Supreme Court Confirms that the Consumer Fraud Act Can Apply in Business to Business Transactions
In a recent case decided on January 24, 2019, the New Jersey Supreme Court confirmed that the State's Consumer Fraud Act ("CFA") can apply in business to business transactions. Noting that the CFA has been continuously expanded by the State's Legislature over the years, the Court found that the sale of a custom-manufactured all wheel drive truck and tow body was included in the definition of "Merchandise" under the CFA and therefore the CFA claim was wrongfully dismissed by the trial court. The Court noted that so long as, "any member of the public could purchase the product or service," it would be covered under the CFA, "regardless of whether such a purchase is popular." The Court also provided future guidance by setting forth four factors to consider in determining whether the nature of a business-to-business transaction would subject a seller to liability under the CFA. The factors are as follows:
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Peter J. Vazquez, Jr.