You are not bound by a decision from a manufacturer’s dispute program unless you accept it. But using the program first can matter for the repair presumption, so ask before you skip it or file.
Two different things called arbitration
Some manufacturers run a third-party dispute resolution program for warranty complaints. Separately, many purchase and lease contracts contain an arbitration clause about disputes with the dealer or lender. They are governed by different rules, so bring both the manufacturer’s letters and your contract to a review.
Manufacturer dispute programs
Under Civil Code § 1793.22(c), if a manufacturer maintains a qualified dispute resolution program and you received timely written notice about it, you may need to use that program before you can rely on the repair presumption.
A program decision binds the manufacturer if you accept it. You do not have to accept it. If you reject it, or the manufacturer does not carry it out on time, you can still pursue your claim.
Before you file with a program
- Keep copies of everything you submit and receive.
- Write down the dates you filed and when a decision is due.
- Do not assume a pending program case pauses any deadline. Ask about timing first.
- Tell us about any offer the program or manufacturer makes before you respond.
An arbitration clause in your contract
Whether a clause in a dealer purchase or lease contract applies to a claim against the manufacturer depends on its wording and on current law. This is an area that has changed in recent years, so it needs a review of your actual contract.