DO YOU THINK YOU BOUGHT A LEMON BOAT?

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INTRODUCTION

This article discusses buying a defective boat and what you can do about it under the New Jersey Law.

DID YOU BUY A DEFECTIVE BOAT?

If you bought a new boat in New Jersey and that boat has been at the manufacturer’s marina for repeated repairs for the same problem or there for a long period of time, you might qualify for help under New Jersey and Federal laws. There is no New Jersey Boat Lemon Law. However, that doesn’t mean you have no rights! The buyers of defective boats can seek relief under New Jersey warranty law and the Federal Warranty Law.

WHAT KINDS OF WARRANTIES TYPICALLY COME WITH BOATS?

If you bought a new boat in New Jersey, the manufacturer of the boat most likely issued you an express written warranty at time of purchase contained in a booklet. An express warranty is:

  • any description of the boat;
  • that the boat meets that description; and
  • which is made part of the basis of the parties’ bargain; or
  • any sample or model which is made part of the basis of the parties’ bargain;
  • creates an express warranty that boat or other product shall meet the sample or model’s description.

For an express warranty to be created, it is not necessary for a seller to use formal words such as ‘warranty’ or ‘guarantee’ or that the merchant have a specific intention to make a warranty. However, if a seller merely makes a representation about the value of the boat or a statement claiming to be merely the merchant’s opinion or recommendation about the boat, such representations or statements do not create an express warranty.

HOW DO I PROVE A NEW JERSEY BREACH OF EXPRESS WARRANTY BOAT CASE?

A New Jersey breach of express warranty boat case requires the boat buyer or a person with a right to enforce the boat warranty (whether a consumer or business) to prove that:

  • The boat buyer or other person was provided with an express warranty by a merchant.
  • The boat buyer did what the warranty required them to do to do.
  • The merchant issuing the warranty did not do what the warranty required them to do, thereby breaching the warranty;
  • The breach of warranty was material – not something minor or unimportant; and
  • Within a reasonable time after the buyer discovers or should have discovered any breach, the buyer notified the seller of breach.
  • As a result of the breach, the value of the goods was substantially impaired.

In a New Jersey breach of express warranty boat case, the boat buyer claims that boat or other product did not meet the merchant’s factual claims or promises. Any factual claims or promises that seller makes to the boat buyer about boat or other product offered for sale and that become part of the basis of the parties’ bargain create a express warranty that boat or other product would meet the merchant’s factual claims or promises. From buyer’s standpoint the very purpose of the warranty is to provide goods that conform to the warranty and do so in an appropriate time. If the boat undergoes repairs under a warranty by its manufacturer or seller for a defect and they cannot fix the defect in a reasonable period of time, the boat buyer may lose the substantial benefit of the boat buyer’s purchase and that consumer may be entitled to seek damages against the merchant. For example, suppose you buy a boat sold with a manufacturer’s warranty, its engine light comes on and you take the boat to the manufacturer’s marina 3 times for that problem to be fixed but after 3 times, the problem is still present. You may be able to sue the manufacturer for money damages because they failed to fix the problem after a reasonable opportunity to do so.

WHAT IS AN IMPLIED WARRANTY OF MERCHANTABILITY?

Under the implied warranty of merchantability, a boat must be reasonably fit for the general purpose for which it is manufactured and sold." Merchantability means "that the article sold should be of the general kind described and reasonably fit for the general purpose for which it should have been sold." For example, a boat should provide safe and reliable transportation on waterways. When a manufacturer of a boat offers for sale and promotes the purchase of a boat, an implied warranty that it is reasonably suitable for its ordinary use automatically arises.

HOW DO I PROVE A BREACH OF IMPLIED WARRANTY OF MERCHANTABILITY BOAT CASE?

To prove a breach of implied warranty of merchantability boat case, the boat buyer must prove:

  • The boat buyer purchased goods as defined by the Uniform Commercial Code.
  • The merchant selling the goods was a merchant with respect to goods of that kind.
  • There existed no valid exclusion or modification of an implied warranty of merchantability.
  • The goods weren’t fit for the ordinary purposes for which such goods are used.
  • Within a reasonable time after the buyer discovers or should have discovered any breach, the buyer notified the seller of breach.
  • As a result of the breach, the value of the goods was substantially impaired.

WHAT IS AN IMPLIED WARRANTY OF FITNESS FOR PARTICULAR PURPOSE?

Under the implied warranty of fitness for a particular purpose, an implied warranty that a boat, truck, recreational boat, a boat or other product is fit for a particular purpose arises when:

  • a buyer enters into a contract for the sale of the boat.
  • the dealer knows or should know that the boat buyer requires boat or other product for a particular purpose; and
  • the boat buyer is relying on the merchant’s skill or judgment to pick or provide suitable goods.

For an implied warranty of fitness for a particular purpose to exist, the boat buyer must actually rely on the dealer’s skill or judgment rather than the boat buyer relying on their own skill or judgment in buying boat or other product.

HOW DO I PROVE A BREACH OF IMPLIED WARRANTY OF FITNESS FOR A PARTICULAR PUPOSE BOAT CASE?

To prove a breach of implied warranty of fitness for a particular purpose boat case, the boat buyer must prove:

  • The buyer purchased goods as defined by the Uniform Commercial Code.
  • The seller at the time of contracting has reason to know any particular purpose for which the goods are required and that the buyer is buying on the seller’s skill or judgment to select or furnish suitable goods.
  • The buyer relied on the seller’s skill or judgment to select or furnish suitable goods.
  • There existed no valid exclusion or modification of an implied warranty that the goods shall be fit for such purpose.
  • The goods were not suitable for the buyer’s particular purpose for which the goods are required.
  • Within a reasonable time after the buyer discovers or should have discovered any breach, the buyer notified the seller of breach.
  • As a result of the breach, the value of the goods was substantially impaired.

WHAT IS THE SUBSTANTIAL IMPAIRMENT TEST IN NEW JERSEY BREACH WARRANTY BOAT CASES?

In a New Jersey breach of warranty boat case, the threshold test for whether a consumer can reject the boat and seek money damages is whether boat or other product’s defect substantially impairs the value of the goods to the buyer. Under the substantial impairment test, whether a defect or nonconformity substantially impairs the use or value of the subject boat is not measured by a purely objective standard. Instead, when making such a determination, the factfinder must consider the viewpoint of the buyer and the buyer’s circumstances and decide whether a reasonable person in the buyer’s position would have believed that the defects or nonconformities substantially impaired the boat’s value. Accordingly, the substantial impairment test is a combination of a subjective and objective test rather than merely an objective one. The mixed subjective/objective test allows the factfinder to consider a consumer’s reasonably shaken confidence in the boat as a factor in determining if the substantial impairment test is met. The standard is subjective or personal in the sense that the facts must be examined in the viewpoint of the buyer and her circumstances but the standard is objective in the sense that the criteria is what a reasonable person in the buyer’s position would have believed. Under warranty law, the boat’s value is substantially impaired if its defects affect its value in some serious way, such as by reducing its appraised value for resale. In that situation, the substantial impairment is met.

WHAT MIGHT A CONSUMER HAVE TO DO BEFORE CLAIMING THAT A BREACH OF WARRANTY OCCURRED?

If boat or other product does not meet the terms of a warranty, the boat buyer often must give the merchant notice of that fact within a reasonable time after the boat buyer discovered or should have discovered that boat or other product did not meet the terms of the warranty. When the boat buyer should have discovered that boat or other product did not meet the merchant’s factual claims or promises depends on all the facts and circumstances, including the nature of the defect, the time when boat or other product was put in use and whether the nonconformity was discoverable by customary and reasonable inspections. The boat buyer’s notice to a merchant of a defect is normally sufficient if it informs the merchant that the boat buyer claimed that boat or other product was defective. If the boat buyer gives the merchant this notice in a reasonable time after the boat buyer discovered or should have discovered the defect, then the merchant committed a breach of express warranty and is responsible for paying the damages that the breach of express warranty caused the boat buyer to suffer.

WHAT REMEDIES ARE AVAILABLE TO BREACH OF WARRANTY VICTIMS?

In many New Jersey breach of warranty boat cases, a consumer may recover the following remedies from the merchant that breaches a warranty:

  • All money paid to date to purchase the boat, less a deduction for use of the boat.
  • Attorney’s fees.
  • Litigation or arbitration costs.

IF YOU PROVE A BREACH OF WARRANTY, YOU MAY BE ABLE TO RECOVER AN AWARD OF ATTORNEY’S FEES AND COSTS UNDER THE FEDERAL WARRANTY LAW

The Federal Warranty Act is the federal government law regulating consumer product warranties. Passed by Congress in 1975, the Act requires manufacturers and sellers of consumer products to provide consumers with detailed information about warranties before and after selling a product covered by a warranty. If consumers are the victim of a Federal Warranty Act violation, the Act gives them certain remedies. A consumer who is damaged by the failure of a supplier, warrantor, or service contractor to comply with any obligation under the Act or under a written warranty, implied warranty, or service contract, may bring New Jersey breach of warranty boat case for damages and other legal and equitable relief—in any court of competent jurisdiction in any State or the District of Columbia; or in an appropriate district court of the United States, subject to certain exceptions stated in the Act. If a consumer finally prevails in a New Jersey breach of warranty boat case, the boat buyer may be allowed by the court to recover as part of the judgment a sum equal to the aggregate amount of cost and expenses (including attorneys’ fees based on actual time expended) determined by the court to have been reasonably incurred by the plaintiff for or in connection with the commencement and prosecution of such action, unless the court in its discretion shall determine that such an award of attorneys’ fees would be inappropriate.

WHAT IS THE BEST WAY TO START MY BOAT WARRANTY CASE?

If you think you bought a defective boat, you may be able to file a court case. If the manufacturer or its authorized marina is unable or unwilling to fix the boat within a reasonable period of time, the boat buyer or lessee may be able to file a case against the manufacturer in the Superior Court of New Jersey. If the boat buyer or lessee wins the lawsuit, the boat buyer or lessee can recover a boat refund in the form of money damages and reasonable attorney's fees, expert witness fees, certain repair and boat rental costs and certain court costs, including the fees for filing the New Jersey Warranty case.

IF I THINK I BOUGHT A DEFECTIVE BOAT, WHAT SHOULD I DO NEXT?

If you think you bought a defective boat, get a no obligation phone consultation with a New Jersey warranty lawyer before coming to any conclusions about your New Jersey breach of warranty boat case. Do not try to interpret the law by reading a website! If you have a valid warranty case and you do nothing to enforce your rights, you shall be stuck with your defective boat and the manufacturer or warranty provider shall get the best of you. There are strict time limits for perfecting and filing New Jersey Warranty cases. Since warranty laws are such a powerful weapon against manufacturers of lemon boats, seriously consider making a claim under the Law before it is too late to do so.  It can be very dangerous to read websites and conclude that a particular claim does or does not equal a valid Lemon Law claim.  Do not try to interpret the law by reading a website!

TO LEARN MORE, GET A NO OBLIGATION CONSULT

Call Perlman DePetris Consumer Law for a no obligation phone consultation. Handling your case wrong from the beginning may only cost you more money and time in the end!! Try to do it right the first time by seeking legal advice from a competent lawyer! You might be entitled to be represented on a contingent basis, meaning that the attorney won’t get paid unless the New Jersey breach of warranty boat case is successful and that the lawyer gets paid from your recovery instead of requiring you to pay attorney’s fees out of your own pocket up front. Other cases can be handled for a relatively small one-time payment of an up-front fixed attorney’s fee and with a contingent fee at the end of the New Jersey breach of warranty boat case. Filing a claim yourself is very risky, since businesses often hire experienced defense attorneys to fight your case. Also, if you try to negotiate a settlement yourself, you may get less money than you deserve. You should always speak with an attorney before coming to any conclusions about your New Jersey breach of warranty boat case. Do not try to interpret the law by reading a website! Even if the facts of your case don’t fit Consumer Law requirements, you may be entitled to sue a business for a breach of your warranties under other state and federal laws or for a breach of contract or for some other type of claim and you may recover money damages, attorney’s fees and court costs.

DISCLAIMER

While this page gives some general background information, there is the danger that relying on this information alone could lead you to lose your New Jersey breach of warranty boat case. Laws and regulations frequently change and the law may have changed since the posting of this webpage. Factual differences between your case and cases described on this webpage can affect your chance of success. Don’t attempt to rely on the internet as the only source of information for your New Jersey breach of warranty boat case! Instead, get competent legal advice from a New Jersey licensed attorney. Call Perlman DePetris Consumer Law for a no obligation phone consultation.