Hawaii Used Motor Vehicle Lemon Law

§481J-1 Definitions

"Consumer" is,

"Warranty" is

"Dealer" is defined in section 437-1.1.

"Used motor vehicle" is,

[L 1994, c 224, pt of §1]

§481J-2 - Used Motor Vehicles: Written Warranty Required, Terms

  1. Hawaii lemon laws restrict dealers from selling a used motor vehicle within the State unless it contains a written warranty which covers both parts and labor necessary to repair any nonconformity that impairs the use and safety of the vehicle. Those defects that only impair the appearance shall not be considered to impair safety or use.
  2. The written warranty shall apply for the following durations:
    • A used motor vehicle which, at the time of sale, has been driven less than twenty-five thousand miles, the warranty shall be a minimum of ninety days or five thousand miles
    • A used motor vehicle which, at the time of sale, has covered more than twenty-five thousand miles but less than fifty thousand miles, the warranty shall be a minimum of sixty days or three thousand miles
    • A used motor vehicle which, at the time of sale, has done with fifty thousand miles or more but no more than seventy-five thousand miles, the warranty shall be a minimum of thirty days or one thousand miles
  3. The written warranty forces the dealer to repair or, refund the consumer for the reasonable costs of repairing the failure of a covered part. Covered parts shall at least include the following items:
    • Engine, including all lubricated parts, water pump, fuel pump, manifolds, engine block, cylinder head, rotary engine housings, flywheel, gaskets, and seals
    • Transmission, including the transmission case, internal parts, torque converter, gaskets, and seals, except four-wheel drive vehicles shall be excluded from coverage as provided for in this paragraph
    • Drive axle, including front and rear drive axle housings and internal parts, axle shafts, propeller shafts, and universal joints, except four-wheel drive vehicles shall be excluded from coverage as provided in this paragraph
    • Brakes, including master cylinder, vacuum assist booster, wheel cylinders, hydraulic lines and fittings, and disc brake calipers
    • Radiator
    • Steering, including the steering gear housing and all internal parts, power steering pump, valve body, piston, and rack
    • Alternator, generator, starter, and ignition system, excluding the battery.
  4. The written warranty may also contain additional language excluding coverage:
    • For a defect that is caused by the neglect or lack of maintenance from customer after the vehicle is sold
    • For a defect that is caused by collision, abuse, theft, vandalism, fire, or other casualty, and for damage from the environment, including but not limited to windstorms, hurricanes, and lightning;
    • Incase, if the milometer has been stopped and the manufacturer cannot readily determine the actual mileage
    • For a motor tune-up
    • For maintenance services and parts used for services such as seals, gaskets, oil, or grease unless required in connection with the repair of a covered part
    • Defect arising from racing or other competition
    • For a defect which arises due to towing a vehicle unless the used motor vehicle is equipped for this as suggested by the manufacturer
    • If the used motor vehicle is used to carry passengers for hire
    • If the used motor vehicle is rented to someone other than the consumer
    • For repair of valves and rings to correct low compression and oil consumption which are considered as normal wear
    • To the extent otherwise permitted by law, for property damage arising or allegedly arising out of the defect or malfunction in a part
    • To the extent otherwise permitted by law, for loss of the use of the used motor vehicle, loss of time, inconvenience, commercial loss, or consequential damages.
  5. According to §481J-2 of Hawaii lemon laws, “nothing in this chapter diminishes the obligations of a manufacturer under a warranty issued by the manufacturer. The express warranties created by this section do not require a dealer to repair or replace a covered part if the repair or replacement is covered by a manufacturer's warranty, or the manufacturer otherwise agrees to repair or replace the part”.
  6. A consumer can return a used vehicle within the warranty period for the purpose of repair. If the towing is needed, the dealer shall pay the reasonable costs of towing from the point of breakdown up to fifteen miles to obtain the required repairs or to return the vehicle to the dealer.
  7. The warranty period can be extended if,
    • The used motor vehicle is in custody of the dealer for the purpose of repair under the terms and obligations of the warranty
    • Repair services are not available due to war, invasion or strike, fire, flood or other natural disaster
    • The consumer has notified the dealer that a used motor vehicle is inoperable, but cannot reasonably present the vehicle to the dealer and the dealer refuses to pay the charge to tow the vehicle.
  8. The applicable warranty period shall end thirty days from the date of completion of any repair required by this section as to the defect repaired if the warranty would otherwise have expired during this period.
  9. it’s the duty of a dealer to provide a fully itemized repair receipt each time when the used vehicle is being diagnosed or repaired under the warranty including,
    • The defect or malfunction complained
    • The work performed in an attempt to correct the defect or malfunction and the identity of the repairer incase he is not the dealer
    • The parts replaced
    • The date and milometer reading when the vehicle was brought for repair
    • The date when the vehicle was delivered to the consumer after the repair.
  10. if a dealer doesn’t have repairing facility, he can give the vehicle to any other repairer to remove the defects and make payment for prompt repair by a motor vehicle repair dealer registered under chapter 437B.
  11. The dealer shall offer repair or reimbursement notwithstanding the fact that the warranty period has expired, provided that the consumer provides notification to the dealer of the failure of a covered part within the specified warranty period.

[L 1994, c 224, pt of §1]

§481J-3 - Disclaimers Void; Authorized Waivers; Exemptions; "As is" Sales

  1. A contract that waives or limits the rights of a consumer described in sec. 481J-2 shall be void. The dealer must give a written warranty at the time of sale.
  2. As described in §481J-3 of Hawaii lemon laws, “the consumer may waive a warranty required pursuant to this chapter only as to a particular defect or malfunction which the dealer has disclosed to the consumer”. This waiver will not be effective unless it:
    • Is in writing
    • Is conspicuous and is in plain language
    • Recognizes a specified disclosed defect or malfunction in the used motor vehicle for which the warranty is to be waived
    • States what warranty, if any, shall apply to the disclosed defect or malfunction
    • Is signed by both the consumer and the dealer prior to sale.
  3. This chapter shall not apply to:
    • Used motor vehicles sold for less than $1,500
    • Used motor vehicles with over seventy-five thousand miles at the time of sale if the mileage is indicated in writing at the time of sale
    • Used motor vehicles that are five years of age or older
    • Vehicles that have been modified for show purposes or racing
    • Vehicles which are inoperable and a total loss. For the purpose of this paragraph, a vehicle is a "total loss" only if there is material damage to the vehicle's frame, unitized structure, or suspension system, and the projected cost of repairing the damage exceeds the market value of the vehicle at the time of the incident causing it to be declared a total loss.
  4. If the used vehicle comes under the exemptions set out in this section, it may be sold on “as is” basis. No "as is" disclaimer by a dealer shall be enforceable unless all of the following conditions are met:
    • The disclaimer must be on the main page of the agreement of sale and will be like,

      "AS IS"
      THIS VEHICLE IS SOLD "AS IS". YOU WILL HAVE TO PAY FOR ANY REPAIRS NEEDED AFTER SALE. IF WE HAVE MADE ANY PROMISES TO YOU, THE LAW SAYS WE MUST KEEP OUR PROMISES, EVEN IF WE SELL "AS IS". TO PROTECT YOURSELF, ASK US TO PUT ALL PROMISES IN WRITING.

    • The entire disclaimer must be in a box with text printed in twelve-point boldface type and the heading shall be in sixteen-point extra boldface type.
    • The disclaimer should be signed by the consumer. A copy of the signed disclaimer shall be kept by the dealer for a two-year period from the date of the consumer's signature.
  5. Incase of "as is" sale of a used motor vehicle the implied warranties are waived but no  express warranties shall be waived, either oral or written, upon which the consumer relied in entering into the transaction.
  6. A dealer should comply with the Federal Trade Commission's "Used Motor Vehicle Trade Regulation Rule," 16 Code of Federal Regulations, part 455, if he is selling or offering to sell any used motor vehicle, and is providing the express warranty required by this chapter.

[L 1994, c 224, pt of §1]

§481J-4 - Disclosure of Damages or Defects in Used Motor Vehicles

  1. No dealer can sale a used motor vehicle unless providing,
    • A written notice of any nonconformity to the prospective consumer for which the cost of repairs exceeds $1,000 for parts and labor
    • A written notice to the consumer that the dealer has inspected defects or damage
  2. The dealer must provide a written warranty to the consumer at the time of sale of a used motor vehicle.
  3. For purposes of this section:

    "Known" means that

    • The dealer has taken information regarding the condition or defect of a used motor vehicle
    • The dealer is well-familiar with the defects

    "Material mechanical defect" means any defect which makes the motor vehicle mechanically unsound or inoperable.

[L 1994, c 224, pt of §1]

§481J-5 - Notices

  1. The written warranty terms of section 481J-2 and the notices of sections 481J-3 and 481J-4 should be given to the consumer at the time of sale of used motor vehicle. Both warranty and notice must be attached with sales agreement.
  2. The director of commerce and consumer affairs has adopted rules which are consistent to chapter 91 essential to execute the notice provisions of this chapter. The rules may include the establishment of wording, format, placement, and distribution requirement for all notices specified in this chapter.
  3. The refusal or ignorance to provide the warranty or notices to the consumer or providing false or misleading notices or warranties is a clear evidence of an unfair or deceptive act under chapter 480.

[L 1994, c 224, pt of §1]

§481J-6 - Failure to Honor Warranty

  1. Incase, if a dealer fails in fixing the defects after a reasonable period of time, the dealer have to replace or refund the full purchase price plus sales tax, less a reasonable allowance for any damage. A reasonable allowance for use shall be fifteen cents for each mile the used motor vehicle has been operated between its sale and its return.
  2. It shall be alleged that a dealer was given a number of attempts to correct the nonconformity of a used motor vehicle, if the dealer fails to repair the same defect or malfunction within three attempts, or if the vehicle is in custody of a dealer or is out of service for more than ten business days after the return.
  3. A used motor vehicle shall not be considered out of service for repair, if the dealer is short of the part necessary for the repair of a used motor vehicle and has ordered the part on the same day. Except that in no event shall a part's unavailability operate to toll the ten- business-day period for more than twenty-one days, in this case The applicable warranty period shall be extended.
  4. According to Hawaii lemon laws, “in determining the purchase price to be refunded, the purchase price shall be deemed equal to the sum of the actual cash difference paid for the used motor vehicle, plus return of any vehicles traded in at the time of purchase. If the dealer elects to not return any vehicles traded in by the consumer, or is unable to return such vehicles in substantially the same condition as received from the consumer, the dealer shall pay the consumer the wholesale value of any such traded-in vehicles as listed in the National Automobile Dealers' Association Used Car Guide, or such other guide as may be specified in rules adopted by the director of commerce and consumer affairs pursuant to chapter 91, as adjusted for mileage, improvements, and any major physical or mechanical defects in the vehicle at the time of trade-in”.
  5. The dealer must attach a written notice with the sales agreement containing conspicuous language indicating that incase of refund, the value shall be determined by the method explained in subsection (d) rather than the value listed in the sales contract.
  6. Refunds shall be made to the consumer and lienholder, if any, as their interests may appear on the records of ownership kept by the county director of finance.
  7. The dealer may offer a replacement but it’s on the consumer is fully entitled to elect either replacement or refund.

[L 1994, c 224, pt of §1]

§481J-6 - Civil and Administrative Actions for Violations

  1. A consumer of a used motor vehicle can enforce this section and recover costs, including attorney's fees.
  2. It shall be an affirmative defense to any claim under this section that:
    • The presumed defect does not substantially affect the use or safety of the used motor vehicle
    • The alleged defect is the result of abuse, neglect, or unreasonable modifications or alterations of the used motor vehicle
  3. Any private action brought consistent to this section shall be initiated within one year from the date of delivery.
  4. The chapter shall not limit the rights or remedies of a consumer under any other law.
  5. As stated in §481J-6 of Hawaii lemon laws, “a motor vehicle dealer's failure to comply with any of the provisions of this chapter may result in disciplinary action pursuant to chapter 437, which may result in sanctions, including, but not limited to, suspension or revocation of license, and the imposition of fines or restitution”.

[L 1994, c 224, pt of §1]