New Jersey Lemon Law Lawyer Blog

In New Jersey the legislature has partially codified the aforementioned principles in N.J.S.A. 56:8-68 which states that it is an unlawful practice for a used car dealer to (a) misrepresent the mechanical condition of a used vehicle (b) to fail to disclose, prior to sale, any material defect in the mechanical condition of the used motor vehicle which is known to the seller (c) to represent a used motor vehicle, or any component thereof, is free from material defects in its mechanical condition at the time of sale, unless the dealer has a reasonable basis for the representation at the time sale is made. It is arguable that these “disclosure” requirements would be required under any “common law” analysis, which predated this Statute. None the less, the creation reinforces the purposes advanced by the Consumer Fraud Act, trebling damages and providing for the award of attorney fees.

The Administrative Code also contains extensive regulation of dealership conduct. The failure to disclose that the motor vehicle had been previously damaged and that substantial repair or body work has been performed on it when such prior repair or body work is known or should have been known by the advertiser; substantial repair or body work shall mean repair or body work having a retail value of $1,000 or more. N.J.A.C. 13:45A-26A.7. Advertisement is defined by the Consumer Fraud Act as the attempt directly or indirectly by publication, dissemination, solicitation, endorsement or circulation or in any other way to induce directly or indirectly any person to enter or not enter into any obligation or acquire any title or interest in any merchandise or to increase the consumption thereof or to make any loan. N.J.S.A. 56:8-1(a). Again, this definition of “Unlawful Practice” would arguably exist under the Common Law principles set forth above.

The New Jersey Consumer Fraud Act is to be Watered Down, significantly.

New Jersey has one of the strongest Consumer Fraud Acts in the United States.

There is pending legislation to change the Consumer Fraud Act and make it easier to avoid civil penalties for fraud.

The changes include provisions to exempt "out of state transactions" from the protections of the act.

The changes include the limitation on attorney fees.

The changes include the requirement for detrimental reliance AND makes treble or triple damages optional.

There are no real disincentives to discourage fraud. This bill encourages bad business practices.

THE TRUE COST OF FRAUD IS TREMENDOUS

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Anti Consumer Bill: New Jersey to Welcome Corrupt Businesses

Amy Handlin and John McKeon are sponsoring an anti consumer bill that would change the business landscape in New Jersey.

A key provision of the new New Jersey Consumer Fraud Act would exempt out of state transactions. This means the following. If a someone in New Jersey commits consumer fraud upon a non resident (living in NY, PA or CT) there are no consequences.

"a. apply only to transactions that take place in the State"

The Consumer Fraud Act would encourage businesses to travel to New Jersey to deceive people in other states on the internet or otherwise.

This bill makes consumer fraud easier and will encourage corrupt businesses and individuals to come to New Jersey where they will be protested. Amy Handlin is the co sponsor.

Car Salesman and Dealerships to be Protected with Proposed Changes in Consumer Fraud Act.

Amy Handlin and Jack McKeon have sponsored and introduced ANTI CONSUMER legislation to reduce consumer rights and protect car dealerships.

The changes in the Consumer Fraud Act would exempt or limit liability against businesses that are already regulated such as car dealership. It would also limit liability for consumers who consummate out of state transactions. This arguably contradicts other legislation that has been introduced to increase liability for those committing consumer fraud

CRACKDOWN ON INTERNET FRAUDS

The combination of these two laws would probably create conflicts and a haven in New Jersey for fraudsters.

CHANGES IN THE NEW JERSEY CONSUMER FRAUD ACT TO PROTECT CAR SALESMAN

Amy Handlin is the co-sponsor on this bill to protect car salesman

John McKeon is the primary Sponsor on this bill to protect car salesman

There is a bill pending in the Assembly which significantly and permanently change the way that businesses transact business in the State of New Jersey and the rights afforded to consumers. The bill is labeled [A3333] and if passed by the legislature and signed by the governor that would forever and permanently damage the rights of New Jersey consumers. There are various and daunting adoption in consumer rights in this bill. Unfortunately, this bill is sponsored by a democrat and a republican.

Initially, the substance of this bill would reduce consumers’ rights to proceed on claims against car dealerships.

A nickname for this bill should be the Car Dealership Protection Act. A major portion of the exemptions written to this bill would exempt businesses who were regulated by other agencies and/or authorities. This means that a car dealership who would be regulated by the Banking and Insurance and the Division of Motor Vehicles would likely be exempt from the protections that consumers have under the New Jersey Consumer Fraud Act.

Hypothetically, if a car dealership were to have to a new car on their lot, crash it and sell this vehicle which was damaged, the plaintiff would be without rights under the New Jersey Consumer Fraud Act. This would mean that an individual could not sue the direct car dealership for consumer fraud and seek attorney’s fees and triple damages. The car dealerships would gain significant protection if this bill were passed. This bill is definitely and certainly anti-consumer in every way, shape and form. This bill would protect businesses that engaged in fraudulent acts to the detriment of consumers.

It would force the conduct of businesses to be reduced to the lowest common denominator. In effect, the businesses that were acting honestly and within the law would be encouraged and forced to act in the manner inconsistent with the law as a result of the competition with the illegal or improper businesses. This is anti-competitive and will cost New Jersey consumers a significant amount of money. There would be almost no consequences for violating the law.

DAMAGED AND FRAME-DAMAGED CARS

It is a common question that is asked frequently. Is a seller of a motor vehicle or an automobile have the obligation to disclose that the vehicle was damaged even slightly, less than frame damage? Is there a separate obligation based on the nature and extent of the damage? Is it relevant that there was frame damage? The New Jersey law in the subject is mostly a matter of common sense. If the seller of an automobile or vehicle knows that a vehicle was damaged, he has the obligation to make material disclosures to the person to whom he is selling the car if he thinks that the disclosure of the information would make a difference in the purchasing decision. This is what makes a material disclosure relevant.
There are certain exceptions to this rule for the disclosure of damages on damaged cars where the legislator has promulgated or passed various laws requiring certain disclosures. As an example, New Jersey law requires disclosure of advertised automobiles where there is damage in excess of $1,000. This number varies by state. Nonetheless, the New Jersey Consumer Fraud Act has taken the more ethical approach and applied it to the sale of goods. The law in the State of New Jersey is no longer buyer beware but rather seller beware. Therefore, the seller of an automobile has the obligation to make sure that all representations pertaining to the sale of specific automobile are correct. As an example, if the seller tells a buyer that a vehicle has not been damaged, has not been in an accident, is in good shape or makes certain representation as to the condition of the vehicle, he has an obligation to make sure that this representation is true and accurate. The New Jersey Consumer Fraud Act does not have any intent requirement for affirmative misrepresentations. This means that if a seller of an automobile says the vehicle has not been damaged or has not been in an accident and ultimately it turns out that the vehicle was in an accident despite the seller of the automobile not being aware of same, there is liability under the New Jersey Consumer Fraud Act which applies triple damages, attorney fees and costs.
It is safe to assume that if you are not sure do not state what the condition of the vehicle is, but if you do know you are obligated to make such disclosures. It would not be appropriate to intentionally look away from various portions of the car so as to hide relevant condition from the seller’s own knowledge.

CAR DEALERSHIP SELLS CAR TO TWO BLIND PEOPLE.

This is not a joke. It is true.

The names will withheld until suit is filed BUT today I saw, possibly, the worst case in the many years that I have been doing this type of work.

Both of my clients are legally blind. The primary obligor and the cosigner. They do not even have a driver’s license nor are the permitted to drive. The dealership even got the car registered and insured. The customer was at the dealership with his cane and his glasses. When they told me the story it was hard to believe. They are both legally blind.

To make matters even worse the car is a mess. It looks like it was in a prior accident with a different hood and various parts are melted on the interior of the car. They were told the car had only one prior owner when it had two.

The following are the causes of action (theories of liability) against the dealer and/or the lender.

• Consumer Fraud-deceptive conduct. Cox v. Sears.
• Fraud
• Breach of contract
• Breach of good faith and fair dealings. Wilson v. Hess
• Revocation. Cuesta v. Classic
• Negligence
• Discrimination against disabled persons, the blind. Law against discrimination.
• Declaratory relief that the contract is void ab initio (from the beginning)

Continue reading "CAR DEALERSHIP SELLS CAR TO TWO BLIND PEOPLE." »

New Jersey Division of Consumer Affairs

The State has a great site dedicated to Lemon Law in the State of New Jersey.

There is a list of publications at the Division of Consumer Affairs site.

File a complaint

Licensing Board information.

Division of civil rights

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Gresham’s AutoLink faces investigation for consumer fraud
According to an internet source an Oregon dealership is being investigated for improper conduct. They have served search warrants after many many consumer complaints. Auto Link

This is what happens when there are too many consumer complaints against one dealer in a short period of time.

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Selling Damaged Cars and Disclosure

I guess the initial question is why would a dealership sell damaged cars and not tell the consumer? The real answer is because they can. The dealership knows that if they tell the customer this material fact the prospect will never buy the damaged good, especially if they have a family. As an example if the dealership purchased the car at auction the seller is required to make material disclosures as to frame damage or other significant damage. There is an entire light system at many auctions - green - yellow - red - to advise as to the condition of the car. If the auction requires disclosure why doesn't the dealer provide the same courtesy to their customers. Because they can.

The law on selling damaged cars is straight forward, material facts are required for disclosure. The dealer is also responsible for any affirmative representations that they make on the sale of the car. If the dealer says that the car was not in an accident they better make sure that the car was not in an accident.

Salvage and flood title Cars

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Continue reading "Selling Damaged Cars and Disclosure - Auto Fraud and Car Dealership Fraud" »

Car repair scams. Car repair scams are everywhere.

How do you protect yourself from car repair scams. There is no easy answer because unless you a mechanic you are at the mercy of the mechanic. I would say the following are the most common types or areas where car repair scams proliferate.

Padding The Bill. Do we know what was actually completed?

Transmission Shops. What really is the condition of the car

Other charges. What are the minor charges that you do not recognize.

Cost What is the real cost of the repairs

In order to assist you I found a web site that addresses all of these issues ans would recommend a thorough reading.

What is the law on car repair and car repair scams.

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Car Salesman Code Words

Car Salesman have code words for many situations and they are not flattering. Most imply that are maximizing the profit or poor negotiating skills of the salesman. They are real.

(from edmunds.com)
Be-backs - A customer who leaves the car lot promising to return later, saying, "I'll be back," or some variation of that statement. "The guy was a be-back. But I think he meant it. I'll see him again."

Boss - The typical way that salespeople address the managers or the GM. "Hey boss! Got a deal for you!"

Bumping - Raising the customer's offer for a car. "If Mr. Customer says he only wants to pay $250 a month, just say, 'Up to -- ?' He'll probably bump himself up to $300 without you doing anything."

Closer - An experienced salesman who is brought in to "close" the customer by making them agree to a deal. "If I worked with a better closer I'd have more units on the board."

Desk - This is the sales manager, not the place he sits. "Ask the desk if these rebates are still in effect."

Demo - This is the test drive. "This guy comes in, demos the car and I think he's ready to buy, right? Then he tells me the car's for his wife and he can't make a decision without her."

F&I - This stands for the Finance and Insurance office where the documents are signed. The F&I salesperson usually will push products such as extended warranties, fabric protection and alarms. "The wait for F&I is two hours. Better stick with your customer so they don't leave."

Full pop lease - This is when a vehicle is leased at 110 percent of the sticker price - the highest amount allowed by most banks. "I got them into a full pop lease. I'll get a nice voucher for that."

GM - The General Manager. The GM is the head honcho at the dealership. He runs the business from day to day. "The guys were standing out on the curb drinking coffee so the GM called them into the tower and read them the riot act."

Green pea - A new salesperson. "The funny thing is, green peas can outsell the veterans. That's because they don't know how hard this job is."

Grinder - A customer who negotiates for hours over a small amount of money. "We were only $500 apart but the guy wouldn't sign. Man, what a grinder."

Lay down - A customer who takes whatever deal the salesperson offers. "I quoted him monthly payments of $575 and he took it! I wish all the customers were lay downs like that."

Mini - The commission on a deal where the car was sold at close to invoice price. "Sure, the deal was only a mini. But I qualified for a weekend bonus and made a grand."

Mooch - A customer who wants to buy a car at invoice. "People are spending too much time on the Internet. It's turning them into a bunch of mooches."

Packing payments - Adding extra profit to the cost of a car. "This place I used to work got busted for packing payments. Next job I get is going to be in a no-haggle store."

The Point - The place on the car lot where the "up" man stands looking for customers. "The GM saw me standing on the point with my hands in my pockets. He went ballistic and sent me home for the day."

Pounder - A deal with $1,000 profit in it. "Doctor comes in and buys the top of the line model, fully loaded - and he pays sticker! That'll be a two pounder for me."

Rip their heads off - This describes taking a customer to the cleaners. "I stole their trade in, I sold them the car at a grand over sticker - I mean, I just ripped their heads off."

Roach - A customer with bad credit. Not to be confused with the "roach coach" (see entry below). "The guy looked good. But we ran his credit and he turned out to be a roach. We're talkin' a 400 credit score here."

Roach coach - The food truck that comes around to the dealership every day. "I should've known better than to eat that chili from the roach coach. My stomach's killin' me."

Spiff - A tip, kickback or payment of any kind, usually cash which is handed between salespeople. "I spiffed the F&I guy $20 bucks and he took my customers first."

Strong - This has a special meaning on the car lot. It means holding firm on your price and being a tough negotiator. "When they ask for your price you have to be strong. Hit 'em with high payments, then scrape them off the ceiling and start negotiating." (See also "weak.")

Tower - The office where the sales managers work. This is usually a raised platform allowing the managers to see over the roofs of the cars so they can watch customers and their salespeople. "Attention: All new car salesmen report to the new car tower!"

Turn over - Also known as "turning," this is the practice of passing a customer from one salesman to another. It is thought that this will prevent customers from leaving the car lot. The theory is that the customer might just have bad chemistry with the first salesman and he might like the next salesman. "I turned this guy to my partner and he wound up buying. I'll get half of the commission on the deal."

Up - A customer that walks on the car lot. The term probably comes from the order in which customers are taken, as in: "I'm up next." Many dealerships also have an up system. "We've got ups all over the lot, and you're in the back drinking coffee?!"

Voucher - Car salespeople receive a voucher to let them know what their commission was for selling a car. They don't know until the deal is finalized exactly how much they will receive. "Check out this voucher. I thought I had a pounder. Instead it's a mini."

Weak - This describes being a weak negotiator or coming down too quickly on price. "The guy was weak so he only lasted a few months. How are you going to make money in this business if you give away cars?"

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Odometer Roll Back

The Star Ledger reported that a man admitted to odometer fraud in Federal Court on a case that has been pending since 2004.

In 2004 the FBI arrested 17 in a ring that was alleged to have been rolling back odometers.

It was alleged that:

Robert FIORELLO was the financier of the following businesses and as the leader of the Criminal Enterprise, directed all activity in this illegal operation;

JPF AUTO SALES, Bloomfield, NJ
SEMI MOTORS, Garfield, NJ
TRIBUTE AUTO SALES, Bloomfield, NJ
MJS AUTO SALES, Bloomfield, NJ
RP AUTO SALES, Keansburg, NJ
BLOOMINGDALE MOTORS, Bloomfield/Bridgeton, NJ

The enterprise was purchasing cars and rolling the odometers back by hand and by using a computer. The cars would be resold for a higher amount due to the lower mileage.

Odometer roll back

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http://www.consumer-attorney.com/lawyer-attorney-1299380.html

Flood damaged cars.

Car Fax is offering free checking for flood damages cars.

Car Fax News release

Check to see if that used car you are looking at on the dealer lot has flood damage. Just remember Car Fax is not a replacement for having your own mechanic look at the car before you purchase the car. Never buy a car without having a mechanic look at the car.

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New Jersey Consumer Fraud Act: Triple Damages?

Triple damages are mandatory. That means of there is a verdict for any ascertainable loss the amount is tripled by the court without discretion and automatically. You must prove a loss or commonly known as an ascertainable loss. This amount is tripled.

My web site has some good information.

I am still investigating claims against Cherry Hill Triplex if you are an unhappy customer

News

Attorney General Farber and Consumer Affairs Sued Camden County Auto Dealerships

Ripoff report

Damaged Cars and Suing the Lender.

You can collect from the lender for defective cars under the HOLDER RULE.

Since the contract that the lender is holding permits the buyer to sue the lender the lender can be sued up to the amount paid on the contract. The lender in in the position to allocate the rick for such losses and defray the risk

Consumer Fraud and Damaged Cars?

What happens if the dealer sells you a damaged car? Have they violated the New Jersey Consumer Fraud Act?

AFFIRMATIVE MISREPRESENTATIONS VIOLATE THE CONSUMER FRAUD ACT

The law in New Jersey is no longer buyer beware and New Jersey has taken the more ethical approach to the sale of goods. The dealer is charged with knowing the goods that they sell such as cars. If they make a promise that the car has not been in an accident they must make good on the affirmative representation. If their statements are false then the dealer can be sued for a violation of the Consumer Fraud Act NJSA 56:8-2

Used Cars

Computer Sales

Debt Collection

Internet Sales / Goods

Telecommunications

Home Improvement Repair - General

Health Spas / Health Clubs

Home Furniture / Furnishings

Car Repair

TECHNOLOGY

Reasonably priced technology assures that dealers are aware of any damage to a car that they sell. An Elcometer. This devise measures the thickness of the paint on the car. There are manufacturer standards for paint thickness. There are standards for consistency on a car. This devise can absolutely warn a dealer if a car was re painted. This raises a red flag that the dealer must take a closer look at the car. They will then see other evidence that the car was wrecked, such as frame repair, over spray or bondo on the car. This is all obvious to anyone with any automotive experience, especially a dealer selling cars for a living. There are also frame machines that can measure even slight imbalances in the frame. There are a reasonably priced option for the dealers selling cars to the public. Don’t you think they should take the steps necessary to assure the cars that they both buy and sell are safe for the publics use? Does not seem to be asking very much? Not really.