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Auto Sales Fraud FAQs

WHAT IS AUTOMOBILE SALES FRAUD?

A significant amount of consumer fraud is committed in the automotive sales industry.   To attempt to combat this fraud, to promote the purposes of the New Jersey Consumer Fraud Act, the New Jersey Division of Consumer Affairs adopted regulations regarding automotive advertising and automotive sales.  An automotive dealer’s failure to follow the automotive advertising or sales regulations may result in a violation of the New Jersey Consumer Fraud Act.   The New Jersey Consumer Fraud Act automotive regulations:

·         identify prohibited automotive advertising practices prohibited as unlawful under the Consumer Fraud Act;

·         require mandatory disclosure in advertisements of certain information relating to advertised motor vehicles

·         require on-site disclosures relating to advertised motor vehicles.

 

WHAT AUTOMOBILES ARE COVERED BY THE NEW JERSEY CONSUMER FRAUD ACT AUTOMOTIVE REGULATIONS?

The New Jersey Consumer Fraud Act automotive regulations apply to the following automobiles:

·         new or used motor vehicles -- vehicles driven otherwise than by muscular power, except vehicles running only upon rails or tracks.

·         offered for sale or lease and specifically identified by an advertised price. 

 

In this article, for simplicity’s sake, motor vehicles to which the Consumer Fraud Act applies are referred to as “automobiles”.

 

In an advertisement which offers a group of new or used vehicles for sale or lease covering a specified price range (for example, "1995 Metros for sale--$ 10,000 to 12,999," or "Lease a new Olds for $ 298 a month and up."), the least expensive motor vehicle in that advertised range is considered to be an advertised motor vehicle.

 

Under the New Jersey Consumer Fraud Act automotive regulations, the term "used motor vehicle" means any motor vehicle with an odometer reading of greater than 1,000 miles, except for a "demo".

 

Under the New Jersey Consumer Fraud Act automotive regulations, the term "demo" means a motor vehicle used exclusively by a dealer or dealer's employee that has never been titled and to which the new vehicle warranty still applies.

 

Under the New Jersey Consumer Fraud Act automotive regulations, the term "Advertised price" means the dollar amount required to purchase or lease a motor vehicle, advertised as:

·         The total price; or

·         The monthly payment price; or

·         The deferred payment price; or

·         A specific discount or savings on the manufacturer's

suggested retail price.

 

WHAT ADVERTISEMENTS ARE COVERED BY THE AUTOMOTIVE ADVERTISING REGULATIONS?


The New Jersey Consumer Fraud Act automotive regulations apply to any of the following types of conduct involving any motor vehicle[1]:

·         the attempt directly or indirectly by publication, dissemination, solicitation, indorsement or circulation or in any other way;

·          to induce directly or indirectly

·         any person to enter or not enter into any obligation or acquire any title or interest in any merchandise or to increase the consumption thereof or to make any loan.

 

For the New Jersey Consumer Fraud Act automotive regulations to apply, the advertisement must offer a motor vehicle for sale or lease at retail in any of the following:

·         Newspaper.

·         Periodical.

·         Pamphlet.

·         Circular

·         Other publication.

·         Paper.

·         Sign.

·         Radio or television broadcast.

 

For the New Jersey Consumer Fraud Act automotive regulations to apply, the advertisements must be:

·         uttered, issued, printed, disseminated, published, circulated or distributed within New Jersey concerning automobiles offered for sale or lease at locations exclusively within New Jersey; or

·         uttered, issued, printed, disseminated, published, circulated or distributed to any substantial extent within New Jersey concerning motor vehicles offered for sale or lease at locations within New Jersey and outside New Jersey, or at locations exclusively outside New Jersey.

 

An example of a violation of the advertising regulations would be an automotive dealer's advertisement of automobiles "priced well below dealer invoice".

 

WHICH ADVERTISERS MUST FOLLOW THE NEW JERSEY AUTOMOTIVE ADVERTISING REGULATIONS?

The following people must comply with the New Jersey Consumer Fraud Act automotive regulations:

·         Any natural person or his legal representative, partnership, corporation, company, trust, business entity or association and any agent, employee, salesman, partner, officer, director, member, stockholder, associate, trustee or cestuis que trustent thereof;

·         who, in the ordinary course of business, is engaged in the sale, leasing or financing of motor vehicles at retail; or

·         who in the course of any 12 month period offers more than three motor vehicles for sale or lease; or

·         who is engaged in the brokerage of motor vehicles whether for sale or lease and who causes an advertisement to be made for the retail sale or lease of motor vehicles.  "Broker" means a person who in the course of any 12 month period arranges or offers to arrange the retail sale or lease of more than three motor vehicles from the inventory of other business entities.

 

Under the New Jersey Consumer Fraud Act automotive regulations, a "Dealer" means any person who, in the ordinary course of business, is engaged in the sale or leasing of motor vehicles at retail or who in the course of any 12-month period offers more than three motor vehicles for sale or lease at retail.

An advertising agency and the owner or publisher of a newspaper, magazine, periodical, circular, billboard or radio or television station acting on behalf of an advertiser shall be deemed an advertiser within the meaning of the New Jersey Consumer Fraud Act automotive regulations, when the agency or owner's or publisher's staff prepares and places an advertisement for publication.  The agency, owner, or publisher shall not be liable for a violation of the New Jersey Consumer Fraud Act automotive regulations when reasonably relying upon data, information or material supplied by the person for whom the advertisement is prepared or placed or when the violation is caused by an act, error or omission beyond the preparer's control, including but not limited to, the post-publication performance of the person on whose behalf such advertisement was placed.

 

WHAT IS BAIT AND SWITCH ADVERTISING?

The following motor vehicle advertising practices are unlawful "bait and switch" advertising under the New Jersey Consumer Fraud Act:

·         The advertisement of a motor vehicle as part of a plan or scheme not to sell or lease it or not to sell or lease it at the advertised price.

·         Without limiting other means of proof, the following shall be prima facie evidence of a plan or scheme not to sell or lease a motor vehicle as advertised or not to sell or lease it at the advertised price:

 

o    Refusal to show, display, sell, or lease the advertised motor vehicle in accordance with the terms of the advertisement, unless the vehicle has been actually sold or leased during the period of publication; in that case, the advertiser shall retain records of that sale or lease for 180 days following the date of the transaction, and shall make them available for inspection by the Division of Consumer Affairs.

o    Accepting a deposit for an advertised motor vehicle, then switching the purchaser to a higher-priced motor vehicle, except when the purchaser has initiated the switch as evidenced by a writing to that effect signed by the purchaser.

o    The failure to make delivery of an advertised motor vehicle, then switching the purchaser to a higher-priced motor vehicle; except when the purchaser has initiated the switch as evidenced by a writing to that effect signed by the purchaser.

 

WHAT INFORMATION MUST A NEW AUTOMOBILE SALE ADVERTISEMENT INCLUDE?

In any advertisement in which an advertiser offers a new motor vehicle for sale at an advertised price, the following information must be included:

·         The advertiser's business name and business address;

·         A statement that "price(s) include(s) all costs to be paid by a consumer, except for licensing costs, registration fees, and taxes".  If the statement appears as a footnote, it must be set forth in at least 10 point type.  Under the New Jersey Consumer Fraud Act automotive regulations, "all costs to be paid by a consumer" means manufacturer-installed options, freight, transportation, shipping, dealer preparation, and any other costs to be borne by a consumer except licensing costs, registration fees, and taxes;

·         The manufacturer's suggested retail price as it appears on the Monroney label, clearly denominated by using the abbreviation "MSRP";

·         The year, make, model, and number of engine cylinders of the advertised motor vehicle;

·         Whether the transmission is automatic or manual; whether the brakes and steering mechanism are power or manual; and whether the vehicle has air conditioning, unless those items are standard equipment on the advertised motor vehicle.  This provision shall not apply to advertisements for motorcycles;

·         The last eight digits of the vehicle identification number, preceded by the letters "VIN".  This provision shall not apply to radio and television broadcasts, or to advertisements for motorcycles; and

·         A list of any dealer installed options on the advertised motor vehicle and the retail price of each, as determined by the dealer.

 

A dealer’s failure to provide this information results in a violation of the New Jersey Consumer Fraud Act.

 

WHAT INFORMATION MUST A USED AUTOMOBILE SALE ADVERTISEMENT INCUDE?

In any advertisement offering for sale a used motor vehicle at an advertised price, the following information must be included:

·         The advertiser's business name and business address;

·         A statement that "price(s) include(s) all costs to be paid by a consumer, except for licensing costs, registration fees, and taxes".  If the statement appears as a footnote, it must be set forth in at least 10 point type.  Under the New Jersey Consumer Fraud Act automotive regulations, "all costs to be paid by a consumer" means manufacturer-installed options, freight, transportation, shipping, dealer preparation, and any other costs to be borne by a consumer except licensing costs, registration fees, and taxes;

·         The year, make, model, and number of engine cylinders of the advertised motor vehicle;

·         Whether the transmission is automatic or manual; whether the brakes and steering mechanism are power or manual; and whether the vehicle has air conditioning, unless those items are standard equipment on the advertised motor vehicle.  This provision shall not apply to advertisements for motorcycles;

·         The last eight digits of the vehicle identification number, preceded by the letters "VIN".  This provision shall not apply to radio and television broadcasts, or to advertisements for motorcycles; and

·         A list of any dealer installed options on the advertised motor vehicle and the retail price of each, as determined by the dealer.

·         The actual odometer reading as of the date the advertisement is placed for publication; and

·         The nature of prior use unless previously and exclusively owned or leased by individuals for their personal use, when such prior use is known or should have been known by the advertiser.

 

A dealer’s failure to provide this information results in a violation of the New Jersey Consumer Fraud Act.

 

WHAT INFORMATION MUST A DEMO AUTOMOBILE SALE ADVERTISEMENT INCLUDE?

In any advertisement offering a "demo" for sale, the following information must be provided:

 

·         The advertiser's business name and business address;

·         A statement that "price(s) include(s) all costs to be paid by a consumer, except for licensing costs, registration fees, and taxes".  If the statement appears as a footnote, it must be set forth in at least 10 point type.  Under the New Jersey Consumer Fraud Act automotive regulations, "all costs to be paid by a consumer" means manufacturer-installed options, freight, transportation, shipping, dealer preparation, and any other costs to be borne by a consumer except licensing costs, registration fees, and taxes;

·         The manufacturer's suggested retail price as it appears on the Monroney label, clearly denominated by using the abbreviation "MSRP";

·         The year, make, model, and number of engine cylinders of the advertised motor vehicle;

·         Whether the transmission is automatic or manual; whether the brakes and steering mechanism are power or manual; and whether the vehicle has air conditioning, unless those items are standard equipment on the advertised motor vehicle.  This provision shall not apply to advertisements for motorcycles;

·         The last eight digits of the vehicle identification number, preceded by the letters "VIN".  This provision shall not apply to radio and television broadcasts, or to advertisements for motorcycles; and

·         A list of any dealer installed options on the advertised motor vehicle and the retail price of each, as determined by the dealer.

·         Identification as a "demo"; and

·         The actual odometer reading as of the date the advertisement is placed for publication.

 

A dealer’s failure to provide this information results in a violation of the New Jersey Consumer Fraud Act.

 

WHAT INFORMATION MUST A NEW OR USED AUTOMOBILE LEASE ADVERTISEMENT INCLUDE?

In any advertisement offering a new or used motor vehicle for lease at an advertised price, the following information shall be included:

·         That the transaction advertised is a lease;

 

·         The amount of any payment required at the inception of the lease or that no payment is required if that is the case;

·         The number, amounts, due dates or periods of scheduled payments and the total of such payments under the lease;

·         A toll-free number that may be used by consumers to obtain the following information (and if the advertiser decides to use a full disclosure format in a written advertisement, then this information shall be prominently displayed in at least 10 point type and must be easy to find, read and understand):

 

ü  The advertiser's business name and address;

ü  Identification of the transaction as a lease;

ü  Whether or not the advertised price refers solely to a business lease;

ü  Whether it is an open-end or closed-end lease;

ü  The number, amounts, due dates or periods of scheduled payments and the total of such payments under the lease;

ü  All other itemized payments such as security deposits or capitalized cost reduction required at the initiation of the lease;

ü  The cost of the lease which shall include the sum of The number, amounts, due dates or periods of scheduled payments and the total of such payments under the lease and all other itemized payments such as security deposits or capitalized cost reduction required at the initiation of the lease;

ü  The manufacturer's suggested retail price as it appears on the Monroney label; when given in writing to the consumer, clearly denominated by using the abbreviation "MSRP";

ü  A statement that "price(s) include(s) all costs to be paid by the consumer, except for licensing, registration and taxes." When given in writing to the consumer, it must be set forth in at least 10 point type;

ü  Whether the lessee has the option to purchase the advertised motor vehicle and at what price and time; the method of determining the price may be substituted for disclosure of the price;

ü  The amount (including termination charge, if any) or method of determining any liability imposed upon the lessee at the end of the term and a statement that the lessee shall be liable for the difference, if any, between the estimated value of the leased motor vehicle and its realized value at the end of the lease term, if the lessee has such liability;

ü  A statement of the items included as standard equipment on the advertised motor vehicle;

ü  Whether the transmission is automatic or standard; whether the brakes and steering mechanism are power or manual and whether the vehicle has air conditioning, unless such items are included under the statement of the items included as standard equipment on the advertised motor vehicle.   This provision shall not apply to motorcycles;

ü  The year, make, model and number of engine cylinders of the advertised vehicle;

ü  The last eight digits of the vehicle identification number or "VIN." This provision shall not apply to motorcycles;

ü  If the advertised vehicle is a used vehicle, the actual odometer reading at the date of placing the advertisement for publication; and the nature of prior use, unless previously and exclusively owned or leased by individuals for their personal use, when such use is known or should have been known by the advertiser; and

ü  If the advertised vehicle is a "demonstration vehicle" or "demo," identification of the vehicle as a "demonstration vehicle" or "demo;" and the actual odometer reading at the date of placing the advertisement for publication.

 

·         The business name and, if an individual dealer, the address of the advertiser.

In all written advertisements the information required above shall be prominently displayed in at least 10 point type and shall be easy to find, read and understand.

 

An advertisement which is not in writing shall clearly and audibly state the required information at a decibel level equal to the highest decibel level used in the advertisement and at a speed equal to or slower than any other statement contained in the advertisement. 

 

In a television broadcast, the information shall be prominently and conspicuously displayed for at least five continuous seconds for each model advertised.

 

The toll free number required above shall be operational not later than the date on which the advertisement is broadcast or published.  The advertiser shall:

·         Maintain the toll free number for 48 hours after the last day of the advertisement;

·         Ensure that the toll free number is operational from 9:00 A.M. to 9:00 P.M. Monday through Saturday;

 

The advertiser shall provide the following information in a clear and audible manner, to any person who calls the toll free number and if requested, provide the information required below in written form to be mailed, postage paid, to the consumer's address:

·         The advertiser's business name and address;

·         Identification of the transaction as a lease;

·         Whether or not the advertised price refers solely to a business lease;

·         Whether it is an open-end or closed-end lease;

·         The number, amounts, due dates or periods of scheduled payments and the total of such payments under the lease;

·         All other itemized payments such as security deposits or capitalized cost reduction required at the initiation of the lease;

·         The cost of the lease which shall include the sum of the number, amounts, due dates or periods of scheduled payments and the total of such payments under the lease and all other itemized payments such as security deposits or capitalized cost reduction required at the initiation of the lease;

·         The manufacturer's suggested retail price as it appears on the Monroney label; when given in writing to the consumer, clearly denominated by using the abbreviation "MSRP";

·         A statement that "price(s) include(s) all costs to be paid by the consumer, except for licensing, registration and taxes." When given in writing to the consumer, it must be set forth in at least 10 point type;

·         Whether the lessee has the option to purchase the advertised motor vehicle and at what price and time; the method of determining the price may be substituted for disclosure of the price;

·         The amount (including termination charge, if any) or method of determining any liability imposed upon the lessee at the end of the term and a statement that the lessee shall be liable for the difference, if any, between the estimated value of the leased motor vehicle and its realized value at the end of the lease term, if the lessee has such liability;

·         A statement of the items included as standard equipment on the advertised motor vehicle;

·         Whether the transmission is automatic or standard; whether the brakes and steering mechanism are power or manual and whether the vehicle has air conditioning, unless such items are included under the statement of the items included as standard equipment on the advertised motor vehicle.  This provision shall not apply to motorcycles;

·         The year, make, model and number of engine cylinders of the advertised vehicle;

·         The last eight digits of the vehicle identification number or "VIN." This provision shall not apply to motorcycles;

·         If the advertised vehicle is a used vehicle, the actual odometer reading at the date of placing the advertisement for publication; and the nature of prior use, unless previously and exclusively owned or leased by individuals for their personal use, when such use is known or should have been known by the advertiser; and

·         If the advertised vehicle is a "demonstration vehicle" or "demo," identification of the vehicle as a "demonstration vehicle" or "demo;" and the actual odometer reading at the date of placing the advertisement for publication.

 

A dealer’s failure to provide this information results in a violation of the New Jersey Consumer Fraud Act.

 

In any type of motor vehicle advertising, the following practices results in a violation of the New Jersey Consumer Fraud Act:

·         The use of any type size, location, lighting, illustration, graphic depiction or color so as to obscure or make misleading any material fact;

·         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 and dealer's discount;

·         The setting forth of an advertised price which fails to disclose, adjacent to the advertised price, that it has been calculated by deducting a manufacturer's rebate or dealer's discount;

·         The failure to state all disclaimers, qualifiers, or limitations that in fact limit, condition, or negate a purported unconditional offer (such as a low APR or high trade-in amount), clearly and conspicuously, next to the offer and not in a footnote identified by an asterisk.  Such disclosure shall be made verbally in a radio or television advertisement.  Identical information pertaining to all motor vehicles in a group of advertised motor vehicles, however, may appear in a footnote, provided the type is no smaller than 10 point;

·         The failure to state the applicable time period of any special offer, in at least 10-point type immediately adjacent to the special offer, unless the special offer is a manufacturer's program;

·         The use of the word "free" when describing equipment or other item(s) to be given to the purchaser or lessee of a motor vehicle, if the "free" item has a value which has increased the advertised price.  In using the word "free" in advertising, the advertiser shall comply with the Federal Trade Commission Rule, 16 CFR § 251, and any amendments thereto;

·         The failure to disclose that the motor vehicle had been previously damaged and that substantial repair or body work has 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;

·         The use of the terms "Public Notice", "Public Sale", "Liquidation", "Liquidation Sale", or terms of similar import, where such sale is not required by court order or by operation of law or by impending cessation of the advertiser's business;

·         The use of terms such as "Authorized Sale", "Authorized Distribution Center", "Factory Outlet", "Factory Authorized Sale", or other term(s) which imply that the advertiser has an exclusive or unique relationship with the manufacturer;

·         The use, directly or indirectly, of a comparison to the dealer's cost, inventory price, factory invoice, floor plan balance, tissue, or terms of similar import; or the claim that the advertised price is "wholesale" or "at no profit";

·         The use of the terms "guaranteed discount", "guaranteed lowest prices" or other term of similar import unless the advertiser clearly and conspicuously discloses the manner in which the guarantee will be performed and any conditions or limitations controlling such performance; this information shall be disclosed adjacent to the claim and not in a footnote;

·         The use of The statement "We will beat your best deal", or similar term or phrase if a consumer must produce a contract that the consumer has signed with another dealer or lessor in order to receive the "better" deal;

·         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 cannot be substantiated by the advertiser.

 

WHAT TYPE OF INFORMATION MUST BE DISCLOSED IN CREDIT AND INSTALLMENT SALE VEHICLE ADVERTIESEMENTS?

 

The following information must be stated in any credit and installment sale advertising and appear adjacent to the description of the advertised motor vehicle and not in a footnote or headline, unless the information is the same for all motor vehicles advertised.  If in a footnote, it must be in at least 10-point type. 

·         The total cost of the installment sale, which shall include the down payment or trade-in or rebate, if any, plus the total of the scheduled periodic payments;

·         The annual percentage rate;

·         The monthly payment figure and the number of required payments; and

·         The amount of any down payment or trade-in required or a statement that none is required.

 

The following motor vehicle advertising practices concerning credit and installment sale advertisements are unlawful:

·         The advertising of credit, including but not limited to such terms as "easy credit" or "one-day credit", other than that actually provided by the advertiser on a regular basis in the ordinary course of business;

·         The use or statement of an installment payment on any basis other than a monthly basis.

 

A dealer’s failure to provide this information results in a violation of the New Jersey Consumer Fraud Act.

 

WHAT TYPE OF DISCLUSRES MUST AN AUTOMOTIVE DEALERSHIP MAKE AT ITS DEALERSHIP?

The following information relating to an advertised motor vehicle must be provided at the main entrance(s) to the business premises where the automobile is displayed or in proximity to the vehicle or on the vehicle itself:

·         A  copy of any printed advertisement that quotes a price for the sale or lease of that vehicle; alternatively, a tag may be attached to the motor vehicle(s) stating the advertised price as well as the other information required mandatory disclosure requirements in all advertisements for the sale or lease of automobiles.

·         A fuel economy label, if required by the Federal law known as the Motor Vehicle Information and Cost Savings Act, 15 U.S.C. § 2006; and

·         The Used Car Buyers Guide, if required by the Federal Trade Commission's Used Car Rule, 16 C.F.R. Part 455.2.

 

A dealer shall not advertise a new motor vehicle which does not have the Monroney label, if required by the Federal law known as the Automobile Information Disclosure Act, 15 U.S.C. §§ 1231-1233.

 

A dealer’s failure to provide this information results in a violation of the New Jersey Consumer Fraud Act.

 

WAT TYPE OF RECORDS MUST AN AUTOMOTIVE DEALER KEEP REGARDING ITS ADVERTISEMENTS?

An advertiser shall have a motor vehicle advertised for sale on premises and available for sale at the advertised price during the period of publication or a record of the sale of that vehicle at the advertised price or less during that period. 

 

An advertiser shall have a motor vehicle advertised for lease available for lease at the advertised price during the period of publication, or a record of the lease of that vehicle at the advertised price or less during that period.  Such record shall consist of all applicable advertisements and a copy of the executed contract with the purchaser or lessee of the vehicle; this documentation shall be maintained for 180 days after the transaction and shall be made available for inspection by the New Jersey Division of Consumer Affairs.

 

If the automobile is sold or leased during the period of publication, the advertiser must so notify consumers who inquire by telephone or in person.

A dealer’s failure to provide this information results in a violation of the New Jersey Consumer Fraud Act.

 

WHAT TYPE OF SALES PRACTICES ARE ILLEGAL UNDER THE NEW JERSEY CONSUMER FRAUD ACT?

Certain sales practices are illegal under the New Jersey Consumer Fraud Act for automotive dealers -- any natural person or his legal representative, partnership, corporation, company, trust, business entity or association and any agent, employee, salesman, partner, officer, director, member, stockholder, associate, trustee or cestuis que trustent thereof who, in the ordinary course of business, is engaged in the sale of automobiles  at retail or who in the course of any 12 month period offers more than 3 automobiles for sale, lease, or rental or who is engaged in the brokerage of motor vehicles whether for sale, lease or rental. 

 

The New Jersey Consumer Fraud Act automotive regulations contain the following definitions:

·         “Documentary service fee" -- any monies or other thing of value which an automotive dealer accepts from a consumer in exchange for the performance of certain documentary services which include, but are not limited to, the preparation and processing of documents in connection with the transfer of license plates, registration, or title, and the preparation and processing of other documents relating to the sale of a motor vehicle to said consumer;

·         "Pre-delivery service fee" -- any monies or other thing of value which an automotive dealer accepts from a consumer in exchange for the performance of pre-delivery services upon a motor vehicle, and includes, but is not limited to, items which are often described or labeled as dealer preparation, vehicle preparation, predelivery service, handling and delivery, or any other term of similar import;

·         "Sales document" -- the first document an automotive dealer utilizes to evidence an order for, deposit towards, or contract for the purchase of a motor vehicle by a consumer, and includes but is not limited to, retail orders, sales invoices, sales contracts, retail installment contracts, and other documents of similar import.

 

The following practices involving pre-delivery service fees in the sale of automobiles by automotive dealers are violations of the New Jersey Consumer Fraud Act:

·         Accepting, charging, or obtaining from a consumer monies, or any other thing of value, in exchange for the performance of any pre-delivery service for which the automotive dealer receives payment, credit, or other value from any person or entity other than a retail purchaser of the motor vehicle;

·         Accepting, charging, or obtaining from a consumer monies, or any other thing of value, in exchange for the performance of any pre-delivery service without first itemizing the actual pre-delivery service which is being performed and setting forth in writing on the sales document the price for each specific pre-delivery service;

·         Except in connection with the sale of used motor vehicles, failing to conspicuously place upon the front of the sales document which contains a pre-delivery service fee, in ten-point bold face type, the following statement:  "You have a right to a written itemized price for each specific pre-delivery service which is to be performed.  The automotive dealer may not charge for pre-delivery services for which the automotive dealer is reimbursed by the manufacturer."

 

The following practices involving documentary service fees in the sale of automobiles by automotive dealers are violations of the New Jersey Consumer Fraud Act:

·         Accepting, charging, or obtaining from a consumer monies, or any other thing of value, in exchange for the performance of any documentary service without first itemizing the actual documentary service which is being performed and setting forth in writing on the sale document the price for each specific documentary service; or

·         Representing to a consumer that a governmental entity requires the automotive dealer to perform any documentary service;

·         Failing to conspicuously place upon the front of the sales document which contains a documentary service fee, in ten-point bold face type, the following:  "You have a right to a written itemized price for each specific documentary service which is to be performed."

 

CAN I HANDLE AN AUTOMOTIVE ADVERTISING OR SALES DISPUTE MYSELF?

Some people can and do successfully handle 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 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 case.  The following are reasons to use an attorney to handle part or all of your 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 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 case. 

·         a court has the power to punish unprepared parties or parties who make mistakes, such as by throwing their case out of court or limiting what they can present at trial. 

·         New Jersey has many published 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 cases. 

·         you cannot show up at court expecting the judge hearing your case to explain court rules, evidence rules, court procedure or the details of the law that applies to your case.  The judge hearing your 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 case.  No attorney can guarantee results in civil disputes.  Hiring an attorney to handle part or all of your case does not guarantee your success.  However, it may provide the assistance you need to win your case, to settle your 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 dealers in New Jersey automotive advertising and sales disputes.

·         handled New Jersey Consumer Fraud Act automotive advertising and sales disputes.

·         prepared and filed many complaints against automotive dealers.

·         settled claims and cases between consumers and automotive dealers.

·         mediated and tried nonjury and jury trials involving automotive advertising and sales disputes

 

WHAT IF I DON’T HAVE ENOUGH MONEY TO HIRE AN ATTORNEY TO HANDLE MY CASE FROM BEGINNING TO END?

In many situations, the Law Office of Paul DePetris offers alternatives to handling 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 case to a fixed sum, while providing you the help you need to handle your 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.



 




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