Articles Posted in Consumer Lawyer

Under the relevant due process inquiry, the forum state’s exercise of jurisdiction must be reasonable, which is measured by the “minimal contacts” doctrine, a threshold requirement for specific personal jurisdiction. Hanson v. Denckla, 357 U.S. 235, 251, 78 S.Ct. 1228, 1238, 2 L.Ed.2d 1283, 1296 (1958); International Shoe v. Washington, 326 U.S. 310, 66 S.Ct. 154, 90 L.Ed. 95 (1945); Waste Management, supra, 138 N.J. at 119-20, 649 A.2d 379; Lebel, supra, 115 N.J. at 322, 558 A.2d 1252. Minimal contacts requires “that there be some act by which the defendant purposefully avails itself of the privilege of conducting activities within the forum State, thus invoking the benefits and protections of its laws.” Hanson, supra, 357 U.S. at 253, 78 S.Ct. at 1240, 2 L.Ed.2d at 1298. Under a specific jurisdiction analysis, the minimum contacts inquiry must focus on “the relationship among the defendant, the forum, and the litigation.” Shaffer v. Heitner, 433 U.S. 186, 204, 97 S.Ct. 2569, 2579, 53 L.Ed.2d 683, 698 (1977); Lebel, supra, 115 N.J. at 323, 558 A.2d 1252.

In applying the “minimum contacts” test, we focus on the relationship among the defendant, the forum, and the litigation. The “minimum contacts” requirement is satisfied so long as the contacts resulted from the defendant’s purposeful conduct and not the unilateral activities of the plaintiff. This “purposeful availment” requirement ensures that a defendant will not be hauled into a jurisdiction solely as a result of random, fortuitous, or attenuated contacts. The question is whether the defendant’s conduct and connection with the forum State are such that he should reasonably anticipate being hauled into court there. Lebel v. Everglades Marina, Inc., 115 N.J. 317, 323-24, 558 A.2d 1252 (1989)

Both the Appellate Division and the New Jersey Supreme Court have held that the seller of retail goods in another state is subject to the jurisdiction of the State of New Jersey. The Supreme Court specifically held in Lebel v. Everglades Marina, Inc., 115 N.J. 317 (1989) that, “In comparison, the marketer of a big ticket luxury item that accomplishes the sale by solicitation of out-of-state buyer in the buyer’s state can fairly be expected to contemplate that a breach of contract will expose it to a suit in the forum of the buyer. We thus find this does not offend our notions of substantial justice and fair play to ask the seller of this special order, Luxury Vessel, to account for its negotiations of the transaction in a New Jersey court.”

Recently, I was surfing the internet and discovered a site through news releases that is actually very useful.

The site is truecar.com and the basic underpinnings of this site are the consumers’ ability to access purchase information for vehicles. Apparently truecar.com has the availability of some sort of database or survey information pertaining to what people have paid for various vehicles as well as the extras. It then provides some sort of analysis – maybe a regression analysis – as to the appropriate or average price for these vehicles. With this site, you get information pertaining to what the market is bearing for a particular vehicle with particular options. Since most individuals do not have the ability to go to auctions or have the access to information that dealerships have, I would say that the availability of this information at truecar.com would be essential, if it is in fact accurate. I have no knowledge whether or not this information is accurate or the source of their information. However, the basic concept underlying truecar.com I completely support because it assists consumers in providing them with more information on their purchasing decision. If you are buying a car, it would seem to be a reasonable resource to avail yourself of, to have as much as if not more knowledge than the dealership pertaining to the pricing practices or pricing patterns of a particular car in a particular market. With regard to information, more is always better.

Under New Jersey Law, it violates the New Jersey Consumer Fraud Act to make an affirmative misrepresentation of fact as the seller attempted sale of a product. It does not matter that nobody has been misled but there is the capacity to mislead, which is the primary ingredient of consumer fraud.

There has been an investigation opened by the Federal Trade Commission which has been resolved recently with Kellogg. It appears as though Kellogg was misrepresenting the benefits of Frosted Mini-Wheats. Kellogg was making claims on their advertising that Frosted Mini-Wheats was “clinically shown to improve kids’ attentiveness by 20%”. The FTC opened an investigation because they claimed that it was false and violated federal law. It appears as though the complaint was based on a certain study which demonstrated the improved attentiveness of the children. According to the FTC news release, this was in fact not accurate. It appeared as though just under 11% had better attentiveness. It appears as though the commission approved to the administrative complaint and the proposed consent agreement. It is open to public comment for 30 days beginning and continuing through May 19, 2009.

Public Citizen

The New Jersey Attorney General’s Office, through the Division of Consumer Affairs, conducts investigations and files suits on behalf of the state against various businesses alleged to have potentially committed acts in violation of New Jersey Law. As an example, there was a press release on June 5, 2009 indicating that the state filed suits against Air Duct Cleaning Services. The defendants, United Air Care, Inc. and Indoor Air Care, LLC were alleged to have advertised “whole-house duct cleaning” for $39.95 to $69.95. The Attorney General’s Office is then alleging that the businesses induced the consumers to purchase more expensive services. It appears also that these businesses were not licensed or registered as home improvement contractors with the Division of Consumer Affairs. The Attorney General’s Office, through the Division of Consumer Affairs, filed an eight-count complaint alleging violations of the New Jersey Consumer Fraud Act, Contractor Registration Act and Home Improvement Practices Regulations. The Attorney General’s Office is alleging bait and switch advertising, failure to register, providing coupons of failing to honor those services, causing damage to consumer’s home and then failing to fix those damages, misrepresenting receipt of refunds or reimbursements, requiring consumers to sign estimates and not providing copies of those, and deceptive advertising.

This is but just one of various investigations and a complaint that the state has opened up in the last few years. Another example is on June 3, 2009, the state reached settlement with Rubin & Raine of New Jersey LLC. This pertained to certain collection efforts on behalf of Pascack Valley Hospital. Also, on April 14, 2009, the Division of Consumer Affairs issued a press release indicating that a tax preparation firm which was sued had reached settlement. The business involved was Malqui Financial Group, Inc. and Fast Tax Express Corp., both of which did business as Malqui Tax.

The Division of Consumer Affairs recently reached settlement with Rubin & Raine, Inc. and Rubin & Raine of New Jersey, LLC. There was no admission of any wrongdoing and they agreed to comply with the State Consumer Fraud Act and Collection Agency Statute and Fair Debt Collection Practices Act.

The New Jersey Consumer Fraud Act and individual liability

The definitional section of the New Jersey Consumer Fraud Act is straightforward re: The Act to persons. The New Jersey Supreme Court has explained that the Act is wide-ranging remedial legislation and should be liberally interpreted to effectuate its remedial purposes. Despite the plain language of the statute and the express statements made by the New Jersey Supreme Court, there have been various businesses and/or individuals who have argued that the New Jersey Consumer Fraud Act did not apply to them. There are some exceptions to the application of the New Jersey Consumer Fraud Act; however, these exceptions are limited. Generally, lawyers, utilities and hospitals are exempt from the New Jersey Consumer Fraud Act. The primary reason that these particular businesses are exempt from the New Jersey Consumer Fraud Act is that they have their self-contained regulatory bodies. As an example, lawyers are regulated by the Supreme Court and not by the Consumer Fraud Act.

There have been cases which have interpreted the seller’s of real estate, individual sellers, to be exempt from the wide-ranging penalties of the New Jersey Consumer Fraud Act. The New Jersey Supreme Court recently decided a case that held the definitional section of the Act is self-explanatory in that it applies to all persons. This means that if you individually sell a particular product, you will be subject to the provisions of the New Jersey Consumer Fraud Act if you are a person. A person could be an individual or a legal fiction such as a corporation. In Lyle Real v. Radir Wheels, Inc. and Richard Conklin, the individual defendant, Richard Conklin, argued that he was not subject to the penalties of the New Jersey Consumer Fraud Act and that he is exempt from liability. The Appellate Division dismissed the case but ultimately the Supreme Court held that since he is a person under the Act, he is subject to the restrictions of the New Jersey Consumer Fraud Act.

CAR DEALERSHIP SELLS CAR TO TWO BLIND PEOPLE.

This is not a joke. It is true.

The names will be withheld until suit is filed BUT today I saw, possibly, the worst case in the many years that I have been doing this type of work.

Both of my clients are legally blind, the primary obligor and the cosigner. They do not even have a driver’s license, nor are they permitted to drive. The dealership even got the car registered and insured. The customer was at the dealership with his cane and his glasses. When they told me the story it was hard to believe. They are both legally blind.

To make matters even worse, the car is a mess. It looks like it was in a prior accident with a different hood and various parts are melted on the interior of the car. They were told the car had only one prior owner, when in fact it had two.

The following are the causes of action (theories of liability) against the dealer and/or the lender:

• Consumer Fraud-deceptive conduct. Cox v. Sears.
• Fraud • Breach of contract • Breach of good faith and fair dealings. Wilson v. Hess
• Revocation. Cuesta v. Classic
• Negligence • Discrimination against disabled persons, the blind. Law against discrimination.
• Declaratory relief that the contract is void ab initio (from the beginning)
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I recently filed a demand for an arbitration under the American Arbitration Association consumer rules against a New Jersey dealership in South Jersey. The hearing is concluded and a decision should be rendered soon. I will start from the beginning and explain how arbitration works, as opposed to a court case filed in Superior Court.

Remember all defendants are presumed innocent and the plaintiff has the obligation to prove the case.

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