hearing, the buyer shows:
Repair orders,
Time out of service (35 days),
A mechanicâs statement saying the issue could return.
The Board rules the SUV is a lemon and orders a full refund (minus $1,200 for mileage use).
The manufacturer appeals, but must pay the refund first. The superior court later affirms the Boardâs decision, citing substantial evidence.
𧞠Summary
| Element | Explanation |
|---|---|
| What Arb Covers | Lemon law arbitration for new vehicles |
| Who Oversees It | New Motor Vehicle Arbitration Board (appointed by Governor) |
| What the Rules Provide | Filing, hearing, decision-making, and appeals process |
| Legal Standards | âSubstantial impairment,â âreasonable repair attempts,â due process |
| Appeal Rules | Manufacturer must comply with order before appealing ("comply and contest") |
| Courts' View | Defer to Board unless decision is arbitrary, unlawful, or unsupported |
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