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Hawaii Lemon Law And State Certified Arbitration Program (With Manufacturers Statement Form) (Hawaii) - Legal Forms
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THE HAWAII LEMON LAW AND THE STATE CERTIFIED ARBITRATION PROGRAM A Handbook for Motor Vehicle Manufacturers Published by the Department of Commerce and Consumer Affairs State Certified Arbitration Program 235 S. Beretania Street, Ninth Floor Honolulu, Hawaii 96813 (808) 587-3222 06/2006 American LegalNet, Inc. www.FormsWorkFlow.com THE MOTOR VEHICLE MANUFACTURER DUTIES UNDER THE HAWAII LEMON LAW AND THE STATE CERTIFIED ARBITRATION PROGRAM (SCAP) This handbook provides important information concerning Hawaii's Lemon Law and State Certified Arbitration Program (SCAP) to motor vehicle manufacturer representatives. You should read all of this handbook to fully understand your rights and responsibilities under the Lemon Law. You should also review the most current version of the Lemon Law itself, Chapter 481I, Hawaii Revised Statutes (H.R.S.), and the administrative rules which govern SCAP, Hawaii Administrative Rules (H.A.R.) Title 16, Chapter 181. If you need copies of these materials, please contact the SCAP Administrator, or you may print them out from our website at www.hawaii.gov/dcca/rico. The State Certified Arbitration Program (SCAP) The Department of Commerce and Consumer Affairs (DCCA) administers the State Certified Arbitration Program or SCAP. 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 authorizes the DCCA to provide consumers with an arbitration process to resolve warranty disputes with manufacturers. As the neutral administrator of the program, the DCCA's role is to provide information, oversee and monitor the process, and provide the forum to which consumers may apply for arbitration. In Hawaii we run our own state program, and we do not certify any manufacturer's dispute resolution program. There is no prior resort requirement in the law. Please do not confuse SCAP with the BBB Autoline Program or any other dispute resolution or arbitration program. Arbitrators who preside over SCAP proceedings are impartial volunteers interested in resolving consumer disputes. They do not have to be attorneys although many of them are. Arbitrators are entitled to a stipend, the amount of which is set by the Director of the DCCA, pursuant to H.A.R. § 16-181-6. All arbitrators are required to attend Lemon Law arbitration training sessions. If you have any questions regarding the Hawaii Lemon Law or SCAP, you may contact: Department of Commerce and Consumer Affairs Regulated Industries Complaints Office SCAP Case Administrator 235 S. Beretania Street, 9th Floor Honolulu, Hawaii 96813 fax number: (808) 586-2670 phone number: (808) 586-2660 American LegalNet, Inc. www.FormsWorkFlow.com Manufacturer Representative Information As the manufacturer of motor vehicles sold in Hawaii, you must inform SCAP in writing of the name, address, and telephone number of the person designated to receive notices under the program. The information shall be presumed correct unless updated by the manufacturer. Failure to update the information will result in notices being mailed to the manufacturer's last known address. (H.A.R. § 16-181-10) Lemon Law Rights Statement You must provide to the consumer at the time of purchase of a motor vehicle a written notice setting forth a Statement of Rights under the Lemon Law and the terms of SCAP. This Statement must contain the manufacturer's address in order for the consumer to send written notification of a nonconformity. Consumers who have not received this Statement at time of purchase are not required to provide written notice. Your authorized dealership should obtain the consumer's signature on the Statement at the time of purchase, give a copy to the consumer, and retain a copy for at least two years. You should make sure that your dealership is complying with this requirement. Failure to do so may adversely affect your rights under the Lemon Law. (H.R.S. § 481I-3(g) and H.A.R. § 16-181-33) Lemon Law Rights Period and Filing Deadline The "Lemon Law Rights Period" means the term of the manufacturer's warranty, the period ending two years after the date of delivery to the consumer or the first 24,000 miles of operation, whichever occurs first. Within that period the consumer must experience the nonconformity and take the vehicle in for repair following the presumptions for reasonable opportunity to repair provided in the law. The consumer has one year after the expiration of the lemon law rights period to file for SCAP arbitration. (H.R.S. § 481I-2) Dealership Notification to Manufacturer Upon a second notice of the nonconformity or if the vehicle has been out of service by reason of repair in excess of 20 days, the authorized dealership must notify the manufacturer. You should make sure that your dealership is complying with this requirement so that you may make the appropriate determinations regarding the consumer's potential claim in a timely manner. (H.R.S § 481I-3(d)) Complete Repair Orders Each time a vehicle is returned from being diagnosed or repaired, a fully itemized, legible repair order indicating any diagnosis made and all work performed 2 American LegalNet, Inc. www.FormsWorkFlow.com must be provided to the consumer. The repair order should include: a general description of the reported problem, identification of the defect or problem, parts and labor supplied, the date and odometer reading when the vehicle was submitted for repair, and the date when the vehicle was made available to the consumer. The consumer should sign and receive a copy. Failure of your dealership to comply with this requirement may be held against you in an arbitration hearing. (H.R.S. § 481I3(e)) Technical Service Bulletins Upon receipt of a consumer's written notification of a nonconformity, you or your authorized dealership must inform the consumer of any technical service bulletin or report relating to the nonconformity and advise the consumer of the consumer's right to obtain a copy. (H.R.S. § 481I-3(f)) You or your authorized dealership must provide a copy of any report or computer reading regarding inspection, diagnosis, or test-drive of the vehicle and any technical service bulletin related to the nonconformity. (H.R.S. § 481I-3(f)) Initial Screening of Consumer's Demand for Arbitration SCAP Demand for Arbitration forms are initially screened to make sure that they are filled out completely and legibly, that all required document
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