REPORT TITLE:
Used Cars


DESCRIPTION:
Prevents used car dealers from selling unsafe vehicles.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2147
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO USED MOTOR VEHICLES.



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

 1      SECTION 1.  Section 481J-4, Hawaii Revised Statutes, is
 
 2 amended by amending the title and subsections (a) and (b) to read
 
 3 as follows:
 
 4      "[[]481J-4[]  Disclosure of damages or defects in used
 
 5 motor vehicles.] Sale of used motor vehicles with material
 
 6 mechanical defects prohibited; mandatory return of vehicles.  (a)
 
 7 No dealer may offer for sale any used motor vehicle [without
 
 8 first providing:
 
 9      (1)  Written notice to the prospective consumer of] that has
 
10           any material mechanical defect in the motor vehicle and
 
11           any damage sustained by the motor vehicle due to fire,
 
12           water, collision, or other causes for which the cost of
 
13           repairs exceeds $1,000 for parts and labor, when the
 
14           defect or damage is known or should reasonably be known
 
15           to the dealer[; and
 
16      (2)  Written notice to the prospective consumer whether the
 
17           dealer has conducted any] upon an inspection of the
 
18           motor vehicle to determine known defects or damage.
 
19      (b)  [If a dealer promises that any repairs will be made or
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1 any conditions corrected in connection with the purchase of a
 
 2 used motor vehicle, such promises shall be provided in writing
 
 3 and either attached or incorporated into the sales contract.]  No
 
 4 dealer may offer for sale any used vehicle that is subsequently
 
 5 discovered within two years of the date of purchase to contain a
 
 6 material mechanical defect that was not known or could not have
 
 7 been reasonably known by the dealer at the time of sale without
 
 8 first providing written notice to the prospective customer that
 
 9 the dealer shall accept return of the vehicle from the consumer;
 
10 provided that the return is made within one year of the discovery
 
11 of the material mechanical defect, and the dealer shall refund to
 
12 the consumer the full purchase price and all collateral and
 
13 incidental charges, excluding finance and interest charges, and
 
14 less a reasonable offset for the consumer's use of the motor
 
15 vehicle."
 
16      SECTION 2.  Statutory material to be repealed is bracketed.
 
17 New statutory material is underscored.
 
18      SECTION 3.  This Act shall take effect upon its approval.
 
19 
 
20                       INTRODUCED BY:  ___________________________