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Ely, Attorney
Category: Traffic Law
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Experience:  Private practice
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I purchased a 2007 Dodge Caravan at Chapman Dodge on 6/4/2013

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I purchased a 2007 Dodge Caravan at Chapman Dodge on 6/4/2013 It was for sale 'as is' and with no implied warranty. Because of this condition, I paid $1500 more and purchased a 2 yr extended Morpar warranty insurance. I was told that they were able to get me a lower finance rate by taking $1000 off the price of the van. NO mention was made in reference to the Mopar extended warranty in anyway. I still have that signed paperwork in my possession. I left the state 9 days later to visit my sister in New Mexico, a trip that the dealership was fully aware of. I got about 75 miles away from my sister's home and the van began to overheat badly. I let it cool off and managed to finally make it into Durango CO where my sister came into get me, leaving the vehicle for the night. It is now at a local Dodge dealership. Chapman is saying that the Mopar warranty was dropped when the financing was lowered. I would not have given up the extended warranty. What can I do about this dishonest situation?
Hello friend. My name is XXXXX XXXXX welcome to JustAnswer. Please note: (1) this is general information only, not legal advice, and, (2) there may be a slight delay between your follow ups and my replies.

I am very sorry for your situation. Can you please tell me what state this is in? I am not sure if this is CO, or, another state.

Also, is the issue with the vehicle under the Mopar warranty, or not?

This is not an answer, but an Information Request. I need this information to answer your question. Please reply, so I can answer your question. Thank you in advance.
Customer: replied 4 years ago.

The van was purchased in Nevada. and yes, I am concerned whether or not the Mopar warranty is still valid. I feel I was very mislead as NO ONE ever told me the lower financing caused the extended warranty to be dropped.

No one asked for that paperwork back. In fact, I never looked for lower financing, it was offered to me the next day when I went to have the 3rd row seat installed. I happily took it, but was never told that the Mopar extended warranty would be dropped. That is something I never would have agreed to.


Thank you for your reply. When you look at the paperwork - both the original and the re-financing - does either or both state that the Mopar warranty is dropped if there is a refinancing?

Do you want to check and get back to me?
Customer: replied 4 years ago.

There is no statement to that effect .... the extended warranty just is no longer listed on the revised paperwork. And I was not verbally told that it would be dropped A lady came in and said "sign here and here" and then was gone... seriously not there for more than a minute.


I hate to keep pointing to the same thing, but when she stated "sign here and here," did she leave you a copy of what was signed?
Customer: replied 4 years ago.

Yes. Tho, there was discussion as to the changes and details of the re financing and the warranty was not ever mentioned... just the $1000 off the sticker price and the lower interest (from 24.9 to 24%)... these were the ONLY changes that I was told about. I would NOT have agreed to it had I been informed I would lose the warranty. Never would have signed the paperwork. I feel there was not full disclosure.

Thank you for your reply, friend.

Please allow me a second to type out an answer which will touch base on each nuance here, as this can get a little complicated...

We need to discuss certain issues one by one, and I have included them under a separate heading below.

Parol Evidence Rule
First of all, understand that whatever you signed controls this matter. Not reading the document before signing is not an excuse, so if someone signs something, the presumption is that they did read it, and they did endorse and willingly enter into this contract.

Even if you verbally agreed to something else, whatever was signed controls. When there is a written agreement and a verbal agreement about the same thing, the written agreement is deemed the controlling one. This is called the "parol evidence rule."

"The parol evidence rule forbids the reception of evidence which would vary or contradict the contract, since all prior negotiations and agreements are deemed to have been merged therein." Daly v. Del E. Webb Corp., 96 Nev. 359, 361, 609 P.2d 319, 320 (1980).

So you very well may have signed away the Mopar warranty without meaning to during the refinancing. Now, that still does not mean that you may not have a course of action.

Express Warranty
If the vehicle came used, then the manufacturer's warranty is voided upon resale. So this does not apply.

If you have signed away the Mopar warranty, then the following does not apply (but see next heading), but if you had not, you may have an express warranty claim. If the seller's warranty covered the issue - then you can force the warranty by a BREACH OF EXPRESS WARRANTY claim in Court.

Implied Warranty
Even if there is no express warranty, she might still have an IMPLIED warranty. This is where it gets murkier.

When one purchases an item, even if one does not have a specific warranty, it comes with a set of implied warranties. These implied warranties are very ambiguous in law by nature.

An implied warranty of fitness for a particular purpose is a warranty implied by law that if a seller knows or has reason to know of a particular purpose for which some item is being purchased by the buyer, the seller is guaranteeing that the item is fit for that particular purpose. MOHASCO INDUSTRIES, v. Anderson Halverson Corp., 520 P. 2d 234 - Nev: Supreme Court 1974; NRS(NNN) NNN-NNNN

An implied warranty of merchantability is a warranty implied by law that goods are reasonably fit for the general purpose for which they are sold. MOHASCO INDUSTRIES, v. Anderson Halverson Corp., 520 P. 2d 234 - Nev: Supreme Court 1974; NRS(NNN) NNN-NNNN

Now, both are very subjective and are based on (1) the item's condition at time of purchase, (2) the amount the item was purchased for, (3) how long an item of such nature normally would be expected to last for, and (4) whether or not you waived these warranties by writing.

But you may have a suit for IMPLIED WARRANTY breach here, even if the Mopar (express) warranty was signed away by accident during the refinance.

Course of Action
Someone in your situation may wish to threaten a legal suit unless the matter is taken care of. In such situations, an attorney's letter is best because n attorney usually cuts through this malarkey since the dealership knows counsel does not put up with this and WILL file suit if needed (whereas here, they do not see you as much of a threat without an attorney since you filing or winning a suit without counsel is unlikely).

May I recommend the Nevada Bar referral program - here. The attorneys are vetted and qualified. You should be able to find an attorney you are confident with and whom you can trust, and who is available ASAP.

Alternatively, let me know if you need to see a sample letter.

Often, this may be resolved without litigation and they may simply agree to provide service to avoid litigation.

I hope this helps and clarifies. Best of luck.

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