Dealer to dealer transaction lemon law PA/NJ

[ckrasz]

Hi, I was able to find a lot of information about dealer-consumer lemon laws but nothing about dealer-dealer laws.
In short, I, PA dealer, reassigned title to a NJ dealer who now, 3 days after day of transaction, is threatening with legal action if I do not trade him for another vehicle of equal value as there is a problem with the motor, according to him.
Throughout my (short) ownership of the vehicle there wasn't a problem and during the time of inspection by the buyer the car was fine, he tested it and drove it, even hooked up a code reader to it. Now the buyer is claiming that there was something wrong all along and that I am responsible as he has 3 days to return the car.
Normally, I wouldn't be worried as the bill of sale states "as is" basis but of course, I misplaced the bill of sale (I believe I left it in the given car) so he could take me to court.
So my question is, if he does decide to take me to court, will his case hold up? I have a witness who was with me at the time of the sale as well as the mechanic who did an oil change and inspection in the middle of February.
Does he even have reason to threaten legal action?
The vehicle has been listed since initial day on the buyer's website so in the time since then it could have been test driven by someone or even abused by the owner himself as it has a HEMI motor in it.
Lastly, the car is a 2004 Dodge, so as far as my understanding goes there isn't anything he can do. Am I correct?
Any prompt help is appreciated, thank you.

 

[army judge]

There are no interstate lemon laws, insofar as I am aware.
I don't see him having any case, bill of sale or not.

The law might require you to maintain a record of all sales.
That could be a problem for you, if you have no record of the sale.
In fact, it could have the tax authorities crawling all over you.
You might want to review your record keeping practices.

In some cases, especially cases like this, settling with him could make your life easier.

As far as him having a case based on NY or PA lemon law violations, I don't see one.

The NJ lemon law:

http://www.state.nj.us/lps/ca/ocp/lembroc.pdf

The PA lemon law:

http://www.attorneygeneral.gov/consumers.aspx?id=625

 

[ckrasz]

Thank you so much for the prompt reply. I'm aware of the issue with the taxes due to this lost bill of sale, but I will have that taken care of immediately.

I understand settling would make my life easier, but I'm not willing to settle if he expects me to accept a car which as far as I'm concerned, he "broke".
I don't see anything about whether the laws apply or don't apply between the two states, but he seems to be following the PA lemon law requirements as he said he was going to drop the car off at the lot of our main dealership but I don't see how that will do him any good.

I'm much younger than the other dealer and have just recently started reselling cars and my concern was that he is trying to "bully" me into a settlement by scaring me with legal action.

 

[army judge]

Thank you so much for the prompt reply. I'm aware of the issue with the taxes due to this lost bill of sale, but I will have that taken care of immediately.

I understand settling would make my life easier, but I'm not willing to settle if he expects me to accept a car which as far as I'm concerned, he "broke".
I don't see anything about whether the laws apply or don't apply between the two states, but he seems to be following the PA lemon law requirements as he said he was going to drop the car off at the lot of our main dealership but I don't see how that will do him any good.

I'm much younger than the other dealer and have just recently started reselling cars and my concern was that he is trying to "bully" me into a settlement by scaring me with legal action.

I don't see where anything in either state's law would impact or protect dealer to dealer sales.

The bill of sale issue is his hammer.

If you can't produce it, he could report you to the IRS and the state taxing authorities.

They could appear on your doorstep and start auditing you, not just for the alleged lost bill of sale; but for all of your bill of sales.

See the problem?

So, think it through, its rarely better to fight.

I always seek compromise and accommodation.

 

[ckrasz]

Understandable. Will consider all things mentioned and see how things turn out. Thanks again!

 

[army judge]

Good luck. Please take minute and stop back by, and let us know what finally happened.

 

[disagreeable]

As long as you complied with PA inspection laws on vehicles for resale you should be fine.

 

[ckrasz]

Hi, so seems that everything was clear and long behind me but now he brought up the fact that the vehicle wasn't sold out of a lot. He was coming from New Jersey, so I offered to meet with him at a Target lot right over the bridge to make the trip easier for him. I was not aware he was a dealer at the time, but now he's claiming that he will file a complaint to the licensing department/office as it wasn't sold out of a lot. I think he's just fetching left and right trying to catch on to whatever he can just to threaten me as he doesn't have a case. Is selling from somewhere else apart from your lot a major offense? I was unable to find anything regarding that. Thanks again in advance!

 

[army judge]

Hi, so seems that everything was clear and long behind me but now he brought up the fact that the vehicle wasn't sold out of a lot. He was coming from New Jersey, so I offered to meet with him at a Target lot right over the bridge to make the trip easier for him. I was not aware he was a dealer at the time, but now he's claiming that he will file a complaint to the licensing department/office as it wasn't sold out of a lot. I think he's just fetching left and right trying to catch on to whatever he can just to threaten me as he doesn't have a case. Is selling from somewhere else apart from your lot a major offense? I was unable to find anything regarding that. Thanks again in advance!

Well, this is a curious twist.
You're a PA dealer, right?
You sold a car to a NJ dealer, in NJ.
NJ has some very silly and restrictive laws.
I'm unsure, because I'm not licensed in either state to practice law.
Logic tells me that NJ probably has some law restricting dealer to dealer sales/transactions.
That could be a gotcha.
A PA citizen could do what you recited without worry.
A dealer from another state is likely restricted from doing business in NJ, without some type of permit or license.
That said, I'm sure there are exceptions.
If you're worried, why not visit a PA lawyer, spend a couple hundred bucks for a written legal opinion?
Or, see what he wants to go away, or to make him whole? If you agree, get it in writing.

As I said, I'd ignore him and his threats.
If he sued me, I'd simply endeavor to defend.

 

[ckrasz]

Well, this is a curious twist.
You're a PA dealer, right?
You sold a car to a NJ dealer, in NJ.
NJ has some very silly and restrictive laws.
I'm unsure, because I'm not licensed in either state to practice law.
Logic tells me that NJ probably has some law restricting dealer to dealer sales/transactions.
That could be a gotcha.
A PA citizen could do what you recited without worry.
A dealer from another state is likely restricted from doing business in NJ, without some type of permit or license.
That said, I'm sure there are exceptions.
If you're worried, why not visit a PA lawyer, spend a couple hundred bucks for a written legal opinion?
Or, see what he wants to go away, or to make him whole? If you agree, get it in writing.

As I said, I'd ignore him and his threats.
If he sued me, I'd simply endeavor to defend.

Yup. The actual transaction happened in Pennsylvania. I'm sure if he was to file a complaint about "not selling the car out of the lot" the worst that would happen is that we would get a fine. I doubt it would invalidate the actual transaction or put the dealership itself at risk.
He gave me an ultimatum of sorts to get back to him within 24 hours, which would have been early afternoon today, or he would file a complaint to the given bureau. Yet to hear anything from him today or anybody else, hope that persists otherwise I will defend and before that will definitely meet with a PA lawyer.

Appreciate the efforts and help as well as a peace of mind.
I'll get back with any solid info regarding the PA/NJ laws or any future relations with the other party, or the lack of them, hopefully.