Wrongful Repossession Lawsuits
These are factual allegation in a New Jersey lawsuit. These were submitted to the court in opposition to a summary judgment motion filed by the defendant.
1. This litigation arises out of the plaintiff’s possession and subsequent repossession of the subject automobile, which is a XXX.
This was actually submitted in an arbitration against a New Jersey car dealership.
In the present case, the plaintiff has demonstrated that the defendant has committed acts of consumer fraud with a nexus to an ascertainable loss and, thus, the plaintiff should receive an award against the defendant. everse engineering and backing out numbers does not equate with fair business practices! This is coupled with an advertisement that is blatantly in violation of New Jersey law case law and the Administrative Code.
ADVERTISEMENT – CONSUMER FRAUD
Price Packing and Products
These are the products that you need to watch very carefully when you are purchasing a car:
Try and insist for a list of every product that you have PURCHASED:
Sometimes you just need to laugh. This is a commercial that some dealerships use to sell cars. Have you ever met a car salesman like this? They can sell cars!!
This is good too!!
The New Jersey Consumer Fraud Act is to be Watered Down, significantly.
New Jersey has one of the strongest Consumer Fraud Acts in the United States.
There is pending legislation to change the Consumer Fraud Act and make it easier to avoid civil penalties for fraud.
Amy Handlin and John McKeon are sponsoring an anti-consumer bill that would change the business landscape in New Jersey.
A key provision of the new New Jersey Consumer Fraud Act would exempt out of state transactions. This means the following: if someone in New Jersey commits consumer fraud upon a non-resident (living in NY, PA or CT) there are no consequences.
“a. apply only to transactions that take place in the State”
Car Salesmen and Dealerships to be Protected with Proposed Changes in Consumer Fraud Act.
Amy Handlin and Jack McKeon have sponsored and introduced ANTI-CONSUMER legislation to reduce consumer rights and protect car dealerships.
The changes in the Consumer Fraud Act would exempt or limit liability against businesses that are already regulated, such as car dealerships. It would also limit liability for consumers who consummate out-of-state transactions. This arguably contradicts other legislation that has been introduced to increase liability for those committing consumer fraud.
CHANGES IN THE NEW JERSEY CONSUMER FRAUD ACT TO PROTECT CAR SALESMAN
Amy Handlin is the co-sponsor on this bill to protect car salesman
John McKeon is the primary Sponsor on this bill to protect car salesmen.
It is not uncommon that there is absolutely no disclosure to the sales staff and they are not even given what is commonly known as a deal recap or some sort of washout sheet. It is not uncommon that the sales staff is completely left in the dark pertaining to how their commissions are calculated, what the costs are, what the charge backs are and other reductions. There is a natural tendency upon the sales staff to doubt the costs associated with the sale of the automobiles. If the pack is only $500, why did an apparent $3,000 profit vanish overnight and turn into a $100 flat fee?
This is an area of heated and ongoing litigation between sales staff and dealership management. How exactly are the gross commission on profits calculated, charge accounted for and disclosed to the sales staff? It is not uncommon that there is absolutely no disclosure to the sales staff and they are not even given what is commonly known as a [tail recap] or some sort of washout sheet. It is not uncommon that the sales staff is completely left in the dark pertaining to how their commissions are calculated, what the costs are, what the charge backs are and other reductions in the gross commissionable proceeds.
The same laws that apply to contracts apply to agreements between sales staff and their management team. There is an obligation of good faith and fair dealings and there is an obligation pertaining to full disclosure. I have discovered that it is not uncommon that there are various “extras” that the dealership management feels obligated to put into the costs of the vehicle for which a sales staff member might be upset.
The auto sales business is a major tax source for all states, including New Jersey. In this regard, many states have hundreds, if not thousands of dealerships, which generate billions of dollars in tax revenue for the state coffers. All these dealerships rely upon the skills of sales people to sell cars in order to benefit themselves as well as the state economy. It is an ongoing battle between the sales persons and management pertaining to the issuance and calculation of gross commissionable proceeds upon which sales people are paid.
Generally, there are two areas of profit to the dealership,
the front end and the back end. The front end is associated with the profit on the sale of the car and of itself. The back end profit pertains to and relates to the profit on financing, after sale items, pre-delivery services and other items, such as lo-jack. Car dealerships operate differently, however; generally, the sales people get paid on the front end and the managers and the upper management get paid on the back end of the transaction. On occasion, a car dealership does provide a certain amount of computation to the sales staff based on the total profit of the dealership, which would naturally include the back end or the reserve part of the transaction.
New Jersey Lemon Law Lawyer Blog