Sunday, March 30, 2014

New Jersey Used Car Claims




You bought a defective used car.   You should speak with a lawyer but here is an overview of the laws that protect consumers in used car sales. First, the New Jersey Used Car Lemon law requires certain minimum warranties and prohibits some common deceptive practices. 

1. New Jersey Used Car Lemon Law

56:8-69.Written warranty required; minimum durations
 
It shall be an unlawful practice for a dealer to sell a used motor vehicle to a consumer without giving the consumer a written warranty which shall at least have the following minimum durations:

a. If the used motor vehicle has 24,000 miles or less, the warranty shall be, at a minimum, 90 days or 3,000 miles, whichever comes first;
b. If the used motor vehicle has more than 24,000 miles but less than 60,000 miles, the warranty shall be, at a minimum, 60 days or 2,000 miles, whichever comes first; or
c. If the used motor vehicle has 60,000 miles or more, the warranty shall be, at a minimum, 30 days or 1,000 miles, whichever comes first, except that a consumer may waive his right to a warranty as provided under section 7 of this act.

A consumer, as a result of a price negotiation for the purchase of a used motor vehicle with over 60,000 miles, may elect to waive the dealer's obligation to provide a warranty on the used motor vehicle provided that it complies with NJAC 13:45A-26F.18.

2. Deception  

New Jersey law prohibits various deceptions.   N.J.S.A. 56:8-68.

a. To misrepresent the mechanical condition of a used motor 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 dealer;
c. To represent that a used motor vehicle, or any component thereof, is free from material defects in mechanical condition at the time of sale, unless the dealer has a reasonable basis for this representation at the time it is made...
e. To misrepresent the terms of any written warranty, service contract or repair insurance currently in effect on a used motor vehicle provided by a person other than the dealer, and subject to transfer to a consumer;...
g. To misrepresent the terms of any warranty, service contract or repair insurance offered by the dealer in connection with the sale of a used motor vehicle;
h. To represent, prior to sale, that a used motor vehicle is sold with a warranty, service contract or repair insurance when the vehicle is sold without any warranty, service contract or repair nsurance;
j. To fail to provide a clear written explanation, prior to sale, of what is meant by the term "as is," if the used motor vehicle is sold "as is."

3. Prior accidents and body damage

N.J.A.C. 13:45A-26A.7 punishes,   

"The failure to disclose that the motor vehicle had been previously damagesand that substantial repair  or body work had been performed on it when such prior repair or body work is known or should have been known by the advertiser; for the purposes of this subsection, "substantial repair or body work" shall mean repair or body work having a retail value of $1,000 or more."  It is unclear whether the regulation applies to unadvertised vehicles. Cases in other states have dealt with failure to disclose body damage, though we see no New Jersey case on this issue. 

4. Federal Window Sticker

Federal law requires a window sticker indicating whether the car is sold as is or with a warranty.  16 Code Federal Regulations (CFR) 455 tells a dealer: 


A) "Before you offer a used vehicle for sale to a consumer, you must prepare, fill in as applicable and display on that vehicle a ``Buyers Guide'' as required by this Rule. (1) The Buyers Guide shall be displayed prominently and conspicuously in any location on a vehicle and in such a fashion that both sides are readily readable...  (2) The capitalization, punctuation and wording of all items, headings, and text on the form must be exactly as required by this Rule. The entire form must be printed in 100% black ink on a white stock no smaller than 11 inches high by 7\1/4\ inches wide...
Law Offices of Howard A. Gutman,
230 Route 206, Flanders, New Jersey 07836
(973) 598-1980, E-mail
Howian@aol.com

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315 Madison Avenue, Suite 901
New York, New York 10165

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We offer a free initial telephone consultation to discuss your lemon law case. Please feel free to call or e-mail our office.

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