The Attorney General has instituted suit against Brake O Rama for various conduct. A civil action has been instituted against them for consumer fraud.
If you have had work done by a Brake-O-Rama and you have any questions regarding a possible claim.
All parties are presumed innocent and they are permitted a day in court.
Appearance Package, Wheel Well Molding, Door Edge Guards
Some dealerships use the sale or attempted sale of door edge guards, wheel well molding or pin striping commonly known as appearance packages to increase the costs of the vehicles. Frequently, these pre-delivery services are not included anywhere in the buyer’s order but only on a price addendum placed on the automobile. New Jersey law is relatively straightforward and requires a consumer to sign off and acknowledge the purchase of any pre-delivery services on the sale of an automobile. Dealership uses the guise of these expensive products. These products increase the “sticker” price of a vehicle. When the customer sits downs and looks all the paperwork, it is not apparent that these items are included the price anywhere. This is the intention behind the New Jersey Consumer Fraud Act and the associated Administrative Code regulations requiring consumers to acknowledge purchase of pre-delivery services. Even if these were considered aftermarket items or different types of products, it would still be appropriate for the dealer to disclose the nature and extent of these products, any warranties that were associated with these products and the costs thereof. Best advice would be to be very careful in the injunction of negotiating a purchase price on a new vehicle and demand for an itemization of any and all products and/or services that you are acquiring or think you are acquiring as part of the automobile purchase. The dealership is required to disclose this to you fully and honestly and the best way to do this would be to bring a piece of paper where the dealership would sign off on the specific products which you are purchasing. This would forego any potential confusion and document exactly what you are and are not purchasing.
This is a must watch. Who likes car salesman?
Car Dealer Tricks – Etch Products
It is a common practice for car dealerships in the State of New Jersey to sell a product known as etch. Frequently, this product is preprinted on a buyer’s order or a standard form used by the dealership as part of selling a new or used vehicle. Although the dealership might frequently claim that the purchase of this item is optional, it appears as though it is not optional because it is preprinted on a buyer’s order and it is applied to all the vehicles prior to the time of sale. As a practical matter, I have litigated numerous cases where the allegation was that a representative of the dealership explained to the customer that the purchase of this product was mandatory or part of the transaction. Frequently, this is contradicted by written statements contained in the various documentation prepared by the dealership and signed by the consumer so they feel they are “protected”.
Quite simply, the purchase of etch is neither required nor usually a good idea. The basic concept behind this etch product is that it somehow deters thieves from stealing a car once this particular identification is etched on the windshield. I have yet to see some type of study that etchings on the vehicle reduce the theft rate on the vehicle. Nonetheless, the benefit paid by the etch is not sufficient to support the amount of money or the price of the product. Usually, this product costs consumers from $200 to $500 and must be compared against the deductible of auto insurance. As an example, if you have a deductible with a $500 or on an auto and the vehicle is stolen or totaled, it is likely that this could be the maximum amount which would be received by consumer. So in essence, the consumer is paying $200 to $500 for a $500 benefit. The risk does not justify the price paid for the product. It is not uncommon that the etch product is sold in conjunction with a gap product which must be compared with the policy of automobile insurance sold with the vehicle. Nonetheless, it is overpriced for the risk assumed. Moreover, the requirements to apply for this benefit are overwhelming. There are numerous requirements including supplying of police report, notification within 30 days, and documentation from the insurance company and all sorts of other extras they are required to process this claim.
Expedited Consumer Arbitration in the American Arbitration Association
It is well-known that a majority of dealerships albeit big or small, use standard arbitration agreements contained in all their contracts. Frequently, dealers who use arbitration agreements in various places and various documents such as a buyer’s order, a warranty, a retail installment sales contract or a generalized and completely separate consumer arbitration agreement.
Generally, the arbitration clauses permit a selection of various “neutral” entities to resolve the dispute. The three most frequently used arbitration forums are National Arbitration Forum, American Arbitration Association and JAMS. It is now unlikely as a result of recent developments that anybody will be using National Arbitration Forum to resolve these disputes. This will be subject to a later post. Both JAMS and the American Arbitration Association have specialized, expedited, consumer arbitrations for those who enter into a retail installment sales contract and wish to arbitrate a dispute against the dealer. Both the American Arbitration Association and JAMS have specific consumer due process protocols to assure that consumers get a “fair shot” in litigating their claims against the dealer.
Although the arbitration forums attempt to resolve these matters in a fair manner, it is understood that to reduce and costs and time associated with handling these matters, frequently, a potential litigant loses many discovery rights which are guaranteed in the court system. In the American Arbitration Association consumer expedited arbitrations, any and all discovery is at the discretion of the arbitrator. This means that an arbitrator might or might not permit interrogatories, a demand for documents or depositions. In my experience, they will not permit depositions in the ordinary course. On occasion, they do permit interrogatory questions to be propounded, however, almost always permit an exchange of documents and exchange or witness names. The arbitrator and the expedited consumer rules do permit the issuance of subpoenas to permit the acquisition of various documents which might be somewhat difficult to obtain from the defendant. The American Arbitration Association frequently runs seminars or webinars pertaining to the appropriate methods by which to file both commercial and consumer arbitrations. The consumer always has the right to file an arbitration outside the expedited consumer rules. However, if this occurs, the commercial rules kick in and the filing fees are extensive. However, with commercial arbitrations, the discovery is significantly more customary including depositions and interrogatories.
Rulings in Arbitrations. The American Arbitration Association consumer rules do not require reasoned awards. A reasoned award is one which the attorney or judge sitting on the case explains the ruling. And a non-reasoned award which is customary in consumer expedited arbitrations is simply an amount and a declaration of the liability. Sometimes, it is less than this. Consumer arbitrations have some advantages and there are some disadvantages as well as and it is important to get an attorney who is an experienced litigator to handle such a matter.
