Searcy v. Bend Garage Co.

592 P.2d 558, 286 Or. 11, 1979 Ore. LEXIS 962
CourtOregon Supreme Court
DecidedApril 3, 1979
Docket21038, SC 25622
StatusPublished
Cited by12 cases

This text of 592 P.2d 558 (Searcy v. Bend Garage Co.) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Searcy v. Bend Garage Co., 592 P.2d 558, 286 Or. 11, 1979 Ore. LEXIS 962 (Or. 1979).

Opinion

*13 DENECKE, C. J.

Plaintiff brought this action under the Unlawful Trade Practices Act, ORS 646.605 and following, for damages allegedly arising out of plaintiff’s purchase of an automobile from the defendant automobile dealer. The jury returned a verdict for plaintiff for general damages. (There are two plaintiffs, husband and wife. We shall refer to husband only.) Defendant appeals. We affirm.

Defendant assigns as error the refusal of the trial court to grant its motion for a directed verdict. Viewed in the light most favorable to plaintiff, the jury could have found the following facts: Plaintiff went to defendant’s place of business to buy a new car on April 7, 1976. Plaintiff told Walker, one of defendant’s salesmen, that he was interested in a new vehicle and described the type of vehicle he wanted. Walker took defendant to a portion of the lot which contained new vehicles, and they looked at several of them. Plaintiff decided he preferred a Chevrolet Suburban. At that time defendant had only one Suburban in stock. Plaintiff believed the Suburban was a new vehicle, although Walker did not tell him it was new. In fact, the Suburban had been used as a demonstrator for about four months. The odometer reading was over 4,000 miles. No effort was made to conceal the odometer reading nor was it pointed out to plaintiff. Plaintiff drove the Suburban twice on April 7 for about 40 minutes each time. He did not notice that the vehicle had already been driven over 4,000 miles.

Defendant offered plaintiff a $4,000 trade-in allowance for the cars plaintiff wanted to trade in, although their wholesale value was only $2,950. Defendant offered the higher value as compensation for the fact that the Suburban had been used as a demonstrator but did not inform plaintiff of that fact.

Plaintiff signed an agreement labeled "order” to purchase the Suburban on the afternoon of April 7. The order had spaces which were to be checked to *14 indicate whether the vehicle being sold was new, used, or a demonstrator. Walker checked the box marked "new” before plaintiff signed the form. The form also contained a space in which to write the vehicle’s odometer reading. That space was blank when plaintiff signed the form, but was filled in later with the correct odometer reading.

Plaintiff returned with his wife the following day to execute a number of other forms which were required to close the sale. The last form given to plaintiff was the Federal Odometer Mileage Statement disclosure form. This form indicated an odometer reading of 4,590 miles. Plaintiff first realized that the car was not new when he saw this form. Walker then told plaintiff the Suburban was a demonstrator and left the room. Plaintiff discussed the matter with his wife and, believing they were bound to complete the deal, he signed the disclosure.

Plaintiff took possession of the car. Over a month later he discovered a series of scratches on the side of the car. Upon closer examination, he discovered that portions of the car had been repainted. He returned to defendant’s place of business to complain. While there, he learned that one of defendant’s salesmen had been involved in an accident while driving the Suburban when it was being used as a demonstrator. The vehicle apparently had slid off an icy road and struck a cattle guard and a barbed-wire fence. Defendant had made cosmetic repairs to the vehicle at a cost of $45.30, but had not completely repaired the damage. The extent of the unrepaired damage is unclear.

Plaintiff’s cause of action was primarily based upon ORS 646.608(l)(f). That subsection provides:

"(1) A person engages in an unlawful trade practice when in the course of his business, vocation or occupation he:
«s¡: ^ ^
"(f) Represents that real estate or goods are original or new if they are deteriorated, altered, reconditioned, reclaimed, used or second-hand;

*15 Defendant claims that no representation was made that the Suburban was a new vehicle. That contention fails for two reasons. The contract given to plaintiff to sign on April 7 included a check in the box marked "new” rather than the box marked "demonstrator.” Thus, defendant explicitly represented that the car was new. In addition, the jury could find that Walker’s actions in taking plaintiff to inspect the Suburban after plaintiff had indicated he was interested in a new car amounts to a representation that the vehicle was new. ORS 646.608(2) provides:

"A representation under subsection (1) of this section or ORS 646.607 may be by any manifestation of any assertion by words or conduct, including, but not limited to, a failure to disclose a fact.”

Defendant’s act of showing plaintiff a demonstrator after plaintiff asked to see new cars without disclosing that the vehicle had been used as a demonstrator could be construed as an assertion by conduct that the vehicle was new.

Defendant also claims there was no evidence of "wilful use or employment * * * of a method, act or practice declared unlawful by ORS 646.608 * * ORS 646.638(1). We find there was evidence of wilfulness.

Certain of the evidence supporting a finding that defendant represented that the Suburban was new also supports a finding that the representation was wilful. For example, the evidence that on the order form Walker checked the box labeled "new” rather than the box labeled "demonstrator,” and he left blank the space in which to insert the odometer reading.

Defendant also contends that plaintiff is not entitled to recover because he did not rely on any alleged misrepresentation by defendant. It bases this on plaintiff’s admission that he learned the odometer reading when he signed the odometer disclosure form and Walker admitted the Suburban was a demonstrator, both before the final closing. We held in Sanders v. Francis, 277 Or 593, 598, 561 P2d 1003 *16 (1977): "Whether ORS 646.638(1) requires reliance as an element of causation necessarily depends on the particular unlawful practice alleged.” Assuming in the present case, without deciding, that reliance is necessary, the admissions the defendant relies upon do not exclude a finding of reliance. Plaintiff testified he went through with the sale after he found the Suburban was not new for the reason that he believed he was obliged to buy because he had previously signed a contract to buy.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

State ex rel Rosenblum v. Living Essentials, LLC
529 P.3d 939 (Oregon Supreme Court, 2023)
State ex rel Rosenblum v. Living Essentials, LLC
497 P.3d 730 (Court of Appeals of Oregon, 2021)
Bjorndal v. Weitman
184 P.3d 1115 (Oregon Supreme Court, 2008)
Northwest Natural Gas Co. v. Shirazi
162 P.3d 367 (Court of Appeals of Oregon, 2007)
Roberts v. American Warranty Corp.
514 A.2d 1132 (Superior Court of Delaware, 1986)
Weigel v. Ron Tonkin Chevrolet Co.
673 P.2d 574 (Court of Appeals of Oregon, 1983)
Raudebaugh v. Action Pest Control, Inc.
650 P.2d 1006 (Court of Appeals of Oregon, 1982)
Lunda v. Matthews
613 P.2d 63 (Court of Appeals of Oregon, 1980)
Bodin v. B. & L. FURNITURE CO.
601 P.2d 848 (Court of Appeals of Oregon, 1979)

Cite This Page — Counsel Stack

Bluebook (online)
592 P.2d 558, 286 Or. 11, 1979 Ore. LEXIS 962, Counsel Stack Legal Research, https://law.counselstack.com/opinion/searcy-v-bend-garage-co-or-1979.