Raceway Ford Cases

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The Automobile Sales Finance Act (ASFA) is a consumer protection law that governs the sale of vehicles in which the buyer finances all or part of the car’s purchase. Plaintiffs were consumers who purchased vehicles from Raceway Ford, Inc., an automobile dealership. Plaintiffs alleged that Raceway violated ASFA when (1) after agreeing to an initial finance contract, Raceway would enter into a subsequent finance contract with a buyer and backdate the second contract to the date of the first contract, and (2) a computer error caused Raceway to incorrectly include smog-related fees in buyers’ purchase contracts. The trial court found in favor of Raceway on all claims relevant to this appeal. The court of appeal affirmed with respect to Plaintiffs’ smog fee claims but reversed with respect to Plaintiffs’ backdating claims. The Supreme Court affirmed in part and reversed in part, holding (1) Raceway’s practice of backdating contracts did not violate the ASFA; and (2) Raceway did violate the ASFA when its disclosed inaccurate smog fees, but Plaintiffs were not entitled to a remedy under ASFA because the violation was due to an accidental or bona fide error in computation. View "Raceway Ford Cases" on Justia Law