Rhode Island Code of Regulations Title 470 - Motor Vehicle Arbitration Board
Rhode Island Code of Regulations Title 470 governs the Rhode Island Motor Vehicle Arbitration Board. This Board is a crucial mechanism established under Rhode Island's "Lemon Law" (specifically, Rhode Island General Laws Chapter 31-5.2, "Consumer Enforcement of Motor Vehicle Warranties").
The purpose of these regulations is to provide an independent arbitration procedure for resolving disputes between consumers (buyers or lessees) and manufacturers concerning new motor vehicles that do not conform to applicable express or implied warranties. In simpler terms, it's the process for consumers to seek remedies when they've purchased or leased a new car that turns out to be a "lemon."
Here's a breakdown of the key aspects covered in Title 470:
Establishment and Authority: The regulations are promulgated under the authority of Rhode Island General Laws § 31-5.2-7.1. They establish the Motor Vehicle Arbitration Board within the Rhode Island Department of Attorney General to administer the dispute settlement process.
Scope and Applicability:
Applicable to manufacturers of passenger motor vehicles and motorcycles registered in Rhode Island.
Covers "nonconformities," which are defined as specific or generic defects or malfunctions, or a combination thereof, that substantially impair the use, market value, or safety of a motor vehicle.
Applies during the "Term of Protection," which is typically one year or 15,000 miles from the original delivery date, whichever comes first.
Filing a Request for Arbitration:
Consumers must file a request on a form provided by the Board, along with a non-refundable filing fee (currently $20).
The request must include detailed information about the vehicle, the consumer, the selling and servicing dealers, and a clear description of the nonconformity and repair attempts.
The consumer must typically have given the manufacturer a certain number of repair attempts (e.g., four or more) or the vehicle must have been out of service for a total of 30 days or more for the same nonconformity.
Arbitration Process:
The Board investigates, gathers, and organizes information for a fair and timely decision.
Notification: Both the consumer and manufacturer are notified once an application is accepted. The manufacturer is often given one final opportunity to cure the nonconformities.
Hearings: The Board schedules hearings (which may be documentary or include oral testimony). Parties have the right to present evidence, cross-examine witnesses, and be represented by counsel.
Technical Experts: The Board may assign certified automotive technical experts to advise and consult with the arbitration panel.
Arbitration Panels: Disputes are heard by panels consisting of at least three members of the Motor Vehicle Arbitration Board.
Decision: The panel renders a fair decision as expeditiously as possible (typically within 90 days of eligibility). The decision includes findings of fact, reasons, and the specific terms of any award (e.g., refund, replacement vehicle).
Outcomes and Remedies:
If the panel finds in favor of the consumer, the manufacturer may be required to offer a refund of the purchase price (minus a reasonable allowance for use) or a comparable new replacement vehicle.
The decision sets a date for performance by the manufacturer.
Consumers have a limited time (e.g., five days) to accept or reject the decision.
Manufacturer Compliance and Enforcement:
The manufacturer must comply with the decision within 30 days of the consumer's acceptance.
The Board maintains records of disputes and statistics on manufacturer compliance.
If a manufacturer fails to comply, the consumer may seek judicial enforcement.
Rhode Island law provides for continuing damages ($25.00 per day) and reasonable attorney's fees if a consumer's award is upheld by the court after a manufacturer's appeal.
Disclosure and Resale of Returned Vehicles:
The regulations mandate that any vehicle returned to a manufacturer under the Rhode Island Lemon Law (or similar statutes in other states) cannot be resold or re-leased in Rhode Island unless a clear, written statement is provided to the dealer and the subsequent consumer indicating that the vehicle was returned due to a warranty nonconformity.
New car dealers are also required to prominently post a notice about the Motor Vehicle Arbitration Board's dispute settlement program.
In essence, Rhode Island Code of Regulations Title 470 establishes the framework for how consumers can utilize the state's "Lemon Law" to address significant defects in new motor vehicles through an impartial arbitration process.
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