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Hawaii lemon car laws 2011

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

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