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Archive for the ‘Technology and Laws’ Category

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

Car Prices Cut, But So Are Some of the Features

Tuesday, October 25th, 2011

Automakers might be slashing prices to help move inventory, but they are also cutting out some of the amenities in those vehicles, the USA Today reported on October 13, 2011. Nissan, Chrysler, Volkswagen and General Motors’ Chevrolet division have all lowered prices of certain models in recent months by making once-standard equipment optional.

While the strategy is to use low prices to attract shoppers to the showroom, Edmunds.com said automakers and dealers know buyers will turn right around and add options that boost the final price of the vehicle. For example, USA Today noted that the Volkswagen Jetta compact had its price cut by about $1,700 because of the features being taken out. The 2012 Jetta is sticker priced 13.4 percent less than the previous version, but buyers usually add enough options back that the price cut actually comes to about 8.8 percent.

The reduction in goodies included in newer vehicles gives consumers even more reason to become familiar with tricks such as “packing” and the other various forms of auto dealership fraud. If you are in the market for a new car, you should make sure you know what is included and what is not before you even take that initial test drive. If you have additional questions about California lemon law or want to know how to cancel 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

Jury Finds Mercedes Argument All Wet

Monday, October 17th, 2011

A Los Angeles Superior Court jury issued a $128,000 verdict against Mercedes-Benz on September 26, 2011, for violating California lemon law when it refused to repurchase a Mercedes SL 550R with a trunk leak defect. According to a press release, Albert Ataian brought the car into Mercedes dealerships on four occasions and scheduled a direct meeting with Mercedes’ factory representatives to discuss the problem, even providing Mercedes and its dealerships with photographs and videos of the trunk leak in an effort to help them diagnose the problem. However, Mercedes repeatedly failed to fix the problem, with the leak becoming so bad that water damaged electrical components in the trunk to the point that they were inoperable.

The jury’s verdict included a $10,000 civil penalty against Mercedes for willfully violating the California lemon law, and the release noted that the court will later determine Ataian’s attorney’s fees and costs before being added to the judgment.

Ataian had given Mercedes a reasonable chance to fix the defect, but the violation of California lemon law was when the dealership failed to fix the vehicle and refused to repurchase it. Have you had a similar experience with your last car purchase? If you believe you have been a victim of auto dealership fraud, contact our California lemon law lawyers today to get a free evaluation of your case.

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