HRS §437-1
Why Hawaii regulates car sales and dealers
This section explains why Hawaii has rules for car makers, distributors, dealers, salespeople, and auctions. It says these rules protect residents from fraud and keep the car market and transportation system working. The rules apply to existing dealer agreements unless that would break the constitution.
The statute, as written — Legislative findings and declaration
The legislature finds that: (1) The manufacture, distribution, and sales of motor vehicles in the State vitally affects the general economy of the State and the public interest and public welfare; (2) Manufacturers of motor vehicles without physical manufacturing facilities within the State and motor vehicle distributors doing business in the State through their control over, and relationships and transactions with their dealers, branches, and representatives; and (3) The geographical location of Hawaii makes it necessary to ensure that motor vehicles, parts and dependable service are available within the State to protect and preserve the transportation system and the investments of its residents. The legislature declares, on the basis of the foregoing findings, that it is necessary to regulate and to license motor vehicle manufacturers, distributors, dealers, salespersons, and auctions in the State in order to prevent frauds, impositions, and other abuses against its residents and to protect and preserve the economy and the transportation system of the State. In order to further this intent, the legislature finds that this chapter is remedial and shall apply to all franchise agreements existing as of the date of enactment, except to the extent that such application violates any provision of the state or federal constitutions.
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