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NEWARK
-- Foulke Management Corporation (“Foulke”)
which does business as “Cherry Hill
Triplex” and operates Cherry Hill
Dodge, Cherry Hill Jeep Eagle, Cherry Hill
Kia, Cherry Hill Mitsubishi and Mt. Ephraim
Chrysler/Dodge, has agreed to a $750,000 settlement
with the Office of the Attorney General and
the Division of Consumer Affairs.
Pursuant
to the settlement, Foulke has agreed to pay
$450,000 to the state for consumer restitution
and reimbursement of the state’s attorneys’
fees and investigative costs. The settlement
also provides for $300,000 in civil penalties,
which are suspended. The state can seek payment
of the civil penalties if Foulke fails to
adhere to the settlement terms during the
next year. In entering into the settlement,
Foulke made no admissions of liability or
wrongdoing.
“Dealers
who do not deal honestly with the public will
be held accountable,” Attorney
General Anne Milgram said. “We had
been in court on this matter several times,
and were ready to move forward to trial, if
this settlement had not been reached.”
The
settlement resolves the state’s lawsuit
filed on March 13, 2006 that alleged violations
of the Consumer Fraud Act, Motor Vehicle Advertising
Regulations, Used Law Lemon Law and Used Car
Lemon Law Regulations as well as a prior Assurance
of Voluntary Compliance entered into with
the state. Among other things, the state alleged
that the company advertised “$8,000
GUARANTEED FOR YOUR TRADE,” “no
credit check” and “you
instantly qualify, regardless of your
credit,” and then failed to provide
the trade-in allowance or credit. The state
also alleged that the company failed to properly
display prices on new and used motor vehicles.
“This
settlement addresses the consumers who have
previously filed complaints while also protecting
consumers who do business with Foulke in the
future,” said David Szuchman, Consumer
Affairs Director. “We are prepared
to act again on behalf of consumers if any
violations are committed by these dealerships
in the future.”
The
settlement is memorialized in a Final Consent
Judgment in which Foulke has agreed to extensive
injunctive relief and business practices,
which include that the company:
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Not represent an unconditional or guaranteed
promotion (i.e. trade-in allowance) and
then fail to honor the terms of such promotion;
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Not represent that consumers are automatically
approved for or otherwise guaranteed financing,
and then fail to arrange for financing;
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Not represent that a motor vehicle is available
for sale or lease, when the motor vehicle
has been sold or leased;
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In accordance with a prior ruling of the
Court, not offer for sale any motor vehicle
unless the total selling price is plainly
marked on the vehicle or where the vehicle
is offered for sale;
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Shall undertake a search to discern the
prior use (i.e. rental) and/or whether a
motor vehicle has been involved in an accident
or otherwise sustained damage and shall
disclose such information to consumers,
prior to their purchase or lease;
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Shall not represent that certain products
(i.e. GAP coverage) are mandatory, when
in fact they are not;
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Shall not misrepresent the final down payment
or monthly payment that a consumer will
be required to make for the sale or lease
of a motor vehicle in the sales document;
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Shall provide consumers with an opportunity
to review all sales documents before signing
and shall provide them with copies of all
signed sales documents;
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In all advertisements, shall clearly and
conspicuously state all disclaimers, qualifiers
or limitations that in fact limit, condition
or negate a purported unconditional offer;
and
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For all advertised motor vehicles, shall
maintain a copy of all applicable advertisements
and a copy of the executed sales documents
for at least 180 days after the transaction.
In
addition, Foulke agreed to participate in
the Division’s Alternative Dispute Resolution
(ADR) process, for at least the next
year, to address any additional consumer complaints.
Under this process, the Division shall forward
to Foulke any additional consumer complaints
it receives for resolution. In the event the
complaint is not resolved, the consumer has
the option of submitting the matter to binding
arbitration before the ADR Unit.
The
Division will be sending questionnaires to
all consumers who previously have filed complaints
against Foulke, to determine whether the consumers
are entitled to restitution.
Deputy
Attorney General Lorraine K. Rak, Chief of
the Consumer Fraud Prosecution Section, and
Deputy Attorney General Gina M. Betts represented
the state in this action.
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