Car Buyer Didn’t Have To Sign New Contract – Wins in California Arbitration

Auto Fraud Legal Center LLP files to affirm arbitration award against Northern California car dealer for telling customers they had to sign a new contract, in which the customers received their money back and the contract cancelled.

Auto Fraud Legal Center LLP has filed a petition in Contra Costa County Superior Court to confirm an arbitration award in favor of its clients Abel Arriola and Alslinn Romo against Los Primos Auto and United Auto Credit Corporation.

Mr. Arriola and Ms. Romo purchased a vehicle from Los Primos on April 3, 2019. Although Los Primos had a ten-day right to cancel the April 3, 2019 contract, it did not notify the buyers it was cancelling the contract. Instead, Los Primos told Mr. Arriola that he and Ms. Romo needed to sign a new contract with the dealership, which they did on May 11, 2019.

The arbitrator found this conduct by Los Primos violated California’s Consumers Legal Remedies Act because it misrepresented the parties’ obligations under the contract. The arbitrator awarded Mr. Arriola and Ms. Romo all their payments back and that their contract be cancelled.

The arbitrator found United Auto Credit Corporation liable to Mr. Arriola and Ms. Romo under the holder clause in the purchase contract. The arbitrator also awarded Mr. Arriola and Ms. Romo their attorney’s fees and costs against both Los Primos and United Auto Credit Corporation.

Managing Partner, Hawk Barry, says, “Dealers have a right and an economic need to cancel contracts. However, this must be done properly, fairly and within the boundaries of the law.  The situation in which our clients found themselves is unfortunately all too common. “