Houston Independent Automobile Dealers Association November Issue: Harvey's Still at Play | Page 22

allegation that Kenny Ross promised to add the Camry to Stein’s existing insurance policy. Stein also argued that the integration clause in the sales agreement did not bar the introduction of parol evidence to support his claims. The UTPCPL claim was dismissed based on preliminary objections. Kenny Ross then moved for summary judgment. The trial court granted the motion, and Stein appealed. The Superior Court of Pennsylvania affirmed. The appellate court noted that Section 1318 of the Pennsylvania Motor Vehicle Code requires a dealership to verify financial responsibility before the issuance of temporary registration on a newly purchased vehicle. A dealership must determine that the applicant has the appropriate financial responsibility by examining one of the applicant’s relevant insurance documents for a vehicle that is traded in for the new vehicle or another vehicle owned by the applicant. The requirement to examine one of these documents does not require the dealership to verify the information submitted unless it has reason to believe the document is fraudulent. In this case, Kenny Ross properly verified the existence of Stein’s insurance policy by examining Stein’s insurance documents for another vehicle owned by Stein. The appellate court noted that the sales agreement contained no promise to add the Camry to Stein’s existing insurance policy with Mutual Benefit. The sales agreement merely contained an insurance section that listed Stein’s existing insurance policy with Mutual Benefit. Because the insurance section did not include any language to suggest Kenny Ross’s assumption of Stein’s duty to obtain insurance for the Camry, there was no ambiguity to allow introduction of parol evidence to support Stein’s claims. The appellate court reiterated that Kenny Ross’s only duty was to ensure that Stein had an existing insurance policy, which it fulfilled. How familiar are you with dealer responsibilities for insurance in your state? Time for a brush-up, perhaps? Stein v. Kenny Ross Toyota, Inc., 2017 Pa. Super. Unpub. LEXIS 3027 (Pa. Super. August 9, 2017) So, there’s this month’s roundup! Stay legal, and we’ll see you next month. ________ Tom ([email protected]) is Of Counsel and Nikki ([email protected]) is a partner 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. © CounselorLibrary.com 2017, all rights reserved. Single publication rights only, to the Association. (10/17). HC# 4835-8311-1761