Baker v. Yamaha Motor Corporation, USA CA4/2

California Court of Appeal·Decided February 4, 2021·No. E072089·Unpublished

Opinion

Filed 2/4/21 Baker v. Yamaha Motor Corporation, USA CA4/2

NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA FOURTH APPELLATE DISTRICT DIVISION TWO

KYLE BAKER, Plaintiff and Appellant, E072089 v. (Super.Ct.No. MCC1500556) YAMAHA MOTOR CORPORATION, USA, OPINION Defendant and Respondent.

APPEAL from the Superior Court of Riverside County. Craig Riemer, Judge.

Affirmed.

Pestotnik and Ross H. Hyslop for Plaintiff and Appellant.

Gibson, Dunn & Crutcher, Theane Evangelis, Timothy W. Loose, Daniel R. Adler and Emily R. Sauer for Defendant and Respondent.

Plaintiff and appellant Kyle Baker sued defendant and respondent Yamaha Motor Corporation, U.S.A. (Yamaha), a California corporation, alleging that its failure to furnish hanging price tags (hang tags) to its independent dealer Temecula Motorsports, Inc. (TMI)

in 2012, as required by Vehicle Code former section 24014,1 subdivision (a), made it impossible for consumers to determine the true prices of its new, assembled motorcycles. Baker alleged causes of action for unfair competition (UCL; Bus. & Prof. Code, § 17200 et seq.), false advertising (FAL; Bus. & Prof. Code, § 17500 et seq.), and aiding and abetting. The trial court granted summary judgment in favor of Yamaha on the grounds Baker lacked standing because the undisputed evidence showed he was not harmed by the absence of the “Yamaha hang tags.”

On appeal, Baker does not challenge the undisputed facts. Rather, he contends the court erred in (1) concluding he lacked standing by misinterpreting and narrowly applying the particularized interests protected by sections 24014 and 11712.5, (2) concluding there was no UCL violation because he had knowledge of Yamaha’s MSRP,2 (3) treating “standing” as an “element” of his claims, (4) concluding TMI’s “disclosures” on its hang tag discharged Yamaha’s duties under section 24014, (5) ignoring disputed material facts it deemed irrelevant, and (6) adjudicating his aiding and abetting claim in Yamaha’s favor. We reject Baker’s contentions and conclude, on the evidence presented, he failed to raise a triable issue of whether he was harmed by Yamaha’s failure to furnish hang tags to TMI. We therefore affirm the judgment.

1For clarity, “section 24014” refers to Vehicle Code former section 24014 (as amend. by Stats. 1978, ch. 623, § 1). All further statutory references are to the Vehicle Code unless otherwise indicated.

2 Manufacturer’s suggested retail price.

I. PROCEDURAL BACKGROUND AND FACTS Yamaha sells its products, including motorcycles, through independent dealers, such as TMI, who purchase these products at wholesale prices. The dealers sell the motorcycles to customers at individually negotiated prices. Yamaha does not receive information from dealers about the prices they charge in retail transactions, nor does it have any control over how much dealers charge their customers. Yamaha’s dealer agreements require dealers to “‘conduct and maintain at all times [their] sales and service operations in strict compliance with all applicable federal and state laws and regulations, county and city ordinances and regulations and any other applicable law, regulation or ordinance.’”

In 2012, the year relevant to this case, California law required dealers to attach hang tags (furnished by motorcycle manufacturers and approved by the Department of Motor Vehicles (DMV)), which indicate the “recommended retail price of the motorcycle” and the “recommended price for each accessory or item of optional equipment physically attached to the motorcycle at the time of its delivery to the dealer.” (§ 24014, subd. (a)(1), (a)(2).)3 On October 29, 2012, Yamaha sent a letter to its

3 Section 24014 provided: “(a) No dealer shall sell, offer for sale, or display, any new, assembled motorcycle on its premises, unless there is securely attached to its handlebar a label, approved by the Department of Motor Vehicles, furnished by the manufacturer, on which the manufacturer shall clearly indicate the following: [¶] (1) The recommended retail price of the motorcycle. [¶] (2) The recommended price for each accessory or item of optional equipment physically attached to the motorcycle at the time of its delivery to the dealer. [¶] (b) The dealer shall clearly indicate on the label, furnished by the manufacturer, the following: [¶] (1) The amount charged, if any, over and above the suggested retail price for transportation to the dealership. [¶] (2) The [footnote continued on next page]

California motorcycle dealers regarding the use of DMV-approved Yamaha hang tags.4 DMV’s approval of Yamaha’s hang tag format was effective December 21, 2012. Prior to October 2012, TMI prepared its own hang tags.

In June 2012, Baker shopped for a new Yamaha R6 motorcycle (R6) by researching on the Internet and comparing prices at Fun Bike Center and TMI. At TMI, the R6 had a TMI hang tag5 that listed Yamaha’s MSRP of $10,890, an amount Baker previously had seen on Yamaha’s Web site. The hang tag also listed an additional dealer markup (ADM) of $1,760, bringing the total asking price to $12,650, exclusive of sales tax and applicable DMV fees. The ADM included freight ($300) and preparation ($1,460) charges. The bottom of the hang tag stated the total price “includes but is not limited to freight, assembly, service, dealer insurance, profit and overhead, flooring and other costs where applicable.” The R6 had no accessories or optional equipment installed, so there was no price quoted for those items.

Baker understood that the price listed on the R6 hang tag was negotiable.

Therefore, on June 29, 2012, he negotiated a total purchase price (before sales tax, registration and certain fees) of $10,225.06 or $2,424.94 less than the hang tag price of

amount charged, if any, for the assembly, preparation, or both, of the motorcycle. [¶] (3) The amount charged, if any, for each dealer added accessory or item of optional equipment. [¶] (4) The total recommended retail price of the vehicle which shall be the aggregate value of paragraphs (1) and (2) of subdivision (a) and paragraphs (1), (2) and (3) of subdivision (b).”

4 See appendix A, post, Yamaha’s hang tag template.

5 See appendix B, post, TMI’s hang tag for the R6 purchased by Baker.

$12,650 ($12,650-$2,424.94=$10,225.06). The total amount due for the R6 was $11,200. Baker’s deal was $664.94 less than the R6’s MSRP of $10,890 ($10,890- $664.94=$10,225.06). He is not aware of any dealer who would have sold him the 2012 R6 for an overall price of $11,200 or less.

On December 31, 2015, Baker filed a putative class action against TMI, asserting claims under California’s UCL and FAL, and alleging that TMI imposed undisclosed fees on him and other customers.6 On January 27, 2016, he added Yamaha as a defendant in his first amended complaint; however, his claims against Yamaha were for “injunctive relief only” and “without seeking class certification.” Baker sought an injunction requiring Yamaha to stop its misleading advertising. Yamaha demurred on the ground Baker lacked standing. Subsequently, on February 2, 2018, Baker was granted leave to file his third amended complaint, which focused on the allegation that the R6 he purchased did not bear a hang tag furnished by Yamaha to TMI. Baker claims Yamaha failed to comply with sections 24014 and 11712.5.

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