Is My Car A Lemon?

Tue, 29 May 2007 21:19:00 GMT

Your car may be declared a lemon after going through arbitration if it meets all of the following conditions:

it has a nonconformity (a defect, malfunction, or condition)
the nonconformity is covered by the manufacturer`s express warranty
the nonconformity SUBSTANTIALLY impairs the use, market value, or safety of the car
the nonconformity is not the result of an accident, abuse, neglect, or alteration of the car by persons other than the manufacturer or its authorized dealer
you tried to get the nonconformity repaired by the manufacturer`s authorized dealer during the Lemon Law Rights Period
you sent written notification (preferably by certified mail, return receipt requested) to the manufacturer (not the dealer) of the nonconformity during the Lemon Law Rights Period*
you gave the manufacturer or its authorized dealer a reasonable opportunity to repair the nonconformity during the Lemon Law Rights Period
you filed a request for arbitration with the State Certified Arbitration Program within one year after the Lemon Law Rights Period expired

* If you did not receive a Lemon Law Statement of Rights from the dealership when you purchased the vehicle, you are not required to write to the manufacturer although it is a good idea to do so anyway. If you did not receive a Lemon Law Statement of Rights, include that information when you submit your paperwork for arbitration.

Can I Settle My Case Without Going To Arbitration?

Tue, 29 May 2007 21:19:00 GMT

Yes, if the manufacturer offers you a settlement of your case, you are free to negotiate with the manufacturer regarding the terms of the settlement, and you are free to accept a settlement. In that situation, you will no longer need to go through the arbitration and risk losing your case. However, it is wise to get the terms in writing before withdrawing from the arbitration process. You must communicate directly with the manufacturer`s representative to obtain concrete figures and information on all the terms of the settlement. If the terms are unclear to you, you should persist in clearing them up to your satisfaction. Make sure you provide any requested paperwork to the manufacturer on a timely basis to expedite the settlement process. As soon as you have confirmed the agreedupon terms, you should contact the SCAP Administrator. Your $50.00 will not be refunded as it defrays the administrative costs of the program.

Please note that if you have accepted a settlement offer and the manufacturer does not comply with the settlement, you may need to consult with an attorney to find out how to enforce the settlement agreement in court.

How Do I Present My Case?

Tue, 29 May 2007 21:19:00 GMT

The following is a guideline:

State the specific nature of the problem.
State any relevant conversations with the dealer or the manufacturer.
Describe and document each repair attempt.
Describe and document any new developments.
Offer proof of each point, especially those in dispute.
State what result you want. Briefly summarize the facts discussed.

How Does The Lemon Law Work?

Tue, 29 May 2007 21:19:00 GMT

The Hawaii Lemon Law helps consumers who buy or lease new motor vehicles and have repeated problems in getting their vehicles repaired under the manufacturer`s warranty. The Lemon Law can help a consumer get a refund of the vehicle purchase price or a replacement vehicle from the manufacturer. The State Certified Arbitration Program (SCAP) provides the consumer with a selfhelp arbitration process to resolve a warranty dispute with a manufacturer. This Program gives the consumer a less complicated and less expensive option than going to court.

The information in this handbook summarizes the Lemon Law and the procedures involved in requesting and preparing for an arbitration. The law itself is found in Hawaii Revised Statutes Chapter 481I (Read the Statute by selecting Hawaii under Lemon Law Statutes in the dropdown selection menu at the right side of this screen). The administrative rules which govern the SCAP process are found in Hawaii Administrative Rules Title 16 Chapter 181.

For more information, call:

Oahu
5873222 and choose option #2
Kauai
2743141 then dial 73222, then the # sign.
Maui
9842400 then dial 73222, then the # sign.
Big Island
9744000 then dial 73222, then the # sign.
Lanai/Molokai
18004684644 then dial 73222, then the # sign.

Or write:

Department of Commerce and Consumer Affairs

Regulated Industries Complaints Office

How Long Will The Hearing Take?

Tue, 29 May 2007 21:19:00 GMT

Hearings usually last from two to four hours depending on the complexities of the case and whether attorneys or witnesses are involved.

How Many Repair Attempts Do I Have To Allow?

Tue, 29 May 2007 21:19:00 GMT

One or more of the following presumptions should apply to your car:

Three times presumption
you took your car in for repair for the same nonconformity at least three times within the Lemon Law Rights Period but
the nonconformity continues to exist
One time serious nonconformity presumption
you took your car in for repair at least once for a serious nonconformity within the Lemon Law Rights Period but
the nonconformity continues to exist and is likely to cause death or serious bodily injury if the car is driven
30 days presumption
you took your car in for repair for one or more nonconformities within the Lemon Law Rights Period and the total number of business days which the car was in for repair adds up to 30 or more days
Note: The more presumptions that apply to your car the better—usually it means you have a stronger case.

How Should I Prepare For The Arbitration?

Tue, 29 May 2007 21:19:00 GMT

Collect and organize your evidence. For example, arrange repair orders by date. If you are asking for collateral charges* (such as tinting costs) or incidental charges** (such as rental car costs), obtain proof of these expenses. Obtain a statement from your lender or your leasing company showing all your payments made to date and the payoff amount to release the title of the car. For a leased car, also ask the leasing company for a statement showing the leasing company`s actual purchase cost of the car. Your evidence may include repair orders, photographs, notarized statements or affidavits, diagrams, videotapes, or cassette recordings. You must inform the SCAP Administrator well in advance of the arbitration if you intend to present videotapes or other recordings so the proper equipment may be made available.
Arrange for witnesses. Although notarized affidavits may be allowed by the arbitrator, more believable evidence is provided by live witnesses. You may also subpoena witnesses. Make sure your witnesses know when and where to be present, and tell them the arbitration may take all morning or afternoon.
Prepare an outline. Prepare an outline to help you present and remember relevant information.
Prepare your response to the manufacturer`s arguments. You will be sent a copy of the Manufacturer`s Statement which says why it should not be required to replace or repurchase your car. Be prepared to respond to those arguments.
Prepare questions for the manufacturer. Prepare questions for the manufacturer which may help to support your arguments or which may cast doubt on the manufacturer`s arguments.
Get the car ready for inspection or testdrive by the arbitrator. The arbitrator may request to inspect or testdrive your car on the day of the arbitration. Make sure to bring evidence of current licensure and insurance.
Arrange for an interpreter if needed. You may bring to the arbitration someone who can translate for you. Inform the SCAP Administrator in advance if you are going to do this.
Decide if you want a binding or a nonbinding arbitration. If you elect binding arbitration, neither party can ask for an appeal (called trial de novo) of the arbitrator`s decision in court. Under nonbinding arbitration, either party may ask for a trial de novo, but it must be done within 30 days after receipt of the decision. Careful consideration should be given to an appeal because the court will order that all reasonable costs of the trial as well as attorney`s fees be paid by the party who demanded the trial de novo if that party does not improve its position by as least 25%. If neither party elects a trial de novo within 30 days, the arbitrator`s decision becomes binding. Bring your completed Election of Consumer form (provided in this handbook) to the arbitration.
Watch the SCAP video. Make arrangements with the SCAP Administrator to view the SCAP video well in advance of your arbitration. The video will show you a mock arbitration and give you a better idea of what to expect at the arbitration and how best to prepare your case for presentation to the arbitrator.

* Collateral Charges are those additional charges incurred as a result of the acquisition of the car. If manufacturerinstalled or agentinstalled items, taxes, government fees, etc. are included in your purchase contract, they will be included as part of your refund if you win. You only have to provide additional proof of other charges that you paid separately.

** Incidental Charges means those reasonable costs incurred by a consumer such as towing charges and rental car costs, which are directly caused by the defects which are the subject of the claim. They do not include loss of use, loss of income, or personal injury claims.

Is My Car's Nonconformity A Substantial Impairment?

Tue, 29 May 2007 21:19:00 GMT

The nonconformity you are alleging must substantially impair your car`s use, safety, or value. Substantially impairs means to render the car unfit, unreliable, or unsafe for warranted or normal use or to significantly diminish the value of the car. You may be able to prove the car`s use is impaired if one of its major systems is defective or if the defect prevents it from being used in a normal fashion. A car`s value may be decreased by conditions that would lead a buyer to pay much less than the market price for a comparable car that does not have the defect.

Is My Vehicle Covered Under The Lemon Law?

Tue, 29 May 2007 21:19:00 GMT

Your vehicle may be covered if it is:

a new car, including a demonstrator model. This also includes a car transferred to a second purchaser while the manufacturer`s written warranty is still in effect.
purchased or leased in Hawaii
used primarily for personal, family, or household purposes or individually registered but used for business purposes and for personal, family, or household purposes or owned or leased by a business which has purchased or leased no more than one car per year, used for household, individual, or personal use in addition to business use

Your vehicle is NOT covered if it is:

a moped, motorcycle, or motor scooter
a vehicle over 10,000 pounds, gross vehicle weight rating (GVWR)*

* GVWR is the maximum loaded weight of the vehicle as specified by the manufacturer. The GVWR can be found on the sticker that is placed on the driver side door jamb. The GVWR is not the weight of the vehicle as stated on your registration.

The following table is a quick summary of what is covered, how many times the vehicle has to be repaired for the same defect and the warranty period.

Vehicles Covered

Repair Interval and Coverage Period

A selfpropelled 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. Does not include mopeds, motorcycles, or motor scooters, or vehicles over 10,000 pounds GVW.

1 repair attempt for a defect that might cause death or serious injury or 3 repair attempts or 30 business days out of service.

Warranty period: 2 years or 24,000 miles.

Note:

Generally, the term Repair Attempts, as it relates to Lemon Law, refers to one or more attempts to fix the same defect although some states consider a vehicle to be a lemon if it required the specified number of repairs within the coverage period.

A car is out of service while being repaired or waiting for parts.

Warranty Period refers to the Manufacturer`s Express Warranty. Where the Coverage Period lists more than 1 option, the period applies to that option which occurs first.

This is only a summary, to get the complete Lemon Law Statute select your state from the combo box menu on the right side of this page, and click Get Statute.

What Do I Have To Prove To The Arbibrator?

Tue, 29 May 2007 21:19:00 GMT

Depending on what is being disputed, you may need to prove to the arbitrator that:

your car had a defect covered by warranty, and you reported it in writing to the manufacturer during the Lemon Law Rights Period;
you gave the manufacturer or its authorized dealer a reasonable opportunity to repair during the Lemon Law Rights Period but the defect still continued;
the defect substantially impairs the use, value, or safety of the car.

What Happens After The Arbitration?

Tue, 29 May 2007 21:19:00 GMT

Receive decision by certified mail. The arbitrator`s decision must be issued within 45 days after initiation of your case by the Administrator (unless an extension of time was agreed upon by both parties.) It will be mailed to you by certified mail. If you chose nonbinding arbitration and lost, you must decide whether you will appeal. You may need to consult an attorney.
If you get a refund, it may include any collateral or incidental charges which you presented to the arbitrator. However, a Reasonable Mileage Offset* will be deducted using the formula provided by law. (See Sample Refund Calculator to get a general idea of what you can expect.)
If you get a replacement car, this is supposed to be a comparable car—a car identical or reasonably equivalent to the car to be replaced, as it existed at the time of original acquisition. You must pay the reasonable mileage offset as provided by law. At times, a comparable replacement car cannot be agreed upon. If this is so, your arbitrator may award you a refund instead of a replacement car.
Deadline for compliance. Generally, the deadline for compliance is within thirty (30) days from receipt of the decision. Usually, the manufacturer will contact you to arrange for the return of your car in exchange for the refund or replacement car (depending on what is awarded). If the manufacturer does not comply on a timely basis, you may need to consult with an attorney to find out how to enforce compliance with the decision in court.

* Reasonable Mileage Offset for use means the number of miles attributable to the consumer up to the date of the third repair attempt or the date of the first repair attempt for a serious safety defect, or the date of the 30th cumulative business day when the car is out of service by reason of repair, whichever occurs first. The reasonable offset for use is one percent of the purchase price for every thousand miles of use.

What Happens At The Arbitration?

Tue, 29 May 2007 21:19:00 GMT

The arbitrator will make introductory remarks. Then you will present your side of the story. The arbitrator and the manufacturer`s representative may ask you questions. Next, the manufacturer`s case is presented. Then, you and the arbitrator may ask questions. After all the evidence is received, in most cases, an inspection and/or test drive is done. At the conclusion of the hearing, each party may summarize and argue for a specific result.

What If My Problem Does Not Fit The Requirements Of My State's Lemon Law?

Tue, 29 May 2007 21:19:00 GMT

You still may be able to invoke the Lemon Law as long as you can justify that the number of repair attempts or days out of service you encountered were unreasonable.

You may also have other rights under other state and federal laws, such as the following: the federal MagnusonMoss Warranty Act, the Uniform Commercial Code (UCC), your service contract or extended warranty, secret warranties, implied warranties, express warranties, unfair and deceptive acts and practices (UDAP), or strict liability and negligence. Consult an attorney, the South Dakota Office of the Attorney General, or the Center for Auto Safety to determine which remedy would be best for your situation.

What Should I Do If I Think I Qualify For Arbitration?

Tue, 29 May 2007 21:19:00 GMT

Letter to manufacturer. Send a letter by certified mail, return receipt requested to the manufacturer within the Lemon Law Rights Period. Send it to the address given for the manufacturer in the Lemon Law Statement of Rights form which should have been given to you when you purchased your car. You may download and use the sample letter provided by the Legal Resoure Center.
Allow time. Although not required, it is reasonable to allow the manufacturer 1014 days from the date it receives your notification, to cure the problem.
Make payments. Continue to make your monthly payments on your financed or leased car. Failure to do so may result in a repossession which may adversely affect your Lemon Law rights.
Allow inspection. The manufacturer has a right to inspect your car after you have submitted a demand for arbitration and a case has been initiated. The manufacturer should arrange a mutually convenient time, date, and location with you. During the inspection, the car may be test driven and tests with diagnostic equipment may be done. However, there should not be another repair attempt. You have the right to request to review any test results before the arbitration.
Keep records. Keep a complete record of all your dealings with the manufacturer and dealer, including copies of repair orders, letters, and records of phone calls or conversations. If it would help to prove the existence of the nonconformity, take photographs (for example, of a water leak problem) or make a tape recording (for example, of an intermittent noise).
Decide if you want an attorney. Most consumers present their own cases. Manufacturers usually send a local representative or participate in the arbitration by telephone. However, if a manufacturer has an attorney or you feel uncomfortable without one, you may want to be represented by an attorney. If you so choose, you must notify the SCAP Administrator well in advance of the arbitration date. The SCAP Administrator is NOT your representative and will NOT be present with you at your arbitration.
Decide if you need an expert witness. You may need an expert witness such as a mechanic to testify that the problem is one that is a serious safety defect or to testify that the problem constitutes a substantial impairment of the use, safety, or value of the car.
Fill out the form and enclose your documents and check. Use the Demand for Arbitration form provided in this booklet. Enclose 3 copies of all the documents requested. You must also send a $50 filing fee with your request. If your case goes through arbitration and the final decision is in your favor, your $50 will be refunded to you. Your request for arbitration will not be processed until it is filled out completely and accurately and all requested documents are provided.
Wait for notification of initiation of case. The SCAP Administrator will notify you by letter when your case is initiated. After your case is initiated, the arbitration will be scheduled and the arbitrator`s decision will be due within 45 days.

When Does The Lemon Law Rights Period Expire?

Tue, 29 May 2007 21:19:00 GMT

Assuming the express warranty is still in effect, the Lemon Law Rights Period expires two years after the date of the original delivery of the car to you or the first 24,000 miles of operation, whichever occurs first.

Express warranty means any written warranty issued by the manufacturer, or any affirmation of fact or promise made by the manufacturer (not the dealer) which relates to the material or workmanship and affirms or promises that the vehicle shall conform to the affirmation or promise. An extended service contract is not the manufacturer`s warranty under most circumstances and generally will not extend your rights through the Lemon Law, since the Lemon Law deals only with your rights against the manufacturer.

Where Can I Get More Information About The Lemon Law?

Tue, 29 May 2007 21:19:00 GMT

Hawaii Department of Commerce and Consumer Affairs
Regulated Industries Complaints Office
Consumer Resource Center
235 South Beretania Street, 9th Floor
P.O. Box 2399
Honolulu, HI 96804
8085873322
www.hawaii.gov/dcca/dcca.html

Hawaii State Bar Association
1136 Union Mall, PH 1
Honolulu, HI 96813
8085371868
www.hsba.org/Hawaii/hawaii.htm

Center for Auto Safety (CAS)
2001 S Street NW
Washington DC 200091160
2023287700
www.autosafety.org
CAS is a non profit consumer group specializing in auto issues. They can help you find out about safety recalls, Lemon Law, secret warranties, and other general information.

Car Talk Car Reports:
You might want to run a Car Talk Car Report (http://cartalk.cars.com/Tools/carreport.pl) on your car, to see if there have been any recalls, Technical Service Bulletins, or a large number of complaints on file relating to your particular problem.

National Highway Traffic Safety Administration (NHTSA)
400 Seventh Street SW, Washington, DC 20590
Auto Safety Hotline: 8004249393
NHTSA can give you information on the safety recall history of your vehicle.

Where Do I Go For The Lemon Law Arbitration Hearing?

Tue, 29 May 2007 21:19:00 GMT

Hearings on Oahu are held at 235 S. Beretania Street, 9th Floor. Neighbor island hearings are held at various locations on those islands.

Free Lemon Law Attorney FAQs

Thu, 26 Nov 2009 20:25:06 GMT

Free Lemon Law Attorney FAQs