LITIGATION	9 Months Ended
Sep. 30, 2012
LITIGATION [Abstract]
LITIGATION	NOTE 16- LITIGATION In the normal course of business, we may become involved in various legal proceedings. The Company is in dispute with its warehouse landlord regarding lease payments and other amounts claimed by the landlord. The landlord is also in dispute with ZAP over alleged office space and renovations on the 9th Street property which ZAP had vacated. Litigation was entered into on August 3, 2012. A settlement agreement was reached on November 12, 2012. The execution of this agreement is still pending. The Company is in litigation with a former contracted employee with regard to wrongful termination. A settlement agreement was reached on September 12, 2012. The execution of this agreement is still pending. The Company is in litigation with two parties for professional, legal and engineering work performed. The company is in litigation for payment for professional fees rendered to ZAP. This litigation was entered into on September 24, 2012. The Company is in litigation with two past dealers, one in California and one in Arkansas. Both are currently asking ZAP to repurchase the vehicles. Litigation is still ongoing. A letter was received in May 2012 from a shareholder regarding various prior transactions of the Company which the Company is working to address and clarify. A tolling agreement was reached between the Company and shareholder on October 22, 2012 whereas the company, through its legal council shall provide a written summary of the actions taken during the preceding month with respect to the matters regarding the prior transactions in question by the shareholder. These transactions include but are not limited to, a) ZAP, Jonway Group, Jonway Auto and Cathaya Capital shall each in all respects comply with their executory obligations with respect to the continued funding of ZAP, b) Resolve the litigation regarding the former contracted employee, c) use reasonable efforts to defend, compromise and/or settle any pending and future litigations. and ZAP shall use all reasonable efforts to cause all officers, directors and such other individuals who are or were employees, agents or representatives of ZAP to fully cooperate in the defense of future arbitrations or litigations. This agreement is binding through December 31, 2015. ZAP has filed with the National Highway Transportation Safety Agency (NHTSA) that the are in non compliance with Department of Transportation (DOT) requirements potential hazard may exist because the Model -Year 2008 XEBRA sedan and pickup does not stop in the required distance at 30 miles per hour and the master cylinder does not have separate brake fluid reservoirs with proper labeling and other miscellaneous non compliance issues. A public hearing was held in Washington DC on October 9, 2012 that allowed the DOT to take comments from the public and from their inside officers for consideration in their determination of whether ZAP has made a reasonable effort to 1) notify dealers and purchasers of the brake recall and 2) provide a remedy to the public to correct the brake problem. There were recommendations at the public hearing from DOT staff testifying at the hearing that ZAP should be subject to penalties and be required to repurchase the MY 2008 Xebra vehicles. ZAP has contracted with an independent testing facility to test the remedy that ZAP believes will correct the stopping distance problem, the duel brake fluid reservoir with correct labeling and other miscellaneous non compliance issues. The Company has accrued for estimated expenses related to above claims.

NOTE 16- LITIGATION

In the normal course of business, we may become involved in various legal proceedings.

The Company is in dispute with its warehouse landlord regarding lease payments and other amounts claimed by the landlord. The landlord is also in dispute with ZAP over alleged office space and renovations on the 9th Street property which ZAP had vacated. Litigation was entered into on August 3, 2012. A settlement agreement was reached on November 12, 2012. The execution of this agreement is still pending.

The Company is in litigation with a former contracted employee with regard to wrongful termination. A settlement agreement was reached on September 12, 2012. The execution of this agreement is still pending.

The Company is in litigation with two parties for professional, legal and engineering work performed.

The company is in litigation for payment for professional fees rendered to ZAP. This litigation was entered into on September 24, 2012.

The Company is in litigation with two past dealers, one in California and one in Arkansas. Both are currently asking ZAP to repurchase the vehicles. Litigation is still ongoing.

A letter was received in May 2012 from a shareholder regarding various prior transactions of the Company which the Company is working to address and clarify. A tolling agreement was reached between the Company and shareholder on October 22, 2012 whereas the company, through its legal council shall provide a written summary of the actions taken during the preceding month with respect to the matters regarding the prior transactions in question by the shareholder. These transactions include but are not limited to, a) ZAP, Jonway Group, Jonway Auto and Cathaya Capital shall each in all respects comply with their executory obligations with respect to the continued funding of ZAP, b) Resolve the litigation regarding the former contracted employee, c) use reasonable efforts to defend, compromise and/or settle any pending and future litigations. and ZAP shall use all reasonable efforts to cause all officers, directors and such other individuals who are or were employees, agents or representatives of ZAP to fully cooperate in the defense of future arbitrations or litigations. This agreement is binding through December 31, 2015.

ZAP has filed with the National Highway Transportation Safety Agency (NHTSA) that the are in non compliance with Department of Transportation (DOT) requirements potential hazard may exist because the Model -Year 2008 XEBRA sedan and pickup does not stop in the required distance at 30 miles per hour and the master cylinder does not have separate brake fluid reservoirs with proper labeling and other miscellaneous non compliance issues. A public hearing was held in Washington DC on October 9, 2012 that allowed the DOT to take comments from the public and from their inside officers for consideration in their determination of whether ZAP has made a reasonable effort to 1) notify dealers and purchasers of the brake recall and 2) provide a remedy to the public to correct the brake problem. There were recommendations at the public hearing from DOT staff testifying at the hearing that ZAP should be subject to penalties and be required to repurchase the MY 2008 Xebra vehicles. ZAP has contracted with an independent testing facility to test the remedy that ZAP believes will correct the stopping distance problem, the duel brake fluid reservoir with correct labeling and other miscellaneous non compliance issues.

The Company has accrued for estimated expenses related to above claims.