Hawaii Lemon Law Guide: Your Rights Under Hawaii Lemon Law

What Is the Hawaii Lemon Law?

The Hawaii Lemon Law, officially known as the Motor Vehicle Express Warranty Enforcement Act (Hawaii Revised Statutes Chapter 481I), is a consumer protection statute designed to help buyers and lessees of new motor vehicles who experience repeated problems getting their vehicles repaired under the manufacturer's warranty. The law provides a legal framework for consumers to seek a refund or a replacement vehicle when their new car, truck, or SUV turns out to be a "lemon."

This statute protects consumers from being stuck with defective vehicles that manufacturers cannot fix within a reasonable number of attempts or a reasonable amount of time. The Hawaii Department of Commerce and Consumer Affairs (DCCA) oversees the State Certified Arbitration Program (SCAP), which provides a less complicated and less expensive alternative to going to court for resolving Lemon Law disputes.

Which Vehicles Qualify Under Hawaii Revised Statutes Chapter 481I?

To qualify for protection under the Hawaii Lemon Law, a vehicle must meet specific criteria regarding its condition, use, and the timing of the defects.

New vs. Used Vehicle Coverage

The Hawaii Lemon Law primarily covers new motor vehicles, including demonstrator models. It also applies to vehicles transferred to a second purchaser while the manufacturer's written warranty is still in effect. Hawaii has a separate used car warranty law (HRS Chapter 481J) that provides some protections for used car buyers, but the primary Lemon Law (Chapter 481I) is focused on new vehicles.

Leased Vehicle Coverage

Yes, the Hawaii Lemon Law covers leased vehicles just as it covers purchased vehicles, provided the lease meets the other requirements of the statute.

Mileage and Time Limitations

The "Lemon Law Rights Period" is a critical timeframe. Under Hawaii law, this period expires two years after the date of the original delivery of the vehicle to the consumer or the first 24,000 miles of operation, whichever occurs first. The defect must be reported to the manufacturer or its authorized dealer within this period.

Vehicle Types Covered

The law covers motor vehicles used primarily for personal, family, or household purposes. It also covers vehicles individually registered but used for business purposes, as well as vehicles owned or leased by a business that purchases or leases no more than one car per year, provided it is used for household, individual, or personal use in addition to business use.

However, the Hawaii Lemon Law specifically excludes:

• Mopeds, motorcycles, and motor scooters.
• Vehicles with a gross vehicle weight rating (GVWR) over 10,000 pounds.

What Qualifies as a "Lemon" in Hawaii?

Not every defect makes a car a lemon. The Hawaii Lemon Law establishes specific presumptions to determine when a manufacturer has had a "reasonable number of attempts" to repair a vehicle.

The "Presumption" Threshold (Number of Repair Attempts)

Under HRS § 481I-3(d), it is presumed that a reasonable number of repair attempts have been made if any of the following occur during the Lemon Law Rights Period:

1. Three Times Presumption: The same nonconformity has been subject to examination or repair at least three times by the manufacturer or its authorized dealers, but the nonconformity continues to exist.
2. Serious Safety Defect: The nonconformity has been subject to examination or repair at least once, but continues to be a nonconformity that is likely to cause death or serious bodily injury if the vehicle is driven.

Days Out of Service Threshold

Alternatively, a vehicle may qualify as a lemon if it is out of service by reason of repair for one or more nonconformities for a cumulative total of 30 or more business days during the Lemon Law Rights Period.

Substantial Impairment Standard

The defect or condition (referred to as a "nonconformity") must substantially impair the use, market value, or safety of the motor vehicle. Minor annoyances, cosmetic flaws, or issues that do not significantly affect the vehicle's operation or value typically do not qualify.

Exceptions and Defenses

The manufacturer has an affirmative defense if the nonconformity is the result of abuse, neglect, or unauthorized modifications or alterations of the motor vehicle by the consumer.

The Hawaii Lemon Law Claims Process

Navigating the Hawaii Lemon Law claims process requires careful attention to detail and strict adherence to statutory deadlines.

Required Steps

1. Repair Attempts: You must give the manufacturer or its authorized dealer a reasonable opportunity to repair the defect during the Lemon Law Rights Period.
2. Written Notification: You must send written notification of the nonconformity to the manufacturer (not just the dealer). This should ideally be sent by certified mail, return receipt requested.
3. Manufacturer's Final Opportunity: While not strictly required by the statute before filing for arbitration, it is generally reasonable to allow the manufacturer 10-14 days after receiving your notification to cure the problem.

Documentation Requirements

Thorough documentation is essential. You should keep:

• Copies of all repair orders and invoices.
• A log of all phone calls and conversations with the dealer and manufacturer.
• Copies of all correspondence, including the written notification sent to the manufacturer and the return receipt.
• The purchase or lease agreement.
• The manufacturer's warranty booklet.

Arbitration Requirements

Hawaii offers the State Certified Arbitration Program (SCAP), a state-run arbitration process. To use SCAP, you must file a demand for arbitration within one year after the expiration of the Lemon Law Rights Period. There is a $50 filing fee, which is refunded if you win your case. The arbitrator's decision must be rendered within 45 days after the procedure is invoked.

Timeline Expectations

The entire process, from the initial repair attempts to a final arbitration decision, can take several months. The SCAP arbitration itself is designed to be relatively swift, with a 45-day deadline for a decision once the process is initiated.

Remedies and Compensation Under Hawaii Law

If a vehicle is determined to be a lemon under Hawaii law, the consumer is entitled to specific remedies.

Vehicle Replacement

The manufacturer may provide a replacement motor vehicle that is identical or reasonably equivalent to the lemon vehicle. If a replacement is awarded, the manufacturer is responsible for the general excise tax, license, and registration fees. A reasonable offset for the consumer's use of the original vehicle will be applied.

Repurchase/Refund

Alternatively, the manufacturer must accept the return of the vehicle and refund the full purchase price. This includes charges for undercoating, dealer preparation, transportation, installed options, and all collateral and incidental charges.

Mileage Offset Formula: The refund will be reduced by a reasonable offset for the consumer's use of the motor vehicle before the first report of the nonconformity.

Incidental Damages

The refund must include all collateral and incidental charges incurred by the consumer as a result of the nonconformity.

Attorney's Fees Provisions

While the SCAP process is designed to be accessible without an attorney, consumers may choose to hire one. If a consumer pursues a claim in court under the federal Magnuson-Moss Warranty Act, they may be entitled to recover reasonable attorney's fees if they prevail.

When to Hire a Hawaii Lemon Law Attorney

While the Hawaii SCAP program is designed as a self-help process, there are situations where hiring a Hawaii lemon law attorney is highly advisable.

Complexity of Claims

If your case involves complex technical issues, disputes over whether a defect constitutes a "substantial impairment," or if the manufacturer aggressively contests your claim, an attorney's expertise can be invaluable.

Manufacturer Resistance Patterns

Manufacturers have teams of lawyers and experts dedicated to minimizing their losses in Lemon Law cases. If you feel overwhelmed or if the manufacturer is employing delay tactics or offering inadequate settlements, an attorney can level the playing field.

Fee Structure

Many lemon law attorneys work on a contingency fee basis, meaning they only get paid if you win your case. Additionally, state and federal laws often include fee-shifting provisions that require the manufacturer to pay your attorney's fees if you prevail, making legal representation more accessible.

What to Look for in an Attorney

When seeking a Hawaii lemon law attorney, look for someone with specific experience handling Lemon Law cases in Hawaii, a track record of success against major auto manufacturers, and a clear understanding of both state and federal warranty laws.

Frequently Asked Questions About Hawaii Lemon Law

Q: Does the Hawaii Lemon Law cover used cars? A: The primary Hawaii Lemon Law (HRS Chapter 481I) focuses on new vehicles. However, Hawaii has a separate used car warranty law (HRS Chapter 481J) that requires dealers to provide written warranties for certain used vehicles, offering some protection for used car buyers.

Q: How long do I have to file a Lemon Law claim in Hawaii? A: You must file a request for arbitration with the State Certified Arbitration Program (SCAP) within one year after the Lemon Law Rights Period expires. The Rights Period expires two years after delivery or at 24,000 miles, whichever comes first.

Q: Do I have to go to court to resolve a Lemon Law dispute? A: No. Hawaii offers the State Certified Arbitration Program (SCAP), which provides a less formal and less expensive arbitration process to resolve disputes without going to court.

Q: What if the manufacturer's warranty has expired, but I reported the problem while it was still active? A: If you reported the nonconformity to the manufacturer or its authorized dealer during the Lemon Law Rights Period, the manufacturer is still obligated to make the necessary repairs, even if those repairs occur after the warranty or the Rights Period has expired.

Q: Can I claim the Lemon Law if my car has been in the shop for 30 days, but for different problems? A: Yes. Under Hawaii law, the 30-day out-of-service presumption applies if the vehicle is out of service for one or more nonconformities for a cumulative total of 30 or more business days during the Lemon Law Rights Period.