Current through Register 1531, September 27, 2024
Section 11.11 - The Decision(1) All decisions shall be in writing, dated and signed by the arbitrator, and mailed to both parties and the arbitration firm.(2) The arbitrator may make an oral decision at the hearing but it shall not be binding until a written decision is mailed, and shall not be used to determine compliance with any time-sensitive deadlines. The arbitrator's decision is final.(3) The full written decision shall contain a summary of the evidence presented, a finding of facts, a conclusion of whether the motor vehicle meets the standards for refund or replacement (new cars only), a clear calculation of the monetary award if the vehicle meets such standards, and an order if appropriate.(4) The arbitrator shall mail a decision in each case within 45 days of the acceptance date stamped on the request for arbitration form. Failure to mail the decision within such time period, or to hold the hearing within 44 days of acceptance of the request for arbitration, shall not invalidate the decision.(5) The date of mailing of the decision, shall determine compliance with the 45 day requirement and be the date used to calculate appeal deadlines.(6) The arbitrator's decision shall only determine whether the motor vehicle does or does not meet the standards for refund or replacement (new cars only).(7) Any monetary award for new vehicle arbitration shall be calculated in accordance with M.G. L. c. 90, § 7N1/2, but may be affected by any previous awards or settlements made to the consumer.(8) The consumer shall be reimbursed for all continuing costs upon return of the defective vehicle if the consumer has previously submitted documentation to the manufacturer and the arbitration firm that such costs have been accrued.(9) The arbitrator shall make the following findings with respect to new motor vehicles: (a) As long as the arbitrator determines that:1. The nonconformity(s) complained of substantially impairs the use, market value, or safety of the vehicle; and2. The consumer gave the manufacturer or dealer a reasonable number of attempts to repair the vehicle as defined in M.G.L. c. 90, § 7N1/2(4), and3. That all other requirements of M.G.L. c. 90, § 7N1/2 have been met, the arbitrator must find for the consumer, and order the manufacturer to make a refund or replacement at the consumer's option within 21 days of the finding in favor of the consumer.(b) Indetermining compliance with 201 CMR 11.11(9)(a) the arbitrator shall consider the entirety of the circumstances in each case, including but not limited to one or more of the following:1. whether the motor vehicle's market value is at least 10% lower than it would have been but for the nonconformity(s);2. How seriously the nonconformity(s) interferes with the consumer's use of the motor vehicle; and3. Whether the nonconformity(s) creates or has the potential to create a substantial danger to occupants, others, or to property; provided however, that evidence that the nonconformity(s) can be repaired given an additional attempt(s) subsequent to the hearing shall not be taken into consideration by the arbitrator in determining whether the vehicle is substantially impaired.(10) The arbitrator shall make the following findings with respect to used motor vehicles: (a) As long as the arbitrator determines that:1. The defect(s) complained of impairs the safety or use of the vehicle;2. A defect continued to exist or recurred during the warranty period after three repair attempts for the same defect or a cumulative total of more than ten business days out of service after being returned for repair; and3. That all other requirements of M.G.L. c. 90, § 7N1/4 and 201 CMR 11.00 have been met, the arbitrator must find for the consumer, and order the dealer to refund the full repurchase amount within 21 days. The arbitrator may not, under any circumstances, order a partial refund or any relief other than a full refund.(b) In determining compliance with 201 CMR 11.11(10)(a)(1) the arbitrator shall consider the entirety of the circumstances in each case, including but not limited to one or more of the following: 1. Whether the defect(s) interferes with the consumer's use of the motor vehicle; and2. Whether the defect(s) creates or has the potential to create a danger to occupants, others, or to property.(11) The calculation for the Repurchase Amount for used motor vehicles is as follows: (a) If a dealer is required to or elects to repurchase a vehicle pursuant to M.G.L. c. 90, § 7N1/4, he shall pay to the consumer the full repurchase amount, less a reasonable allowance for use.(b) The repurchase amount shall be calculated by adding the following: 1. the full purchase price of the vehicle, including amounts allowed for any trade-in vehicle;4. the payments made for credit life and credit accident and health insurance;5. the pro rata cost of motor vehicle damage, collision and comprehensive insurance;6. the payments made for any service contract;7. incidental damages including, but not limited to, the following: a. the reasonable costs of towing from the point of breakdown up to 30 miles to obtain required repairs or to return the vehicle to the dealer;b. the reasonable costs of obtaining alternative transportation during the warranty period after the second day following each breakdown not to exceed $15.00 per day;c. the cost of all options added by the dealer;d. the cost of all options not added by the dealer that cannot be removed without damage to either the vehicle or the option;e. amounts paid to the dealer or his designee for repair of the vehicle;f. the amount of any arbitration application fee paid by the consumer.8. Incidental damages do not include the following:d. other consequential damages;9. The consumer shall be reimbursed for all continuing costs upon return of the defective vehicle if the consumer has previously submitted documentation to the dealer and the arbitration firm that such costs have been accrued.(12) The repurchase amount for used vehicles shall be further calculated by subtracting the following: (a) any cash award that was made by the dealer in an attempt to resolve the dispute and accepted by the consumer;(b) any refunds or rebates to which the consumer is entitled;(c) 15¢ for each mile the vehicle was operated between its sale and the dealer's repurchase, other than miles the vehicle was operated during repair attempts;(d) the amount of any over allowance on a trade-in vehicle if the amount of the over allowance and the actual cash value of the trade-in vehicle are separately stated and identified as such on the copy of the motor vehicle purchase contract or bill of sale or other document given to the consumer prior to or at the time of sale; provided, however, that the arbitrator may decrease the amount of the over allowance if the evidence shows that the amount stated as the "actual cash value" on the document(s) given the consumer is lower than the true cash value of the trade-in vehicle.(13) Rather than paying to the consumer the amount allowed for the trade-in vehicle, the dealer may return the trade-in vehicle itself, if the dealer still owns the trade in vehicle, and if it has not suffered any damage and has not been driven more than an incidental number of miles since the consumer traded it in. If the dealer returns the trade-in vehicle, the amount of any over allowance shall not be deducted from the repurchase amount.