New Jersey Senate Bill S698

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Requires dealership to notify buyers of recalls on used motor vehicles for sale.

Impact

The bill modifies current state laws under P.L.1960, c.39 (C.56:8-1 et seq.) to classify it as unlawful for dealerships to sell used vehicles without confirming whether there are any active recalls. If a recall is found, the dealer must notify the buyer about the recall status, including whether the recall work has been completed. This legislative change seeks to hold dealers accountable for the safety of the vehicles they are selling and could potentially improve overall road safety in the state by reducing the number of recalled vehicles in circulation.

Summary

Senate Bill S698 requires automotive dealerships to notify potential buyers about any outstanding recalls on used motor vehicles. The legislation aims to enhance consumer safety by ensuring that buyers are informed about any unresolved safety issues that may affect the vehicle they are considering for purchase. It establishes a legal responsibility for dealerships to check the National Highway Traffic Safety Administration's (NHTSA) database for recall information prior to finalizing a sale, creating an obligation for transparency in the used car market.

Contention

While the intent behind S698 is largely supported by consumer protection advocates, concerns may arise among dealerships about the practical implications of the bill. The legislation includes a provision that establishes irrebuttable presumption regarding the dealer's knowledge of recalls, provided they have accessed the NHTSA database accurately. This may protect dealers from liability but also raises questions on the sufficiency of their efforts to ensure compliance with the law. The debate may revolve around how this law will affect dealership operations and sales practices in a competitive market.