REPORT TITLE: 
Motor Vehicles


DESCRIPTION:
Allows a consumer to cancel a contract to purchase or lease a
new vehicle within three calendar days after execution of the
contract.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
HOUSE OF REPRESENTATIVES                H.B. NO.411        
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                     A BILL FOR AN ACT

RELATING TO MOTOR VEHICLES.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Chapter 481I, Hawaii Revised Statutes, is
 
 2 amended by adding a new part to be appropriately designated and
 
 3 to read as follows:
 
 4        "PART .  NEW MOTOR VEHICLE SALES OR LEASE CONTRACTS
 
 5      §481I-     Definitions.  As used in this part, unless the
 
 6 context otherwise requires:
 
 7      "Contract" means a sales agreement or contract to purchase
 
 8 or lease a new motor vehicle.
 
 9      "Dealer" is defined in section 437-1.1.
 
10      §481I-   Consumer's right to cancel contract; cooling-off
 
11 period.(a)  The consumer may cancel the contract without
 
12 penalty by mailing or delivering a notice of cancellation to the
 
13 dealer at the address specified on the contract; provided that
 
14 this occurs within three calendar days after the execution of a
 
15 contract and:
 
16      (1)  The consumer has not taken delivery of the motor
 
17           vehicle listed on the contract; or
 

 
 
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 1      (2)  If the consumer has taken delivery of the motor vehicle
 
 2           listed on the contract, not more than one hundred miles
 
 3           have been traveled by the consumer using the motor
 
 4           vehicle.
 
 5 The notice of cancellation shall be effective upon mailing or
 
 6 delivery to the dealer.
 
 7      (b)  Upon cancellation of the contract pursuant to
 
 8 subsection (a), the dealer shall:
 
 9      (1)  Return or refund any payment made by the consumer in
 
10           full, without penalty to future credit or purchase
 
11           ability; and
 
12      (2)  Return any property rightfully belonging to the
 
13           consumer, including trade-in vehicles, keys, or
 
14           ownership documents."
 
15      SECTION 2.  Chapter 481I, Hawaii Revised Statutes, is
 
16 amended by designating sections 481I-1 to 481I-4 as part I and
 
17 inserting a title before section 481I-1 to read as follows:
 
18       "PART I.  MOTOR VEHICLE EXPRESS WARRANTY ENFORCEMENT
 
19                           (LEMON LAW)"
 
20      SECTION 3.  Chapter 481I, Hawaii Revised Statutes, is
 
21 amended by amending its title to read as follows:
 
22 "[[]CHAPTER 481I[]]  MOTOR VEHICLE [EXPRESS WARRANTY ENFORCEMENT
 
23            (LEMON LAW)] SALES AND LEASE TRANSACTIONS"
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1      SECTION 4.  Statutory material to be repealed is bracketed.
 
 2 New statutory material is underscored.
 
 3      SECTION 5.  This Act shall take effect upon its approval.
 
 4 
 
 5                           INTRODUCED BY:_________________________