Bill Text: NJ AR149 | 2012-2013 | Regular Session | Introduced
Bill Title: Urges passage of federal legislation allowing New Jersey lemon law to supersede motor vehicle arbitration agreements.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2013-02-14 - Introduced, Referred to Assembly Consumer Affairs Committee [AR149 Detail]
Download: New_Jersey-2012-AR149-Introduced.html
Sponsored by:
Assemblyman UPENDRA J. CHIVUKULA
District 17 (Middlesex and Somerset)
Assemblyman THOMAS P. GIBLIN
District 34 (Essex and Passaic)
SYNOPSIS
Urges passage of federal legislation allowing New Jersey lemon law to supersede motor vehicle arbitration agreements.
CURRENT VERSION OF TEXT
As introduced.
An Assembly Resolution urging the Congress and President of the United States to pass legislation allowing New Jersey's new motor vehicle lemon law to supersede certain motor vehicle arbitration agreements.
Whereas, The purchase of a motor vehicle is one of the largest expenses for consumers, and it is often necessary to maintain an automobile for employment and daily living in this State; and
Whereas, Motor vehicles which have serious defects, commonly known as "lemons," place a heavy financial burden on consumers and jeopardize their transportation, which in turn impacts their jobs and family lives; and
Whereas, Here in New Jersey, P.L.1988, c.123 (C.56:12-29 et seq.), commonly referred to as the "lemon law" was enacted to require motor vehicle manufacturers to resolve disputes with consumers who have been sold or leased new motor vehicles that are lemons; and
Whereas, Since its first enactment in 1984, the program established by the New Jersey new and leased motor vehicle lemon law has been popular and effective, assisting consumers in resolving disputes over defective motor vehicles without lengthy and costly litigation; and
Whereas, Some motor vehicle manufacturers that manufacture motor vehicles sold or leased in New Jersey have begun to include arbitration clauses in contracts that forestall a consumer's ability to bring a claim under the State lemon law; and
Whereas, Arbitration agreements, such as those included in motor vehicle manufacturers' contracts, often require consumers to arbitrate claims in distant and inconvenient locations and waive their rights to a judicial trial or lemon law hearing; and
Whereas, The Federal Arbitration Act preempts New Jersey's lemon law and does not permit the State to disallow arbitration agreements which impede enforcement of the New Jersey lemon law; and
Whereas, The Congress of the United States has considered legislative action in the past, in bills such as the "Arbitration Fairness Act of 2011" and the "Automobile Arbitration Fairness Act of 2008," which would allow New Jersey to enforce the motor vehicle lemon law even in cases in which an arbitration agreement exists; and
Whereas, It is fitting and appropriate for the General Assembly of the State of New Jersey to memorialize Congress to pass, and the President to sign into law, legislation that will allow New Jersey to enforce the State's lemon law over arbitration agreements in contracts for the sale or lease of new motor vehicles; now, therefore,
Be It Resolved by the General Assembly of the State of New Jersey:
1. The General Assembly urges the United States Congress to pass, and the President of the United States to sign into law, legislation allowing the State new motor vehicle lemon law, P.L.1988, c.123 (C.56:12-29 et seq.), to supersede arbitration agreements in contracts for the sale or lease of new motor vehicles.
2. Duly authenticated copies of this resolution, signed by the Speaker of the General Assembly and attested by the Clerk of the General Assembly, shall be transmitted to the President of the United States and every member of the New Jersey Congressional delegation.
STATEMENT
This Assembly Resolution urges the United States Congress to pass, and the President of the United States to sign into law, legislation allowing the State motor vehicle lemon law to supersede arbitration agreements in contracts for the sale or lease of new motor vehicles.
