RHODE ISLAND LEMON LAW:
Rhode Island has Two Lemon Law Statutes: one for NEW vehicles and one for USED vehicles. See both below:
NEW VEHICLES
Rhode Island Lemon Law
Chapter 31-5.2 of Rhode Island Code
SECTION 31-5.2-1
§ 31-5.2-1 Definitions. – As used in this chapter:
(1) "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.
(2) "Dealer" means any person engaged in the business of selling, offering to
sell, soliciting, or advertising the sale of new motor vehicles.
(3) "Lease price" means the aggregate of:
(i) Lessor's actual purchase costs.
(ii) Collateral charges, if applicable.
(iii) Any fee paid to another to obtain the lease.
(iv) Any insurance or other costs expended by the lessor for the benefit of the
lessee.
(v) 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.
(vi) An amount equal to five percent (5%) of the lessor's actual purchase costs.
(4) "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.
(5) "Lessee cost" means the aggregate deposit and rental payments previously
paid to the lessor for the leased vehicle.
(6) "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.
(7) "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.
(8) "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).
(9) "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.
(10) "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
§ 31-5.2-2 Manufacturers' 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
§ 31-5.2-3 Replacement of nonconforming vehicle. – (a) 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.
(2) 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.
(3) 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.
(ii) 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.
(iii) 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.
(4) Refunds shall be made to the consumer or lessee and to the lienholder, if
any, as their interests may appear.
(5) 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.
(6) 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.
(b) 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
§ 31-5.2-4 Affirmative defenses. – It is 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
§ 31-5.2-5 Time allowed for correction of nonconformity. – (a) 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:
(1) 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
(2) 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.
(b) 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
§ 31-5.2-6 Rights 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
§ 31-5.2-7 Informal 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 31-5.2-7.1
§ 31-5.2-7.1 Procedure. – (a) In addition to any settlement procedure provided
for in § 31-5.2-7, the consumers' council shall provide an independent
arbitration procedure for the settlement of disputes between consumers or
lessees and manufacturers concerning motor vehicles which do not conform to all
applicable express or implied warranties. The director of the consumers' council
shall establish one or more automobile dispute settlement panels which shall
consist of three (3) members appointed by the director, only one of whom shall
be directly involved in the manufacture, distribution, sale, lease, or service
of any automobile product. Members shall be persons interested in consumer
disputes, and shall serve without compensation at the discretion of the
director.
(b) An owner or lessee of any motor vehicle purchased or leased which fails to
conform to the applicable express or implied warranties may either initiate a
request for arbitration by the consumers' council or take part in the settlement
procedure set forth in § 31-5.2-7. The consumer or lessee shall set forth, on a
complaint form prescribed by the director, any information relevant to the
resolution of the dispute, and shall file the complaint with a nonrefundable
filing fee of twenty dollars ($20.00). The director shall decide if the
complaint is eligible under this chapter. Upon acceptance of the complaint, the
director shall notify the manufacturer of the filing of a request for
arbitration and shall obtain from the manufacturer, in writing on a form
prescribed by the director, any information the manufacturer deems relevant to
the resolution of the dispute. The manufacturer shall return the form, along
with a non-refundable fifty dollar ($50.00) filing fee, within twenty (20) days
of receipt. The director shall then refer the matter to a panel created pursuant
to subsection (a) of this section.
(c) The panel shall investigate, gather, and organize all information necessary
for a fair and timely decision in each dispute. The director may issue subpoenas
on behalf of any arbitration panel to compel the attendance of witnesses and the
production of documents, papers, and records relevant to the dispute.
(d) At all arbitration proceedings the parties may present oral or written
testimony, present witnesses and evidence relevant to the dispute, cross examine
witnesses, and be represented by counsel.
(e) The consumers' council may forward a copy of all written testimony,
including all documentary evidence, to an independent technical expert, who
shall review the material and be able to advise and consult with, the
arbitration panel. An expert shall sit as a non-voting member of an arbitration
panel whenever oral testimony is presented.
(f) The panel shall grant the relief specified in § 31-5.2-3 and any other
relief available under the applicable warranties or the Magnuson-Moss Warranty
Federal Trade Commission Improvement Act, 88 Stat. 2183 (1975), 15 U.S.C. 2301
et seq., to the consumer or lessee if a reasonable number of attempts have been
undertaken to correct one or more nonconformities that substantially impair the
motor vehicle. The panel shall dismiss the dispute if the panel finds, after
considering all the evidence presented, that the consumer or lessee is not
entitled to relief under this chapter.
(g) The panel shall, as expeditiously as possible, but not later than ninety
(90) days from the date the director deems the dispute eligible for arbitration,
render a fair decision based on the information gathered and disclose its
findings and the reasons for the decision to the parties involved. The consumer
or lessee shall accept or reject the decision within five (5) days of its
filing.
(2) If the decision is favorable to the consumer or lessee and that person
accepts it, the manufacturer must, comply with the terms of the decision within
thirty (30) days after it has been rendered. The consumers' council shall
contact the consumer or lessee, within ten (10) working days after the date for
performance, to determine whether performance has occurred.
(h) The director shall maintain the records of each dispute as deemed necessary,
including an index of disputes by brand name and model. The director shall, at
intervals of no more than six (6) months, compile and maintain statistics
indicating the record of manufacturer compliance with arbitration decisions and
the number of refunds or replacements awarded. The summary is a public record.
(i) The consumers' council automobile dispute settlement procedure shall be
prominently posted in the place of business of each new car dealer or lessor
licensed by the department of transportation to engage in the sale or lease of
that manufacturer's new motor vehicles. The display of this public notice shall
be a condition of licensure under the general laws. The director shall determine
the size, type face, form, and wording of the sign required by this section,
which shall include the telephone number and the address to which requests for
the consumers' council's arbitration services may be sent.
(j) The director shall adopt regulations, in accordance with the provisions of
the general laws, to carry out the purposes of this section. Written copies of
the regulations and appropriate arbitration hearing procedures shall be provided
to any person upon request.
SECTION 31-5.2-8
§ 31-5.2-8 Waiver 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
§ 31-5.2-9 Disclosure 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
§ 31-5.2-10 Cause 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
§ 31-5.2-11 Attorney'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
§ 31-5.2-12 Commencement 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
§ 31-5.2-13 Deceptive 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.
USED
VEHICLES
Rhode Island Used Car Lemon Law
Chapter 31-5.4 of Rhode Island Code
SECTION 31-5.4-1
§ 31-5.4-1 Sale of used motor vehicles – Definitions. – As used in this chapter,
the following words have the following meanings:
(1) "Consumer" means the purchaser, other than for purposes of resale, of a used
motor vehicle normally used for personal, family, or household purposes and
subject to a warranty, and the spouse or child of the purchaser if the motor
vehicle is transferred to the spouse or child during the duration of any
warranty applicable to the motor vehicle, and any other person entitled by the
terms of such warranty to enforce the obligations of the warranty;
(2) "Dealer" means any person or business which sells or offers for sale a used
vehicle after selling or offering for sale three (3) or more used vehicles in
the previous twelve (12) month period, but does not include a bank or financial
institution, a business selling a used vehicle to an employee of that business,
a lessor selling a leased vehicle to that vehicle's lessee, a family member of
the lessee, or an employee of the lessee, or the state, its agencies, bureaus,
boards, commissions, and authorities, and all of the political subdivisions of
the state, including the agencies and authorities of any subdivision;
(3) "Repair insurance" means a contract in writing for any period of time or any
specific mileage to refund, repair, replace, maintain, or take other action with
respect to a used motor vehicle and which is regulated by the department of
business regulation;
(4) "Service contract" means a contract in writing for any period of time or any
specific mileage to refund, repair, replace, maintain, or take other action with
respect to a used motor vehicle and provided at an extra charge beyond the price
of the used motor vehicle;
(5) "Used motor vehicle" means a passenger motor vehicle, excluding motorcycles,
motor homes, and off-road vehicles, which has been driven more than the limited
use necessary in moving or road-testing a new vehicle prior to delivery;
(6) "Warranty" means any undertaking in connection with the sale by a dealer of
a used motor vehicle to refund, repair, replace, maintain, or take other action
with respect to the used motor vehicle and provided at no extra charge beyond
the price of the used motor vehicle.
SECTION 31-5.4-2
§ 31-5.4-2 Written warranty required – Terms. (a) No dealer shall sell a used
motor vehicle to a consumer without giving the consumer a written warranty which
shall at minimum apply for the following terms:
(1) If the used motor vehicle has thirty-six thousand (36,000) miles or less,
the warranty shall be at a minimum of sixty (60) days or three thousand (3,000)
miles, whichever comes first.
(2) If the used motor vehicle has more than thirty-six thousand (36,000) miles,
but not more than one hundred thousand (100,000) miles, the warranty shall be at
a minimum of thirty (30) days or one thousand (1,000) miles, whichever comes
first.
(b) The written warranty shall require the dealer or his or her agent to repair
or, at the election of the dealer, reimburse the consumer for the reasonable
cost of repairing the failure of a covered part. Covered parts shall at least
include the following items:
(1) Engine. All lubricated parts, water pump, fuel pump, manifolds, engine
block, cylinder head, rotary engine housings, and flywheel.
(2) Transmission. The transmission case, internal parts, and the torque
converter.
(3) Drive axle. Front and rear drive axle housings and internal parts, axle
shafts, propeller shafts, and universal joints.
(4) Brakes. Master cylinder, vacuum assist booster, wheel cylinders, hydraulic
lines and fittings, and disc brake calipers.
(6) Steering. The steering gear housing and all internal parts, and the power
steering pump, valve body, piston, and rack.
(7) The alternator, generator, starter, and ignition system, excluding the
battery.
(c) Any required repair or reimbursement shall be made by the dealer
notwithstanding the fact that the warranty period has expired, provided the
consumer notifies the dealer of the failure of a covered part within the
specified warranty period.
(d) If a new car warranty is in effect at the time of the sale of the used motor
vehicle, then the warranty specified in this section shall be required only for
the period of time, if any, between the expiration of the new car warranty and
the period specified in subsection (a) of this section.
(e) The written warranty may contain additional language excluding coverage:
(1) For a failure of a covered part caused by a lack of customary maintenance;
(2) For a failure of a covered part caused by collision, abuse, negligence,
theft, vandalism, fire, or other casualty and damage from the environment
(windstorm, lightning, road hazards, etc.);
(3) If the odometer has been stopped or altered so that the vehicle's actual
mileage cannot be readily determined or if any covered part has been altered so
that a covered part was thereby caused to fail;
(4) For maintenance services and the parts used in connection with those
services such as seals, gaskets, oil, or grease unless required in connection
with the repair of a covered part;
(5) For a motor tune-up;
(6) For a failure resulting from racing or other competition;
(7) For a failure caused by towing a trailer or another vehicle unless the used
motor vehicle is equipped for this as recommended by the manufacturer;
(8) If the used motor vehicle is used to carry passengers for hire;
(9) If the used motor vehicle is rented to someone else;
(10) For repair of valves and/or rings to correct low compression and/or oil
consumption which are considered normal wear;
(11) To the extent otherwise permitted by law, for property damage arising or
allegedly arising out of the failure of a covered part; and
(12) 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.
SECTION 31-5.4-3
§ 31-5.4-3 Failure to honor warranty. (a) If the dealer or his or her agent
fails to correct a malfunction or defect as required by the warranty specified
in this section which substantially impairs the value of the used motor vehicle
to the consumer after a reasonable period of time, the dealer shall accept the
return of the used motor vehicle from the consumer and refund to the consumer
the full purchase price including sales or compensating use tax, less a
reasonable allowance for any damage not attributable to normal wear or usage,
and an adjustment for any modifications which either increase or decrease the
market value of the vehicle. 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, if the dealer elects to not
return any vehicles traded-in by the consumer, the wholesale value of those
traded-in vehicles as listed in the National Auto Dealers' Association Used Car
Guide, or any other guide that may be specified in regulations promulgated by
the administrator of the division of motor vehicles, as adjusted for mileage,
improvements, and any major physical or mechanical defects in the traded-in
vehicle at the time of trade-in. The contract of sale for the used motor vehicle
shall include conspicuous language indicating that if the consumer should be
entitled to a refund pursuant to this section, the value of any vehicle
traded-in by the consumer, if the dealer elects to not return it to the
consumer, for purposes of determining the amount of the refund will be
determined by reference to the National Auto Dealers' Association Used Car Guide
wholesale value, or any other guide that may be approved by the administrator of
the division of motor vehicles, as adjusted for mileage, improvements, and any
major physical or mechanical defects, rather than the value listed in the sales
contract. Refunds shall be made to the consumer and lienholder, if any, as their
interests may appear on the records of ownership kept by the division of motor
vehicles. If the amount to be refunded to the lienholder will be insufficient to
discharge the lien, the dealer shall notify the consumer in writing by
registered or certified mail that the consumer has thirty (30) days to pay the
lienholder the amount which, together with the amount to be refunded by the
dealer, will be sufficient to discharge the lien. The notice to the consumer
shall contain conspicuous language warning the consumer that failure to pay
those funds to the lienholder within thirty (30) days will terminate the
dealer's obligation to provide a refund. If the consumer fails to make the
payment within thirty (30) days, the dealer shall have no further responsibility
to provide a refund under this section. Alternatively, the dealer may elect to
offer to replace the used motor vehicle with a comparably priced vehicle, with
any adjustment in price that the parties may agree to. The consumer shall not be
obligated to accept a replacement vehicle, but may instead elect to receive the
refund provided under this section. It shall be an affirmative defense to any
claim under this section that:
(1) The malfunction or defect does not substantially impair the used motor
vehicle's value; or
(2) The malfunction or defect is the result of abuse, neglect, or unreasonable
modifications or alterations of the used motor vehicle.
(b) It shall be presumed that a dealer has had a reasonable opportunity to
correct a malfunction or defect in a used motor vehicle, if:
(1) The same malfunction or defect has been subject to repair three (3) or more
times by the selling dealer or his or her agent within the warranty period, but
the same malfunction or defect continues to exist; or
(2) The vehicle is out of service by reason of repair or malfunction or defect
for a cumulative total of fifteen (15) or more days during the warranty period.
That period shall not include days when the dealer is unable to complete the
repair because of the unavailability of necessary repair parts. The dealer shall
be required to exercise due diligence in attempting to obtain necessary repair
parts. If, however, a vehicle has been out of service for a cumulative total of
forty-five (45) days, even if a portion of that time is attributable to the
unavailability of replacement parts, the consumer shall be entitled to the
replacement or refund remedies provided in this section.
(c) The term of any warranty, service contract, or repair insurance shall be
extended by any time period during which the used motor vehicle is in the
possession of the dealer or his or her duly authorized agent for the purpose of
repairing the used motor vehicle under the terms and obligations of the
warranty, service contract, or repair insurance.
(d) The term of any warranty, service contract, or repair insurance, and the
fifteen (15) days out-of-service period, shall be extended by any time during
which repair services are not available to the consumer because of a war,
invasion or strike, fire, flood, or other natural disaster.
SECTION 31-5.4-4
§ 31-5.4-4 Waiver notice. (a) Whenever any agreement is entered into by a
consumer with a dealer for the purchase of a used motor vehicle which waives or
disclaims the rights set forth in this chapter, the dealer shall post a notice
unobstructed and conspicuously on the windshield of the vehicle to be sold. The
notice shall be at least eight and one-half inches (8 1/2") by eleven inches
(11") in size, in bold print one inch in height, and shall state, "NO WARRANTY
AS TO CONDITION – SOLD AS IS".
(b) Whenever any dealer enters into an agreement with a consumer for a purchase
of a motor vehicle, any waiver or disclaimer of the rights set forth in this
chapter shall be printed on the bill of sale in a type size larger and of a
different color than any other type on the bill of sale. The waiver shall be
separately initialed by the purchaser and the dealer.
(c) Nothing in this section shall in any way limit the rights or remedies which
are otherwise available to a consumer under any other law.
(d) Notwithstanding subsection (a) of this section, this chapter shall not apply
to used motor vehicles sold for less than one thousand five hundred dollars
($1,500). Further, this chapter shall not apply to the sale of classic cars
registered pursuant to this title.
SECTION 31-5.4-5
§ 31-5.4-5 Arbitration and enforcement. (a) If a dealer has established or
participates in an informal dispute settlement procedure which complies in all
respects with the provisions of 16 CFR Part 703 the provisions of this chapter
concerning refunds or replacement shall not apply to any consumer who has not
first resorted to that procedure.
(b) In no event shall a consumer who has resorted to an informal dispute
settlement procedure be precluded from seeking the rights or remedies available
by law.
(c) In an action brought to enforce the provisions of this chapter, the court
may award reasonable attorneys' fees to a prevailing plaintiff.
(d) Any action brought pursuant to this chapter shall be commenced within four
(4) years of the date of original delivery of the used motor vehicle to the
consumer.
SECTION 31-5.4-6
§ 31-5.4-6 Disclosure of rights. (a) The director of the department of
administration shall promulgate rules, regulations and forms to implement the
notice provision in subsection (b) of this section. The forms promulgated by the
director shall be used by every dealer in the sale of every automobile protected
by this chapter.
(b) Clear and conspicuous notice of the warranties created by this chapter of
the rights pertaining to them and of the implied warranty of merchantability
shall be given to the consumer in writing at the time the consumer purchases a
used motor vehicle from the dealer. Each notice required by this section shall
describe the procedures available to redress violations of this section and
shall contain the telephone number of the department of administration.
(c) A seller's failure to provide the buyer with the documents and forms
promulgated by the director of the department of administration pursuant to this
section shall constitute prima facie evidence of bad faith and unfair and
deceptive trade practice under § 6-13.1-1. Violations of this section shall be
actionable by the buyer under §§ 31-5.4-5 and 6-13.1-5.2.
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