Purchasers of defective or misrepresented used cars have remedies. Depending upon the case, several different types of claims can be brought.
1. Consumer Fraud Law
The New Jersey Consumer Fraud Act prohibits a unconscionable
commercial practice, deception, fraud, false pretense, false promise,
misrepresentation, or the knowing, concealment, suppression, or omission of a
material fact. Claims may include false advertising or deceiving
the consumer in various ways. The New Jersey Lemon Law lists these violations,
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. N.J. S.A. 56:8-68.
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 insurance.
2. Breach of Warranty
1.
Failure to Provide or Comply with Warranty
Minimum warranties are contained in the New Jersey
statutes.
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.
1.
Exclusions from Act
However, 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.
A. Defenses
Dealers can contest the case and assert various defenses. Even if meritorious, the dealer may deny the claim. Sometimes there can be violations that do not cause particular damages. A deception may not be connected with a mechanical problem that arises after the lemon law period. Thus, claims need to be carefully examined.
3. Specific Laws Covering New Jersey Used Car Claims
A. Concealment of Significant Body Damage
N.J.A.C. 13:45A-26A.7 entitled unlawful advertising
practices makes unlawful:
"The failure to disclose that the motor vehicle had
been previously damages and that substantial repair or body work had been performed on it when
such prior repair or body work is know 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
B. Prohibited
Advertising Practices
Specific deceptive advertising practices include,
1. The use of any type, size, location, lighting,
illustration, graphic depiction or color so as to obscure or make misleading
any material fact.
2. The setting forth of an advertised price which has been
calculated by deducting a down payment, trade-in allowance, or any deductions
other than a manufacturer's rebate....
3. The use of such
terms or phrases as lowest prices, lower prices than anyone else or our lowest
prices of the year or similar terms or phrases if such claim are misleading or cannot
be substantiated by the advertiser.
C. Federal Odometer
Law
The federal odometer statute states, "A person transferring
ownership of a motor vehicle shall give the (buyer) the following written
disclosure:
a) Disclosure of the
cumulative mileage registered on the vehicle, or
b) disclosure that
the mileage is unknown. 49 U.S.C. 32705
Federal regulations dictate a specific form and a
certification. Some auction houses do
not provide an odometer statement or do not provide the odometer certification
as the federal regulations require. Note
that when confronted with any discrepancies, these facilities almost always
deny liability.
D. Used Car Window
Sticker
"It is a deceptive act or practice for any used vehicle
dealer... (1) To misrepresent the mechanical condition of a used vehicle; (2)
To misrepresent the terms of any warranty offered in connection with the sale
of a used vehicle; and (3) To represent that a used vehicle is sold with a
warranty when the vehicle is sold without any warranty... {or to] fail to make available, prior to
sale, the terms of any written warranty offered in connection with the sale of
a used vehicle. 16 CFR 455
Sec. 455.4 "Contrary statements. You may not make any
statements, oral or written, or take other actions which alter or contradict
the disclosures required by Secs. 455.2 and 455.3. You may negotiate over
warranty coverage, as provided in Sec. 455.2(b) of this part, as long as the
final warranty terms are identified in the contract of sale and summarized on
the copy of the window form you give to the buyer."
Sec. 455.5 "Spanish language sales. If you conduct a
sale in Spanish, the window form required by Sec. 455.2 and the contract
disclosures required by Sec. 455.3 must be in that language."
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