How do I protect myself as a consumer when buying a product or service?

The world of business can be quite ruthless. While most business owners won’t try to pull the wool over your eyes and take your money, there are unfortunately some that will. So how do you protect yourself? What do you need to know before you walk into a deal? What do you do if things go south? In this section we will try to answer those questions and more, starting with some frequently asked questions. This is meant to be an educational article for residents of North Carolina. Laws vary by state. If you need legal representation in North Carolina with a consumer complaint or contract issue, call L&N Law at 919-655-3984 or use the “contact us” form to send us a message.

I bought a product/service and now I am unhappy with it. The business is refusing to refund my money. What do I do?

The best legal answer is almost always two words: it depends. There are several important factors at play here.

What type of product or service are we talking about? Was there a contract? Contracts don’t have to be in writing all the time for everything. But for certain things they do. If there is a written contract, be sure to read over that. Does it provide any sort of warranty? Does it say you must go through mediation or arbitration rather than suing them? Does it say where you must file a lawsuit? Those are all very common terms in agreements between customers and businesses. Just because a term is in the contract doesn’t mean it is legal or enforceable in every instance. Let’s break down some possible scenarios.

I have a warranty for a year and my item is defective. I tried to contact the company before the warranty was up and they won’t replace it or fix it.

You have a few options. Assuming the issue you have is covered by a warranty you may have a viable claim against the business. You’ll want to have a lawyer review the warranty and any contract. Before you go running off to a law firm though, try exhausting common consumer measures that get good results. Have you tried posting on social media accounts of the business? Have you left a Google review? Have you filed a better business bureau complaint? All of those are likely to generate a response from the business. Remember not to be angry and threatening or make any false statements when leaving these reviews. Try to get any promises in writing. If the business won’t respond, or if the response isn’t to your satisfaction, then contact an attorney who handles consumer protection cases. Just remember that lawsuits can take a long time. It is better to exhaust other options first.

I bought a used vehicle, and it has numerous problems. The dealer won’t fix it and now I am paying for a car I can’t drive. Is this covered under the Lemon Law?

The short answer is no. Used vehicles are not covered under North Carolina’s lemon law. Only new vehicles under 10,000 lbs are. For used vehicles, often they are sold “as is”. If this is how you bought the car, you might be out of luck. However, if there is potential fraud involved, a lawyer might still be able to help you. It is important to know that fraud does not mean the salesperson saying, “this is a good car”. That is sales fluff. It means knowingly making materially false statements to induce a customer to purchase a vehicle. That is often very hard to prove.

Remember those consumer reviews are always an option. But if all else fails, call an experienced attorney, and let them help you weigh your options.

I bought a new vehicle, and it needed a repair for a transmission issue. I have taken it back to the dealer multiple times. What do I do?

Now we are getting into the realm of lemon law. New vehicles are covered under the lemon law if either of two things happen. First, if the dealer has attempted to repair the vehicle four times and has been unsuccessful. Or if the dealer has had the car for more than 20 business days in a 12-month warranty period. These repairs need to be covered by the vehicle’s warranty but don’t need to keep the car from running. Those 20 days don’t have to be all in a row either. In that instance, the dealer has a few options on how to fix this. They can give you a replacement vehicle or refund your money, minus any mileage and rebates. If they are refusing to do that, contact an experienced attorney to help you.

I purchased a product or service and paid but did not get what I paid for. How do I get my money back or the product or service I wanted?

Unfortunately, this is a common scenario. You finally get a nice bit of money saved and want to re-do your patio. You find a contractor, agree on a price, pay him for the service and wait for him to come do the work. But he never arrives. You call, text, and email and get excuse after excuse. Days turn to weeks and now you demand a refund. But the contractor disappears, refuses, or agrees but never actually gives you the money.

In this scenario, you have a strong claim against the contractor for breach of contract. Depending on whether the contractor has done this routinely to others, you may also have a case for fraud. The sooner you contact an experienced attorney, the more likely you are to be able to recover your hard-earned money.

How do I protect myself against scams and fraud with contractors?

The best way to protect yourself is to get everything in writing. Review the contract terms and make sure it has 1) How much you are paying and for what 2) What work is to be completed (and in very specific terms) 3) When the deadline is to complete work 4) Includes the name and address information of the business and a named person selling you the service 5) States when final payment is due.

Next, don’t pay for everything up front. A small deposit is common for a contractor to protect themselves. However, you should not be responsible for paying for the work in full until after it is completed and (if applicable) inspected. You should also receive an itemized bill for all work done, and materials purchased. Also verify that the business is properly insured to protect yourself in case a worker is injured while working on your property. Don’t just take their word for it. Get the insurance information and make sure the policy exists. If possible, get them to include the policy information in the contract.

Above all, remember that if it isn’t in writing, it usually doesn’t matter. Don’t take a salesperson’s word for anything. Get them to put it in the contract. Most contracts have a section that says what the salesperson told you doesn’t matter. If it isn’t in writing, it won’t be honored later.

The contract says I can’t sue them for any reason. Am I out of luck?

Not always. You can put whatever you want in a contract. However, for a court to enforce it there are always laws that say what can and can’t be in there. There are also common law rules made by courts for things like a contract that violates public policy or is unconscionable. There is always something they can be sued for. Whether you have something that falls into that category depends on a lot of factors. But don’t read a contract and just think, “oh well, I guess I am out of luck.” Contact an experienced attorney and let them evaluate it. Better yet, read the contract before you sign it.

Should I get an attorney to review my contract before I sign?

This is always the best idea. If a company won’t give you the contract to let you read it and send it to your attorney to review, just walk away. There is probably not anything good in it. An experienced attorney can tell you what terms work in your favor and what doesn’t. They can give you an objective opinion on whether it is okay to sign. If it isn’t, you might be in a position where the attorney can negotiate better terms for you. Be wary of the salesperson that hands you a tablet and all you see is a signature pad. The number one way folks get themselves in trouble is failing to read what they are signing. ALWAYS read the contract before you sign it. Then ask for a copy and keep it for your records.

Have more questions or do you need an attorney assist you? Contact L&N and let us answer your questions and help protect your rights. Call 919-655-3984 or use the contact form at www.LandNlawnc.com

About the author:

Ed Nappi is a licensed attorney and former prosecutor in North Carolina. Ed is also a former Master-At-Arms with the U.S. Navy and has been through various types of law enforcement training. Ed is a gun owner and second amendment advocate. He practices in the areas of criminal law, traffic law, contract law, employment law, consumer protection, and dispute resolution.