Lemon Law Demand Letter — Hawaii

HAWAI'I LEMON LAW DEMAND

Motor Vehicle Express Warranty Enforcement Act — HRS Chapter 481I

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
(Required method under HRS § 481I-3(b))
AND OVERNIGHT DELIVERY — SIGNATURE REQUIRED

Date: [__/__/____]

To Manufacturer:
[________________________________]
ATTN: Customer Relations / Legal Department / Warranty Claims
[________________________________]
[________________________________] (City, State ZIP)

To Selling/Servicing Dealer:
[________________________________]
ATTN: General Manager / Service Director
[________________________________]
[________________________________], Hawai'i [____]
Island: [________________________________]

RE: HAWAI'I LEMON LAW STATUTORY NOTICE — HRS § 481I-3(b)
THIS LETTER CONSTITUTES THE REQUIRED CERTIFIED MAIL WRITTEN NOTIFICATION

Consumer/Owner: [________________________________]
Vehicle: [____] [________________________________] [________________________________] [________________________________] (Year / Make / Model / Trim)
VIN: [________________________________]
Purchase/Lease Date: [__/__/____]
Current Odometer: [________________________________]
Delivering Dealer: [________________________________] — [________________________________] (Island)

Dear Sir or Madam:

This firm represents [________________________________] ("Consumer") regarding the above-identified motor vehicle. The vehicle qualifies as a "lemon" under the Hawai'i Motor Vehicle Express Warranty Enforcement Act, HRS §§ 481I-1 through 481I-4, and the federal Magnuson-Moss Warranty Act, 15 U.S.C. § 2301 et seq.

This letter constitutes the written notification required by HRS § 481I-3(b), sent by certified mail as required by statute. Upon receipt, the manufacturer is entitled to one final repair opportunity before Consumer pursues arbitration and/or litigation.

I. HAWAI'I LEMON LAW — STATUTORY FRAMEWORK

A. Coverage — HRS § 481I-2

Hawai'i's lemon law covers new self-propelled motor vehicles primarily designed for transportation on public highways and registered in Hawai'i. The statute excludes mopeds, motorcycles, motor scooters, vehicles with more than two axles, and off-road vehicles.

The "lemon law rights period" is the earlier of:

• The term of the express warranty; or
• Two (2) years or 24,000 miles from the date of original delivery to the consumer, whichever comes first. (HRS § 481I-3(a))

B. Rebuttable Presumption of Lemon Status — HRS § 481I-3(c)

A rebuttable presumption that the manufacturer has had a reasonable number of repair attempts arises when any one of three thresholds is met:

Hawai'i's 3-repair threshold is lower than most states (many require 4 attempts), giving consumers earlier access to relief.

Important: Hawai'i counts business days — not calendar days — for the 30-day out-of-service threshold. Weekends and state holidays (HRS § 8-1) do not count.

C. Required Written Notice by Certified Mail — HRS § 481I-3(b)

Before the presumption may be invoked in any civil action, the consumer must provide written notification by certified mail to the manufacturer. The manufacturer then receives one additional opportunity to cure the nonconformity.

D. Manufacturer's Remedies — HRS § 481I-3(a)

If the manufacturer cannot conform the vehicle to the express warranty after a reasonable number of attempts, the manufacturer must, at the consumer's election, either:

☐ Refund — the full contract price, including all collateral charges (taxes, license/registration fees, finance charges), less a reasonable allowance for use; OR

☐ Replacement — a comparable new motor vehicle acceptable to the consumer.

E. Reasonable Allowance for Use — HRS § 481I-3(a)(1)

Hawai'i uses a 120,000-mile denominator formula:

Allowance = (Contract Price) × (Miles at First Report of Nonconformity ÷ 120,000)

For serious safety defects (likely to cause death or serious bodily injury), the mileage at the first repair attempt is used, which lowers the offset.

F. State Certified Arbitration Program (SCAP) — HRS § 481I-4

The Hawai'i Department of Commerce and Consumer Affairs (DCCA) administers the State Certified Arbitration Program (SCAP). If the manufacturer has a DCCA-certified arbitration program, the consumer must first submit the dispute to that program before filing a civil action.

• Arbitration decision must be rendered within 45 days of invocation.
• The decision is binding on the manufacturer if accepted by the consumer.
• If the consumer rejects the arbitration decision, the consumer may proceed to court.
• Administered through: DCCA, Regulated Industries Complaints Office (RICO).

II. VEHICLE AND PURCHASE INFORMATION

III. WARRANTY INFORMATION

The defects described below arose during the lemon law rights period and remain unresolved.

IV. NONCONFORMITY DESCRIPTION

Under HRS § 481I-3(a), a nonconformity is a defect or condition that does not conform to the vehicle's express warranty and that substantially impairs its use, market value, or safety.

Primary Nonconformity

Additional Nonconformity(ies)

V. REPAIR HISTORY

Repair Attempt #1

Repair Attempt #2

Repair Attempt #3

(Attach additional repair attempts on separate sheet if needed.)

Repair History Summary

VI. LEMON LAW QUALIFICATION ANALYSIS

Our Client's vehicle meets the lemon law presumption under HRS § 481I-3(c) because:

☐ 3+ Repair Attempts for Same Nonconformity (§ 481I-3(c)(1)): The same nonconformity has been subject to repair [____] times (threshold: 3) without resolution.

☐ Serious Safety Defect — 1+ Attempt (§ 481I-3(c)(2)): A nonconformity likely to cause death or serious bodily injury has been subject to repair [____] time(s) without resolution.

☐ 30+ Business Days Out of Service (§ 481I-3(c)(3)): The vehicle has been out of service for [____] business days (threshold: 30).

VII. DEMAND FOR RELIEF

Pursuant to HRS § 481I-3(a), we demand the following at the Consumer's election:

☐ Option A — Refund (HRS § 481I-3(a)(1))

The manufacturer must also pay off any outstanding loan/lease balance to the lienholder.

☐ Option B — Replacement (HRS § 481I-3(a)(2))

A comparable new motor vehicle acceptable to the Consumer, including payment of all taxes, fees, and registration costs.

Additional Relief

• Attorney's Fees and Costs: Available to prevailing consumers under HRS § 481I-3(d).
• Magnuson-Moss Claims: Attorney's fees and costs under 15 U.S.C. § 2310(d)(2).

VIII. FINAL REPAIR OPPORTUNITY — HRS § 481I-3(b)

This letter provides the manufacturer with the one additional repair opportunity required by statute. Please contact the undersigned within ten (10) business days to schedule the final repair attempt. If the nonconformity is not cured, Consumer will proceed with:

☐ DCCA State Certified Arbitration Program (SCAP), if manufacturer has a certified program; and/or
☐ Civil action in Hawai'i Circuit Court or the U.S. District Court for the District of Hawai'i.

IX. DOCUMENT PRESERVATION DEMAND

You are directed to immediately preserve all documents and electronically stored information relating to this vehicle and the nonconformity, including:

• All repair orders, warranty claims, and parts records
• Technical Service Bulletins (TSBs) related to the nonconformity
• Customer complaints and field reports for similar defects in same make/model
• Communications between dealer and manufacturer
• Engineering analyses, recalls, and investigations
• The vehicle itself — do not destroy, sell, auction, or alter

Failure to preserve evidence may result in sanctions, adverse inferences, and separate spoliation claims.

X. RESPONSE DEADLINE

Please respond in writing within fourteen (14) days with:

1. Your position on lemon law qualification;
2. Your offer for refund or replacement;
3. Scheduling of the final repair opportunity, if desired;
4. Identification of any DCCA-certified arbitration program.

If no satisfactory response is received, Consumer will:

☐ File a complaint with DCCA — Regulated Industries Complaints Office (RICO)
☐ Submit to State Certified Arbitration Program (if applicable)
☐ File suit in the appropriate Hawai'i court
☐ Report to the Motor Vehicle Industry Licensing Board

XI. RESERVATION OF RIGHTS

This letter is without prejudice to all of Consumer's rights under HRS Chapter 481I, the Magnuson-Moss Warranty Act, HRS Chapter 480 (Unfair and Deceptive Acts or Practices), and common law, all of which are expressly reserved.

Respectfully submitted,

[________________________________] (Law Firm Name)

By: _________________________________
[________________________________] (Attorney Name)
Hawai'i Bar No. [________________________________]
[________________________________] (Address)
[________________________________] (City, Hawai'i ZIP)
[________________________________] (Telephone)
[________________________________] (Email)

Attorneys for [________________________________]

ENCLOSURES:
☐ Copies of all repair orders
☐ Purchase / lease agreement
☐ Warranty booklet
☐ Vehicle registration
☐ Photographs / video of nonconformity
☐ Prior correspondence with manufacturer and dealer
☐ Rental car and incidental damage receipts

cc: [________________________________] (Consumer)
[________________________________] (Lienholder, if applicable)
DCCA — Regulated Industries Complaints Office (RICO)
Hawai'i Office of Consumer Protection

HAWAI'I-SPECIFIC NOTES

Island Logistics and Limited Dealer Networks

Hawai'i presents unique challenges for lemon law warranty service that exist in no other state:

1. Limited Dealer Network Per Island. Most outer islands (Maui, Hawai'i Island, Kaua'i) have one or zero authorized dealers for many brands. A consumer on Lāna'i or Moloka'i may need to ship the vehicle to O'ahu or Maui for warranty service, adding significant cost and time.

2. Inter-Island Vehicle Transport. Shipping a vehicle between islands typically costs $300–$800+ per trip and takes 3–7 days each way. These transportation costs and additional days out of service should be included in:

• The business day count toward the 30-day threshold;
• Incidental damages in any refund calculation.

3. Rental Vehicle Costs. Rental car rates in Hawai'i significantly exceed mainland averages, especially on outer islands and during peak tourist seasons. Document all rental expenses as incidental damages.

4. Business Days Count (HRS § 481I-3(c)(3)). Hawai'i observes numerous state holidays under HRS § 8-1, including Kamehameha Day (June 11), Statehood Day (third Friday in August), and Prince Kūhiō Day (March 26). These are excluded from the business-day calculation.

5. Three-Repair Threshold. Hawai'i requires only 3 repair attempts (not 4) for the same nonconformity before the presumption attaches — fewer than most states.

6. One Attempt for Safety Defects. If the defect is likely to cause death or serious bodily injury, a single failed repair attempt triggers the presumption.

7. 120,000-Mile Use Offset Denominator. Hawai'i uses 120,000 miles as the denominator, which is more favorable to consumers than states using shorter denominators.

8. DCCA Oversight. The DCCA Motor Vehicle Industry Licensing Board oversees dealer licensing, and RICO administers the State Certified Arbitration Program. Consumer complaints: RICO Consumer Resource Center at 1-844-808-3222 or email [email protected].

Sources and References

• HRS §§ 481I-1 through 481I-4 — Motor Vehicle Express Warranty Enforcement Act
• HRS § 8-1 — State Holidays
• HRS Chapter 437 — Motor Vehicle Industry Licensing
• DCCA Lemon Law Information: https://cca.hawaii.gov/rico/lemon-law/
• DCCA Motor Vehicle Industry Licensing Board: https://cca.hawaii.gov/pvl/boards/motorvehicle/
• RICO Consumer Resource Center: 1-844-808-3222
• DCCA Consumer Handbook on Lemon Law and SCAP: https://files.hawaii.gov/dcca/rico/scap_llaw/lemon_law_handbook_consumers.pdf
• 15 U.S.C. § 2301 et seq. — Magnuson-Moss Warranty Act

This template is for informational purposes only and does not constitute legal advice. Hawai'i lemon law requires certified mail notice and may require manufacturer arbitration before suit. Consult a licensed Hawai'i attorney before use.