Bill > S2048

Introduced Session

This bill requires a car dealer to provide information to any potential buyer of a used motor vehicle with outstanding recalls. The bill also limits the attorneys' fees available in certain consumer actions. The bill makes it an unlawful practice under the consumer fraud act, P.L.1960, c.39 (C.56:8-1 et seq.), for a dealer to sell a used vehicle without first contacting, or accessing information provided by, the vehicle manufacturer or the National Highway Traffic Safety Administration (NHTSA) to determine if there are any recalls on the used vehicle which have not been corrected or addressed. In the event that a recall is discovered, the dealer would inform the prospective purchaser about the recall, and whether the recall work for that particular vehicle was resolved, if known, prior to finalizing the sale of the vehicle. The bill also provides that a dealer may not sell or transfer a used motor vehicle that is subject to a "stop sale" or "do not drive" or similar designation from the NHTSA. Additionally, the bill provides that there is an irrebuttable presumption that a dealer has no knowledge of the existence of a prior recall on a used vehicle if that dealer accessed the NHTSA website and, after the dealer input the specific vehicle identification number (VIN), the website indicated that no open recall existed for that particular vehicle. This provision would not: (1) create any legal duty upon a dealer related to the accuracy, errors, or omissions of the NHTSA website; or (2) require a dealer to provide the prospective purchaser with any recall information that may be added to the NHTSA website, after the dealer prints a copy of the recall information and provides it to the prospective purchaser of the used vehicle. The bill defines a motor vehicle "dealer" as a person who is actively engaged in the business of buying, selling or exchanging new or used motor vehicles at retail. For the purposes of the bill, "at retail" does not include wholesale sales, sales between dealers, and sales to owners or operators of motor vehicle junk businesses or motor vehicle junk yards, or any other persons or entities engaged in the business of dismantling, destroying, or recycling motor vehicles. Under the bill, any person who suffers any ascertainable loss of moneys or property, real or personal, as a result of the use or employment by a dealer of any method, act, or practice declared unlawful under the consumer fraud act may bring an action or assert a counterclaim therefor in any court of competent jurisdiction. In any action under the bill, the court shall award compensatory damages sustained by any person in interest. In any action under the bill in which the court finds an egregious violation of the consumer fraud act the court may award threefold the damages sustained by any person in interest. In all actions under the bill, including those brought by the Attorney General, the court may also award reasonable attorneys' fees, up to thirty percent of the amount of damages awarded the person in interest, filing fees and reasonable costs of suit. The bill creates an irrebuttable presumption that the consumer received a copy of the signed contract documents related to an automobile purchase, if the consumer acknowledged receipt of the signed contract documents with the consumer's signature. The bill provides that these damages are the exclusive remedy for a person bringing an action or counterclaim against a dealer pursuant to the consumer fraud act. Requires dealerships to notify buyers of recalls on used motor vehicles for sales; limits attorneys' fees in certain consumer actions.

Committee Categories

Jim Beach (D)*, 

Introduced in the Senate, Referred to Senate Commerce Committee (on 03/16/2020)

Official Document