New Jersey Lemon Law Lawyer BlogThe Asbury Park Press is reporting that there have been indictments of Michael Kouvaras, 55, of Maplewood and Salvatore Rivello, 56, of Matawan. They were indicted for theft by deception, identity theft, deceptive business practices and defrauding secured creditors. I will be getting a copy of the indictment form the Prosecutor’s Office so as to comment further. The dealership was Chrysler of Eatontown, according to the Press. I will follow up with details.
Articles Posted in Dealership Litigation
What Should You do If You Think You Have Been Ripped Off by a Car Dealer?
You have a range of choices, none of which are really attractive.
Return to the dealership and confront the management. You need to be very confident and have the ability to negotiate against skilled salesmen and do it under stress. You don’t have a chance. You know it and the dealer knows it. STAY AWAY. Not recommended.
File a complaint with the Better Business Bureau or the Consumer Affairs Office in your county. They have no ability to force the dealership to do anything. I’ts all voluntary. Just a further waste of your valuable time.
Do Car Dealerships Have Insurance For Consumer Fraud Claims?
Many dealerships, of medium to large size, have insurance for claims of consumer fraud. One of the largest companies that writes this insurance was Universal Underwriters, which was purchased by Zurich. BUT the coverage usually only pays for the cost of a lawyer and will not pay money to the claimant for any verdict or pay any settlement monies to the plaintiff. Usually this is paid by the dealership out of their pocket.
Saturn of Toms River, NJ
I have a pending class action suit in Superior Court of New Jersey alleging that Saturn of Toms River is not providing the employee discount to those who should receive the General Motors employee discount. If you have acquired a car from Saturn Toms River and think that you should have received the employee discount, please call my office.
The Law Office of Jonathan Rudnick, 262 HWY 35, Red Bank, NJ 07701 (732) 842-2070 Continue reading ›
Affirmative misrepresentations are actionable under the New Jersey Consumer Fraud Act
Affirmative misrepresentations are actionable under the New Jersey Consumer Fraud Act. See, Cox v. Sears, 92 N.J. Super 1, (1994). In order for an affirmative misrepresentation to be actionable under the New Jersey Consumer Act, it must be 1) material to the transaction; 2) fact; and 3) false. See Gennari v. Weichert Realtors, 148 N.J. 582, 607 (1993); Vaccarello v. Massachusetts Mutual Life Ins. Co., 2000 W.L. 76404 (App. Div. 2000); Ji v. Palmer, 33 N.J. Super. 451 (App. Div 2000)
A statement is material if: a) a reasonable person would attach importance to its existence in determining a choice of action; b) the maker of the representation knows or has reason to know that if its recipient regards or is likely to regard the matter as important in determining his choice of action although a reasonable man would not so regard it. See Ji v. Palmer, supra.
In Ji, the Appellate Division held that the trial court improperly dismissed the plaintiff’s Complaint at the end of the plaintiff’s case. The Appellate Division held that the plaintiff properly set forth a prima facie case and, as such, the trial court was mistaken and the case should be reinstated. In Ji, the plaintiff purchased commercial real estate and alleged that the defendant made an affirmative misrepresentation at closing that the Certificate of Occupancy satisfied the City’s requirement that a Certificate of Land Use be obtained upon transfer of title. The trial court, improperly, dismissed the plaintiff’s case because the plaintiff could not show that the misstatement was made knowingly. The Appellate Division reversed, holding that the plaintiffs were not required to show the defendant’s knowledge of the falsity of his statement or an intent to deceive. The plaintiff sufficiently proved that the defendant made a material misrepresentation of fact, which was false. The Court held: The Consumer Fraud Act is intended to protect consumers from deception and fraud, even when committed in good faith. An intent to deceive is not a prerequisite for the imposition of liability.
Car Salesman Training
Most people do not understand that selling cars is a complicated process wherein the salesmen are specially trained to sell cars. They have rehearsed lines. They have specific instructions as to where to stand and where to sit at the dealership. Selling cars is a process. When you understand this it makes buying a car easier.
Do You Have The Right To Cancel A Car Purchase?
Most people think that the consumer has the right to cancel a car purchase agreement within three days from signing the agreement. This in not true. You cannot cancel a contract, but there are a few exceptions.
The dealer permits you to cancel the contract within a certain period of time. This is true for some of the manufacturer-certified used car programs or even the internal dealer policy.
The car is delivered on a condition agreement before financing is approved. You have the right to get out of the deal.
Do Automobile Dealers Know when Cars Have Been in an Accident? Part II
TECHNOLOGY
Reasonably priced technology assures that dealers are aware of any damage to a car that they sell. An Elcometer. This device 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 device can absolutely warn a dealer if a car was repainted. 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. These 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 public’s use? Does it seem to be asking very much? Not really.
Do Automobile Dealers Know when Cars Have Been in an Accident? Part I
The answer is simple: YES, YES, YES.
AUTOMOTIVE INDUSRTY STANDARDS
Dealers are required to inspect the cars before they sell them to the public. Industry standards mandate this result. They are in the best position and have the expertise to make these safety inspections. This aside, common sense mandates this result. Why would a dealer want to open himself to liability for selling a dangerous car when they had the chance to assure the car was safe? At a minimum they do not want a pissed-off customer with many mechanical complaints. Bad for business. Might cost the dealer money in repairs. Might get sued.
Also, the dealer has a process for acquiring cars from auctions, on trades and by wholesale to assure that the cars are not damaged. Most of the auctions have special designations for damaged cars. Green light means no problem while cars sold under the yellow and red light have problems, mechanical or otherwise. Manheim Auto Auction is the main source of cars for these dealerships and they have a detailed system of disclosure. Manheim actually offers an inspection service for those buying and selling cars at the auction to assure an open and honest marketplace.
Continue reading ›
Where do dealerships make their money?
To understand how dealerships treat consumers you need to understand where they make their money. This is a great site that gives detailed reports on how and where dealers make their money. Certainly worth a look.