OCABR State Arbitration (M.G.L. c. 90, § 7N½(7))

Massachusetts is one of the few states with a state-administered Lemon Law arbitration program. Under M.G.L. c. 90, § 7N½(7), the Massachusetts Office of Consumer Affairs and Business Regulation (OCABR) administers the program through approved arbitration providers. Manufacturer participation is required if the consumer elects — one of the strongest features of any state arbitration program.

How OCABR arbitration works

Filing the arbitration request

• File with OCABR — online or by mail.
• $50 filing fee (refunded if consumer prevails).
• Manufacturer required to participate if consumer elects.
• Include: vehicle information, repair orders, written § 7N½(2) notice + return receipt, photos/videos, requested remedy.

Manufacturer notification

OCABR notifies the manufacturer. Manufacturer files an answer typically within 15 days.

Hearing scheduling

OCABR refers to an approved arbitration provider (typically NCDS or NAM). Hearing typically scheduled within 30 days of filing.

The hearing

• Telephonic or in-person at the arbitration provider’s facility.
• 1-3 hours typical duration.
• Both sides present documentary evidence.
• Witnesses may testify.
• No formal evidence code — informal rules.
• Arbitrator may inspect the vehicle.

The decision

• Single arbitrator issues a written decision typically within 45 days of filing.
• Decision is binding on the manufacturer if the consumer accepts.
• Decision is not binding on the consumer — if rejected, the consumer can pursue court action.

Total timeline: typically 45-90 days start to finish.

Manufacturer-required participation

A distinctive Massachusetts feature: under § 7N½(7), if the consumer elects OCABR arbitration, the manufacturer must participate. This is materially different from most other states where:

• Florida — manufacturer chooses to register IDS procedure or NMVA Board hears.
• Washington — AG arbitration only if manufacturer has not registered IDS procedure.
• Georgia — consumer elects either path.
• New Jersey — consumer elects DCA arbitration (mfr participation required).
• New York — AG arbitration optional alternative.

Massachusetts and New Jersey are the strongest mandatory-participation regimes.

Decisions can include

• Refund under § 7N½(3).
• Replacement vehicle.
• Additional repair attempts.
• Denial.

What OCABR arbitration does NOT provide

• Attorney fees — no fee shifting through arbitration.
• Chapter 93A damages — only available in civil court (with § 9(3) demand letter).
• Magnuson-Moss claims.
• Punitive damages.

For these remedies, court action is required.

When OCABR arbitration is the right resolution

• Clean refund or replacement case.
• No significant misrepresentation facts (no c. 93A willfulness).
• Self-representing.
• Want fast, low-cost resolution ($50 fee).
• Lower-value vehicle.

When to reject the OCABR decision and go to court

• The case has c. 93A willfulness exposure — double/treble damages and mandatory § 9(4) fees available only in court.
• The manufacturer’s § 9(3) tender was inadequate.
• High-value vehicle.
• Magnuson-Moss federal-court access strategically valuable.

Procedurally — what to expect at the hearing

• Brief opening statements by both sides.
• Consumer presents the case — repair orders, business-day OOS calculation, written notice, photos/videos.
• Manufacturer responds — often with a regional technical witness.
• Arbitrator questions both sides.
• Closing arguments.
• Decision issued in writing within 45 days.

No formal evidence code. The arbitrator weighs documentation pragmatically.

After OCABR arbitration — what if you reject the decision

If you reject the arbitration decision:

• You can still pursue court action — including federal court in D. Mass. under Magnuson-Moss.
• The arbitration decision is not binding on the court (de novo review).
• However, prior arbitration positions can become discoverable.

Strategic advantages of Massachusetts’s OCABR arbitration

1. Low cost — $50 filing fee.
2. Fast — 45-90 days.
3. Manufacturer participation required — consumer doesn’t have to negotiate manufacturer’s IDS preference.
4. State-approved providers — arbitrators are vetted, not industry-affiliated.
5. Binding on manufacturer when accepted.

Bottom line

OCABR arbitration is one of the strongest state-run programs in the country — fast, low-cost, manufacturer required to participate. For clean refund/replacement cases without c. 93A willfulness exposure, it’s the optimal path. For cases with c. 93A exposure, it’s a procedural step toward court action where mandatory § 9(4) fees and double/treble damages become available.

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