| Automotive Repair Fraud FAQs |
WHAT IS AUTO REPAIR FRAUD?
A significant amount of fraud is committed in the automotive repair industry. To attempt to combat this fraud, the New Jersey Division of Consumer Affairs adopted regulations regarding automotive repairs. An automotive repair dealer’s failure to follow the automotive repair regulations may result in a violation of the New Jersey Consumer Fraud Act.
WHO IS AN AUTOMOTIVE REPAIR DEALER?
The automotive repair regulations apply to automotive repair dealers -- 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 automotive repair regulations, a dealer is held responsible for the acts of its
mechanics, employees, partners, officers and members.
WHAT TYPES OF PERSONS, VEHICLES AND REPAIRS ARE COVERED BY THE AUTOMOTIVE REPAIR REGULATIONS?
The automotive 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 automotive 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.
The automotive repair 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 automotive repair regulations apply to all motorcycles, whether or not they are registered.
The automotive repair regulations define "repair of motor vehicles" to include all maintenance and repairs of motor vehicles performed by an automotive repair dealer but excluding changing tires, lubricating vehicles, changing oil, installing light bulbs, batteries, windshield wiper blades and other minor accessories and services.
The automotive repair rules apply to the following business activities:
· Restoration and remanufacture antique automobiles and engines.
· Automotive customization and refabrication, including the performance of automotive driveshaft work.
· Restoration, customization and repair work to motor vehicles that are not in roadworthy condition.
WHAT TYPES OF CONDUCT CONSTITUTE AUTOMOTIVE REPAIR FRAUD?
The automotive repair regulations do not intend to point out each and every situation that
could lead a court to find that an automotive dealer to commit fraud.
Further, an automotive repair dealer does not have to provide a written estimate if the dealer
does not agree to perform the requested repair.
However, the following acts or omissions by an automotive repair dealer violate the New
Jersey Consumer Fraud Act, regardless of whether such act or omission is done by
the automotive repair dealer or by any mechanic, employee, partner, officer or
member of the automotive repair dealer:
· 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:
ü 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
ü If the customer's vehicle is presented to the automotive repair dealer 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
ü person was contacted.
· Starting work for compensation without either:
ü One of the following:
(1) Providing the customer with a written estimated price to complete the repair, quoted in terms of a not-to-exceed figure; or
(2) Providing the customer with a written estimated price quoted as a detailed breakdown of parts and labor necessary to complete the repair. If the dealer makes a diagnostic examination, the dealer 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 dealer make the repair; or
(3) Providing the customer with a written estimated price to complete a specific 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 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 repairs, evidenced by a notation on the repair order or invoice of the estimated price of repairs, date, time, name of person approving such estimate, and the telephone number, if any, at which such person was contacted; or
ü If the customer's vehicle is presented to the automotive repair dealer 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 repairs; or
(2) Oral approval of an estimated price of repairs evidenced by a notation on the repair order or invoice of the estimated price of 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 him, when he 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 dealer 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 automotive repair dealer to the manufacturer or distributor, are exempt from the provisions of this section.
· Failure to record on an invoice all repair work performed by an automotive repair dealer 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:
ü 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);
ü 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;
ü The guarantor's identity and address shall be clearly revealed in any documents evidencing the guaranty.
· Failure to 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.
· Failure to post, in a conspicuous place, a sign informing the customer that the automotive repair dealer is obliged to provide a written estimate when the customer physically presents his motor vehicle to the automotive repair dealer 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 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."
· Any other unconscionable commercial practice prohibited by the New Jersey Consumer Fraud Act.
CAN I HANDLE AN AUTOMOTIVE REPAIR DISPUTE MYSELF?
Many people can and do successfully handle New Jersey Consumer Fraud Act cases themselves, from filing the first paperwork to the collection of a judgment. However, many other people also make mistakes that lead to the dismissal of their New Jersey Consumer Fraud Act cases or that result in the entry of a money judgment against them. The greater the money at stake, the greater the reason to consider using the services of a competent attorney licensed to practice law in New Jersey to handle part or all of the New Jersey Consumer Fraud Act case. The following are reasons to use an attorney to handle part or all of your New Jersey Consumer Fraud Act case:
· court fees often change
· court rules often change
· court employees cannot give you “free” legal advice and a judge may refuse to let you claim that you were right in taking an action (or in deciding not to take action) because you relied on advice from such employees
· court forms available on websites may not cover every situation you may face in court
· each New Jersey Consumer Fraud Act case has its own particular legal issues and therefore, its own challenges
· it is very common for people to file inadequate or incorrect complaints that result in the complaints or answers to complaints being rejected by the court or being dismissed by the court after filing and before or after trial because of procedural deficiencies
· it is not uncommon for judges to get very frustrated by an unrepresented party’s lack of preparation or ignorance of the facts or law of the New Jersey Consumer Fraud Act case.
· a court has the power to punish unprepared parties or parties who make mistakes, such as by throwing their New Jersey Consumer Fraud Act case out of court or limiting what they can present at trial.
· New Jersey has many published New Jersey Consumer Fraud Act cases, laws, regulations, court rules and rules of evidence that are very tricky and that can be used to prevent you from doing much of what you want to do at trial.
· it is very common for courts to refuse to allow a party to use or refer to documents or items at trial that the person themselves never prepared. Often parties stumble into court with a video, photograph, bill or affidavit or other form of written statement, thinking they are going to use it as proof that they lost money or that they are not responsible for someone else’s damages, only to have a judge tell the parties that it is not going to even consider such items or documents.
· without the proper preparation, items and documents may never be considered by the court. Also, if there are any legal issues to be dealt with at trial, you must be prepared to argue them, which may require you to refer to court rules, evidence rules, laws, regulations or published New Jersey Consumer Fraud Act cases.
· you cannot show up at court expecting the judge hearing your New Jersey Consumer Fraud Act case to explain court rules, evidence rules, court procedure or the details of the law that applies to your New Jersey Consumer Fraud Act case. The judge hearing your New Jersey Consumer Fraud Act case is not permitted to give you legal advice.
It is important to remember that even if you have an attorney, you could lose your New Jersey Consumer Fraud Act case. Hiring an attorney to handle part or all of your New Jersey Consumer Fraud Act case does not guarantee your success. However, it may provide the assistance you need to win your New Jersey Consumer Fraud Act case, to settle your New Jersey Consumer Fraud Act case or to avoid certain mistakes.
DOES THE LAW OFFICE OF PAUL DEPETRIS HAVE EXPERIENCE HANDLING AUTOMOTIVE REPAIR FRAUD DISPUTES?
Yes. Paul DePetris has performed the following tasks:
· represented consumers and automotive repair dealers in New Jersey automotive repair disputes.
· prepared and filed many complaints against automotive repair dealers.
· settled claims and New Jersey Consumer Fraud Act cases between consumers and automotive repair dealers.
· mediated and tried nonjury and jury trials involving automotive repair disputes
Mr. DePetris has appeared before the Superior Court of New Jersey in the following counties:
|
Atlantic County
|
Bergen County
|
Burlington County
|
Camden County
|
|
Cape May County
|
Cumberland County
|
Essex County
|
Gloucester County
|
|
Hudson County
|
Mercer County
|
Middlesex County
|
Monmouth County
|
|
Morris County
|
Ocean County
|
Passaic County
|
Salem County
|
|
Somerset County
|
Sussex County
|
Warren County
|
|
Mr. DePetris has also appeared in federal courts - the District of New Jersey in Camden, Trenton and Newark and in the Eastern District of Pennsylvania.
Mr. DePetris is also the author of the following publications: New Jersey Consumer Fraud Act & Forms (New Jersey Law Journal Books, 2007); Learned Professionals, Licensed Semiprofessionals and the Consumer Fraud Act: The Origins of the Licensed Professionals’ Doctrine (New Jersey Lawyer, Oct. 2008); and Liability For Consumer Fraud In Real Estate Transactions (New Jersey Law Journal, March 18, 2009). Mr. DePetris also gives seminars on the New Jersey Consumer Fraud Act.
WHAT IF I DON’T HAVE ENOUGH MONEY TO HIRE AN ATTORNEY TO HANDLE MY NEW JERSEY CONSUMER FRAUD ACT CASE FROM BEGINNING TO END?
In many situations, the Law Office of Paul DePetris offers alternatives to handling New Jersey Consumer Fraud Act cases for an hourly fee, such as by offering to prepare the court paperwork for you or helping you handle your claim by yourself. Such flexible methods may allow you to keep the amount legal fees you spend on your New Jersey Consumer Fraud Act case to a fixed sum, while providing you the help you need to handle your New Jersey Consumer Fraud Act case. For a no cost phone consultation about what the Firm might be able to do for you, call or write an email to Mr. DePetris at: 609-714-2020 or consumerlaw@newjerseylemon.com.
|
|
|