24 QUESTION 7: My customer has informed me that he is “revoking acceptance” of the new car that he purchased. What does this mean, and how can I contest it? Under Section 2-608 of the Uniform Commercial Code, revocation of acceptance is provided as an extraordinary remedy to a car buyer. The remedy is available only when the product’s non-conformity substantially impairs the product value to the buyer. While “substantially impairs” is an undefined term, the courts are given wide discretion in this area. The issue is to be judged from the perspective of the buyer, and might well include consideration of diminished value, as well as market value. The UCC clearly provides that revocation must be taken within a reasonable time after the buyer discovers or should have discovered the ground for it and before any substantial change in the condition of the goods, which is not caused by their own defects. It is possible to contest revocation on the theory that although the condition of the car may not have changed much in the physical sense, its value on the marketplace will already have declined appreciably since it is a secondhand car. However, if a buyer is successful in revoking acceptance, he is entitled to have refunded the entire retail price plus perceived monetary damages. QUESTION 8: May I do a direct mail campaign wherein a coupon is offered to further discount a vehicle for sale? No. This offer would be in violation of two Illinois provisions. The first, Section 475.530 of the Illinois Administrative Rules on Motor Vehicle Advertising, prohibits cash rebates, including, without limitation, a payment or an offset to a consumer or a payment to a dealer or a third party on behalf of the consumer on the condition that the consumer purchase or lease a motor vehicle, unless it is funded solely by the manufacturer pursuant to a manufacturer’s rebate program. Additionally, the Illinois Consumer Fraud and Deceptive Business Practices Act regulates “coupons.” It prohibits the use of any coupon offered in connection with a retail sale where the price is arrived at through bargaining or negotiation. QUESTION 9: May I send out a direct mail piece targeting customers who have filed for bankruptcy? This issue is covered by the Loan Advertising to Bankrupts Act. That Act provides that no person engaged in the business of making loans or selling property or services under installment contracts may include in any solicitation of or advertisement for such business any language stating or implying that a loan or extension of credit will be made to a person who has been adjudged a bankrupt. Accordingly, a dealer should avoid the use of the words “bankrupt,” “bankruptcy” and the like. It is permissible to imply that credit will be made to consumers who have “bad credit” or the like. Fines for violating this provision can amount to up to $1,000 for each person the advertisement reaches.
RkJQdWJsaXNoZXIy MTg3NDExNQ==