A CarMax lawsuit claims a California car dealer sold an auto purchased from CarMax with a defect but did not repair the vehicle and instead sold it without CarMax’s knowledge. It is a case that has garnered more attention because there currently is no state law that requires that a new car sold in a state without a law requiring repairs before it is sold to be repaired. In this case, the car owner and operator did not have to suffer the financial loss that would occur if CarMax forced the dealer to repair the vehicle. Nevertheless, CarMax’s complaint against the defendant was filed in San Diego Superior Court in early July.
CarMax’s attorney is Michael Bowers, who previously represented the manufacturer, Saturn. Mr. Bowers is attempting to get the court to award monetary damages against the defendant based on CarMax’s loss of profit, which could have been potentially catastrophic to the company.
CarMax is the second largest vehicle distributor in the country. The company’s vehicles are sold at a higher price than the manufacturer’s cars and vehicles, as well as at a discount.
CarMax has been forced to cancel several car sales over the past year. Many have occurred due to the high demand for their vehicles. The company’s stock prices have also suffered because of this demand. However, CarMax continues to sell vehicles despite the recent financial hardship.
CarMax’s lawsuit is based on the fact that their dealers purchased cars from them under false pretenses, and then sold the vehicles at a significantly lower price than the manufacturers suggested retail price. CarMax then receives a portion of the difference between the original price of the car and the price paid for the car by the dealership. The difference in price can result in a substantial profit for CarMax.
CarMax asserts that the dealership, under a specific arrangement, should not be allowed to offer to sell vehicles below the manufacturer’s suggested retail price. It is asking the court to force the dealer to make its inventory available at the suggested retail price, not less than the price charged by CarMax.
CarMax’s attorney has filed an answer, opposing CarMax’s lawsuit. In the response, CarMax’s lawyer is attempting to prove that the dealership was not required to repair the vehicle prior to selling it to CarMax.
CarMax’s complaint also states that the dealership has a duty to report a defect to CarMax within a specified time period after purchasing the vehicle. The CarMax attorney contends that the dealership failed to do so, and thus was not obligated to disclose a defect to CarMax.
CarMax also points out that the dealer failed to give the car back if it was determined to be defective. The CarMax attorney contends that CarMax has the right to return any vehicle that has been purchased by a customer that does not meet its specifications, but that the dealership did not have to return a vehicle for a CarMax vehicle because it failed to make its return requirements with respect to this transaction.
CarMax’s complaint also points out that the dealership was unable to pay the warranty on two vehicles that were bought by CarMax. These vehicles had been repaired, but the dealership failed to pay for these repairs.
CarMax’s response also points out that CarMax was not permitted to open the hood of the cars to discover any defects. that might have existed, and that CarMax’s failure to perform an inspection of the vehicles before purchasing them resulted in a violation of the warranty.
CarMax’s answer also points out that the dealership failed to provide CarMax with a written disclosure document, and that the dealership failed to disclose CarMax’s obligation to inspect the vehicle, and that CarMax’s failure to obtain a written statement from the dealership concerning the condition of the car did not provide CarMax with a legally enforceable warranty. This failure violated CarMax’s rights, according to CarMax’s complaint. As such, CarMax’s lawsuit should be dismissed, as CarMax has provided the court with the evidence that the dealership failed to follow its duties in this matter.
The CarMax lawsuit, if not resolved in a favorable fashion, could result in serious financial losses for the company, as CarMax is seeking to recover the cost of the repairs. If CarMax prevails in the case, it may also be required to pay out large legal fees, which could lead to further litigation expenses for the company.
