There are many federal and state statutes that prevent car dealers from engaging in fraud and misrepresentation. Here’s how to sue a car dealer for misrepresentation in California.
California Law
California Vehicle Code 11713 states that a licensed car dealer is prohibited from advertising through false or misleading statements. Car dealers are prohibited from advertising a used car as new, a car they do not have, and misrepresenting or concealing a vehicle’s former ownership history and prior use.
California Lemon Laws
These California lemon laws protect consumers from purchasing cars from a fraudulent car dealer:
- The Car Buyer’s Bill of Rights
- The Consumer Legal Remedies Act
- The Song-Beverly Consumer Warranty Act, and
- The Business and Professions Code
Lemon Laws generally cover new and used vehicle sales in California. Lemon laws apply to:
- Cars
- Trucks
- Vans
- SUVs
Suing a Car Dealer for Misrepresentation
California Civil Code 3294 explains that a plaintiff in a civil lawsuit could obtain punitive damages. A civil lawsuit would allow the plaintiff to obtain damages for their losses, including returning the vehicle and obtaining some or all of the money used to purchase the vehicle, and require the car dealer to pay for the cost of the lawsuit.
When a Plaintiff Can Recover Damages
The plaintiff is able to recover damages if the defendant has engaged in fraudulent behavior. Fraud is defined as “intentional deceit, misrepresentation, and intentional concealment of material facts.” There is no cap on the amount of exemplary damages that a defendant can obtain in a California auto dealer lawsuit. The judge decides on the punitive damages awarded to the defendant based on if the:
- conduct resulted in physical harm
- car dealer disregarded the safety and health of the consumer
- car dealer took advantage of the plaintiffs financially unstable state
- car dealer has a pattern of fraudulent behavior
- car dealer acted deceitfully
Related: How to Sue Someone in Small Claims Court
Filing a Civil Lawsuit
A civil lawsuit can be broken down into a simple seven-step process:
- Identify the name of the defendant
- In this case, the name of the person and the business or corporation would be necessary.
- Ask for payment
- Make an official request from the car salesman for payment due to the misrepresentation.
- Find the right court to file your claim
- File a claim at your local courthouse
- Fill out your court forms
- Obtain all the proper court forms and make three copies of each form
- File your claim
- Officially file your claim with the court once all the documents are properly filled out.
- Serve your claim
- Serve your claim to the defendant
- Go to court
- Go to court on the time and day provided to you by your local court when filing
Related: Civil vs. Criminal Law: The Difference
FAQS
How do I identify if my car dealer was behaving in a fraudulent manner?
A car dealer is fraudulent if they purposefully misrepresented, withheld, or tricked the consumer into buying the vehicle.
What is the statute of limitations if I want to sue my car dealer?
Victims of car dealer misrepresentation have three years to file a lawsuit in the state of California.
Can I also sue the car manufacturer if faulty car mechanisms resulted in an accident?
If the car dealer did not have access to the information that made the car a potential hazard, then a lawsuit against the car manufacturer can be pursued instead.
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