Motorcycle Dealer in Court over Hangtag Failure

Honda North Hollywood is facing a second trial over a six-year-old charge of using deceptive sales practices. The charge stems from allegations that the dealer failed to hang hangtags on vehicles sold in the California store along with the additional failure to disclose the dealer charge information that is normally found on those absent tags.

The class action lawsuit was filed by Audrey Medrazo in 2006 under California’s Unfair Competition Law (UCL) and Consumer Legal Remedies Act (CRLA) after, she says, she purchased a vehicle that did not have such a tag. Interestingly, Medrazo is not claiming she was charged for anything she should not have been, but rather she is only whining that she was not given a breakdown of the charges during the sales process.

Luckily for Medrazo, she lives in a state that is run by busy-bodies who care about things such as hangtags. If the class wins the lawsuit, the dealer could be forced to pay from $4 million to $5 million in restitution. Here at Motorcycle Insurance California, we worry that this ruling could prove to be just another big fat nail being driven into the coffin of business in California. 

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