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Lemon Law - Hawaii
Lemon Law
Lemon Law - "Lemon
law" is that body of state law which defines an automobile
owners rights when the manufacturer is not able to repair the
automobile within the limits specified. In
such cases, the automobile is referred to as a "lemon",
and is subject to the conditions of the state lemon law.
Your Lemon Law:
Disclaimer:
These pages are created to inform and educate the public about lemon
law and under the lemon law in your state. They are not and
should not be considered legal opinions or advice as to whether you
have rights under lemon law or whether you should pursue "a
lemon law case". If after reading this information,
you believe you qualify, you should seek the advice and counsel of
an attorney specializing in lemon law in your state. Remember
that each state's lemon laws vary.
81I-1 Legislative intent.
The legislature recognizes that a
motor vehicle is a major consumer purchase and that a defective
motor vehicle creates a hardship for the consumer. The legislature
further recognizes that a duly franchised motor vehicle dealer is
an authorized service agent of the manufacturer. It is the intent
of the legislature that a good faith motor vehicle warranty
complaint by a consumer be resolved by the manufacturer within a
specified period of time. It is further the intent of the
legislature to provide statutory procedures whereby a consumer may
receive a replacement motor vehicle, or a full refund, for a motor
vehicle which is not brought into conformity with the applicable
express warranties, as provided in this chapter. Finally, it is
the intent of the legislature to ensure that consumers are made
aware of their rights under this chapter and are not refused the
information, documents, or service necessary to exercise their
rights.
Nothing in this chapter shall in
any way limit or expand the rights or remedies which are otherwise
available to a consumer under any other law.
481I-2 Definitions.
When used in this section unless
the context otherwise requires:
"Business day" means
any day during which the service departments of authorized dealers
of the manufacturer of the motor vehicle are normally open for
business.
"Collateral charges"
means those additional charges to a consumer wholly incurred as a
result of the acquisition of the motor vehicle. For the purposes
of this chapter, collateral charges include, but are not limited
to, manufacturer-installed or agent-installed items, general
excise tax, license and registration fees, title charges, and
similar government charges.
"Consumer" means the
purchaser, other than for purposes of resale, or the lessee of a
motor vehicle, any person to whom the motor vehicle is transferred
during the duration of the express warranty applicable to the
motor vehicle, and any other person entitled to enforce the
obligations of the express warranty.
"Express warranty"
means any written warranty issued by the manufacturer, or any
affirmation of fact or promise made by the manufacturer, excluding
statements made by the dealer, in connection with the sale or
lease of a motor vehicle to a consumer, which relates to the
nature of the material or workmanship and affirms or promises that
the motor vehicle shall conform to the affirmation, promise, or
description or that the material or workmanship is free of defects
or will meet a specified level of performance.
"Incidental charges"
means those reasonable costs incurred by the consumer, including,
but not limited to, towing charges and the costs of obtaining
alternative transportation which are directly caused by the
nonconformity or nonconformities which are the subject of the
claim, but shall not include loss of use, loss of income, or
personal injury claims.
"Lemon law rights
period" means the term of the manufacturer's express
warranty, the period ending two years after the date of the
original delivery of a motor vehicle to a consumer, or the first
24,000 miles of operation, whichever occurs first.
"Lessee" means any
consumer who leases a motor vehicle for one year or more pursuant
to a written lease agreement which provides that the lessee is
responsible for repairs to such motor vehicle, or any consumer who
leases a motor vehicle pursuant to a lease-purchase agreement.
"Motor vehicle" means a
self-propelled vehicle primarily designed for the transportation
of persons or property over public streets and highways which is
used primarily for personal, family, or household purposes. For
purposes of this definition, a "motor vehicle" also
includes a "demonstrator", which means a vehicle
assigned by a dealer for the purpose of demonstrating qualities
and characteristics common to vehicles of the same or similar
model or type, but does not include mopeds, motorcycles, or motor
scooters, as those terms are defined in chapter 286, or vehicles
over 10,000 pounds, gross vehicle weight rating. For purposes of
this definition, a "motor vehicle" also includes (1) an
individually registered vehicle used for an individual's business
purposes and for personal, family, or household purposes; and (2)
a vehicle owned or leased by a sole proprietorship, corporation or
partnership which has purchased or leased no more than one vehicle
per year, used for household, individual, or personal use in
addition to business use.
"Nonconformity" means a
defect, malfunction, or condition that fails to conform to the
motor vehicle's applicable express warranty and that substantially
impairs the use, market value, or safety of a motor vehicle, but
does not include a defect, malfunction, or condition that results
from an accident, abuse, neglect, modification, or alteration of
the motor vehicle by persons other than the manufacturer, its
agent, distributor, or authorized dealer.
"Purchase price" means
the cash price appearing in the sales agreement or contract and
paid for the motor vehicle, including any net allowance for a
trade-in vehicle. Where the consumer is a second or subsequent
purchaser and the arbitration award is for a refund of the motor
vehicle, "purchase price" means the purchase price of
the second or subsequent purchase not to exceed the purchase price
paid by the original purchaser.
"Reasonable offset" for
use means the number of miles attributable to a consumer up to the
date of the third repair attempt of the same nonconformity which
is the subject of the claim, the date of the first repair attempt
of a nonconformity that is likely to cause death or serious bodily
injury, or the date of the thirtieth (30th) cumulative business
day when the vehicle is out of service by reason of repair of one
or more nonconformities, whichever occurs first. The reasonable
offset for use shall be equal to one percent of the purchase price
for every thousand miles of use.
"Replacement motor
vehicle" means a motor vehicle which is identical or
reasonably equivalent to the motor vehicle to be replaced, as the
motor vehicle to be replaced existed at the time of original
acquisition, including any service contract, undercoating, rust
proofing, and factory or dealer installed options. A reasonable
offset shall be made for the use of the motor vehicle and an
additional offset may be made for loss to the fair market value of
the vehicle resulting from damage beyond normal wear and tear,
unless the damage resulted from the nonconformity.
"Substantially impairs"
means to render the motor vehicle unfit, unreliable, or unsafe for
warranted or normal use, or to significantly diminish the value of
the motor vehicle.
481I-3 Motor vehicle: express
warranties, return.
(a) If a motor vehicle
does not conform to all applicable express warranties, and the
consumer reports the nonconformity in writing to the manufacturer,
its agent, distributor, or its authorized dealer during the term
of the lemon law rights period, then the manufacturer, or, at its
option, its agent, distributor, or its authorized dealer, shall
make such repairs as are necessary to conform the vehicle to such
express warranties, notwithstanding the fact that such repairs are
made after the expiration of such term.
(b) If the manufacturer,
its agents, distributors, or authorized dealers are unable to
conform the motor vehicle to any applicable express warranty by
repairing or correcting any defect or condition which
substantially impairs the use, market value, or safety of the
motor vehicle after a reasonable number of documented attempts,
then the manufacturer shall provide the consumer with a
replacement motor vehicle or accept return of the vehicle from the
consumer and refund to the consumer the following: the full
purchase price including, but not limited to, charges for
undercoating, dealer preparation, transportation and installed
options, and all collateral and incidental charges, excluding
finance and interest charges, and less a reasonable offset for the
consumer's use of the motor vehicle. If either a replacement motor
vehicle or a refund is awarded, an "offset" may be made
for damage to the vehicle not attributable to normal wear and
tear, if unrelated to the nonconformity. Refunds made pursuant to
this subsection shall be deemed to be refunds of the sales price
and treated as such for purposes of section 237-3. Refunds shall
be made to the consumer and lien holder, if any, as their
interests may appear on the records of ownership. If applicable,
refunds shall be made to the lessor and lessee pursuant to rules
adopted by the department of commerce and consumer affairs.
(c) It shall be an
affirmative defense to any claim under this section that a
nonconformity is the result of abuse, neglect, or unauthorized
modifications or alterations of a motor vehicle by a consumer.
(d) It shall be presumed
that a reasonable number of attempts have been undertaken to
conform a motor vehicle to the applicable express warranties, if,
during the lemon law rights period, any of the following occurs:
(1) The same
nonconformity has been subject to examination or repair at least
three times by the manufacturer, its agents, distributors, or
authorized dealers, but such nonconformity continues to exists;
or
(2) The nonconformity
has been subject to examination or repair at least once by the
manufacturer, its agents, distributors, or authorized dealers,
but continues to be a nonconformity which is likely to cause
death or serious bodily injury if the vehicle is driven; or
(3) The motor vehicle is
out of service by reason of repair by the manufacturer, its
agents, distributors, or authorized dealers for one or more
nonconformities for a cumulative total of thirty or more
business days during the lemon law rights period. The term of
the lemon law rights period and such thirty-day period shall be
extended by any period of time during which repair services are
not available to the consumer because of a war, invasion,
strike, fire, flood or other natural disaster. The presumptions
provided in this subsection shall not apply unless the
manufacturer has received a written report of the nonconformity
from the consumer and has had a reasonable opportunity to repair
the nonconformity alleged. Upon a second notice of the
nonconformity, or, if the motor vehicle has been out of service
by reason of repair in excess of twenty business days, the
dealer shall notify the manufacturer of the nonconformity.
(e) During the lemon law
rights period, the manufacturer or its agent, distributor, or
authorized dealer shall provide to the consumer, each time the
consumer's vehicle is returned from being diagnosed or repaired
under the warranty, a fully itemized, legible statement or repair
order indicating any diagnosis made and all work performed on the
vehicle, including, but not limited to, a general description of
the problem reported by the consumer or an identification of the
defect or condition, parts and labor supplied, the date and the
odometer reading when the vehicle was submitted for repair, and
the date when the vehicle was made available to the consumer. The
consumer shall sign and receive a copy of the statement or repair
order.
(f) Upon request from the
consumer, the manufacturer, or at its option its agent,
distributor, or authorized dealer, shall provide a copy of any
report or computer reading regarding inspection, diagnosis, or
test-drive of the consumer's motor vehicle, and shall provide a
copy of any technical service bulletin related to the
nonconformity issued by the manufacturer regarding the year and
model of the consumer's motor vehicle as it pertains to any
material, feature, component, or the performance thereof. Upon
receipt of a consumer's written report of a nonconformity to the
manufacturer, the manufacturer or, at its option, its agent,
distributor, or authorized dealer, shall inform the consumer of
any technical service bulletin or report relating to the
nonconformity, and shall advise the consumer of the consumer's
right to obtain a copy of such report or technical service
bulletin.
(g) The manufacturer, its
agent, distributor, or authorized dealer, shall provide the
consumer at the time of purchase of the motor vehicle a written
notice setting forth the terms of a state certified arbitration
program and a statement of the rights of the consumer under this
section in plain language, the form of which has been previously
reviewed and approved by the department of commerce and consumer
affairs for substantial compliance with title 16, Code of Federal
Regulations, part 703, as may be modified by the requirements of
this chapter. The written notice must specify the requirement that
written notification to the manufacturer of the motor vehicle
nonconformity is required before the consumer is eligible for a
refund or replacement of the motor vehicle. The notice must also
include the name and address to which the consumer must send such
written notification. The provision of this statement is the
direct responsibility of the dealer, as that term is defined in
chapter 437.
(h) The consumer shall be
required to notify the manufacturer of the nonconformity only if
the consumer has received a written notice setting forth the terms
of the state certified arbitration program and a statement of the
rights of the consumer as set out in subsection (g).
(i) Where the state
certified arbitration program is invoked by the consumer of a
motor vehicle under express warranties, a decision resolving the
dispute shall be rendered within forty-five days after the
procedure is invoked. If no decision is rendered within forty-five
days as required by this subsection, the dispute shall be
submitted to the regulated industries complaints office of the
department of commerce and consumer affairs for investigation and
hearing. Any decision rendered resolving the dispute shall provide
appropriate remedies including, but not limited to, the following:
(1) Provision of a
replacement motor vehicle; or
(2) Acceptance of the
motor vehicle from the consumer, refund of the full purchase
price, and all collateral and incidental charges. The decision
shall specify a date for performance and completion of all
awarded remedies.
(j) Any action brought
under this section must be initiated within one year following
expiration of the lemon law rights period.
(k) No vehicle transferred
to a dealer or manufacturer by a buyer or a lessee under
subsection (b) may be sold or leased by any person unless:
(1) The nature of the
defect experienced by the original buyer or lessee is clearly
and conspicuously disclosed on a separate document that must be
signed by the manufacturer and the purchaser and must be in ten
point, capitalized type, in substantially the following form:
"IMPORTANT: THIS VEHICLE WAS RETURNED TO THE MANUFACTURER
BECAUSE A DEFECT(S) COVERED BY THE MANUFACTURER'S EXPRESS
WARRANTY WAS NOT REPAIRED WITHIN A REASONABLE TIME AS PROVIDED
BY HAWAII LAW.";
(2) The defect is
corrected; and
(3) The manufacturer
warrants to the new buyer or lessee, in writing, that if the
defect reappears within one year or 12,000 miles after the date
of resale, whichever occurs first, it will be corrected at no
expense to the consumer.
(l) A violation of
subsection (k) shall constitute prima facie evidence of an unfair
or deceptive act or practice under chapter 480.
481I-4 Arbitration mechanism.
(a) The department of
commerce and consumer affairs shall establish and monitor a state
certified arbitration program which is in substantial compliance
with title 16, Code of Federal Regulations, part 703, as may be
modified by this section, and shall adopt appropriate rules
governing its operation.
(b) The director of
commerce and consumer affairs may contract with an independent
arbitration organization for annual term appointments to screen,
hear, and resolve consumer complaints which have been initiated
pursuant to section 481I-3. The following criteria shall be
considered in evaluating the suitability of independent
arbitration mechanisms: capability, objectivity, experience,
non-affiliation with manufacturers of or dealers in new motor
vehicles, reliability, financial stability, and fee structure.
(c) If a consumer agrees
to participate in and be bound by the operation and decision of
the state certified arbitration program, then all parties shall
also participate in, and be bound by, the operation and decision
of the state certified arbitration program. The prevailing party
of an arbitration decision made pursuant to this section may be
allowed reasonable attorney's fees.
(d) The submission of any
dispute to arbitration in which the consumer elects non-binding
arbitration shall not limit the right of any party to a subsequent
trial de novo upon written demand made upon the opposing party to
the arbitration within thirty calendar days after service of the
arbitration award, and the award shall not be admissible as
evidence at that trial. If the party demanding a trial de novo
does not improve its position as a result of the trial by at least
twenty-five per cent, then the court shall order that all of the
reasonable costs of trial, consultation, and attorney's fees be
paid for by the party making the demand. If neither party to a
non-binding arbitration demands a trial de novo within thirty days
after service of the arbitration award, the arbitrator's decision
shall become binding on both parties upon the expiration of the
thirty-day period.
(e) Funding of the state
certified arbitration program shall be provided through an initial
filing fee of $200 to be paid by the manufacturer and $50 to be
paid by the consumer upon initiating a case for arbitration under
this section. Every final decision in favor of the consumer issued
by the independent arbitration mechanism shall include within its
relief the return of the $50 filing fee to the consumer. The
director of commerce and consumer affairs may establish a trust
fund for the purpose of administering fees and costs associated
with the state certified arbitration program.
(f) The failure of a
manufacturer to timely comply with a binding decision of a state
certified arbitration program shall be prima facie evidence of an
unfair or deceptive act or practice under chapter 480 unless the
manufacturer can prove that it attempted in "good faith"
to comply, or that the failure was beyond the manufacturer's
control, the result of a written agreement with the consumer, or
based on an appeal filed under chapter 658.
Find other Lemon Laws in these
states:
Lemon Law
Lemon Law - "Lemon
law" is that body of state law which defines an automobile
owners rights when the manufacturer is not able to repair the
automobile within the limits specified by state lemon law. In
such cases, the automobile is referred to as a "lemon",
and is subject to the conditions of the state lemon law.
Your Lemon Law
Disclaimer:
These pages are created to inform and educate the public about lemon
law and under the lemon law in your state. They are not and
should not be considered legal opinions or advice as to whether
you have rights under lemon law or whether you should pursue
"a lemon law case". If after reading this
information, you believe you qualify, you should seek the advice
and counsel of an attorney specializing in lemon law in your
state. Remember that each state's lemon laws vary.
Lemon Law - Lemon
Law - Lemon Law- Lemon Law
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