Registrar's Decision 06-70726

Issues:

• Dealer sold vehicle to consumer as having air conditioning (A/C).
• Console showed A/C button that light up when pressed. Salesperson demonstrated vehicle as having A/C. Factory installed wrong console piece and that there was no A/C equipment under hood. Dealer admitted missing this fact when it inspected vehicle after delivery from factory and before selling to consumer.
• Consumer asked Dealer to fix the problem. Dealer offered several options. All but one of the options required the consumer to enter into a new and different agreement than the original, all to the consumer’s disadvantage. Dealer said it could not unwind the transaction as no “program” was available to offer to the consumer.
• For 10 months, the Dealer held out that installing A/C in the car was an option. Dealer failed to make due inquiries about the availability of A/C parts. The Dealer failed to tell the consumer it was unlikely an A/C kit would become available for the vehicle. There was a knowledge imbalance, with the Dealer in a superior position.

Outcome:

• Dealer’s conduct was found to be a deceptive act.
• Dealer ordered to unwind the transaction and refund the consumer all monies she paid towards the car, including the down payment.
• Due to the Dealer’s conduct, there would be no deduction for mileage.
• Dealer ordered to reimburse the VSA for investigation and hearing costs.
• Dealer ordered to pay a $3000.00 Administrative Penalty.

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