Whoa!

[Joe Handley]

I saw this article last night, wouldn't want to be on the hook for what appears to be a well deserved ruling

https://jalopnik.com/northwest-arkansas-dealership-loses-lawsuit-has-to-pay-1831466625

Now for a quick recap, Arkansas dealer sells Virginia man a Ferrari that supposedly had clean Pre-Purchase inspection without him going to look at the car. He notices a gasoline smell and takes it to shop that specializes in these kinds of cars and they find a leaky fuel pump (gasoline leak), cracked exhaust manifold (CO leak), and suspension problem (not sure how bad). Buyer sues dealer and wins to the tune of $5m!

[iamsuperdan]

Standard stuff around here!

We have an organization called AMVIC - Alberta Motor Vehicle Industry Council. Every dealership, repair shop, sales person, business office person...all must have an AMVIC license. There are definite rules about selling vehicles. These range from how a dealership can markwet and advertise a vehicle, to the inspections that must be completed, documented, and signed off on by the customer. 

Failure to comply results in massive fines and penalties. 

I'm in the industry, and I agree with the program. Helps to reduce the number of shady backyard mechanics and those grubby used car lots. 

 

In your example above, if that had happened here, the delaership owuld have had to complete a the highly involved AMVIC inspection and would have had to show the inspection to the customer at the time of delivery. The customer must sign off on the inspection, indicating that they have seen it and are aware of any issues. The delaership wouldn;t have been obliged to make the repairs, but are obligated to inform the customer of all issues. 

 

If consumers feel they have been ripped off or taken advantage of, they can contact AMVIC, who will open an investigation. If found guilty, I've seen delaerships lose their business license and face huge fines. Salespeople or mechanics can lose their license, meanign they can no longer work in this province, plus they face monetary fines. ANd in some cases, it becomes a legal matter. 

 

Consumer protection.

 

[espo]

I worked in various auto dealerships for over 30 years and two different states. I know in every state I worked in there was, and should be, many safety items along with emission equipment and general operation that was a dealer's responsibility whether the vehicle is sold "as is" or with any other type of guarantee. The $5 million in punitive damages does seem high, but remember we weren't in the court room so you don't know everything that went on. At the very least the buyer should get his money back and something for his trouble, but $ 5m does seem a lot out there. I'm sure the state fined the dealer big time and if this is a pattern the dealer could lose his license in that state.     

[Joe Handley]

I kinda figure that $5m must have been due to the number of potentially fatal issues the car was delivered with.  Just the two different "gas leaks"  alone could be fatal in a vehicle that is not going anywhere, but throw in any potential handling issues, that could create a trifecta of fails that could cause mayhem if they tag teamed the driver.

[vintagercr]

I wonder how much of that $5 million lawyers got

[JJ Deuce]

33 minutes ago, vintagercr said:

I wonder how much of that $5 million lawyers got

I didn't see where the judgment occurred but I can say, in Texas, if a case goes to trial, the fee is generally 40%.

[Mike 1017]

You buy an used Ferrari from a Ferrari dealer You buy A used Ford Fiesta from a Ford dealer.

[Joe Handley]

1 hour ago, Mike 1017 said:

You buy an used Ferrari from a Ferrari dealer You buy A used Ford Fiesta from a Ford dealer.

And could be the same people you buy both from, the Mercedes dealer that sold that death trap is one of those Auto Groups that sells multiple brands and there are people in the comments of that storie that have been screwed over by that group when buying lesser cars.

[oldcarfan]

I wonder if there were extenuating circumstances? I remember there was a dealer a few years back that lost a big suit like this and then played the victim on tv and with the local congressman. Someone did a little digging and found out that they had had a lot of similar suits against them and they always changed their name and kept on selling cars with problems.

[Joe Handley]

5 minutes ago, oldcarfan said:

I wonder if there were extenuating circumstances? I remember there was a dealer a few years back that lost a big suit like this and then played the victim on tv and with the local congressman. Someone did a little digging and found out that they had had a lot of similar suits against them and they always changed their name and kept on selling cars with problems.

Apparently this dealer group (multiple brands) tends to play dirty with all sorts of brands and maybe when in combination with that, as well as selling  car that could burn down and potentially taking a home with it, had an exhaust gas leak that could cause CO poisoning and who knows how much havoc that could create, as well having a suspension problem that was also serious enough to be a significant part of this lawsuit on top of all that to a sucker out of state by misrepresenting it to him and the broker he worked with.

While not so instant, Kharma will hopefully be visited on this group in full.

[Rob Hall]

Seems pretty stupid for someone living in Virginia to buy a car sight unseen from a dealer in Arkansas...I couldn't imagine buying a vehicle remotely like that, regardless of price.

[Joe Handley]

53 minutes ago, Rob Hall said:

Seems pretty stupid for someone living in Virginia to buy a car sight unseen from a dealer in Arkansas...I couldn't imagine buying a vehicle remotely like that, regardless of price.

It's surprisingly common, don't know why. I would want to go drive it myself before laying money on it.

[iBorg]

Hmmmmm........I'm in a market for a car that's unusual for my area, an Audi TT. The nearest one for sale that is interesting is four hours away. I go with cahs in hand with intent to drive it home. For upper echelon cars not unusual. You know what you want, and how you want it equipped. You've driven similar. Its been checked by a certified mechanic. Not that unusual.

[Rob Hall]

I know people that have done it, but I’d still rather buy local..