Hawaii Lemon Law

The Hawaii state lemon law is known as “Hawaii Motor Vehicle Express Warranty Enforcement” which is Chapter 481i of the Hawaii legal code. Hawaii protects motor vehicles that are used for transportation of people and property over public streets and highways and also for personal, family, or household purposes. Demonstrator vehicles are covered as well. Mopeds, motorcycles, motor scooters, and vehicles that weigh over 10,000 gross pounds are not included. Companies vehicles which are used for personal, family, or household purposes are protected (§481i-2).

The consumer has Hawaii lemon law protection for the duration of the express warranty, 24 months, or 24,000 miles, whichever comes last. The manufacturer guarantees in the warranty that the car should run as promised and if does not it will take the necessary steps to fix it. If the vehicle is having problems of nonconformity, then the consumer is entitled under law to receive a refund or replacement. However, the manufacturer must have a reasonable number of attempts to repair or fix the nonconformities of the vehicle. A Nonconformity is according to §481i-2 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.” If shall be presumed that a reasonable number of attempts have been made on the vehicle, if (§481i-3):

• The manufacturer, its agent, or authorized dealer has had at least three attempts to fix a problem of nonconformity.
• The manufacturer, its agent, or authorized dealer has had at least one attempt to fix a problem of nonconformity that is likely to cause death or serious injury.
• The vehicle has been out of service for nonconformity repairs for a cumulative of 30 or more business days, unless repair could not be performed due to circumstances beyond the manufacturer’s control such as natural disasters or war.

When the consumer purchases the vehicle the manufacturer has to provide the consumer information on a state certified arbitration, the process on how to file a lemon claim, and whether the consumer is eligible to receive a refund or replacement. The manufacturer or its agent must provide a report of the repair every time the vehicle is fixed, which the consumer must sign (§481i-3).

In order to be eligible for a refund or replacement the consumer must provide a written report of the alleged nonconformity and must allow the manufacturer reasonable time to repair. When the vehicle has been repaired twice for the nonconformity or has been in the shop for 20 days, the dealer will notify of the manufacturer of the problem. If the consumer does decide to invoke his arbitration right, he will first go through the state certified arbitration program. If the consumer elects a nonbinding arbitration case, and if either side is not satisfied with the arbitration decision, then within 30 days that party may ask for a trial. If the party who asks for court does not improve its position by 25 percent, it will have to pay for the reasonable costs of trial, consultation, and attorney fees (§481i-4).

The consumer will be provided with either a replacement or refund if he wins the case. A replacement is “a motor vehicle which is identical or reasonably equivalent to the motor vehicle to be replaced” including all other options the car came with (§481i-2). A refund will include the purchase price of the vehicle, all collateral and incidental damage, and a reasonable offset. The reasonable offset is to include the miles driven for the date of the third repair, the first repair attempt for serious defects, or the 30th day in the repair shop. The value decreases by one cent for every 1,000 miles driven (§481i-2). Also, included in the reasonable offset is any damage done to the car that is beyond normal wear and tear that wasn’t because of the nonconformity.
A lemon vehicle may not be resold, leased, or auctioned off by any person in the state of Hawaii until both the manufacturer and the purchase a sign a document stating:

“IMPORTANT: THIS VEHICLE WAS RETURNED TO THE MANUFACTURER BECAUSE A DEFECT(S) COVERED BY THE MANUFACTURER’S EXPRESSED WARRANTY WAS NOT REPAIRED WITHIN A REASONABLE TIME AS PROVIDED BY LAW.”

Also, the nonconformity must be corrected. The manufacturer must extend the warranty guarantee to the new consumer that if they defect reappears within one year or 12,000 miles, whichever comes first. The warranty guarantees the nonconformity will be corrected (§481i-3).