Can you recharge damages to a supplier if you had to compensate a buyer for repair costs because of the poor quality of the goods?
What should you do if you had to incur legal costs in a court dispute with your buyer? How do you reimburse these costs from the supplier?
The case on recovering damages from FCA RUS gives answers to these questions. Senior associate Ksenia Shcheglova comments.
A former Jeep dealership revealed a poor quality automatic transmission on one of the cars it sold. The buyer paid for its repair. His financial costs were recovered from the seller of the car. An expert review established that the cause of the malfunction was of a manufacturing nature. The supplier, however, completely ignored that trial: not a single argument or evidence was submitted against the buyer's claims. The task of the lawyers was: to charge the supplier for losses since it is responsible for the quality of its goods.
The complexity of the case: the contract contained provisions that contradicted each other: on the one hand, the supplier is held liable for all losses incurred, on the other hand, the parties are not held liable to each other for any incidental or indirect costs.
The lawyers did the following:
1. Referred to the invalidity of one of the clauses of the contract. The applicable law prohibits the complete exclusion of liability in the form of recovery of damages by agreement of the parties.
2. Proved that the recovery of legal fees incurred by the seller in the course of the legal dispute with the buyer was reasonable. As a result, the client managed to recover not only the money awarded by the court to the Buyer in full but also all amounts that were spent on legal services in the case it lost.
A consumer bought a commercial grade cargo van from a car dealership. When a malfunction occurred in the car, as part of the warranty repair the car owner decided to withdraw from the sales contract. Despite the fact that the car was repaired, the consumer decided to get refund.
The car dealership rejected the buyer's claims since the buyer had no grounds for terminating the contract: the car was repaired and was serviceable.
The car owner disagreed with the dealer's answer and filed a lawsuit with a court at his place of residence. The amount of claims, if satisfied, would have reached about RUB 3 mln rubles, including a penalty and fine under the Law "On the Protection of Consumer Rights".
Every company is obliged to have a trade name. It is not only an obligatory attribute required for its existence, but also a brand identity, to which the company acquires the exclusive right.
Read this article to find out what a trade name should be like, whether there are any restrictions on its content and whether an company is entitled to protection of its “business name”.