Aug. 8, 2008 at 12:50pm

Lemon law costs Fife dealership

McCann Motors must make amends with 79 car buyers whose secondhand Hummers and Cadillac Escalades didn't come with a mandatory notice that the cars had been reacquired by their manufacturer under California's Lemon Law then resold in Washington.

"The price of prestige probably was too high for some of these buyers who paid up to $50,000 for luxury cars, but may have negotiated differently had they received the required Lemon Law disclosures," said Consumer Protection Division Chief Doug Walsh.

The Washington Attorney General's Office announced a settlement today with the Fife dealership, which agreed to contact the buyers, tell them what happened and offer to work out a suitable resolution. The dealership also agreed to pay $12,000 in fees. The state's complaint and settlement were filed in Pierce County Superior Court.

The Attorney General's Office claims that McCann Motors bought 79 cars at auction between 2005 and 2007, transported them to Fife and sold them as used on its lot. The new buyers signed paperwork that includes a notice that the cars had been repurchased under a California Lemon buyback law. But they should have also received special disclosures required under Washington law – disclosures that the state contends would have made it more obvious that these cars could have potential problems.

Washington law, for example, requires that a bright yellow flyer be placed in the window which reads, "Lemon Law Resale Notice of Nonconformity or Serious Safety Defect." The buyers also should have received documents informing them that the car title will include a comment that the vehicle was previously returned to the manufacturer and that the note may affect the vehicle's resale value.

McCann Motors didn't admit any wrongdoing but was cooperative during the investigation. McCann is offering buyers $1,000 in exchange to release all claims. 

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