§ 31-5.2-7.1 - Procedure.
SECTION 31-5.2-7.1
§ 31-5.2-7.1 Procedure. – (a) In addition to any settlement procedure provided for in § 31-5.2-7,the department of the attorney general shall provide an independent arbitrationprocedure for the settlement of disputes between consumers or lessees andmanufacturers concerning motor vehicles which do not conform to all applicableexpress or implied warranties. There shall be established the motor vehiclearbitration board which shall consist of five (5) members. The board shallconsist of the attorney general or his or her designee, who shall serve asdirector, a member of the general public appointed by the attorney general, thedirector of the department of revenue or his or her designee, the president ofthe Rhode Island Automobile Dealers' Association or his or her designee, andthe administrator of the division of motor vehicles or his or her designee,only one of whom shall be directly involved in the manufacture, distribution,sale, lease, or service of any automobile product. Members shall be personsinterested in consumer disputes, and shall serve without compensation.
(b) An owner or lessee of any motor vehicle purchased orleased which fails to conform to the applicable express or implied warrantiesmay either initiate a request with the department of attorney general forarbitration by the motor vehicle arbitration board or take part in thesettlement procedure set forth in § 31-5.2-7 if in existence. The consumeror lessee shall set forth, on a complaint form prescribed by the department ofattorney general, any information he or she deems relevant to the resolution ofthe dispute and shall file the complaint with a nonrefundable filing fee oftwenty dollars ($20.00). The attorney general shall decide if the complaint iseligible under chapter 5.2 of this title. Upon acceptance of the complaint, theattorney general shall notify the manufacturer of the filing of a request forarbitration and shall obtain from the manufacturer, in writing on a formprescribed by the attorney general, any information the manufacturer deemsrelevant to the resolution of the dispute. The manufacturer shall return theform, along with a non-refundable fifty dollar ($50.00) filing fee, withintwenty (20) days of receipt. The department of attorney general shall thenrefer the matter to the motor vehicle arbitration board created pursuant tosubsection (a) of this section.
(c) The motor vehicle arbitration board shall investigate,gather, and organize all information necessary for a fair and timely decisionin each dispute. The board may issue subpoenas to compel the attendance ofwitnesses and the production of documents, papers, and records relevant to thedispute.
(d) At all arbitration proceedings before the board theparties may present oral or written testimony, present witnesses and evidencerelevant to the dispute, cross examine witnesses, and be represented by counsel.
(e) The motor vehicle arbitration board may forward a copy ofall written testimony, including all documentary evidence, to an independenttechnical expert, who shall review the material and be able to advise andconsult with the the board. An expert shall sit as a non-voting member of theboard whenever oral testimony is presented. The expert shall provide advice andcounsel to the board as a part of its deliberation process and shall aid theboard in preparing its findings and facts.
(f) The motor vehicle arbitration board shall grant therelief specified in § 31-5.2-3 of this chapter and any other reliefavailable under the applicable warranties or the Magnuson-Moss Warranty FederalTrade Commission Improvement Act, 88 Stat. 2183 (1975), 15 U.S.C. section 2301et seq., as in effect on October 1, 1982, to the consumer or lessee if areasonable number of attempts,as provided in § 31-5.2-5(1) and (2) havebeen undertaken to correct one or more nonconformities that substantiallyimpair the motor vehicle. The motor vehicle arbitration board shall dismiss thedispute if it finds, after considering all the evidence presented, that theconsumer or lessee is not entitled to relief under this chapter.
(g) The board shall, as expeditiously as possible, but notlater than ninety (90) days from the date the director deems the disputeeligible for arbitration, render a fair decision based on the informationgathered and disclose its findings and the reasons for it to the partiesinvolved. The consumer or lessee shall accept or reject the decision withinfive (5) days of its filing.
(2) If the decision is favorable to the consumer or lessee,the manufacturer shall within thirty (30) days after the rendering of thedecision, either comply with the terms of the decision if the consumer orlessee elects to accept the decision or appeal the finding to superior court.No appeal by a manufacturer shall be heard unless the petition for such appealis filed with the clerk of the superior court within thirty (30) days ofissuance of the finding of the motor vehicle arbitration board and isaccompanied by a bond in a principal sum equal to the money award made by thestate-certified arbitrator plus two thousand five-hundred dollars ($2,500) foranticipated attorneys' fees, secured by cash or its equivalent, payable to theconsumer. The liability of the surety of any bond filed pursuant to thissection shall be limited to the indemnification of the consumer in the action.Such bond shall not limit or impair any right of recovery otherwise availablepursuant to law, nor shall the amount of the bond be relevant in determiningthe amount of recovery to which the consumer shall be entitled. In the eventthat any motor vehicle arbitration board decision, resulting in an award of arefund or replacement, is upheld by the court, recovery by the consumer shallinclude continuing damages in the amount of twenty-five dollars ($25.00) perday for each day, subsequent to the day the motor vehicle was returned to themanufacturer pursuant to § 31-5.2-3, that said vehicle was out of use as adirect result of any nonconformity not issuing from owner negligence, accident,vandalism or any attempt to repair or substantially modify the vehicle by aperson other than the manufacturer, its agent or authorized dealer; provided,however, that the manufacturer did not make a comparable vehicle available tothe consumer free of charge. In addition to any other recovery, any prevailingconsumer shall be awarded reasonable attorneys' fees and costs. If the courtfinds that the manufacturer did not have any reasonable basis for its appeal orthat the appeal was frivolous, the court shall double the amount of the totalaward made to the consumer. The motor vehicle arbitration board shall contactthe consumer or lessee, within ten (10) working days after the date forperformance, to determine whether performance has occurred.
(h) The motor vehicle arbitration board shall maintain therecords of each dispute as deemed necessary, including an index of disputes bybrand name and model. The motor vehicle arbitration board shall, at intervalsof no more than six (6) months, compile and maintain statistics indicating therecord of manufacturer compliance with arbitration decisions and the number ofrefunds or replacement awarded. The summary shall be a public record.
(i) The motor vehicle arbitration board automobile disputesettlement procedure shall be prominently posted in the place of business ofeach new car dealer or lessor licensed by the department of revenue to engagein the sale or lease of that manufacturer's new motor vehicles. The display ofthis public notice shall be a condition of licensure under the general laws.The board shall determine the size, type face, form and wording of the signrequired by this section, which shall include the telephone number and theaddress to which requests for the motor vehicle arbitration board arbitrationservices may be sent.
(j) The motor vehicle arbitration board shall adoptregulations, in accordance with the provisions of the general laws to carry outthe purposes of this section. Written copies of the regulations and appropriatearbitration hearing procedures shall be provided to any person upon request.