FOR IMMEDIATE RELEASE:

August 30, 2002

FOR FURTHER INFORMATION CONTACT:

Genene Morris (973) 504-6327

NEWARK- Bob Ciasulli Automall and 15 other affiliated auto dealerships throughout New Jersey have agreed to settle a lawsuit filed by the state more than a year ago, Attorney General David Samson and Consumer Affairs Director Reni Erdos announced today. A consent order amicably resolving the matter has been submitted to the court for approval.

Without admitting any wrongdoing or liability, the dealerships will follow certain procedures designed to resolve existing and future consumer complaints against the dealerships, establish a fund for consumer restitution, pay the state $425,000 for costs, fees and in furtherance of the interests of the State of New Jersey and engage in business practices that comply with New Jersey's Consumer Fraud Act.

In addition to Bob Ciasulli Automall, the Ciasulli dealerships also include: B.C.T. Imports, Inc.; Bob Ciasulli Toyota, Inc.; Bob Ciasulli Jeep/Eagle, Inc.; Bob Ciasulli Hyundai, Inc.; Arrow Hyundai, Inc.; Arrow Auto Imports, Inc.; Mack Auto Imports, Inc.; Mack Dodge, Inc.; Mack Pontiac/Cadillac, Inc.; Monmouth American, Inc.; Monmouth Chrysler/Plymouth, Inc.; M.T. Imports, Inc.; Route 88 Vehicle Corp.; United Galaxy, Inc.; and Universal Global, Inc.

Under the terms of the agreement, the dealerships will create a Restitution Security Fund with an initial amount of $250,000 to guarantee payment of any restitution owed. The dealerships will also establish a letter of credit of no more than $200,000 should restitution payments exceed the $250,000 deposited in the Restitution Security Fund.

Also as part of the agreement, the Division of Consumer Affairs will forward to the defendants all consumer complaints it has received against the dealerships. The complaints will be forwarded within 15 days of the finalization of the agreement. The defendants will then review the complaints with representatives from Consumer Affairs' Office of Consumer Protection ("OCP"). If an agreement is reached between the defendants and OCP representatives as to the appropriate restitution owed to a particular consumer, the OCP representatives will notify the consumer as to the agreed upon amount.

If the OCP representatives and the defendants cannot agree upon a restitution figure for a particular consumer, that complaint will be forwarded to Consumer Affairs' Alternative Dispute Resolution Unit for binding arbitration.

For future consumer complaints, the Division of Consumer Affairs will forward to the defendants any consumer complaint within 30 days of receiving the complaint. The defendants must then send a written response to the complaining consumer, with a copy to Consumer Affairs. If the response disputes the consumer's complaint or the relief sought by the consumer, the defendants must include copies of all documents related to the defendants" dispute of the complaint. If the response does not dispute the complaint or the relief sought by the consumer, it must include all documents necessary to satisfy the requested relief, including payment or credit.

If, within 45 days of sending a complaint to the defendants, Consumer Affairs does not receive notice from the defendants that a forwarded complaint has been settled, the complaint will be transmitted to ADR for binding arbitration.

In addition, the company has agreed to comply with the following business practices:

• To honor the negotiated terms of retail buyer's orders, leases and/or sales agreements which have been reduced to writing and signed by both the customer and the dealership representative;
  
  
• To provide consumers with copies of all contracts and documents at the time such documents are signed.
  
  
• To disclose orally and in writing to consumers the terms of spot delivery (i.e., when the vehicle is delivered prior to final approval of financing/leasing arrangements), and to inform consumers of the final decision promptly after it is received by the dealership.
  
  
• To require consumers to purchase credit insurance only when required by the lender.
  
  
• To disclose the prior history or damage with respect to used vehicles when known to the dealership.
  
  
• To honor prices and/or terms as advertised.
  
  
• To disclose at the time of sale the purchase price to the customer and the terms of after-sell items such as extended warranties, service contracts and/or insurance, and not to represent that such items are mandatory if they are, in fact, optional.
  
  
• To have consumers sign documents only after they have been completely filled in.
  
  
• To disclose known facts to the purchasing customer with respect to the condition of used vehicles.
  
  
• To refund any overpayments of fees for registration and titling of the vehicle within a reasonable time after all actual payments are made.
  
  
• To pay off in a timely manner balances due lien holders on vehicles accepted as trade-ins (when defendants have agreed in writing to do so).
  
  
• To secure and provide to consumers, if applicable, titles and registration documents in a timely manner.
  
  
• To provide a true and accurate statement of mileage of vehicles purchased to the best of defendants' knowledge.

In June 2001, the state alleged the dealerships engaged in activities that violated the State's Consumer Fraud Act, Used Car Lemon Law, and federal odometer disclosure laws while selling a variety of vehicles.

"We are glad the Ciasulli dealerships were willing and able to work with the state in amicably resolving the concerns raised by the State's complaint," Attorney General Samson said.

"Through the cooperative efforts of the defendants, we were able to negotiate an agreement that benefits consumers," Erdos said.

Deputy Attorney General David M. Puteska of the Division of Law handled this matter for the State.