The New Jersey State Bar Association conveyed its appreciation for significant amendments to A4380 (Coughlin), which establishes the Motor Vehicle Open Recall Notice and Fair Compensation Act. The Association recommended that the sponsors consider banning the sale of used cars with open recalls altogether to make the bill more consumer friendly, but testified in support of amendments that removed the most problematic provisions.
“While this bill primarily addresses the interactions between motor vehicle franchisors and franchisees, it contains provisions that will negatively impact consumers who purchase vehicles,” the NJSBA said in a letter to the sponsors regarding the original language in the bill. “We urge you to examine this unintended impact and consider making changes to the bill.”
The Assembly Consumer Affairs Committee substitute to the bill removes the most problematic portions of the bill, which created an irrebuttable presumption shielding franchisees and dealers from consumer claims regarding the condition of used vehicles that are the subject of an unrepaired manufacturer recall, whether the dealer has actual knowledge of a defective or dangerous condition.
The NJSBA pointed out that dealers are in a far better position to deal with repairs associated with recalls and therefore the sale of used cars with open recalls should be prohibited. The amendments by the sponsors make the bill more consumer friendly by removing the irrebuttable presumption and clarifying the role of trade association standing in disputes regarding motor vehicle recalls.
Assisting the NJSBA in its testimony was former NJSBA Consumer Protection Law Special Committee Chair David Ricci, who appeared on behalf of the NJSBA before the committee. The bill was passed out of committee unanimously and awaits a full vote in the Assembly. It remains pending in the Senate Transportation Committee.