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The Magnuson-Moss Warranty Act: A Recent Split of Opinions Regarding Protection of Lessees
In recent months, a number of leasing-related issues have arisen with respect to motor vehicle finance transactions. Specifically, the matter of vicarious liability for lessors still appears to be an active and openly debated concern, despite Congress' attempt to pre-empt various troublesome state laws. In addition, other motor vehicle finance issues, such as certain sublease arrangements, insurance issues, and compliance with the International Fuel Tax Agreement, have all become topics of discussion in this leasing sector. In the last few months, however, another auto leasing issue has quietly joined the ranks: whether a motor vehicle lessee may invoke the provisions of a manufacturer's warranty under the Magnuson-Moss Warranty Federal Trade Commission Improvement Act. The answer to this question has been complicated by the recent decisions of two state supreme courts (New Jersey and Arizona), which have come down on opposite sides of this issue within weeks of each other.
In Ryan v. American Honda Motor Co., N.J., No. A-16 (Feb. 27, 2006), the New Jersey Supreme Court ruled that an individual who leases an automobile from a dealership is a 'consumer' as defined by the Magnuson-Moss Warranty Act. Conversely, in Parrot v. Daimler Chrysler, No. CV-05-0104-PR (March 15, 2006), the Arizona Supreme Court held that the lessee could not sue under Magnuson-Moss because he did not qualify as a consumer under the Act. The true dividing point in these two cases, however, did not revolve around whether the lessee was a 'consumer' under the Act, but rather whether there was a qualifying sale in the first instance.
In order to qualify as a 'consumer' under the Magnuson-Moss Act, a plaintiff must fall within one of three definitions: 1) 'a buyer (other than for purposes of resale) of any consumer product'; 2) 'any person to whom such product is transferred during the duration of an implied or written warranty (or service contract) applicable to the product'; or 3) 'any other person who is entitled by the terms of such warranty (or service contract) or under applicable State law to enforce against the warrantor (or service contractor) the obligations of the warranty (or service contract).' 15 U.S.C.A. '2301(3).
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
Warehouse Liability: Know Before You Stow!
As consumers continue to shift purchasing and consumption habits in the aftermath of the pandemic, manufacturers are increasingly reliant on third-party logistics and warehousing to ensure their products timely reach the market.
Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.