Page 39 - GIADA-Oct 2017-Final

THE CARLAWYER ©

Practices Act and engaged in fraudulent interest for the advertised price and only and competitors by drawing in customers
misrepresentation. The trial court ruled those additional charges that had been with substantially lower prices than other
in favor of Freeman, awarding her both disclosed. A Better Way failed to explain dealers and then requiring customers to
compensatory and punitive damages, and that the deposit would be nonrefundable buy extras to ensure that A Better Way still
A Better Way appealed. if it offered any financing on any terms, makes a profit. Freeman v. A Better Way
including terms that required Freeman to Wholesale Autos, 2017 Conn. App. LEXIS
The Appellate Court of Connecticut purchase services she did not want or to 287 (Conn. App. July 18, 2017)
affirmed the trial court’s decision. In pay more than the advertised price.
finding that A Better Way violated the So there’s this month’s roundup! Stay legal,
CUTPA, the appellate court noted that A As further support for its finding of and we’ll see you next month. n
Better Way expressly represented the cost of unfairness, the appellate court found that A
the vehicle, that there would be additional Better Way violated the public policy of the Tom (thudson@hudco.com) is Of Counsel
costs for sales tax, conveyance fees, a VIN Truth in Lending Act by failing to disclose and Nikki (nmunro@hudco.com) is a partner
etch fee, registration, and unspecified the financing terms to Freeman before in the law firm of Hudson Cook, LLP.
finance charges, and that Freeman’s deposit requiring a substantial nonrefundable Tom has written several books and is the
would be returned if financing could not be deposit and violated Connecticut publisher of Spot Delivery®, a monthly legal
obtained. The appellate court concluded advertising regulations by failing to sell the newsletter for auto dealers. He is Editor in
that these representations implied that there car for the price advertised. The appellate Chief of CARLAW®, a monthly report of legal
would be no other mandatory charges and court also found that A Better Way acted developments for the auto finance and leasing
that a legal rate of interest would be charged unethically by requiring Freeman to either industry. Nikki is a contributing author to the
and were made for the purpose of inducing forfeit her deposit or accept financing F&I Legal Desk Book and frequently writes
Freeman to pay a substantial cash deposit. terms that included unwanted products for Spot Delivery. For information, visit www.
Freeman reasonably interpreted these and services or a higher price for the car counselorlibrary.com. © CounselorLibrary.
representations to mean that her deposit than what was advertised. com 2017, all rights reserved. Single
would be refunded if financing could not Finally, the appellate court found that A publication rights only, to the Association.
be obtained for the vehicle at a legal rate of Better Way’s conduct harmed consumers (9/17). HC# 4822-5260-6286

GIADA Independent Auto Dealer OCTOBER 2017 | 37