Arkansas Consumer Protection Laws: Lemon Law, Refunds, Repairs and Scams

Arkansas's lemon law covers new or previously untitled motor vehicles bought or leased by consumers (not mopeds, motorcycles, the living quarters of motor homes, or vehicles over 14,000 pounds gross vehicle weight rating other than motor homes). Defects reported during the "motor vehicle quality assurance period" (24 months or 24,000 miles from delivery, whichever is later) must be repaired. After three repair attempts for the same defect, or one attempt for a defect likely to cause death or serious injury, the consumer must notify the manufacturer by certified or registered mail and allow a final repair attempt. A reasonable number of attempts is presumed after that, or after 30 cumulative calendar days out of service, or five or more repair attempts on separate occasions for defects that together substantially impair the vehicle. If the vehicle still is not fixed, the manufacturer must within 40 days replace it or repurchase it, with a reasonable offset for use; the consumer has an unconditional right to choose a refund.

The lemon law covers only new or previously untitled vehicles. The Attorney General explains that federal law requires used-car dealers to post a Buyers Guide saying whether the car is sold "as is" or with a warranty, and that if you buy a car "as is" and have problems with it, you must pay for any repairs yourself. Neither state nor federal law gives a buyer an unconditional right to cancel a car purchase. If a dealer lets you take a car before financing is final and then changes the terms (a "yo-yo" sale), you have the right to cancel without penalty.

A buyer has the absolute right to cancel a home solicitation contract until midnight of the third calendar day after signing, not counting Sundays and legal holidays. The buyer cancels by returning the notice of cancellation the seller must provide (registered mail is suggested). The Attorney General says the law covers sales of $25 or more made in the home or at a place that is not the seller's permanent place of business, and that the salesperson must tell you about the right orally and give you two copies of a cancellation form. Emergency repairs needed to protect people or property, and sales by sellers who make 75% or more of their sales at their own place of business, are exempt. A consumer harmed by a violation can recover 10% of the transaction total or $100, whichever is greater, plus actual damages.

The Arkansas Deceptive Trade Practices Act (Ark. Code Ann. § 4-88-101 et seq.) prohibits deceptive and unconscionable trade practices and is enforced by the Attorney General, who can seek restitution and civil penalties of up to $10,000 per violation. A person who suffers an actual financial loss because of reliance on an unlawful practice may sue to recover that actual financial loss, and the court may award reasonable attorney's fees. Private class actions are generally prohibited. The private-action provision allows recovery of actual financial loss; it does not mention multiple damages.

After a state of emergency or local emergency is declared for a disaster (and for 30 days afterward), or during a declared "red" homeland security alert, it is unlawful to sell food, emergency supplies, medical supplies, home heating oil, building materials, housing, transportation, freight and storage services, or gasoline for more than 10% above the seller's price immediately before the emergency. For 180 days after a declared emergency, contractors may not charge more than 10% above their pre-emergency price for repair, reconstruction or cleanup services. Larger increases are allowed only if directly due to higher supplier, labor or material costs, and then only up to 10% over cost plus the seller's usual markup.

Under the Arkansas Fair Gift Card Act, a gift certificate, store gift card or general-use prepaid card may not expire earlier than two years from its sale or issue, and dormancy, inactivity or service fees may not be charged before two years. After that, expiration dates and fees are allowed only if clearly printed on the card (amount, when charged, how often, and whether triggered by inactivity). Promotional or loyalty cards given for free and certain cards sold below face value to employers or charities are exempt.

Residential building contractors and home improvement contractors (those who repair, remodel, add to or improve an existing single-family residence of one to four units) must be licensed by the Residential Contractors Committee of the Contractors Licensing Board unless exempt; working without a required license is a Class A misdemeanor. The Attorney General says any contractor building, repairing or improving a home for more than $2,000 must be licensed and bonded, and recommends a written, signed contract with a detailed description of work and materials, start and completion dates, total cost and payment terms, and a requirement for your written approval of price increases.

A person or business that acquires, owns or licenses computerized personal data must notify any Arkansas resident whose unencrypted personal information was, or is reasonably believed to have been, acquired by an unauthorized person, in the most expedient time and manner possible and without unreasonable delay. If more than 1,000 individuals are affected, the Attorney General must also be notified at the same time as the individuals or within 45 days after the business determines there is a reasonable likelihood of harm, whichever is first. Notice may be delayed for law enforcement, and is not required if a reasonable investigation finds no reasonable likelihood of harm.

Submit a consumer complaint to the Attorney General online using the fillable form, or download a PDF form to mail in. You can also request a paper form by calling 501-682-2007. Many complaints are resolved when the office notifies the business; the office offers mediation, but cannot do so if you have hired a private attorney or the matter is in court. Your complaint will be shared with the business.

1) Written notice and final repair attempt: after three repair attempts for the same defect that substantially impairs the vehicle, or one attempt for a defect likely to cause death or serious bodily injury, the consumer must notify the manufacturer in writing, by certified or registered mail, so it can make a final attempt to fix it. Within 10 days after receiving the notice, the manufacturer must offer a repair at a reasonably accessible facility, and then has 10 days after the vehicle is delivered there to fix it. If it misses either deadline, the final-attempt requirement no longer applies and a reasonable number of repair attempts is conclusively presumed. 2) Arbitration: every manufacturer doing business in Arkansas must run or take part in an informal dispute settlement proceeding located in the state that meets federal rules (16 C.F.R. Part 703). Consumers may not be charged a fee to use it, and the manufacturer must carry out an accepted decision within a set time of no more than 30 days. The consumer must use this proceeding before suing if the dealer gave the consumer, at purchase or lease, the Attorney General-prepared written statement of lemon law rights; if that disclosure was not made, the consumer may sue directly. Arkansas has no state-run arbitration program. 3) Deadline: a lawsuit must be started within two years after the consumer first reports the defect to the manufacturer, its agent or authorized dealer; if the consumer starts the informal proceeding, the two years begin when that proceeding starts. A consumer who prevails recovers costs and attorney's fees.