Articles Tagged with “Regulatory Violations”

On September 9, 2019, changes to Union City Municipal Code §329-32 “Security Funds” became effective. These changes expand the power of the City to require landlords (of buildings with four units or more) to make repairs or improvements to a property with “security funds.” The “security funds” are mandatory transfers of money from a landlord to Union City ostensibly to abate “emergency conditions.” Landlords in Union City, NJ should be aware of the “emergency conditions” which trigger the “security funds” requirement. Today’s requirements are far more expansive than prior law.

329-33 “Depositing of Funds” of the Union City Municipal Code allows the City to require that a landlord deposit money (the amount is based on building size) with the City for the “repair, maintenance, supply or replacement” of “items” “necessary to correct, eliminate or alleviate an emergency condition.” Before September 9, 2019, “emergency conditions” were limited to:

(a) lack of adequate ventilation or light;

New Jersey’s Consumer Fraud Act (the “CFA”)is among the most powerful consumer protection statutes in the country. The CFA provides for treble damages and attorney’s fees in cases where the Defendant is found liable for an unlawful practice. One method of establishing liability for an unlawful practice is by showing a violation of a regulation promulgated under the CFA. Car repair and body shops are subject to CFA regulation. Consumers who believe they have been harmed or “ripped off” by a mechanic or body shop should be aware of these important regulations.

N.J.A.C. §13:45A-26C.2 (the “Auto Repairs Deceptive Practices Regulations”) sets forth an extensive list of what practices are deemed deceptive and therefore unlawful under the CFA. Many of the Auto Repairs Deceptive Practices Regulations control conduct related to what a consumer is entitled to know and authorize before a mechanic or body shop undertakes a repair. Failing to inform the customer as required by the regulations can expose a mechanic or body shop to significant liability.
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