Legally accountable and how far can someone go with it

[Michael White]

Not that it is a big problem, but what if a customer found out we had a bulletin on a new car to fix a potentail concern or know of a high failure rate on a component like a front drive unit on a 4WD, and per GM, we did nothing about it until the probelm occurs or customer complains about it? Most bulletins are fairly simple with no real major potential for a serious problem. But what about bulletins related to premature parking brake failures, and 4WD inops. What happens if a customer goes into the snow and the 4WD fails due to a bulletin update when they are in severe snow and an accident occurs. What if the accident did not occur, but the customer aquired expenses related to it. If we know something could potentially fail, be it serious or not, are we legally accountable. In most cases, we would get into trouble if we "campaigned" all bulletins. Or do we just fill out the paperwork for indemnification when it happens. Our thoughts about this concern

[robc]

Similar story taken from Warranty Dollars & Sense, Feb. 15, 2002:

(URL references are at the end for more information.)

Failure to show customer TSBs called fraud

In one of those I cant even believe this made it to court stories, we find a dealership in Illinois is being sued for consumer fraud for allegedly failing to disclose that a vehicle was subject to a Technical Service Bulletin (TSB). This is just a TSB, mind you, not a recall or even a Special Policy, just a plain old TSB.

The case was dismissed in the Cook County Circuit Court, but reinstated upon appeal. Even more important for a GM dealer is that the lawsuit involves a 1994 Oldsmobile, but it could have just as easily been a case about any vehicle. The issue is whether dealerships are required at sale to disclose that a vehicle is the subject of a TSB and if failing to make such a disclosure equates to retail fraud.

Moreover, the burden of such a disclosure would basically require a salesperson to run every vehicle VIN through SI to identify and pull up each bulletin. Each would then have to be explained to the consumer and they would need to acknowledge such. For the vehicle in question for this court case, there are currently 295 individual bulletins that are applicable and five separate recalls. There is no way to assure that the salesperson could have understood what he was disclosing, let alone the average customer understanding what he was being told. While I would hope that the dealership would prevail after trial, I think it is always wise to be proactive in these matters. While I know there are mixed results with giving customers open access to much of our technical information, I think we are moving to a greater availability and openness.

For instance, if asked by a customer, I have no problem running a GMVIS or SI inquiry for them and showing them the relevant documents. Even if they are a do-it-yourselfer, I think youre safer by being willing to share, as opposed to appearing like youre concealing information.

Also, Ive long held that a loose-leaf bound book containing TSBs should be readily available to customers, possibly sitting in the lounge; however I have never been aware of a disclosure requirement from any state. Besides, the industry is moving away from paper and all this information is online. If youve had some type of bad experience with customers and bulletins, let me know. Maybe we can make some good hints and recommendations in a future article.
http://www.state.il.us/court/Opinions/A ... 003770.htm

I couldn't find any further court records immediately. It could be the case was settled or redismissed.

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** Rob, Editor Dealersedge/WD&S **
Help is only a message post away!
robc@dealersedge.com

[Michael White]

Wow!!

Just imagine if we have to disclose any potential bulletin or update to a prior sale, or in fact to a customer coming in for any kind of service work. We do make available bulletins that customers may want to see or have heard of. But to offer every bulletin of any kind?? some vehicles literally may have over 100 bulletins easily. I believe GM does partially address this. I beleived there may be some language in he owners manaul that may state they can subribe to a bulletin service, and bleieve GM has sent out a letter specifically telling dealers to offer bulletins if a customer request it.
Just think of the warranty cost increases accross the country if a customer knew every bulletin, and we were obligated to perform for them. Scary if you think about it.

Do not know how other manufacturers deal with this topic.

[david byrne]

A caution about sharing info in this lawsuit happy world.
A customer hurts himself doing his own repair and then sues stating that he never would have attempted the repair until the dealer gave him the information - it happens.

Also, had a guy sue for all of his time and the cost of all the parts and to fix his car. He was pulling his own codes, come in to service and ask what the code meant, go to parts and buy/install the part. Five parts ($1200) later he brought it to us and we only had to update the PCM.
I ask my employees to procede with caution regarding sharing info or guessing at what is wrong.

[AJHORNE]

I have had that concern before. What I always say is that the bulletin is for tech repair instructions IF THIS PROBLEM OCCURES. The reason there was not a recall on it is because only a small few vehicles will ever experiance this concern and there is no way of nowing which vehicles are going to break. Most people accept that responce.