New Jersey Lemon Law Lawyer Blog

Gap and Etch Products and Buying a Car.

These are not insurance products but rather warranties so as to avoid insurance regulation by the Division of Banking and Insurance. The pricing of these products is left to the discretion to the dealership. The theory behind the products is that they prevent the theft of the car and when the product fails the warranty kicks in and pays you a dollar amount.

GAP pays the difference between the market value of the car and the payoff of the loan. Etch usually pays a defined benefit such as $1,000 or $2,000. It would seem to make no sense that both products are sold at the same time since the benefit is duplicative especially if you have collision insurance which you do if the car is financed. These products cost the dealer very little and can be purchased for a small amount on the internet.

Carton and Rudnick family law
Carton and Rudnick consumer law
Carton and Rudnick

GAP Information

GAP litigation on class action basis

Do you work at a dealership? Do you wonder how the managers calculate your commission? Do you see the recap sheets or any of the computer screens? Have you asked to see any of these things? If you have questions as to the calculation of your commissions all calls are confidential,

I have posted several items on the website on this issue that are worth a read. If you see the dealer packing customers do you think they are packing your pay?

Carton and Rudnick

Carton and Rudnick family law
Carton and Rudnick consumer law
Carton and Rudnick

Continue reading " Car Salesman and Their Pay Plans " »

New Jersey has a Division of Banking and Insurance.. There is a special division for banking. Most people forget than car dealerships have a banking license and are subject to regulation by the Division of Banking and Insurance. You can complete the following form and file a complaint against the dealership pertaining to banking issues.

The following information is contained on the website pertaining to filing a complaint.

How to File a Complaint


Telephone: 609-292-7272 or Consumer Hotline 1-800-446-7467
E-mail: 4Consumers@dobi.state.nj.us
Fax: 609-777-0508
Mail: NJDOBI, P.O. Box 471, Trenton, NJ 08625-0471

I happened to be shopping at Whole Foods recently when I was "interviewed" by a TV reporter from News 12 regarding the beef recall.

The purpose of this is to be fair to whole foods. I stated in the interview that I thought Whole Foods was a good store and I would continue to shop there. Although I have not seen the interview, I have been told that it was not included in the piece.

If you are curious about beef recalls and the food industry you have to read Fast Food Nation. My only major complaint is that what good is a recall after I have eaten the beef and tossed any proof of purchase? None. There should be a better system. Unfortunately beef recalls are more common than we would car to believe.

There are some good web sites addressing the issues in the beef industry.

The following numbers are staggering.

• More than one third of the world's grain harvest is used to feed livestock.
• Breaking that down a little bit
• Almost all rice is consumed by people
• While corn is a staple food in many Latin American and Sub-Saharan countries, “worldwide, it is used largely as feed.”
• Wheat is more evenly divided between food and feed and is a staple food in many regions such as the West, China and India.
• The total cattle population for the world is approximately 1.3 billion occupying some 24% of the land of the planet
• Some 70 to 80% of grain produced in the United States is fed to livestock
• Half the water consumed in the U.S. is used to grow grain for cattle feed.
• A gallon of gasoline is required to produce a pound of grain-fed beef.

The Attorney General's office has filed suit against Cherry Hill Triplex for violation for the New Jersey Consumer Fraud Act. Cherry Hill Triplex is contesting the charges and asserts their innocence. The State has the burden to prove the case and Cherry Hill is presumed innocent until such time that the State proves their case. The lawsuit asserts that Cherry Hill Triplex violated the New Jersey Consumer Fraud Act. A copy of the complaint can be obtained from the Attorney General's Office.

Count I
Violations of the New Jersey Consumer Fraud Act
a. Advertising a guaranteed and/or unconditional $8,000.00 trade-in allowance,
then failing to give consumers $8,000.00 for their trade-in vehicles;
b. Advertising that a consumer would qualify for credit, then failing to provide
credit to the consumer;
c. Failing to honor the advertised sale and/or lease price terms of a motor
vehicle;
d. Failing to accurately credit trade-in allowances and/or deposits made for
motor vehicle sales and/or leases;
e. Failing to payoff consumers' trade-in vehicles in a timely manner;
f. Failing to provide title and/or registration prior to the expiration of temporary
title and/or registration;
g. Failing to return a consumer's trade-in vehicle upon cancellation of a sale or
lease transaction;
h. Advertising for sale used motor vehicles without possessing title to the motor
vehicles; and
i. Selling used motor vehicles without possessing title to the motor vehicles.

Count II
Material Omission of fact

a. Promising or guaranteeing an $8,000 trade-in allowance;
b. Misrepresenting the terms and conditions of the advertised "$8,000
GUARANTEED FOR YOUR TRADE," "$8,000 Trade-In Sale" and
"$8,000 for your trade, regardless of its condition" deals;
c. Misrepresenting to consumers in television advertising that Defendant will
provide financing for the sale or lease of a motor vehicle without conducting
a credit check or regardless of a consumer's credit;
d. Misrepresenting to consumers in print advertisements the number of new
and/or used motor vehicles that are available for sale or lease at an advertised
price;
e. Misrepresenting to consumers the previous use of a used motor vehicle;
f. Misrepresenting to consumers in television advertising that the first seventy
(70) callers would "instantly qualify" for financing; and
g. Misrepresenting the lowest APR available to the consumer.

Defendant's conduct in violation of the CFA includes, but is not limited to, the
following knowing omissions of material fact:

a. Failing to disclose to consumers, prior to their purchase or lease, that a motor
vehicle had previously been used as a rental vehicle; and
b. Failing to disclose to consumers prior to their purchase or lease any prior
damage to the motor vehicle.

Count III
Advertising Regulation Violations

a. Using the phrase "$8,000 GUARANTEED FOR YOUR TRADE" and then
failing to include the actual limitations adjacent to that offer;
b. Failing to disclose, adjacent to Defendant's advertised price for new and/or
used motor vehicles, that Defendant's advertised price includes deductions
for a manufacturer's rebate and/or dealer's discount;
c. Failing to disclose, immediately adjacent to Defendant's advertised special
offer, the applicable time period;
d. Failing to disclose that advertised motor vehicles were previously damaged
and were subjected to substantial repair and body work:
e. Failing to disclose limitations and qualifiers to Defendant's credit sale;
f. Failing to place a footnote next to an advertisement that places numerous
limitations on the advertised purchase price; and
g. Using small print, graphic illustration and location to obscure material facts
in its advertisements.

Count IV
Failure to Make Credit Sale Disclosures

a. Failing to disclose the annual percentage rate in its credit sale advertisements;
and
b. Failing to disclose the total cost of motor vehicles in its installment sale
advertisements.

I have now posted this a second time to the web site for those of you who are new visitors. What is so funny about this video? He keeps blabbing after he gets run over.

Carton and Rudnick

Recently I have received some calls form Direct Buy customers complaining of the terms of the membership. What is going with direct buy customers? Just do a search of Direct Buy and complaints and the results are amazing.

Look at the compilation site. There is extensive information of complaints against Direct Buy.

This link addresses the complaints complaints against Direct Buy.

Complaints maintained by Ripoffreport.com

I am certain that direct buy would deny that they are doing anything improper and the existence of a complaint does not imply they are doing anything wrong.

USA today is reporting that there is a major BMW recall for airbags. The recall involves the 2006 3 Series, the 2004-2006 5 Series, and the 2004-2006 X3 compact SUV in the United States. NHTSA opened an investigation into the issue in September 2007 and upgraded its probe in January. In addition to the vehicles under Wednesday's recall, the ongoing investigation also includes the 2004-2006 Z4, 2006 X5, 2006 6 Series and some 2004-2006 7 Series vehicles.

To respond to the problem, BMW said it would extend the warranty to 10 years without any mileage limit for the following vehicles: 2006 6 Series, 2006 3 Series with standard seat, 2004-2005 Z4, 2004-2006 7 Series, 2006 X5, and 2004-2006 5 Series with comfort seats.

National Highway Traffic Safety Administration tracks and compiles recalls and Technical bulletins for all cars and you should check for issues with your car.

Carton and Rudnick

Recalls

Recalls

Lemon Law

Continue reading " BMW recalling 200,000 vehicles for possible air bag defect " »

Junk Faxes and Damages.

There is an entire area of law that address' junk faxes. This law as a general matter set many limitation in the sending of junk faxes. 47 U.S.C.A. 227 et seq.

The basis theory on damages is that junk faxes cost people money in the form of wasted time, paper and toner. This is why there are statutory damages of $500 per violating junk fax.

The cases can be pursued in State or Federal Court and provide an award of counsel fees. If the Court finds that the violation was intentional the Court has the option to triple damages as punitive damages.

There are several sites dedicated to junk faxes. Web site.

Wikipedia.

Midas Franchises Investigated in CA.

According to a CBS affiliate in California 22 Midas Franchises were investigated by the State and were found to be "inflated bills"

This is the list of Stores

Bay Area Midas Auto Service Centers

* 1236 White Oaks Avenue, Campbell, CA 95008
* 2525 Monument Boulevard, Concord, CA 94520
* 6955 Village Parkway, Dublin, CA 94568
* 4045 Thornton Avenue, Fremont, CA 94536
* 3741 Washington Boulevard, Fremont, CA 94538
* 1078 La Playa Drive, Hayward, CA 94545
* 24659 Mission Boulevard, Hayward, CA 94544
* 93 S. Capitol Avenue, San Jose, CA 95127
* 4244 Monterey Hwy., San Jose, CA 95111 5
* 287 Prospect Road, San Jose, CA 95129
* 2200 Stevens Creek Boulevard, San Jose, CA 95128
* 13745 E. 14th Street, San Leandro, CA 94578
* 2710 N. Main Street, Walnut Creek, CA 94596

Central Valley Midas Auto Services Centers

* 704 Clovis Avenue, Clovis, CA 93612
* 3937 N. Blackstone, Fresno, CA 93726
* 7340 N. Blackstone, Fresno, CA 93650
* 4304 W. Shaw, Fresno, CA 93722
* 1412 W. Yosemite Avenue, Manteca, CA 95337
* 338 McHenry Avenue, Modesto, CA 95354
* 3833 McHenry Avenue, Modesto, CA 95356
* 1420 V Street, Merced, CA 95340
* 2651 Greer Road, Turlock, CA 95382

The State is attempting to suspend the licenses of these stores.
This does not seem to be uncommon in this industry. There is another post on my page pertaining to a Jiffey Lube investigation.

The real issue is how do you protect yourself a consumer.

There was an article on the NY Times online that contained the following statement

"At least 30 million cars and light trucks manufactured from 1980 to 1986 are covered by undisclosed warranties for undisclosed defects, the Center for Auto Safety says."

The article continued

The center's report, which was sent to the Federal Trade Commission, asserted that such warranty programs were maintained by at least five automobile manufacturers: the General Motors Corporation, the Ford Motor Company, the Chrysler Corporation, the American Honda Motor Company and Toyota Motor Sales U.S.A. Inc.

What does this mean to you. You need to be aggressive in confronting the authorized dealership when they are repairing you car for repeated problems because you never know if there is a known defect for which the manufacturer is paying for claims.

You also should monitor the internet. Very frequently there will be online forums that discuss these known problems and give you information to address you authorized dealership.

Secret warranties are real and need to be addressed by any automobile owner that has confronted continued defects for which warranty coverage is denied.

The Center for Auto Safety also has a nice synopsis on Secret Warranties

There was also a book written on this matter by Clarence Ditlow.

An internet source is reporting that there is some alleged fraud regarding the description of horsepower on lawnmowers.

The defendants all well known:

Sears & Roebuck Co., Briggs & Stratton, Deere & Co., Tecumseh Products Co., Briggs & Stratton Corp., Kawasaki Motors Corp. USA., MTD Products, The Toro Co., American Honda Motor Co., Electrolux Home Products, The Kohler Co., Platinum Equity LLC, and Husqvarna Outdoor Products.

The New Jersey lawnmower horsepower fraud class action lawsuit alleges
1 Affirmatively misrepresenting the horsepower on various lawnmowers
2 Concealing the true horsepower of these products
3 False advertising

Web comments

There also appear to be a civil conspiracy element to this. They are alleging that there was a conspiracy through "'Power Labeling Task Force,"

If you though you were getting a certain product at a specific horsepower and it never measured up to horsepower you could potentially be a class member.

There is also another possible aspect of this lawsuit and that would be the breach of warranty case. If the HP was represented as X and really was Y that would be a breach of warranty and actionable under the Mag-Moss Act

There is a great web site that has created feed to all the recent recalls. Every manufacturer is included and this is a great resource. Go to site

You should keep this site bookmarked to check your new car purchase