Business Vehicles — Lemon Law in Rhode Island

Rhode Island Lemon Law covers new business vehicles, SUVs, vans, trucks under 10,000 pounds, and motorcycles that are sold or leased in Rhode Island. In order to be considered a "lemon," the vehicle must meet the following requirements:

• Does not conform to the manufacturer's express warranty
• Has substantial defects affecting the use, safety, or value of the vehicle
• Has manufacturer's defects that occurred during the first year from the delivery date or 15,000 miles on the odometer (whichever period ends first)
• Has been taken in four times for the same problem or has been out of service for a cumulative total of 30 calendar days for a series of problems
• The manufacturer has been notified in writing of the defect within one year from the delivery date or 15,000 miles on the odometer (whichever period ends first) and has one final opportunity to repair the problem
• You have participated in the manufacturer's informal arbitration program, if one exists, or the Rhode Island Motor Vehicle Arbitration Board

Under Rhode Island Lemon Law, within one year after the delivery date of the vehicle or 15,000 miles on the odometer (whichever comes first), you must notify the manufacturer in writing of the problem. After four repair attempts, you must give the manufacturer one final attempt to repair the vehicle (even if the repair attempt occurs after the one year/15,000 mile period). Sample demand letter.

You must also participate in the manufacturer's informal dispute resolution process (if one exists) or the Rhode Island Motor Vehicle Arbitration Board before you are eligible to file a Lemon Law claim in court.

In order to participate in a Motor Vehicle Arbitration Board hearing, you must file a request for arbitration and pay a $20 nonrefundable filing fee. The Board will notify you whether your request is accepted or rejected within 10 days after they receive it. At the same time, you must send in copies of your sale or lease agreement; receipts for manufacturer- or dealer-installed options; receipts for sales tax, license and registration fees, finance charges, towing, and car rental; proof that the manufacturer received your notification; your vehicle's warranties, repair orders, and service records; and any other relevant expenses.

If your request is accepted, a hearing will be scheduled within 45 days. The arbitration panel will consist of three people, although they may also bring in an expert mechanic to weigh in. Following the hearing, the panel has 10 days to make a decision, and will notify you by mail. If the panel finds in your favor, you have five days to accept or reject their decision. If you accept the decision, the manufacturer has 30 days to comply.

If the arbitration panel does not find in your favor, or you reject the decision of the panel, you can take the manufacturer to court. However, you must do so within three years of the original date of delivery of the vehicle or within two years of the date the vehicle reached 15,000 miles on the odometer, whichever comes first.

Rhode Island Lemon Law provides several options for a successful Lemon Law claimant. First, you may be awarded a replacement vehicle of the same year, make, and model. You may also qualify for a monetary award, which can include:

• The full purchase price
• Sales tax
• License fees
• Registration fees
• Finance charges
• Dealer-installed options
• Attorney's fees

The amount of the monetary reward may be reduced by a deduction for your use of the vehicle, which is calculated by dividing the mileage by 100,000, and multiplying that number by the purchase price.

Wherever you are in the Lemon Law claim process, it is generally in your best interest to have an attorney represent you. After all, vehicle manufacturers have teams of lawyers that do nothing but fight Lemon Law claims. As you consider your options, imagine the difference between going up against a team of lawyers on your own, versus having a Lemon Law attorney speak on your behalf. Also keep in mind that being represented by a Lemon Law attorney won't cost you a dime if you go to court; the law says that the car manufacturer has to pay your attorney's fees in successful Lemon Law claims.