LEGAL ISSUES the tampering provisions, and denied the motion to dismiss the tampering claims. See Beam v. Domani Motor Cars, Inc., 2013 U.S. Dist. LEXIS 18085 (S.D. Fla. February 11, 2013). Revocation of acceptance claim failed where contract limited buyer’s remedy: After individuals discovered defects with their new motor coach, they complained to the seller and the coach’s manufacturer. After many repair attempts, the defects still existed. The individuals sued for, among other things, revocation of acceptance. The seller moved to dismiss, arguing that a limitation of damages clause in the sale agreement barred the revocation of acceptance claim. That clause provided that once the buyer accepted the coach, the buyer could not return it for a refund, even if the manufacturer’s warranty does not accomplish its purpose. The clause also limited the buyer’s damages to the lesser of either the cost of needed repairs or a reduction in the market value of the coach caused by the lack of repairs. The court dismissed the revocation of acceptance claim against the seller.
The individuals argued that, under the Uniform Commercial Code, revocation of acceptance may be an available remedy even if the seller has attempted to limit the buyer’s remedies, if the “exclusion or limitation of remedy fails of its essential purpose.” Because the individuals did not allege that the remedy offered by the seller failed of its essential purpose, the court found that the individuals were limited to the contractual remedy against the seller. See Watkins v. Camping World, Inc., 2013 U.S. Dist. LEXIS 15974 (N.D. Ga. February 5, 2013). So there’s this month’s roundup! Stay legal, and we’ll see you next month.
BY THOMAS B. HUDSON AND NICOLE FRUSH MUNRO TOM (THUDSON@HUDCO.COM) AND NIKKI (NMUNRO@HUDCO. COM) ARE PARTNERS IN THE LAW FIRM OF HUDSON COOK, LLC. TOM IS THE AUTHOR OF SEVERAL BOOKS, AVAILABLE AT WWW. COUNSELORLIBRARY.COM. TOM IS ALSO THE PUBLISHER OF SPOT DELIVERY®, A MONTHLY LEGAL NEWSLETTER FOR AUTO DEALERS, AND THE EDITOR IN CHIEF OF CARLAW®, A MONTHLY REPORT OF LEGAL DEVELOPMENTS IN ALL STATES 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. SPOT DELIVERY, CARLAW AND THE BOOKS ARE PRODUCED BY COUNSELORLIBRARY.COM LLC. FOR INFORMATION, CALL 410-865-5411 OR VISIT WWW. COUNSELORLIBRARY.COM. COPYRIGHT COUNSELORLIBRARY. COM 2013, ALL RIGHTS RESERVED. SINGLE PUBLICATION RIGHTS ONLY, TO THE ASSOCIATION. (4/13) HC# 4816-3739-9315.
NIADA Committee Recommends Bylaw Change The NIADA executive committee has recommended an addition to the bylaws in Article VI, Section 6: Meetings. The section would read (addition in bold): The NIADA Board of Directors Annual Meeting and Convention Meeting shall be held at the location of NIADA’s Annual National Convention, if one is held. The Midterm Meeting and any special meetings, and annual meeting not held in conjunction of with NIADA’s Annual National Convention (due to no such convention being held) may be held at any location chosen by the NIADA Board of Directors or Executive Committee. In its sole discretion, the Board of Directors or Executive Committee may determine that such meetings except for the Annual Meeting may be held solely by means of remote communication in accordance with 8 Del. C. § 211, as amended. This addition to the NIADA bylaws will allow for more dealer participation in the business of the NIADA board of directors. The proposed amendment will be placed on the agenda and voted on at the board of directors meeting at the NIADA Annual Convention on June 25.
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