Rhode Island Lemon Law

Rhode Island General Laws, 31-5.2-1 to 31-5.2-13

31-5.2-1 Definitions.

The following words and phrases which are used in this chapter shall, for the purposes of this chapter, have the following meanings:

(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.

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.

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. 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 non-removable 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 lien holder, 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 traveled 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 traveled 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.

(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.

31-5.2-4 Affirmative 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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

 
  source:  Center for Auto Safety  http://www.autosafety.org/