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What Constitutes a Misrepresentation Claim?

Four wheel drive vehicles at a dealership
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As an auto dealership, you need to be familiar with your legal rights and local responsibilities. During the course of business, you may find yourself, your employees, or your business accused of misrepresentation or unfair business practices.

What Does Misrepresentation Mean During an Auto Sale?

If you or your business is found to be making false or misleading statements to close a sale, you could be sued for misrepresentation. Misrepresentation could also happen if you stated a vehicle was accident-free when, in fact, it was not. It could also occur before a sale or contract happens if a potential customer feels misled by an advertisement you were running.

You could be sued for misrepresentation even if the details were not something you were consciously aware of, you did not mean to be deceitful, or you were unaware of the lie or discrepancy.

Buyer’s Bill of Rights

In California, auto dealership customers are protected under the Car Buyer’s Bill of Rights. These rights protect the buyer and require dealerships to disclose specific information about the sale. If you’re unsure about the laws and regulations regarding the California Car Buyer’s Bill of Rights, our attorneys are here to help. We can ensure your sales process aligns with the state’s requirements and that you’ve satisfied your legal obligations.

How Can I Avoid Accidental Misrepresentation?

Dealing with misrepresentation accusations can be scary, especially when you know you were not purposefully trying to deceive your customers. Having a meeting with a skilled auto dealership attorney can help ensure you’ve got you and your team educated and following best practices as well as rules and regulations.

In addition, keeping a lawyer on retainer can help if any issues arise or to be there to help you navigate any new laws or rules as they come into action. At Chung & Ignacio, LLP, we offer free consultations and are ready to chat whenever you need us. We’re here to help you navigate through all your business law matters.

If you would like to speak to one of our lawyers today, please contact us. Our offices are open, and we’re looking forward to hearing from you.