Hawaii lemon car laws 2011


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Hawaii lemon car laws 2011

  1. 1. Hawaii Lemon Car Law www.AlohaLemonLaw.com Hello Lemon Law, Goodbye Lemon
  2. 2. <ul><li>4 Lemon Car Laws </li></ul><ul><li>HRS 481I-1, Lemon Law </li></ul><ul><ul><li>- HAR 16-181-1, Lemon Law Rules </li></ul></ul><ul><li>15 USC 2301, Magnuson Moss Act </li></ul><ul><li>HRS 490:2-101, Commercial Code </li></ul><ul><li>HRS 480-2, -13, Unfair & Deceptive Acts </li></ul>Statutory Grounds
  3. 3. <ul><li>The Good </li></ul><ul><li>It’s there </li></ul><ul><li>Black letter presumptions of a “lemon” </li></ul><ul><li>Covers most cars, light trucks, motorcycles </li></ul>Hawaii’s Lemon Vehicle Law
  4. 4. <ul><li>The Bad </li></ul><ul><li>Presumptions are rebuttable </li></ul><ul><li>No right to court action </li></ul><ul><li>Not easy to understand </li></ul><ul><li>Debatable defenses available to Manufacturer </li></ul>Hawaii’s Lemon Vehicle Law
  5. 5. <ul><li>And The Ugly </li></ul><ul><li>Replacement vehicle? Not free, Not new </li></ul><ul><li>Consumer needs an attorney </li></ul><ul><li>No mandatory attorney fee recovery </li></ul><ul><li>Consumer can settle and still not get check </li></ul>Hawaii’s Lemon Vehicle Law
  6. 7. <ul><li>3 Part Definition </li></ul><ul><li>Public Road Vehicles </li></ul><ul><li>Consumer Vehicles </li></ul><ul><li>10,000 pounds GVW max </li></ul>Vehicles Covered
  7. 8. <ul><li>Typical Vehicles </li></ul><ul><li>Cars, Trucks, Vans </li></ul><ul><li>Motorcycles, 5 hp + </li></ul><ul><li>Motor Homes, under 10k GVW </li></ul><ul><li>Demonstrators </li></ul>Vehicles Covered
  8. 9. <ul><li>Not Typical Vehicles </li></ul><ul><li>Business vehicles covered, if </li></ul><ul><ul><li>individually registered and </li></ul></ul><ul><ul><li>used in both business & consumer use </li></ul></ul>Vehicles Covered
  9. 10. <ul><li>Not Typical Vehicles </li></ul><ul><li>Business owned vehicle covered, if </li></ul><ul><ul><li>business purchases one per year, and </li></ul></ul><ul><ul><li>used in both business & consumer use </li></ul></ul>Vehicles Covered
  10. 11. <ul><li>Date of Sale Notice, 481I-3(g) </li></ul><ul><li>Plain language rights notice </li></ul><ul><ul><li>Existence of SCAP arbitration program </li></ul></ul><ul><ul><li>Consumer rights </li></ul></ul><ul><ul><li>Requirement of advance written notice </li></ul></ul><ul><ul><li>Name and address for notice mailing </li></ul></ul>Notice of Lemon Law Rights
  11. 12. <ul><li>Lemon Law Rights Period, 481I-2 </li></ul><ul><ul><li>24 months after original consumer delivery, </li></ul></ul><ul><ul><li>or </li></ul></ul><ul><ul><li>24,000 miles of operation </li></ul></ul>Definitions
  12. 13. <ul><li>“ Nonconformity,” 481I-2 </li></ul><ul><ul><li>Any defect or condition </li></ul></ul><ul><ul><li>That substantially impairs the use, market value, or safety </li></ul></ul><ul><ul><li>Not “to the consumer” (is an objective test) </li></ul></ul>Definitions
  13. 14. <ul><li>Substantial Impairment, 481I-2 </li></ul><ul><ul><li>For normal use: </li></ul></ul><ul><ul><ul><li>Unfit </li></ul></ul></ul><ul><ul><ul><li>Unreliable </li></ul></ul></ul><ul><ul><ul><li>Unsafe </li></ul></ul></ul><ul><ul><li>Significantly diminishes value </li></ul></ul>Definitions
  14. 15. <ul><li>Different Sections = Different Rights </li></ul><ul><li>HRS 481I-3(a) </li></ul><ul><ul><li>Repair Obligation Only </li></ul></ul><ul><ul><li>Refusal = Waiver of presumptions ? </li></ul></ul><ul><li>HRS 481I-3(b) </li></ul><ul><ul><li>Buyback or Replace Obligation Only </li></ul></ul>Repair, Buyback, or Replace
  15. 16. <ul><li>Applicable Period : 24 Mo. or 24,000 Miles </li></ul><ul><ul><li>( 1 ) same defect = 3 strikes and you’re out </li></ul></ul><ul><ul><ul><li>“ documented” attempts </li></ul></ul></ul><ul><ul><ul><li>Dlr notice to Mfg: 2 nd repair & 20 days </li></ul></ul></ul><ul><ul><li>(2) Deadly Defect = 1 chance </li></ul></ul><ul><ul><li>(3) 30 business days out of service max </li></ul></ul><ul><ul><ul><li>For all defects </li></ul></ul></ul>HRS 481I-3(d) - Presumptions
  16. 17. <ul><li>Defense : “Defects not within two years - 24k miles” </li></ul><ul><li>Plaintiff : </li></ul><ul><ul><li>Only applies to 481I-3(a) </li></ul></ul><ul><ul><li>481I-3(b): “Reasonable” Number of Attempts </li></ul></ul><ul><ul><ul><li>Question of Fact </li></ul></ul></ul><ul><ul><ul><li>Nothing in (b) says “during the term of the LL rights period” </li></ul></ul></ul>24 Months or 24,000 Miles
  17. 18. <ul><li>Defense : “If the engine runs, it’s usable” </li></ul><ul><li>Plaintiff : </li></ul><ul><ul><li>Consumer Had No Real Choice </li></ul></ul><ul><ul><li>Miles Driven after “lemon”, Not Relevant </li></ul></ul>Substantial Impairment of Use
  18. 19. <ul><li>Defense : “What do you think it’s worth?” </li></ul><ul><li>Plaintiff : </li></ul><ul><ul><li>“ significantly diminish the value” </li></ul></ul><ul><ul><li>Measure of Damages: Difference in Value </li></ul></ul><ul><ul><ul><li>HRS 490:2-714 </li></ul></ul></ul><ul><ul><li>Expert vs Owner Opinion </li></ul></ul>Substantial Impairment of Market Value
  19. 20. <ul><li>Defense : “You never had an accident, did you?” </li></ul><ul><li>Plaintiff : </li></ul><ul><ul><li>“ Expert Opinion says its dangerous” </li></ul></ul><ul><ul><li>“ But I nearly did” </li></ul></ul><ul><ul><li>“ But I could have” </li></ul></ul><ul><ul><li>“ I adapted my driving to avoid accidents” </li></ul></ul>Substantial Impairment of Safety
  20. 21. <ul><ul><li>The “No Problem Found” Problem </li></ul></ul><ul><ul><li>“ N P F” = It’s No Excuse </li></ul></ul><ul><ul><li>“ N P F” Counts Toward Presumptions </li></ul></ul><ul><ul><li>Existence of Defect = Question of Fact </li></ul></ul><ul><ul><li>Symptom + Expert Opinion = Defect </li></ul></ul><ul><ul><ul><li>Interpretations </li></ul></ul></ul>
  21. 22. <ul><ul><li>Court Cases - </li></ul></ul><ul><ul><li>What court cases ? </li></ul></ul><ul><ul><ul><li>Court Cases </li></ul></ul></ul>
  22. 23. <ul><li>HRS 481I-3(c) </li></ul><ul><li>“ Nonconformity” exclusions : </li></ul><ul><ul><ul><ul><ul><li>Abuse </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Neglect </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Unauthorized Modification </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Alteration </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>Defenses </li></ul></ul></ul></ul>
  23. 24. <ul><li>HRS 481I-3(f) – TSB’s </li></ul><ul><li>Upon request, or </li></ul><ul><li>After consumer reports to Manufacturer </li></ul><ul><li>Then , </li></ul><ul><ul><li>manufacturer must provide “notice” </li></ul></ul><ul><ul><ul><li>“ it exists” </li></ul></ul></ul><ul><ul><ul><li>“ you can ask us for a copy” </li></ul></ul></ul><ul><ul><ul><ul><li>Secret Warranty Notice Mandated </li></ul></ul></ul></ul>
  24. 25. <ul><li>Replacement Vehicle, 481I-3(b) </li></ul><ul><li>“ identical or reasonably equivalent” </li></ul><ul><li>Offsets </li></ul><ul><ul><li>Mileage up to presumption point </li></ul></ul><ul><ul><ul><li>1% of purchase price per 1,000 miles </li></ul></ul></ul><ul><ul><li>Excess damage </li></ul></ul><ul><ul><ul><ul><li>Remedies </li></ul></ul></ul></ul>
  25. 26. Buyback = Total Cost – Offsets & Deductions <ul><ul><ul><ul><li>Remedies </li></ul></ul></ul></ul>
  26. 27. <ul><li>Arbitration, 481I-4 </li></ul><ul><li>At option of consumer </li></ul><ul><ul><ul><li>Then, is mandatory on manufacturer </li></ul></ul></ul><ul><li>Attorney Fees </li></ul><ul><ul><ul><li>Prevailing party “ may ” recover fees </li></ul></ul></ul><ul><li>Mfg’s Inspection Report </li></ul><ul><ul><ul><li>Copy to consumer </li></ul></ul></ul><ul><ul><ul><ul><li>Other Remedies: Arbitration </li></ul></ul></ul></ul>
  27. 28. <ul><li>Arbitration, 481I-4 </li></ul><ul><li>Binding vs non-binding arbitration </li></ul><ul><ul><li>later Court rights w/ non-binding arb only </li></ul></ul><ul><ul><li>- 25% improvement, loser pays fees + </li></ul></ul><ul><ul><li>Mfg fails to comply w/arb decision? </li></ul></ul><ul><ul><ul><li>Prima facie unfair act, HRS 480 </li></ul></ul></ul><ul><ul><ul><ul><li>Other Remedies: Arbitration </li></ul></ul></ul></ul>
  28. 29. <ul><li>Lemon Resale Requirements, 481I-3(k) </li></ul><ul><li>Notice signed by buyer </li></ul><ul><ul><li>conspicuous </li></ul></ul><ul><ul><li>was repurchased due to defects </li></ul></ul><ul><ul><li>list of defects </li></ul></ul><ul><li>Defects fixed </li></ul><ul><li>Warranty: 12 mo – 12,000 mile </li></ul><ul><ul><ul><ul><li>Lemon Laundering </li></ul></ul></ul></ul>
  29. 30. <ul><li>481I-3(j) </li></ul><ul><li>1 Year after Lemon Law Rights period expires </li></ul><ul><ul><li>Length of Mfg Warranty </li></ul></ul><ul><ul><li>2 years from first retail sale </li></ul></ul><ul><ul><li>24,000 miles of operation </li></ul></ul><ul><ul><ul><ul><li>Limitations Period </li></ul></ul></ul></ul>
  30. 31. <ul><li>Back to The Ugly </li></ul><ul><li>Consumer needs an attorney </li></ul><ul><li>No mandatory attorney fee recovery </li></ul><ul><li>Consumer can settle and still not get paid </li></ul>Hawaii’s Lemon Vehicle Law
  31. 32. <ul><li>Fundamentals, 15 USC 2301 </li></ul><ul><li>Federal claim for UCC breach of warranty </li></ul><ul><li>Covers virtually all consumer products </li></ul><ul><li>Consumer’s attorney fees paid by losing merchant </li></ul><ul><li>Privity not necessary element of a claim </li></ul><ul><ul><ul><ul><li>Magnuson Moss Act </li></ul></ul></ul></ul>
  32. 33. <ul><li>Elements </li></ul><ul><li>A consumer product, and </li></ul><ul><li>A warrantor’s failure to comply with MM, or </li></ul><ul><li>Breach of Written Warranty or Service Contract </li></ul><ul><ul><ul><ul><li>Magnuson Moss Act </li></ul></ul></ul></ul>
  33. 34. <ul><li>Cumulative Remedies </li></ul><ul><li>Damages, and </li></ul><ul><li>Equitable relief, and </li></ul><ul><li>Attorney Fees </li></ul><ul><li>Arbitration ? </li></ul><ul><ul><ul><ul><li>Magnuson Moss Act </li></ul></ul></ul></ul>
  34. 35. <ul><li>Fundamentals, HRS 480-2, -13 </li></ul><ul><li>Unfair or deceptive acts prohibited </li></ul><ul><li>Covers consumers </li></ul><ul><li>Cumulative Remedies: </li></ul><ul><ul><li>$1,000 or 3x damages (Elder, $5,000) </li></ul></ul><ul><ul><li>Attorney fees </li></ul></ul><ul><ul><li>Injunction, Rescission </li></ul></ul><ul><ul><ul><ul><li>Unfair or Deceptive Act </li></ul></ul></ul></ul>
  35. 36. Jeff Crabtree Email: [email_address] web sites: www.ConsumerLaw.com Ronald L. Burdge Email: [email_address] web sites: www.TheLawCoach.com www.AlohaLemonLaw.com Hello Lemon Law, Goodbye Lemon Hawaii Lemon Car Laws
  36. 37. Hawaii Lemon Car Law www.AlohaLemonLaw.com Hello Lemon Law, Goodbye Lemon