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LEMON LAW

Did the plaintiff’s vehicle have a nonconformity?

Was the nonconformity or nonconformities first reported to a dealer within the first two years or 18,000 miles of use after the date in which the plaintiff first took delivery of the vehicle, whichever period is shorter?

One part of the process of consumer litigation, which is called written discovery, is the exchanging of interrogatories. These are sent to narrow the issues and establish the claim made by the plaintiff.

1. Why did the defendant collect the following from the plaintiff?:

a. Destination and delivery b. Used vehicle preparation c. Credit Bureau Inquiry d. Online Registration e. Data Processing fee f. Administration Fee

COUNT III Class Action CLASS ACTION WAIVER  

1. Plaintiff reasserts the facts as set forth CLASS DEFINITION: All those consumers purchasing a car from the defendants in the past six years and signed class action waiver.

2.           TIME PERIOD: At a minimum from the date of the transaction to the same date 6 years earlier this period is applicable to the class persons who had a car repaired by the defendants.  However, the defendant dealer has been concealing certain information and as such the class period could be greater.

COUNT I Class Action DOUBLE CHARGE DOCUMENTARY FEES  

1. Plaintiff included by reference the facts as set forth above as part of the allegations. Plaintiffs assert that the defendants have violated the NJ Consumer Fraud Act by double charging documentary fees improperly in violation of the Consumer Fraud Act.

CLASS DEFINITION: All those consumers purchasing a car from the defendants in the past six years and were charged a credit inquiry fee and an online registration.

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.

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