American Motors Sales Corp. v. Brown

152 A.D.2d 343, 548 N.Y.S.2d 791, 1989 N.Y. App. Div. LEXIS 15832
CourtAppellate Division of the Supreme Court of the State of New York
DecidedDecember 13, 1989
StatusPublished
Cited by9 cases

This text of 152 A.D.2d 343 (American Motors Sales Corp. v. Brown) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Motors Sales Corp. v. Brown, 152 A.D.2d 343, 548 N.Y.S.2d 791, 1989 N.Y. App. Div. LEXIS 15832 (N.Y. Ct. App. 1989).

Opinions

OPINION OF THE COURT

Mollen, P. J.

The primary issue presented by this appeal is whether an automobile purchased by a consumer for personal use from an automobile dealer, which at the time of purchase had an odometer reading of approximately 5,600 miles, was less than two years old, and was covered by a manufacturer’s warranty, is protected by the provisions of the New Car Lemon Law (General Business Law § 198-a). The arbitrator in the case at bar answered this question in the affirmative and rendered an award in favor of the purchaser. We disagree and, accordingly, affirm the Supreme Court’s judgment which vacated the arbitration award.

The underlying facts of this proceeding are essentially undisputed by the parties. On or about December 6, 1985, Leon W. Brown purchased a 1985 Renault Sport Wagon from an authorized dealer of the petitioner American Motors Sales Corporation (hereinafter AMSC) for approximately $9,000. At the time of purchase, the vehicle, which was covered by a manufacturer’s warranty, had been driven for approximately 5,644 miles. Sometime after the purchase, Brown began to experience problems, inter alia, with the vehicle’s transmission, brakes, heater and air conditioner. Despite several repair attempts by AMSC’s dealer, the vehicle’s problems were not corrected.

[345]*345Thereafter, on or about February 29, 1987, Brown filed a request for compulsory arbitration under the provisions of the New Car Lemon Law (General Business Law § 198-a [k]) which had become effective one month earlier (L 1986, ch 799, § 4, eff Jan. 1, 1987). Brown sought a full refund of the purchase price of the car. At the time Brown requested arbitration, the vehicle had been driven for 17,898 miles. Following a hearing, the arbitrator rendered an award in Brown’s favor in the sum of $8,439. Notably, the arbitrator did not take into account the mileage deduction formula for the mileage over 12,000 miles as required by General Business Law § 198-a (a) (4); (c) (1).

AMSC instituted the instant proceeding pursuant to CPLR article 75 seeking to vacate the arbitration award on the basis that the arbitrator exceeded his authority in rendering the award. AMSC argued, in the first instance, that Brown did not purchase a "new motor vehicle” and, thus, Brown was not entitled to seek compulsory arbitration of his claim under the New Car Lemon Law (General Business Law § 198-a [k]). Rather, AMSC contended that the vehicle in question constituted a "used motor vehicle” within the meaning of General Business Law § 198-b (a) (2), commonly referred to as the Used Car Lemon Law, which, at that time, did not contain a compulsory arbitration provision.

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Cite This Page — Counsel Stack

Bluebook (online)
152 A.D.2d 343, 548 N.Y.S.2d 791, 1989 N.Y. App. Div. LEXIS 15832, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-motors-sales-corp-v-brown-nyappdiv-1989.