Legal Question in Credit and Debt Law in Minnesota

Misrepresentation by a New Car Dealer

I bought a new '98 Ford Mustang. The salesman said since this was a new '98 and they now had the new 99's he would give me a good deal on the car but he could not offer any 2.9, 4.9% financing, etc., or any rebates because they were trying to move the 98's and work on selling the 99's. I bought the car with that understood. 14 days later I got a check from Ford for $2,000. The check stub said it was for a customer cash incentive program. Two weeks later I was contacted by the dealer. They told me the $2,000 was theirs and that I must pay them a.s.a.p. When I asked why they should get the money and not me they said it was a rebate and that I had agreed to turn over any rebates to the dealer. This is not true. The only thing they ever said about a rebate was that there were NO rebates on the vehicle. They said I was informed of this rebate during the signing of the papers to finalize the deal. Not true. I checked the papers I signed, and there is mention of a rebate or me turning it over to the dealer at the time I get one. I called Ford and was told to fight it out with the dealer. The last time I talked to the dealer was 4-14-99, and they still insist the money is theirs. What can I do?


Asked on 4/14/99, 9:41 pm

1 Answer from Attorneys
Susan Freiman The Legal Clinic

Re: Misrepresentation by a New Car Dealer

You have basically three options, as does anyone involved in a commercial dispute. You can capitulate, you can stand firm, or you can compromise.

If you capitulate, you end the dispute right away - but be sure you get a "general release", a written statement, signed by the other side, that he has no further claims against you for anything.

If you stand firm, you wait to see whether he sues you. If he goes away, fine, and if he sues you, you either settle or let a judge decide for you.

If you settle now, you end in a compromise which leaves both of you unhappy, but at least ends the dispute without involving lawyers and their expense. Again, be sure to have the settlement in writing, with his acknowledgement of receiving a specified amount of money from you, and the general release.

Notice, none of this depends on what the "law" is. That is often a relatively irrelevant question, as a practical matter.

Good luck!

Susan Freiman

The Legal Clinic

P.O. Box 9407, Herzlia Street 29


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Answered on 4/24/99, 5:34 am


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