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Automotive Fraud, Dealer Fraud and Repair Fraud
In California, Dealership Fraud and Repair Fraud are so common that many employees in the automotive business may not even know that their exaggerations or omissions are illegal. Whether intentional or simply through negligence, The California Civil Code protects Auto Buyer's from being misled.
Repair and Dealer Fraud in California applies to all vehicles and transactions and is defined by the Civil Code as follows:
Automobile Sales Finance Act
TITLE 14. LIEN
CHAPTER 2b. AUTOMOBILE SALES FINANCE ACT
California Civil Code Section 2981-2984.4
2981.As used in this chapter,unless the context otherwise requires:
Disclosure of Gray Market Vehicles
A Gray Market Vehicle is a vehicle that is normally sold in the United States with an express written warranty, but has been imported through a channel other than a manufacturer’s authorized distributor, and therefore does not have an express warranty that is valid in the United States.
Yo-Yo Sale, Spot Delivery Fraud and Conditional Delivery Scams
Yo-Yo Sales, Spot Delivery Fraud and Conditional Delivery Scams are one of the most widespread abuses in the automotive industry. This sophisticated form of fraud applies to both leased and purchased vehicles that are being sold as either new or used and is very difficult for most consumers to recognize that they are being defrauded. Yo-Yo Sales, Spot Delivery Fraud and Conditional Delivery Scams always require the buyer signing a second loan or lease agreement.
Negotiating in a Foreign Language Contract Fraud
If a dealership, either orally or in writing, negotiates the sale or lease of a vehicle to a consumer in the Spanish, Chinese, Korean, Tagalog or the Vietnamese language, then the dealership must give that consumer a translation of the Buyer's Guide and the vehicle's final contract in the language that the sale was primarily negotiated in prior to presenting the buyer with a final contract for the sale or lease to sign.
Flood Damaged Cars, Trucks and Vehicles
Submersion in water due to storms, swollen rivers or any sudden flooding can cause extensive damage to vehicles and must be disclosed to potential buyers prior to a sale.
Undisclosed Lemon Law Buyback - Lemon Laundering
If a vehicle was repurchased under the California Lemon Law for a defect by either the vehicle's manufacturer or dealer, then the Vehicle's Manufacturer is required to brand that Vehicle's Title as a "Lemon Law Buyback" and to affix a "Lemon Law Buyback" decal to the vehicle.