Houston Independent Automobile Dealers Association March 2016 Issue: Floor Plans | Page 17

that she relied on any misrepresentations the dealership might have made about the car because the sale was an "as is" sale. The appellate court refused to dismiss the claim under the state UDAP statute. It concluded that the buyer could make a UDAP claim if she could prove that the dealership's actions or statements had the capacity or tendency to deceive her and that she suffered harm because of those statements. She did not have to show that she relied on the statements; she only had to show that she might not have bought the car if the dealership had not told her that the car had not incurred significant damage. The appellate court dismissed all the claims against the repossessing creditor. The appellate court concluded that the creditor was not liable under the state UDAP law because the buyer did not buy the car at the auction and had no knowledge of any statement or disclosure the creditor or the auctioneer made about damage to the car at the auction. The appellate court also dismissed the fraud and negligence claims because the creditor did not owe a duty to the buyer to make sure the dealership disclosed complete or accurate information to her when she bought the car from the dealership. See Sain v. Adams Auto Group, Inc., 2016 N.C. App. LEXIS 58 (N.C. App. January 5, 2016). So there’s this month’s roundup! Stay legal, and we’ll see you next month. ___ Tom ([email protected]) and Nikki ([email protected]) are partners in the law firm of Hudson Cook, LLP. Tom has written several books and is the publisher of Spot Delivery®, a monthly legal newsletter for auto dealers. He is Editor in Chief of CARLAW®, a monthly report of legal developments for the auto finance and leasing industry. Nikki is a contributing author to the F&I Legal Desk Book and frequently writes for Spot Delivery. For information, visit www.counselorlibrary.com. Copyright CounselorLibrary.com 2015, all rights reserved. Single publication rights only, to the Association. (2/16). HC# 4848-8454-3277.