Consumer Fraud Claims Between Merchants In Commercial Transactions

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In my prior articles I’ve reviewed the dramatic changes in the law of late, where New Jersey courts have applied the New Jersey Consumer Fraud Act (“CFA”) in any number of circumstances beyond the consumer context. Opinions on this subject are mixed, with some arguing that the law is being expanded to provide greater protection to those who need it, and others arguing that these cases are setting dangerous precedents that deter businesses from expanding in this State. A new opinion from the New Jersey Appellate Division, rendered after the Supreme Court remanded a matter to it for consideration, provides needed clarification on the proofs needed to recover under the CFA in a commercial transaction between sophisticated parties.

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