Dykes v. Imports Auto Outlet
Client was not told the vehicle was reported as a total loss even though the dealer had actual knowledge of the report. The settlement required the dealer to repurchase the vehicle, pay $11,750 in punitive damages, and the following injunction:
Defendant Mutual Goal, Inc., dba Imports Auto Outlet, shall, for any vehicle which Mutual Goal, Inc. knows has been reported as a total loss, junk, salvage, or as having any other title brand, post the following disclosure on a vehicle while it is displayed for sale at retail in at least 14-point bold black type, except for the title “Warning” which shall be in at least 18-point bold black type, on at least a 4 x 5.5 inch red background in close proximity to the Federal Trade Commission’s Buyer’s Guide:
“WARNING
According to at least one Vehicle history report, this vehicle has been reported as a total-loss vehicle by an insurance company, has been reported as a junk or salvage vehicle, or has a title brand which may materially affect the value, safety, and/or condition of the vehicle. Because of its history as a total loss, junk, salvage, or title-branded vehicle, the manufacturer’s warranty or service contract on this vehicle may be affected.”