§ 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 arbitration
procedure for the settlement of disputes between consumers or lessees and manufacturers
concerning motor vehicles which do not conform to all applicable express or implied
warranties. There shall be established the motor vehicle arbitration board which shall
consist of five (5) members. The board shall consist of the attorney general or his
or her designee, who shall serve as director, a member of the general public appointed
by the attorney general, the director of the department of revenue or his or her designee,
the president of the Rhode Island Automobile Dealers' Association or his or her designee,
and the 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 persons interested in consumer
disputes, and shall serve without compensation.
(b) An owner or lessee of any motor vehicle purchased or leased which fails to conform
to the applicable express or implied warranties may either initiate a request with
the department of attorney general for arbitration by the motor vehicle arbitration
board or take part in the settlement procedure set forth in § 31-5.2-7 if in existence. The consumer or lessee shall set forth, on a complaint form prescribed
by the department of attorney general, any information he or she deems relevant to
the resolution of the dispute and shall file the complaint with a nonrefundable filing
fee of twenty dollars ($20.00). The attorney general shall decide if the complaint
is eligible under chapter 5.2 of this title. Upon acceptance of the complaint, the
attorney general shall notify the manufacturer of the filing of a request for arbitration
and shall obtain from the manufacturer, in writing on a form prescribed by the attorney
general, any information the manufacturer deems relevant to the resolution of the
dispute. The manufacturer shall return the form, along with a non-refundable fifty
dollar ($50.00) filing fee, within twenty (20) days of receipt. The department of
attorney general shall then refer the matter to the motor vehicle arbitration board
created pursuant to subsection (a) of this section.
(c) The motor vehicle arbitration board shall investigate, gather, and organize all information
necessary for a fair and timely decision in each dispute. The board may issue subpoenas
to compel the attendance of witnesses and the production of documents, papers, and
records relevant to the dispute.
(d) At all arbitration proceedings before the board the parties may present oral or written
testimony, present witnesses and evidence relevant to the dispute, cross examine witnesses,
and be represented by counsel.
(e) The motor vehicle arbitration board may forward a copy of all written testimony, including
all documentary evidence, to an independent technical expert, who shall review the
material and be able to advise and consult with the board. An expert shall sit as
a non-voting member of the board whenever oral testimony is presented. The expert
shall provide advice and counsel to the board as a part of its deliberation process
and shall aid the board in preparing its findings and facts.
(f) The motor vehicle arbitration board shall grant the relief specified in § 31-5.2-3 of this chapter and any other relief available under the applicable warranties or
the Magnuson-Moss Warranty Federal Trade Commission Improvement Act, 88 Stat. 2183
(1975), 15 U.S.C. section 2301 et seq., as in effect on October 1, 1982, to the consumer or lessee if a reasonable
number of attempts, as provided in § 31-5.2-5(1) and (2) have been undertaken to correct one or more nonconformities that substantially
impair the motor vehicle. The motor vehicle arbitration board shall dismiss the dispute
if it finds, after considering all the evidence presented, that the consumer or lessee
is not entitled to relief under this chapter.
(g)(1) The board shall, as expeditiously as possible, but not later than ninety (90) days
from the date the director deems the dispute eligible for arbitration, render a fair
decision based on the information gathered and disclose its findings and the reasons
for it to the parties involved. The consumer or lessee shall accept or reject the
decision within five (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 the decision, either comply with the terms
of the decision if the consumer or lessee 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 appeal is filed with the clerk of the superior court within thirty
(30) days of issuance of the finding of the motor vehicle arbitration board and is
accompanied by a bond in a principal sum equal to the money award made by the state-certified
arbitrator plus two thousand five-hundred dollars ($2,500) for anticipated attorneys'
fees, secured by cash or its equivalent, payable to the consumer. The liability of
the surety of any bond filed pursuant to this section shall be limited to the indemnification
of the consumer in the action. Such bond shall not limit or impair any right of recovery
otherwise available pursuant to law, nor shall the amount of the bond be relevant
in determining the amount of recovery to which the consumer shall be entitled. In
the event that any motor vehicle arbitration board decision, resulting in an award
of a refund or replacement, is upheld by the court, recovery by the consumer shall
include continuing damages in the amount of twenty-five dollars ($25.00) per day for
each day, subsequent to the day the motor vehicle was returned to the manufacturer
pursuant to § 31-5.2-3, that said vehicle was out of use as a direct result of any nonconformity not issuing
from owner negligence, accident, vandalism or any attempt to repair or substantially
modify the vehicle by a person other than the manufacturer, its agent or authorized
dealer; provided, however, that the manufacturer did not make a comparable vehicle
available to the consumer free of charge. In addition to any other recovery, any prevailing
consumer shall be awarded reasonable attorneys' fees and costs. If the court finds
that the manufacturer did not have any reasonable basis for its appeal or that the
appeal was frivolous, the court shall double the amount of the total award made to
the consumer. The motor vehicle arbitration board shall contact the consumer or lessee,
within ten (10) working days after the date for performance, to determine whether
performance has occurred.
(h) The motor vehicle arbitration board shall maintain the records of each dispute as
deemed necessary, including an index of disputes by brand name and model. The motor
vehicle arbitration board shall, at intervals of no more than six (6) months, compile
and maintain statistics indicating the record of manufacturer compliance with arbitration
decisions and the number of refunds or replacement awarded. The summary shall be a
public record.
(i) The motor vehicle arbitration board automobile dispute settlement procedure shall
be prominently posted in the place of business of each new car dealer or lessor licensed
by the department of revenue to engage in the sale or lease of that manufacturer's
new motor vehicles. The display of this 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 sign required by this section, which shall include the telephone number and
the address to which requests for the motor vehicle arbitration board arbitration
services may be sent.
(j) The motor vehicle arbitration board shall adopt regulations, in accordance with the
provisions of the general laws to carry out the purposes of this section. Written
copies of the regulations and appropriate arbitration hearing procedures shall be
provided to any person upon request.