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Automobile Fraud: 7.2.3.5 Actual Knowledge Precondition

A state’s new car damage disclosure law may require disclosure only when the dealer has actual knowledge of the damage. Even when the damage occurred prior to the dealer’s receipt of the vehicle, however, it may be possible to show actual knowledge through documents that the manufacturer or transporter provided to the dealer. The manufacturer may also require that the dealer inspect the vehicle for transit damage promptly upon delivery.

Automobile Fraud: 7.2.3.7 Statutes Shield Dealers from Consumer Remedies When Threshold Damage Amount Is Not Reached

Although new car damage disclosure laws are generally useful for consumers when the damage amount to their cars exceeds the threshold disclosure amount, the laws can have the effect of insulating dealers and manufacturers from liability when the threshold is not met. The question is whether cars that are damaged in an amount less than the statutory threshold can still be sold as “new” without disclosure of the damage.

Automobile Fraud: 7.2.5 Dealer Responsibility to Inspect Vehicles

Even if a state does not have a damage disclosure law, if it requires dealers to inspect vehicles there is likely a duty under common law or the state UDAP statute to disclose damage that an inspection revealed or should have revealed. Connecticut,217 Michigan,218 Rhode Island,219 and Wisconsin220 require dealers to inspect used cars before selling them.

Automobile Fraud: 7.4 State Laws Requiring Disclosure of Gray Market Origin

Gray market vehicles are vehicles that are sold in the United States even though they were manufactured for sale elsewhere. They may not meet federal emissions and safety standards.255 As a result, it may be difficult or impossible to title the vehicle in the United States.256 Odometer issues also arise because the odometer must be converted from kilometers to miles when the vehicle is brought into the United States.257

Automobile Fraud: 7.5 State Airbag Laws

Sale of cars without functioning airbags is a growing problem in light of the expense of replacement airbags and their attractiveness to thieves.265 A number of states have enacted laws addressing this problem.

Truth in Lending: 4.2.4.5.1 Overview

Contradictions on the TILA disclosure itself or between the TILA disclosure and other loan documents may also render the disclosures not clear and conspicuous. Lenders or their agents may also provide other information that contradicts or overshadows the TILA disclosures, rendering the TILA disclosures not “clear and conspicuous.”

Federal Deception Law: CALIFORNIA

Cal. Gov’t Code §§ 12650 to 12656 (West) (False Claims Act)

Claims covered by the statute: Include knowingly false statements regarding a claim for payment presented to a state or political subdivision or the state’s grantee or contractor, conspiracy to commit such a violation, failure to return public property or money, and inadvertently submitting a false claim and failing to disclose the false claim after discovery. § 12651(a).

Federal Deception Law: COLORADO

Colo. Rev. Stat. §§ 25.5-4-303.5 to 25.5-4-310 (Medicaid False Claims Act)

Claims covered by the statute: Include knowingly false statements regarding a claim for payment under the “Colorado Medical Assistance Act” presented to a state or state’s grantee or contractor, failure to return public property or money, knowing purchase of public property from state officer or employee in connection with the “Colorado Medical Assistance Act” who lawfully may not sell the property, and conspiracy to commit a violation. § 25.5-4-305(1)(a)–(g).

Federal Deception Law: CONNECTICUT

Conn. Gen. Stat. §§ 4-274 to 4-289 (False Claims and Other Prohibited Acts Under State-Administered Health or Human Services Programs)

Federal Deception Law: DELAWARE

Del. Code Ann. tit. 6, §§ 1201 to 1211 (False Claims and Reporting Act)

Claims covered by the statute: Include knowingly false statements regarding a claim for payment presented to the state or state’s grantee or contractor, conspiracy to commit such a violation, failure to return public property or money, and knowing concealment or avoidance of an obligation to pay or transmit property to the state. § 1201(a).

Federal Deception Law: FLORIDA

Fla. Stat. §§ 68.081 to 68.092 (False Claims Act)

Claims covered by the statute: Include knowingly false statements regarding a claim for payment presented to the state or state’s grantee or contractor, failure to return public property or money, knowing purchase of public property from a state officer or employee who lawfully may not sell the property, conspiracy to commit a violation, and knowing concealment or knowing and improper avoidance of an obligation to pay or transmit property to the state. § 68.082(2).

Federal Deception Law: INDIANA

Ind. Code §§ 5-11-5.5-1 to 5-11-5.5-18 (False Claims and Whistleblower Protection)

Claims covered by the statute: Include knowingly false statements regarding a claim for payment presented to the state or state’s grantee or contractor, failure to return public property or money, knowing purchase of public property from an employee who lawfully may not sell the property, conspiracy to commit a violation, and avoidance of an obligation to pay or transmit property to the state. § 5-11-5.5-2(b).

Federal Deception Law: IOWA

Iowa Code §§ 685.1 to 685.7 (False Claims Law)

Claims covered by the statute: Include knowingly false statements regarding a claim for payment presented to the state or state’s grantee or contractor, failure to return public property or money, knowing purchase of public property from a state officer or employee or member of the state national guard who lawfully may not sell the property, conspiracy to commit a violation, and knowing concealment or knowing and improper avoidance of an obligation to pay or transmit property to the state. § 685.2(1).

Federal Deception Law: LOUISIANA

La. Stat. Ann. §§ 46:437.1 to 46:440.3 (Medical Assistance Programs Integrity Act)

Claims covered by the statute: Include knowingly false statements regarding a claim for payment from medical assistance programs, conspiracy to defraud, and knowing submission of a claim for goods, services, or supplies that were medically unnecessary or of substandard quality or quantity. § 46:438.3. Also includes “illegal remuneration” claims that a person has paid or received bribes in exchange for medical referrals reimbursed by Medicaid. § 46:438.2.