10 NEW JERSEY CAR REPAIR FRAUD FREQUENTLY ASKED QUESTIONS

INTRODUCTION

This page discusses 10 New Jersey car repair fraud frequently asked questions.

NEW JERSEY CAR REPAIR FRAUD FREQUENTLY ASKED QUESTION #1

WHAT IS NEW JERSEY CAR REPAIR FRAUD?

Many of us have heard the saying: “let the buyer beware.” That statement allows little relief to a New Jersey automotive repair fraud victim. That statement does not reflect current law in New Jersey. Here, we have a more ethical approach in business dealings with one another. Therefore, each of us may rely on representations made by another in a business transaction. This approach is reflected in a consumer law called the New Jersey Consumer Fraud Act. A significant amount of Consumer Fraud is committed in the car repair industry. To attempt to combat this Consumer Fraud, the Division of Consumer Affairs adopted regulations regarding car repairs. A car repair shop’s failure to follow the New Jersey Car Repair Regulations (also known as the New Jersey Automotive Repair Regulations may result in a violation of New Jersey Consumer Fraud Act, a powerful law designed to fight fraud committed by certain businesses and persons selling goods or services for profit.

NEW JERSEY CAR REPAIR FRAUD FREQUENTLY ASKED QUESTION #2

WHAT BUSINESSES ARE SUBJECT TO THE NEW JERSEY AUTOMOTIVE REPAIR REGULATIONS?

The New Jersey Car Repair Regulations apply to car repair shops – businesses and people who, for compensation, engage in the business of performing or employing persons who perform maintenance, diagnosis or repair services on a motor vehicle or the replacement of parts including body parts, but excluding those persons who engage in the business of repairing motor vehicles of commercial or industrial establishments or government agencies, under contract or otherwise, but only with respect to such accounts. Under the New Jersey Automotive Repair Regulations, a dealer is held responsible for the acts of its mechanics, employees, partners, officers and members.

NEW JERSEY CAR REPAIR FRAUD FREQUENTLY ASKED QUESTION #3

WHAT TYPES OF VEHICLES ARE COVERED BY THE NEW JERSEY AUTOMOTIVE REPAIR REGULATIONS?

The New Jersey Car Repair Regulations apply to all passenger vehicles registered with the New Jersey Motor Vehicle Commission or with any other comparable agency of any other jurisdiction and all motorcycles, irrespective of whether they are registered. The regulations define "motor vehicle" as a passenger vehicle registered with the Motor Vehicle Commission or of any other comparable agency of any other jurisdiction. The New Jersey Automotive Repair Regulations apply to all motorcycles, whether or not they are registered.

NEW JERSEY CAR REPAIR FRAUD FREQUENTLY ASKED QUESTION #4

WHO IS ABLE TO ENFORCE THE NEW JERSEY AUTOMOTIVE REPAIR REGULATIONS?

The New Jersey Car Repair Regulations define a “customer” as the owner or any family member, employee or any other person whose use of the vehicle is authorized by the owner. Any customer of a repair shop who is not using the services of the repair shop to turn a profit (such as to resell the repair services being sold) is able to enforce the regulations. The Attorney General is also able to enforce the New Jersey Automotive Repair Regulations.

NEW JERSEY CAR REPAIR FRAUD FREQUENTLY ASKED QUESTION #5

WHAT TYPE OF AUTOMOTIVE SERVICES ARE COVERED BY THE REGULATIONS?

The New Jersey Car Repair Regulations define "repair of motor vehicles" to include all maintenance and repairs of motor vehicles performed by a Car repair shop. The New Jersey car repair rules apply to the following business activities:

  • Restoration and remanufacture antique automobiles and engines.
  • Car customization and refabrication, including the performance of car driveshaft work.
  • Restoration, customization and repair work to motor vehicles that are not in roadworthy condition.

NEW JERSEY CAR REPAIR FRAUD FREQUENTLY ASKED QUESTION #6

WHAT TYPE OF AUTOMOTIVE SERVICES ARE EXCLUDED BY THE REGULATIONS?

Not all automotive services are covered by the New Jersey Automotive Repair Regulations. The regulations exclude the following services:

  • Changing tires.
  • Lubricating vehicles.
  • Changing oil.
  • Installing light bulbs, batteries, windshield wiper blades and other minor accessories and services.

NEW JERSEY CAR REPAIR FRAUD FREQUENTLY ASKED QUESTION #7

WHAT TYPES OF DISCLOSURES MUST A NEW JERSEY AUTOMOTIVE REPAIR SHOP MAKE TO CUSTOMERS?

A New Jersey automotive repair shop must make the following disclosures to its customers at the shop:

  • Provide a Customer with a copy of any receipt or document signed by the Customer, when the customer signs it.
  • Clearly and conspicuously disclose the fact that a guaranty provides for adjustment on a pro rata basis, and the basis on which the guaranty will be prorated; that is, the time or mileage the part, component or item repaired has been used and in what manner the guarantor will perform. If adjustments are based on a price other than that paid by the Customer, clear disclosure must be made of the amount. However, a fictitious price must not be used even where the sum is adequately disclosed.
  • Post, in a conspicuous place, a sign informing the Customer that the Car repair shop is obliged to provide a written Estimate when the Customer physically presents his motor vehicle to the Car repair shop during normal working hours and, in any event, before work is commenced. In addition, copies of any receipt or document signed by the Customer, a detailed invoice, a written copy of any guaranty and the return of any replaced parts that have been requested must be provided. The sign is to read as follows:

"A CUSTOMER OF THIS ESTABLISHMENT IS ENTITLED TO:

1. When a motor vehicle is physically presented during normal working hours and, in any event before work begins, a written Estimated price stated either:

(A) PRICE NOT TO EXCEED $..., and given without charge; or

(B) As an exact figure broken down as to parts and labor. This establishment has the right to charge you for this diagnostic service, although if you then have the repair done here, you will not be charged twice for any part of such charge necessary to make the repair.

(C) As an exact figure to complete a specific New Jersey car repair.

2. For your protection, you may waive your right to an Estimate only by signing a written waiver.

3. Require that this establishment not start work on your vehicle until you sign an authorization stating the nature of the repair or problem and the odometer reading of your vehicle if you physically present the vehicle here during normal working hours.

4. A detailed invoice stating charges for parts and labor separately and whether any new, rebuilt, reconditioned or used parts have been supplied.

5. The replaced parts, if requested before work is commenced, unless their size, weight or similar factors make return of the parts impractical.

6. A written copy of the guaranty."

If a New Jersey Automotive repair shop fails to make these mandatory disclosures to a consumer, the shop could be found liable for violating the New Jersey Consumer Fraud Act.

NEW JERSEY CAR REPAIR FRAUD FREQUENTLY ASKED QUESTION #8

WHAT TYPES OF CONDUCT INVOLVING CAR REPAIRS CONSTITUTE NEW JERSEY AUTOMOTIVE REPAIR FRAUD?

There are many kinds of conduct which support New Jersey automotive repair fraud cases. The following acts or omissions by a New Jersey automotive repair shop violate the New Jersey Consumer Fraud Act, regardless of whether such act or omission is done by the car repair shop or by any mechanic, employee, partner, officer or member of the repair shop:

  • Making or authorizing in any manner or by any means whatever any statement, written or oral, which is untrue or misleading, and which is known, or by which the exercise of reasonable care should be known, to be untrue or misleading.
  • Starting work for compensation without securing one of the following:
    • Specific written authorization from the Customer, signed by the Customer, which states the nature of the repair requested or problem presented and the odometer reading of the vehicle; or
    • If the Customer's vehicle is presented to the shop during other than normal working hours or by one other than the Customer, oral authorization from the Customer to proceed with the requested repair or problem presented, evidenced by a notation on the repair order and/or invoice of the repairs requested or problem presented, date, time, name of person granting such authorization, and the telephone number, if any, at which said person was contacted.
  • Starting work for compensation without either:
    • One of the following:
    • (1) Providing the Customer with a written Automotive repair estimated price to complete the repair, quoted in terms of a not-to-exceed figure; or
    • (2) Providing the Customer with a written repair estimated price quoted as a detailed breakdown of parts and labor necessary to complete the repair. If the shop makes a diagnostic examination, the shop has the right to furnish such Estimate within a reasonable period of time thereafter, and to charge the Customer for the cost of diagnosis. Such diagnostic charge must be agreed to in advance by the Customer. No cost of diagnosis which would have been incurred in accomplishing the repair shall be billed twice if the Customer elects to have the New Jersey car repair shop make the repair; or
    • (3) Providing the Customer with a written Estimated price to complete a specific New Jersey car repair, for example, "valve job"; or
    • (4) Obtaining from the Customer a written authorization to proceed with Repairs not in excess of a specific dollar amount. For the purposes of this subchapter, said dollar amount shall be deemed the Estimated price of the Repairs; or
    • (5) If the Customer waives his right to a written Estimate in a written statement, signed by the Customer, obtaining from the Customer oral approval of an Estimated price of the Repairs, evidenced by a notation on the repair order or invoice of the Estimated price of the Repairs, date, time, name of person approving such Estimate, and the telephone number, if any, at which such person was contacted; or
    • If the Customer's vehicle is presented to the Car repair shop during other than normal working hours or by one other than the Customer, obtaining from the Customer either:
    • (1) A written authorization to proceed with Repairs not in excess of a specific dollar amount. For the purposes of this subchapter, said dollar amount shall be deemed the Estimated price of the Repairs; or
    • (2) Oral approval of an Estimated price of the Repairs evidenced by a notation on the repair order or invoice of the Estimated price of the Repairs, date, time, name of person approving such Estimate, and the telephone number, if any, at which such person was contacted.
  • Failure to provide a Customer with a copy of any receipt or document signed by the Customer, when the customer signs it.
  • Making deceptive or misleading statements or false promises of a character likely to influence, persuade or induce a Customer to authorize the repair, service or maintenance of a motor vehicle.
  • Charging the Customer for work done or parts supplied in excess of any Estimated price given, without the oral or written consent of the Customer, which shall be obtained after it is determined that the Estimated price is insufficient and before the work not Estimated is done or the parts not Estimated are supplied. If such consent is oral, the car repair shop shall make a notation on the repair order and on the invoice of the date, time, name of person authorizing the additional repairs and the telephone number called, if any, together with a specification of the additional parts and labor and the total additional cost.
  • Failure to return replaced parts to the Customer at the time of completion of the work provided that the Customer, before work is commenced, requests such return, and provided that the parts by virtue of their size, weight, or other similar factors are not impractical to return. Those parts and components that are replaced and that are sold on an exchange basis, and those parts that are required to be returned by the Car repair shop to the manufacturer or distributor, are exempt from the provisions of this section.
  • Failure to record on an invoice all repair work performed by a car repair shop for a Customer, itemizing separately the charges for parts and labor, and clearly stating whether any new, rebuilt, reconditioned or used parts have been supplied. A legible copy shall be given to the Customer.
  • The failure to deliver to the Customer, with the invoice, a legible written copy of all guarantees, itemizing the parts, components and labor represented to be covered by such guaranty, or in the alternative, delivery to the Customer of a guaranty covering all parts, components and labor supplied pursuant to a particular repair order. A guaranty shall be deemed false and misleading unless it conspicuously and clearly discloses in writing the following:
    • The nature and extent of the guaranty including a description of all parts, characteristics or properties covered by or excluded from the guaranty, the duration of the guaranty and what must be done by a claimant before the guarantor will fulfill his obligation (such as returning the product and paying service or labor charges);
    • The manner in which the guarantor will perform. The guarantor shall state all conditions and limitations and exactly what the guarantor will do under the guaranty, such as repair, replacement or refund. If the guarantor or recipient has an option as to what may satisfy the guaranty, this must be clearly stated;
    • The guarantor's identity and address shall be clearly revealed in any documents evidencing the guaranty.

If a New Jersey automotive repair shop violates any of these requirements, the shop could be found liable for violating the New Jersey Consumer Fraud Act.

NEW JERSEY CAR REPAIR FRAUD FREQUENTLY ASKED QUESTION #9

WHAT TYPE OF REMEDIES ARE AVAILABLE TO NEW JERSEY AUTOMOTIVE REPAIR FRAUD VICTIMS?

Any violation of the New Jersey Automotive Repair Regulations is also a violation of the New Jersey Consumer Fraud Act, which may allow the consumer to recover the following remedies against the dealer:

  • Treble damages for an ascertainable loss of money or property caused by the New Jersey Consumer Fraud Act Violation.
  • Attorney’s fee award for prosecuting the claim.
  • Cancellation of fraudulent debts.
  • Refund of money lost due to the New Jersey Consumer Fraud Act Violation.

NEW JERSEY CAR REPAIR FRAUD FREQUENTLY ASKED QUESTION #10

WHAT IF THE MISCONDUCT COMMITTED BY THE REPAIR SHOP ISN’T COVERED BY THE REGULATIONS?

New Jersey automotive repair fraud can take many forms. The New Jersey Automotive Repair Regulations do not intend to point out each and every situation that might result in a court finding that a New Jersey repair shop committed fraud. For example, any of the following affirmative acts committed by a New Jersey repair shop could support a New Jersey Consumer Fraud claim or breach of contract claim or breach of warranty claim against the shop:

  • “Unconscionable commercial practice” - an activity which is basically unfair or unjust which materially departs from standards of good faith, honesty in fact and fair dealing in the public marketplace. To be unconscionable, there must be factual dishonesty and a lack of fair dealing.
  • “Deception” - conduct or advertisement which is misleading to an average consumer to the extent that it is capable of, and likely to, mislead an average consumer. It does not matter that at a later time it could have been explained to a more knowledgeable and inquisitive consumer. It does not matter whether the conduct or advertisement actually have misled the customer. The fact that the business may have acted in good faith is irrelevant. It is the capacity to mislead that is important.
  • “Fraud” - a perversion of the truth, a misstatement or a falsehood communicated to another person creating the possibility that that other person will be cheated.
  • “False pretense” - an untruth knowingly expressed by a wrongdoer.
  • “False promise” - an untrue commitment or pledge, communicated to another person, to create the possibility that that other person will be misled.
  • “Misrepresentation” - an untrue statement made about a fact which is important or significant to the sale/advertisement, communicated to another person to create the possibility that other person will be misled. A “misrepresentation” is a statement made to deceive or mislead.

For any of the above affirmative acts, it is not necessary for liability under the New Jersey Consumer Fraud Act that a person actually be misled or deceived by another’s conduct. It is not necessary for the customer to show that the business intended to deceive. What is important is that the affirmative act must have had the potential to mislead or deceive when it was performed. The capacity to mislead is the prime ingredient of affirmative consumer fraud claims Proof of intent is not necessary an essential element for these affirmative acts

A business may also be found liable for violating the New Jersey Consumer Fraud Act if the business knowingly concealed, hid/suppressed, kept something from being known/omitted, or left out or did not mention an important or significant fact purposely or with the intent that others would rely on that concealment/suppression/omission in connection with the sale/advertisement of any merchandise. For these acts of omission, a person acts “knowingly” if he/she is aware that his/her conduct is of a nature that it is practically certain that his/her conduct will cause a particular result. He/She acts with knowledge, consciously, intelligently, willfully or intentionally. To “conceal” is to hide, secrete, or withhold something from the knowledge of others or to hide from observation, cover or keep from sight or prevent discovery of. “Concealment” is a withholding of something which one is bound or has a duty to reveal so that the one entitled to be informed will remain in ignorance. To “suppress” is to put a stop to a thing actually existing, to prohibit or put down, or to prevent, subdue, or end by force. “Suppression” is the conscious effort to control or conceal unacceptable impulses, thought, feelings or acts. A person acts “purposely” if it is his/her conscious object to engage in conduct that of a certain nature or cause a particular result and he/she is aware of hopes or believes that the attendant circumstances exist. “Intent” is a design, resolve, or determination with which a person acts. It refers only to the state of mind existing when an act is done or omitted. It is not necessary that any person be, in fact, misled or deceived by another’s conduct. What is important is that the business must have meant to mislead or deceive when he/she/it/they acted. The fact that the business acted knowingly or with intent is an essential element of acts of omission and knowledge or intent must be shown. Where the alleged consumer fraud can be viewed as either an omission or an affirmative act, the business is liable for the conduct as an omission only where defendant committed a consumer fraud by omission and intent is shown.

TO LEARN MORE, GET A NO OBLIGATION CONSULT

While this page gives some general background information, there is the danger that relying on this information alone could lead you to lose your claim. Laws and regulations frequently change and the law may have changed since the posting of this webpage. Factual differences between your case and cases described on this webpage can affect your chance of success. Don’t attempt to rely on the internet as the only source of information for your claim! Instead, get competent legal advice from a New Jersey licensed attorney. Call Perlman DePetris Consumer Law for a no obligation phone consultation.

DISCLAIMER

While this page gives some general background information, there is the danger that relying on this information alone could lead you to lose your claim. Laws and regulations frequently change and the law may have changed since the posting of this webpage. Factual differences between your case and cases described on this webpage can affect your chance of success. Don’t attempt to rely on the internet as the only source of information for your claim! Instead, get competent legal advice from a New Jersey licensed attorney. Call Perlman DePetris Consumer Law for a no obligation phone consultation.