• Blog >
  • State Sues Huntington Used-Car Dealer, Alleging Warranty Violations

State Sues Huntington Used-Car Dealer, Alleging Warranty Violations

Parents looking at car on forecourt with daughter, smiling Repeated complaints have prompted the state to file an action against a used-car dealer that alleges numerous violations of the stateโ€™s Consumer Credit and Protection Act. West Virginia Attorney General Patrick Morrissey announced in August 2016 that his office took this step against Dunfeeโ€™s Used Cars in Huntington after the business was cited for a series of compliance issues dating back several years.

The charges against Dunfeeโ€™s include underlying allegations that are often made by unhappy car buyers:

  • Defective vehicles โ€” Automobiles must be sold in a condition sufficient to pass state inspection to satisfy the warranty of merchantability. The stateโ€™s complaint alleges that Dunfeeโ€™s sold vehicles that were not suitable for road use under West Virginia law.
  • Failure to display car buyer guides โ€” All used vehicles must post disclosure documents referred to as โ€œBuyerโ€™s Guidesโ€ on the outside of all vehicles, per Federal Trade Commission rules. The absence of these materials on cars sold by Dunfeeโ€™s is characterized by the attorney generalโ€™s office as an โ€œunfair or deceptiveโ€ trade practice according to the West Virginia Code.
  • Improper warranties โ€” Car dealers are required to use legally required language for warranties. Dunfeeโ€™s purported alteration of these terms purportedly broke state law even if the buyer agreed to the revised terms.

This strong move is predicated on Dunfeeโ€™s alleged violation of the 2010 Assurance of Discontinuance that the auto dealer executed with the attorney generalโ€™s office. The complaint states that the second Assurance of Discontinuance was agreed to in 2015, under which Dunfeeโ€™s agreed to correct contract language in accordance with state law.

In the lawsuit, the state seeks civil penalties of $5,000 for each violation in addition to restitution for aggrieved consumers. With the possibility of such severe sanctions, qualified advice regarding complex state regulations is necessary to operate a business that sells vehicles. This is especially true for dealerships already operating under an Assurance of Discontinuance.

Pullin, Fowler, Flanagan, Brown & Poe, PLLC has represented automobile dealers in hundreds of lawsuits and thousands of claims involving fraud, breach of expressed warranty, and other actions. To schedule a consultation, call 304-344-0100 or contact us online.