One of the most violated rules and laws in Ohio involving auto dealers is found in OAC Section 109: 4-3-16(A)(5) and OAC Section 109: 4-3-16(B)(17, and 22). These rules were issued by the Ohio Attorney General on October 24, 1994. Unfortunately, many dealers are unaware of these rules or they have chosen to ignore them. OAC 109: 4-3-16 (B)(22) requires all material statements, representations or promises, oral or written, made prior to obtaining the consumer's signature on the written contract to be integrated into the terms of the written contract. In other words, any material representation made to the consumer must be written into the actual contract the customer signs. Most dealers when they sell a car, simply pull out the standard blank contract, fill in the portions concerning price, taxes, warranty, trade-ins and have the customer sign it. That type of preparation, if it fails to integrate a material term, is a violation of the CSPA.
In Renner v. Derin Acquisition Corp. (1996) 111 Ohio App. 3d 326, Royal Chevrolet in Aurora, Ohio, sold a new GEO Prism to Carol Renner. Renner presented a GM employee discount certificate that she was eligible for through her son. However, her son no longer worked for GM. Renner testified that she was under the belief the certificate was still valid for 6 months after her son's termination from GM. Neither Renner nor Royal called GM to confirm the validity of the certificate prior to entering into the contract. Royal prepared the contract providing Renner with a $ 737.00 credit that they normally would not have provided. Royal did not state in the contract that the price was contingent upon Renner qualifying for the discount from GM. GM dishonored the discount because Renner's son no longer was employed by GM. As a result, Royal contacted Renner and asked for an additional $ 737.00. Lawsuits were filed by both parties and the appellate court ruled that the failure of Royal to integrate the material representation that $ 737.00 of the price of the car was contingent upon GM accepting the certificate, was a violation of OAC 109: 4-3-16(B)(22) and therefore a CSPA violation. The appellate court remanded the case to the trial court and ordered Renner was to receive her statutory damages plus her attorney fees.
Blackstone Legal Publications, Inc., provides a list of material representations that Ohio courts have found a dealer should integrate into the contract. In addition Blackstone is preparing a video tape that all sales personnel should review at least twice a year to remind themselves of what statements the courts have ruled create material representations are and what do not.
