Duval Ford v. Rogers: How a Merger Clause Backfired On a Car Dealer: Part 1 of 2

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Recently, a clause in an industry standard sales contract backfired, much to the dismay of the car dealer. In Duval Ford v. Rogers, 73 So. 3d 261 (Fla. 1st DCA June 21, 2011) a sophisticated car dealer’s Retail Buyer’s Order (“RBO”) was rendered unenforceable by the existence of a merger clause in their Retail Installment Sales Contract (“RISC”). Florida’s First District Court of Appeals held that the RISC was the entire contract, consistent with the merger clause. Therefore, the RBO was totally irrelevant. Irrelevant RBO’s will require substantial sales practices changes in the automotive industry.

http://jimersoncobb.com/blawg/2012/02/13/duval-ford-v-rogers-how-a-merger-clause-backfired-on-a-car-dealer-part-1-of-2/

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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