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Archive for the ‘Auto Fraud’ Category

California Supreme Court Refuses To Review Ruling Holding Claims Under the Automobile Sales Finance Act are Subject to Four Year Statute of Limitations

Thursday, December 15th, 2011

Rosner, Barry & Babbitt, LLP’s Auto Fraud Legal Center is pleased to announce the California Supreme Court has refused to review a trial court decision holding actions for rescission under the Automobile Sales Finance Act are subject to a four-year statute of limitations.  The Supreme Court issued its order denying a petition for review filed by Santa Maria Ford and Wells Fargo Dealer Services on December 14, 2011, in Santa Maria Ford v. Superior Court (Martinez), Case Number S197395.  In Martinez, Santa Maria Ford and Wells Fargo Dealer Services filed motions for summary judgment arguing Mr. Martinez’s claim under the Automobile Sales Finance Act was subject to either a one-year, or three-year, statute of limitations.  In August 2011, the trial court agreed with Mr. Martinez the appropriate statute of limitations for an action for rescission of a written contract is four years pursuant to Code of Civil Procedure Section 337.  Santa Maria Ford and Wells Fargo Dealer Services filed a petition for a writ of mandate with the Court of Appeal for the Second Appellate District, which summarily denied the petition.  The Supreme Court then denied Santa Maria Ford and Wells Fargo Dealer Services’ petition for review.

In the underlying class action, Mr. Martinez alleges Santa Maria Ford and Wells Fargo Dealer Services violated the Automobile Sales Finance Act by failing to separately disclose fees on purchase
contracts, and labeling fees as “not applicable” when in fact the customer was charged for the fees.  The proposed class covers all persons who purchased vehicles from Santa Maria Ford between May 26, 2006, and May 26, 2010.

For more information on this, or any of Rosner, Barry & Babbitt, LLP’s class action lawsuits against car dealerships and financial institutions, contact Hawk Barry or Angela Smith at 800-466-5366.

10 Important Questions to Ask When Buying a Used Car

Friday, October 28th, 2011

The Gawker Media-owned car weblog Jalopnik asked readers to contribute the 10 most important questions to ask when buying a used car as part of their daily “Answers of the Day” segment. The 10 best questions published on October 19, 2011 were:

10. Is this the original paint? — New paint could indicate car was rusting or involved in a previous accident.

9. Can I check the oil? — An “earmark for trouble with a used car,” Jalopnik says, look for water, fuel, or foam in the oil.

8. Can you put this on the lift? — This will allow you to check for leaks or rust, but furthermore, you know there is something amiss if the dealer will not let you do this.

7. Why are you selling it? — It is “a question that openly invites the seller to lie to you,” Jalopnik says, but it will still put the seller on the spot.

6. Who was the previous owner? — The more you know about the history of the vehicle, the more comfortable you will be. You can also learn a lot from how a dealer reacts if you ask for a phone number of the previous owner.

5. Do you have the title in hand? — An important issue that can cause larger problems later if overlooked.

4. Can I take it for a test drive? — One of the most telling parts of the process, you should most certainly walk away if the seller refuses.

3. Can I see the Carfax? — Or at least see some similar type of vehicle history report, and be sure you have obtained the right VIN number to avoid a mix-and-match.

2. Can I see the maintenance history? — While you should not expect to see an complete service record history, insufficient information from the seller here will probably affect your decision on whether or not to purchase the vehicle.

1. Can I take this to my mechanic? — This is essentially a must. A refusal from the seller should equate to a refusal to give any further thought toward purchasing the vehicle.

Many instances of auto dealership fraud involve sellers taking advantage of consumers who do not perform due diligence beforehand. If you believe that a car dealer violated California lemon law in your last purchase or you need help getting out of a car contract, contact our office today to set up a free consultation with one of our California lemon law lawyers.

Rosner, Barry & Babbitt, LLP — California lemon law attorneys

Four Class Actions Allege Price Fixing, Seek $5 Million in Damages

Thursday, October 27th, 2011

An international investigation of price fixing has led to four class-action lawsuits alleging that a scheme to raise the price of wire harnesses in turn raised the price of vehicles, Crain’s Detroit Business reported on October 18, 2011. Court documents show the class action suits seek damages exceeding $5 million.

According to Crain’s, the suits stem from an investigation of the global wire harness business that began in 2010, with the U.S. Department of Justice and officials from the European Union and Japan being involved in the investigations. The Justice Department hit Furukawa with a $200 million fine, and Crain’s said three of its executives are scheduled to plead guilty for their role in alleged global price-fixing scheme. The Federal Bureau of Investigation raided several suppliers in its antitrust investigation, but the company’s North American subsidiary, American Furukawa, took the first blow as a result of the 20-month investigation.

We have posted before how price fixing creates profit for some companies by ultimately driving up the cost for the consumer. The cost of the wire harness in your vehicle is certainly not a common form of auto dealership fraud, but antitrust laws are supposed to protect Americans from price fixing between manufacturers and retailers. State and federal laws are in place to make sure you are not deceived in your car purchase, and if you believe that a dealership violated California lemon law, contact our California lemon law attorneys today to get a free evaluation of your case.

Rosner, Barry & Babbitt, LLP — California lemon law lawyers

Rosner, Barry & Babbitt’s Auto Fraud Legal Center sues The Car Legacy

Wednesday, October 26th, 2011

Rosner, Barry & Babbitt’s Auto Fraud Legal Center has filed a lawsuit against The Car Legacy, which is located in South Gate, California.  The lawsuit was filed on behalf of Maeva Esparza in Los Angeles County Superior Court.  Ms. Esparza purchased a 2003 Nissan 350Z from The Car Legacy on July 8, 2011.  The Car Legacy provided Ms. Esparza with a warranty for the condition of the car.

The lawsuit alleges that Ms. Esparva asked if the car she purchased had ever been in an accident or damaged.  The Car Legacy told her “no.” However, this was not true.  Ms. Esparva’s car was involved in an accident prior to her purchase of the car.  The car’s frame and structure were damaged significantly as a result of the accident.  Further, The Car Legacy tried to sell the car “as is” by having Ms. Esparva sign a document called the “Due Bill” that the car was being sold “as is.” But, this is not the proper way to sell a car “as is.” In addition, the Car Legacy gave Ms. Esparva a blank credit score disclosure and failed to give her a copy of her credit application, which violates California law.

Ms. Esparva’s lawsuit alleges that these practices violate the Song-Beverly Consumers Warranty Act, sometimes know as the “Lemon Law,” Consumers Legal Remedies Act, Automobiles Sales Finance Act, and Unfair Competition Law.  She is seeking to get her money back and return the car as well as an order preventing The Car Legacy from engaging in similar practices in the future.