NEW JERSEY USED CAR INSPECTION FREQUENTLY ASKED QUESTIONS

New Jersey used car fraud can take many forms. The inspection law isn’t intended to point out each and every situation that might result in a court finding that a New Jersey used car dealer committed fraud. If a dealer commits fraud involving a customer’s right to repairs or a refund for a used vehicle that fails to pass inspection, the customer may prove that they have a claim separate from or in addition to a used car inspection law claim. For example, any of the following affirmative acts committed by a New Jersey used car dealer might support a New Jersey Consumer Fraud claim or breach of contract claim or breach of warranty claim against the dealer:

• “Unconscionable commercial practice” - an activity which is basically unfair or unjust which materially departs from standards of good faith, honesty in fact and fair dealing in the public marketplace. To be unconscionable, there must be factual dishonesty and a lack of fair dealing.
• “Deception” - conduct or advertisement which is misleading to an average consumer to the extent that it is capable of, and likely to, mislead an average consumer. It does not matter that at a later time it could have been explained to a more knowledgeable and inquisitive consumer. It does not matter whether the conduct or advertisement actually have misled the customer. The fact that the business may have acted in good faith is irrelevant. It is the capacity to mislead that is important.
• “Fraud” - a perversion of the truth, a misstatement or a falsehood communicated to another person creating the possibility that that other person will be cheated.
• “False pretense” - an untruth knowingly expressed by a wrongdoer.
• “False promise” - an untrue commitment or pledge, communicated to another person, to create the possibility that that other person will be misled.
• “Misrepresentation” - an untrue statement made about a fact which is important or significant to the sale/advertisement, communicated to another person to create the possibility that other person will be misled. A “misrepresentation” is a statement made to deceive or mislead.

For any of the above affirmative acts, it is not necessary for liability under the New Jersey Consumer Fraud Act that a person actually be misled or deceived by another’s conduct. It is not necessary for the customer to show that the business intended to deceive. What is important is that the affirmative act must have had the potential to mislead or deceive when it was performed. The capacity to mislead is the prime ingredient of affirmative consumer fraud claims Proof of intent is not necessary an essential element for these affirmative acts

A business may also be found liable for violating the New Jersey Consumer Fraud Act if the business knowingly concealed, hid/suppressed, kept something from being known/omitted, or left out or did not mention an important or significant fact purposely or with the intent that others would rely on that concealment/suppression/omission in connection with the sale/advertisement of any merchandise. For these acts of omission, a person acts “knowingly” if he/she is aware that his/her conduct is of a nature that it is practically certain that his/her conduct will cause a particular result. He/She acts with knowledge, consciously, intelligently, willfully or intentionally. To “conceal” is to hide, secrete, or withhold something from the knowledge of others or to hide from observation, cover or keep from sight or prevent discovery of. “Concealment” is a withholding of something which one is bound or has a duty to reveal so that the one entitled to be informed will remain in ignorance. To “suppress” is to put a stop to a thing actually existing, to prohibit or put down, or to prevent, subdue, or end by force. “Suppression” is the conscious effort to control or conceal unacceptable impulses, thought, feelings or acts. A person acts “purposely” if it is his/her conscious object to engage in conduct that of a certain nature or cause a particular result and he/she is aware of hopes or believes that the attendant circumstances exist. “Intent” is a design, resolve, or determination with which a person acts. It refers only to the state of mind existing when an act is done or omitted. It is not necessary that any person be, in fact, misled or deceived by another’s conduct. What is important is that the business must have meant to mislead or deceive when he/she/it/they acted. The fact that the business acted knowingly or with intent is an essential element of acts of omission and knowledge or intent must be shown. Where the alleged consumer fraud can be viewed as either an omission or an affirmative act, the business is liable for the conduct as an omission only where defendant committed a consumer fraud by omission and intent is shown.

If a consumer proves that a used car dealer violated the New Jersey Consumer Fraud Act, the consumer may be able to recover the following remedies against the dealer:

• Treble damages for an ascertainable loss of money or property caused by the New Jersey Consumer Fraud Act Violation.
• Attorney’s fee award for prosecuting the claim.
• Cancellation of fraudulent debts.
• Refund of money lost due to the New Jersey Consumer Fraud Act Violation.