AUGUSTA – A bill giving Maine consumers more protection in auto warranty disputes has been signed into law by Gov. John Baldacci.

The new law will require that arbitration be held in Maine in disputes involving extended service warranties. The rule applies to cars sold in Maine.

The bill, which was signed by the governor on Friday, received support from the Maine Automobile Dealers Association as well as the state Office of Consumer Credit Regulation.

Consumer office Director Will Lund told lawmakers that no arbitration relating to consumer services and products should be held out of state.

“Offering such a proceeding only in an out-of-state location would require the consumer to pay travel costs and take the time to journey to another state to assert a claim or to defend against a claim,” Lund said in testimony to the Business, Research and Economic Development Committee.