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Rhode
Island Lemon Law Statutes
Chapter 31-5.2 of Rhode Island Code
SECTION 31-5.2-1
§ 31-5.2-1Definitions.
The following words and
phrases which are used in this chapter shall, for the purposes
of this chapter, have the following meanings:
- "Consumer" means a buyer, other than for purposes
of resale, of a motor vehicle, any person to whom that motor
vehicle is transferred for the same purposes during the duration
of any express or implied warranty applicable to that motor vehicle,
and any other person entitled by the terms of that warranty to
enforce its obligations.
- "Dealer" means any person engaged in the business
of selling, offering to sell, soliciting, or advertising the
sale of new motor vehicles.
- "Lease price" means the aggregate of:
- Lessor's actual purchase costs.
- Collateral charges, if applicable.
- Any fee paid to another to obtain the lease.
- Any insurance or other costs expended by the lessor for
the benefit of the lessee.
- An amount equal to state and local sales taxes not otherwise
included as collateral charges, paid by the lessor when the vehicle
was initially purchased.
- An amount equal to five percent (5%) of the lessor's actual
purchase costs.
- "Lessee" means any consumer who leases a motor
vehicle for one year or more pursuant to a written lease agreement
which provides that the lessee is responsible for repairs to
such motor vehicle or any consumer who leases a motor vehicle
pursuant to a lease-purchase agreement.
- "Lessee cost" means the aggregate deposit and rental
payments previously paid to the lessor for the leased vehicle.
- "Lessor" means a person who holds title to a motor
vehicle leased to a lessee under a written lease agreement or
who holds the lessor's rights under such agreement.
- "Manufacturer" means any person, partnership, firm,
association, corporation, or trust, resident or nonresident,
which is engaged in the business of manufacturing or assembling
new motor vehicles, or which is engaged in the business of importing
new motor vehicles which are manufactured or assembled outside
of the United States.
- "Motor vehicle" or "vehicle" means an
automobile, truck, motorcycle, or van having a registered gross
vehicle weight of less than ten thousand pounds (10,000 lbs.),
sold, leased, or replaced by a dealer or manufacturer after May
11, 1984, except that it shall not include a motorized camper
as defined in § 31-1-3(q).
- "Nonconformity" means any specific or generic defect
or malfunction, or any concurrent combination of such defects
or malfunctions, that substantially impairs the use, market value,
or safety of a motor vehicle.
- "Term of protection" means one year or fifteen
thousand (15,000) miles of use from the date of original delivery
of a new motor vehicle to the consumer, whichever comes first;
or, in the case of a replacement vehicle provided by a manufacturer
to a consumer under this chapter, one year or fifteen thousand
(15,000) miles from the date of delivery to the consumer of that
replacement vehicle, whichever comes first.
SECTION 31-5.2-2
§ 31-5.2-2Manufacturers' obligation to fulfill warranties.
If
a motor vehicle does not conform to any applicable express or
implied warranties, including, but not limited to, the implied
warranty of merchantability as defined in § 6A-2-314 and the
implied warranty of fitness for a particular purpose as defined
in § 6A-2-315, and the consumer or lessee reports the nonconformity
to the manufacturer of the vehicle, its agent, or its authorized
dealer or lessor during the term of protection, the manufacturer,
its agent or its authorized dealer shall effect such repairs
as are necessary to conform the vehicle to the warranty, notwithstanding
the fact that those repairs are made after the expiration of
the term.
SECTION 31-5.2-3
§ 31-5.2-3Replacement of nonconforming vehicle.
-
If the manufacturer, its agent, or its authorized dealer or lessor
does not conform the motor vehicle to any applicable express
or implied warranty by curing any nonconformity after a reasonable
number of attempts, the manufacturer shall accept return of the
vehicle from the consumer or lessee and, at the consumer's or
lessee's option, refund the full contract price or lease price
of the vehicle including all credits and allowances for any trade-in
vehicle, less a reasonable allowance for use, or replace it with
a comparable new motor vehicle in good working order. A manufacturer
replacing a motor vehicle shall have thirty (30) calendar days
from the date of return of the motor vehicle under the provisions
of this chapter to deliver a comparable motor vehicle. If, within
that thirty (30) days, no comparable motor vehicle has been delivered,
the manufacturer shall refund the full contract price or lease
price less a reasonable allowance for use. In instances in which
a vehicle is replaced by a manufacturer under the provisions
of this chapter, the manufacturer shall reimburse the consumer
or lessee for any fees for the transfer of registration or any
sales tax incurred by the consumer or lessee as a result of that
replacement. In instances in which a vehicle which was financed
by the manufacturer or its subsidiary or agent is replaced under
the provisions of this chapter, the manufacturer, subsidiary,
or agent shall not require the consumer or lessee to enter into
any refinancing agreement with an interest rate or other financial
terms which are less favorable to the consumer or lessee than
those stated in the original financing agreement. In instances
in which a refund is tendered under the provisions of this chapter,
the manufacturer shall also reimburse the consumer or lessee
for incidental costs including sales tax, registration fee, finance
charges, and any cost of nonremovable options added by an authorized
dealer or lessor. Whenever a vehicle is replaced or refunded
under the provisions of this chapter, in instances in which towing
services and rental vehicles of comparable year and size were
not made available at no cost to the consumer or lessee, the
manufacturer shall also reimburse the consumer or lessee for
towing and reasonable rental costs that were a direct result
of vehicle nonconformity. Refunds shall be made to the consumer
or lessee and to the lienholder, if any, as their interests may
appear. A reasonable allowance for use shall be obtained by multiplying
the total contract price or lessee cost of the vehicle by a fraction
having as its denominator one hundred thousand (100,000) and
having as its numerator the number of miles that the vehicle
travelled prior to the consumer's first report of the nonconformity
to the manufacturer, its agent, or its dealer or lessor plus
the number of miles that it travelled during any subsequent period
when the vehicle was not out of service by reason of repair.
A consumer or lessee shall have the option of retaining the use
of any vehicle returned under the provisions of this chapter
until such time as the consumer or lessee has been tendered a
full refund or replacement vehicle acceptable to the consumer
or lessee. The use of any vehicle retained by a consumer or lessee
after its return to a manufacturer under the provisions of this
chapter shall, in instances in which a refund is tendered, be
reflected in the above mentioned reasonable allowance for use.
- If applicable, refunds shall be made to the lessor and lessee
as their interests may appear on the records of ownership as
follows: the lessee shall receive the lessee cost and the lessor
shall receive the lease price less the aggregate deposit and
rental payments previously paid to the lessor for the leased
vehicle. If it is determined that the lessee is entitled to a
refund pursuant to this chapter, the consumer's lease agreement
with the lessor shall be terminated upon payment of the refund
and no penalty for early termination shall be assessed.
SECTION 31-5.2-4
§ 31-5.2-4Affirmative defenses.
It shall be an
affirmative defense to any claim under this section: (1) that
an alleged nonconformity does not substantially impair the use,
market value, or safety of the vehicle, or (2) that a nonconformity
is the result of abuse, neglect, or unauthorized substantial
modification or alteration of the vehicle by the consumer or
lessee.
SECTION 31-5.2-5
§ 31-5.2-5Time allowed for correction of nonconformity.
-
A reasonable number of attempts shall be presumed to have been
undertaken to conform a motor vehicle to any applicable express
or implied warranties if:
- the same nonconformity has been
subject to repair four (4) or more times by the manufacturer
or its agents or authorized dealers or lessors within the term
of protection, but the nonconformity continues to exist or the
nonconformity has recurred within the term of protection, or
- the vehicle is out of service by reason of the repair of
any nonconformity for a cumulative total of thirty (30) or more
calendar days during the term of protection; provided, however,
that the manufacturer shall be afforded one additional opportunity,
not to exceed seven (7) calendar days, to cure any nonconformity
arising during the term of protection, notwithstanding the fact
that the additional opportunity to cure commences after the term
of protection.
- The additional opportunity to cure shall commence on the
day the manufacturer first knows or should have known that the
limits specified in subsection (a)(1) or (a)(2) have been met
or exceeded. The term of protection, the thirty (30) calendar
day period specified in subsection (a)(2) and the additional
opportunity to cure shall be extended by any period of time during
which repair services are not available to the consumer or lessee
as a direct result of a war, invasion, fire, flood or other natural
disaster. The term of protection, the thirty (30) calendar day
period and the additional opportunity to cure shall also be extended
by that period of time during which repair services are not available
as a direct result of a strike; provided, however, that the manufacturer,
its agent, or its authorized dealer or lessor makes provision
for the free use of a vehicle of comparable year and size by
any consumer or lessee whose vehicle is out of service by reason
of repair during a strike. The burden shall be on the manufacturer
to show that any event claimed as a reason for an extension under
the provisions of this section was the direct cause for the failure
of the manufacturer, its agent or lessor, or its authorized dealer
to cure any nonconformity during the time of that event. Extensions
for concurrent events shall not be cumulative.
SECTION 31-5.2-6
§ 31-5.2-6Rights and remedies cumulative.
Nothing
in this chapter shall be construed to limit the rights or remedies
which are otherwise available to a consumer or lessee under law.
SECTION 31-5.2-7
§ 31-5.2-7Informal dispute settlement procedures.
If
a manufacturer has established an informal dispute settlement
procedure which complies in all respects with the provisions
of title 16, Code of Federal Regulations, part 703, as from time
to time amended, or which has been approved by the federal trade
commission or by the attorney general of this state, the provisions
of § 31-5.2-3 concerning refunds or replacement shall not apply
to any consumer or lessee who has not first resorted to the procedure
or the procedure set forth in § 31-5.2-7.1. This section shall
not apply unless the manufacturer, its agents, or its authorized
dealer or lessor shall have provided the consumer or lessee with
clear and conspicuous written notice of the procedure at the
time of delivery of the motor vehicle. A decision resulting from
such an informal dispute settlement procedure shall be binding
upon the manufacturer if the consumer or lessee elects to accept
the decision. The manufacturer shall perform its obligations
as set forth in said decision within a reasonable period of time
not to exceed thirty (30) calendar days from the rendering of
the decision. In no event shall a consumer or lessee who has
resorted to an informal dispute settlement procedure be precluded
from seeking the rights and/or remedies provided by this chapter.
Any applicable statute of limitation including but not limited
to that set forth in § 31-5.2-12 shall be tolled during the period
from the initiation of a dispute settlement procedure until thirty
(30) days following the rendering of a final decision in said
process.
SECTION 31-5.2-8
§ 31-5.2-8Waiver of rights prohibited.
Any agreement
entered into by a consumer or lessee for the purchase or lease
of a new motor vehicle which waives, limits, or disclaims the
rights set forth in this chapter shall be void as contrary to
public policy. These rights shall inure to a subsequent transferee
of the motor vehicle.
SECTION 31-5.2-9
§ 31-5.2-9Disclosure of nonconformity prior to resale.
No
motor vehicle that is returned to the manufacturer under the
provisions of this chapter shall be resold or re-leased in the
state without clear and conspicuous written disclosure to the
prospective purchaser or lessee prior to resale of the fact that
it was so returned due to a nonconformity. The attorney general
shall prescribe the exact form and content of the disclosure
statement.
SECTION 31-5.2-10
§ 31-5.2-10Cause of action.
An aggrieved consumer
or lessee may bring an action under the Rules of Civil Procedure
in the superior court to enforce the provisions of this chapter.
SECTION 31-5.2-11
§ 31-5.2-11Attorney's fees.
The court hearing a
complaint brought by a consumer or lessee aggrieved by a violation
of this chapter shall award reasonable attorney's fees to a prevailing
plaintiff.
SECTION 31-5.2-12
§ 31-5.2-12Commencement of action.
Any action brought
pursuant to this chapter shall be commenced within three (3)
years of the date of original delivery of the motor vehicle to
the consumer or lessee or within two (2) years of the date on
which the mileage on the motor vehicle reached fifteen thousand
(15,000) miles, whichever is earlier.
SECTION 31-5.2-13
§ 31-5.2-13Deceptive trade practice.
A manufacturer's
failure to comply with any of the provisions of this chapter
shall constitute a deceptive trade practice under the terms of
chapter 13.1 of title 6. All of the public and private remedies
provided for in chapter 13.1 of title 6 shall be available to
enforce the provisions of this chapter.
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The
Magnuson-Moss Warranty Act
The Magnuson-Moss Warranty Act is a Federal Law that protects the buyer of any product which costs more than $25 and comes with an express written warranty.
This law applies to any product that you buy that does not perform as it should.
Your car is a major investment, rationalized by the peace of mind that flows from its expected dependability and safety. Accordingly, you are entitled
to expect an automobile properly constructed and regulated to provide reasonably safe, trouble-free, and dependable transportation – regardless
of the exact make and model you bought. Unfortunately, sometimes these principles do not hold true and defects arise in automobiles. Although one defect
is not actionable, repeated defects are as there exists a generally accepted rule that unsuccessful repair efforts render the warrantor liable. Simply
put, there comes a time when “enough is enough” – when after having to take your car into the shop for repairs an inordinate number
of times and experiencing all of the attendant inconvenience, you are entitled to say, ‘That’s all,’ and revoke, notwithstanding the
seller’s repeated good faith efforts to fix the car. The rationale behind these basic principles is clear: once your faith in the vehicle is shaken,
the vehicle loses its real value to you and becomes an instrument whose integrity is impaired and whose operation is fraught with apprehension. The question
thus becomes when is “enough”?
As you know, enough is never enough from your warrantor’s point of view and you should simply continue to have your defective vehicle repaired – time
and time again. However, you are not required to allow a warrantor to tinker with your vehicle indefinitely in the hope that it may eventually be fixed.
Rather, you are entitled to expect your vehicle to be repaired within a reasonable opportunity. To this end, both the federal Moss Warranty Act, and
the various state “lemon laws,” require repairs to your vehicle be performed within a reasonable opportunity.
Under the Magnuson-Moss Warranty
Act, a warrantor should perform adequate repairs in at least two, and possibly three, attempts to correct a particular defect. Further, the Magnuson-Moss
Warranty Act’s reasonableness requirement applies to your vehicle as a whole rather than to each individual defect
that arises. Although most of the Lemon Laws vary from state to state, each individual law usually require a warrantor to cure a specific defect within
four to five attempts or the automobile as a whole within thirty days. If the warrantor fails to meet this obligation, most of the lemon laws provide
for a full refund or new replacement vehicle. Further, this reasonable number of attempts/reasonable opportunity standard, whether it be that of the
Magnuson-Moss Warranty Act or that of the Lemon Laws, is akin to strict liability – once this threshold has been met, the continued existence of
a defect is irrelevant and you are still entitled to relief.
One of the most important parts of the Magnuson-Moss Warranty Act is its fee shifting
provision. This provision provides that you may recover the attorney fees incurred in the prosecution of your case if you are successful – independent
of how much you actually win. That rational behind this fee shifting provision is to twofold: (1) to ensure you will be able to vindicate your rights
without having to expend large sums on attorney's fees and (2) because automobile manufacturers are able to write off all expenses of defense as a
legitimate business expense, whereas you, the average consumer, obviously does not have that kind of economic staying power. Most of the Lemon Laws contain
similar fee shifting provisions.
You may also derive additional warranty rights from the Uniform Commercial Code; however, the Code does not allow you
in most states to recover your attorney fees and is also not as consumer friendly as the Magnuson-Moss Warranty Act or the various state lemon laws.
The narrative information on Magnuson-Moss, UCC and lemon laws on these pages is provided by Marshall Meyers, attorney.
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Uniform
Commercial Code Summary
The Uniform Commercial Code or UCC has been enacted in all 50 states and some of the territories of the United States. It is the primary source of law
in all contracts dealing with the sale of products. The TARR refers to Tender, Acceptance, Rejection, Revocation and applies to different aspects of
the consumer's "relationship" with the purchased goods.
TENDER -
The tender provisions of the Uniform Commercial Code contained in Section2-601 provide that the buyer is entitled to reject any goods that fail in
any respect to conform to the contract. Unfortunately, new cars are often technically complex and their innermost workings are beyond the understanding
of the average new car buyer. The buyer, therefore, does not know whether the goods are then conforming.
ACCEPTANCE -
The new car buyer accepts the goods believing and expecting that the manufacturer will repair any problem he has with the goods under the warranty.
REJECTION
-
The new car buyer may discover a problem with the vehicle within the first few miles of his purchase. This would allow the new car buyer to reject
the goods. If the new car buyer discovers a defect in the car within a reasonable time to inspect the vehicle, he may reject the vehicle. This period
is not defined. On the one hand, the buyer must be given a reasonable time to inspect and that reasonable time to inspect will be held as an acceptance
of the vehicle. The Courts will decide this reasonable time to inspect based on the knowledge and experience of the buyer, the difficulty in discovering
the defect, and the opportunity to discover the defect.
The following is an example of a case of rejection: Mr. Zabriskie purchase a new 1966 Chevrolet Biscayne. After picking up the car on Friday evening,
while en route to his home 2.5 miles away, and within 7/10ths of a mile from the dealership, the car stalled and stalled again within 15 feet. Thereafter,
the car would only drive in low gear. The buyer rejected the vehicle and stopped payment on his check. The dealer contended that the buyer could not
reject the car because he had driven it around the block and that was his reasonable opportunity to inspect. The New Jersey Court said;
To the layman,
the complicated mechanisms of today's automobile are a complete mystery. To have the automobile inspected by someone with sufficient expertise to disassemble
the vehicle in order the discover latent defects before the contract is signed, is assuredly impossible and highly impractical. Consequently, the first
few miles of driving become even more significant to the excited new car buyer. This is the buyer's first reasonable opportunity to enjoy his new vehicle
to see if it conforms to what it was represented to be and whether he is getting what he bargained for. How long the buyer may drive the new car under
the guise of inspection of new goods is not an issue in the present case because 7/10th of a mile is clearly within the ambit of a reasonable opportunity
to inspect. Zabriskie Chevrolet, Inc. v. Smith, 240 A. 2d 195(1968)
It is suggested that Courts will tend to excuse use by consumers if possible.
REVOCATION -
What happens when the consumer has used the new car for a lengthy period of time? This is the typical lemon car case. The UCC provides that a buyer
may revoke his acceptance of goods whose non-conformity substantially impairs the value of the goods to him when he has accepted the goods without
discovery of a non-conformity because it was difficult to discover or if he was assured that non-conformities would be repaired. Of course, the average
new car buyer does not learn of the nonconformity until hundreds of thousands of miles later. And because quality is job one, and manufacturers are
competing on the basis of their warranties, the consumer always is assured that any noncomformities he does discover will be remedied.
What is a noncomformity substantially impairing the value of the vehicle?
- A noncomformity may include a number of relatively minor defects whose cumulative total adds up to a substantial impairment. This is the "Shake
Faith" Doctrine first stated in the Zabrisikie case. "For a majority of people the purchase of a new car is a major investment, rationalized
by the peace of mind that flows from its dependability and safety. Once their faith is shaken, the vehicle loses not only its real value in their eyes,
but becomes an instrument whose integrity is substantially impaired and whose operation is fraught with apprehension".
- A substantial noncomformity may include a failure or refusal to repair the goods under the warranty. In Durfee V. Rod Baxter Imports, the Minnesota
Court held that the Saab owner that was plagued by a series of of annoying minor defects and stalling, which were never repaired after a number of attempts,
could revoke, "if repairs are not successfully undertaken within a reasonable time", the consumer may elect to revoke.
- Substantial Non Conformity and Lemon Laws often define what may be considered a substantial impairment. These definitions have been successfully used
to flesh out the substantial impairment in the UCC.
Additional narrative information on Magnusson-Moss, UCC and lemon laws on these pages is provided by T. Michael Flinn, attorney.
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