201 CMR 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 vehiclemeets thestandards 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 mailthe decisionwithinsuchtime 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, § 7N½, 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; and
2. The consumer gave the manufacturer or dealer a reasonable number of attempts to repair
the vehicle as defined in M.G.L. c. 90, § 7N½(4), and
3. That all other requirements of M.G.L. c. 90, § 7N½ 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) Indeterminingcompliancewith 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. Howseriouslythe nonconformity(s) interferes with the consumer's use of the motor vehicle;
and
3. 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; and
3. That all other requirements of M.G.L. c. 90, § 7N¼ 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; and
2. 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, § 7N¼,
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;
2. finance charges;
3. registration fees;
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 obtainingalternative transportationduringthe warrantyperiod
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:
a. attorneys’ fees;
b. excise tax;
c. lost wages; and
d. other consequential damages;
e. sales tax.
9. The consumer shall be reimbursed for all continuing costs upon return of the defective
vehicle if the consumer has previouslysubmitted documentationto thedealer 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 actualcashvalue ofthe trade-invehicle are separately stated and identified as such on the
copy of the motorvehicle 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.