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Is there a Need for a Lemon Law ? - $39,300

Do lemon laws protect consumers? Which aspects of US lemon laws work? Which do not? What would be the likely effect of implementing lemon laws in Canada (at either the provincial or federal level) to Canadian automobile industry? Could Canadian courts handle lemon laws cases expeditiously? Or, would expanding and improving the Canadian Motor Vehicle Arbitration Program (CAMVAP) lead to a more effective and less costly means to protect vehicle consumers?

The primary objective of this proposal is to provide legislators and other government officials, industry representatives, consumer organizations, and consumers with clear and carefully researched information relating to questions just presented so that a productive debate can take place on this subject thereby improving the marketplace. The ACC will then work to implement the most promising option(s) to enhance consumer protection for those who buy or lease new vehicles.

More specifically, the ACC will:

• analyse CAMVAP statistic and interview CAMVAP officials and clients to determine whether the program is functioning as efficiently as possible or uncover what changes, if any, are likely to improve the program;
• examine and classify specific clauses of the US federal lemon law and those found in all 50 US states (many are similar or identical to each other);
• interview selected US and state government officials, legal experts, US consumer groups, and industry representatives to determine how well lemon laws work in practice, and discover which aspects work well, and which are not as effective or counterproductive;
• examine what judicial support is necessary to avoid frustration of the original purpose of the lemon law (such as long trial delays).

The ACC final report will be reviewed by one or more recognized experts in the associated fields. ACC will release the full report to the public and make a media launch, communicate results to relevant parties in media, consumer groups, government, and auto industry.