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COMMONWEALT14 OF PENNSYLVANIA
BY ATTORNEY GENERAL
D. MICHAEL FISHER
Plaintiff
V.
NEW KINGSTOWN AUT0,-,;q,l_ES, INC.
P.O. BOX 413 - 73 EAST MAIN ST.
NEW KINGSTOWN, PA. 17072
Respondent
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY,
PENNSYLVANIA
CIVIL ACTION - EQUITY
No. 1999
JcZiS
ASSURANCE OF VOLUNTARY COMPLIANCE
WHEREAS, the Commonwealth of Pennsylvania, acting by the Office of Attorney
General, through the Bureau of Consumer Protection ("Commonwealth"), has caused an
investigation to be made into the business practices of New Kingston Auto Sales, Inc.,
("Respondent"), pursuant to the Unfair Trade Practices and Consumer Protection Law, 73 P.S.
§§ 201-1-201-9.3 ("Consumer Protection Law"), the Motor Vehicle Sales Finance Act, 69
P.S.§§ 601- 637, and the Automotive Industry Trade Practices Regulations, 37 Pa. Code §
301.1- 301.6.
WHEREAS, Respondent New Kingstown Auto Sales Inc., is a Pennsylvania corporation
engaged in trade or commerce within the Commonwealth through the operation of a used motor
vehicle dealership under the same name, from a principal place of business located at 73 East
Main Street, New Kingstown, PA. 17072; and
WHEREAS, the Respondent is licensed by the State Board of Vehicle Manufacturers,
Dealers and Salespersons, and holds license #VD-019917-L; and
WHEREAS, an investigation was conducted into the business practices of the
Respondent by the Office of Attorney General, Bureau of Consumer Protection; and
WHEREAS, based upon its investigation, the Commonwealth alleges that Respondent
New Kingstown Auto Sales, Inc., engaged in conduct violative of the Consumer Protection
Law, the Motor Vehicle Sales Finance Act, and the Automotive Industry Trade Practices
Regulations ("Auto Regs"), as more fully set forth herein; and
WHEREAS, the Respondent sold at least eight (8) vehicles from 1996 to 1998 without
providing a printed or written contract in connection with the sale of the motor vehicles allegedly
in violation of § 301.4(a)(1) of the Auto Regs; and
WHEREAS, the Respondent sold two (2) vehicles in 1996 without describing the vehicles
as "reconstructed" on a written contract, invoice, or receipt, allegedly in violation of
§ 301.4(a)(2)(iii) of the Auto Regs; and
WHEREAS, the Commonwealth alleges that Respondent's conduct in the previous two
paragraphs also violates § 201-2(4)(v),(vii), and (xxi) of the Consumer Protection Law by
misrepresenting and causing a likelihood of confusion or of misunderstanding as to the
characteristics of the vehicles sold; and
WHEREAS, the Respondent has agreed to cease and desist from the aforementioned
conduct, and desires to comply with these civil laws of the Commonwealth; and
WHEREAS, the Commonwealth is agreeable in this matter to accept this Assurance of
Voluntary Compliance, pursuant to § 201-5 of the Consumer Protection Law, in lieu of
commencing proceedings pursuant to § 201-4 of the Consumer Protection Law; and
WHEREAS, under the Consumer Protection Law, this Assurance of Voluntary
Compliance shall not be considered an admission of a violation for any purpose.
-2-
WHEREAS, the Respondent asserts that it is entering into this Assurance in order to
show its good faith toward its customers, including both those named herein and unnamed.
NOW THEREFORE, while engaging in trade or commerce within the Commonwealth
of Pennsylvania, the Respondent agrees for itself, its officers, owners, partners, representatives,
employees and all otter persons acting on their behalf, jointly or-individually, directly or
through any corporate or business device, as follows:
-4'
1. The Respondent shall comply with any and all provisions of the Consumer
Protection Law, the Motor Vehicle Sales Finance Act, and the Automotive Industry Trade
Practices Regulations, and is permanently enjoined from any violation thereof.
II. The Respondent shall provide a printed or written contract form agreement, receipt,
or invoice in connection with the sale of a motor vehicle to every vehicle customer as required by
§ 301.4(a)(1) of the Auto Regs. The contract utilized by the Respondent shall comply with the
terms of § 301.4(a)(2). In addition, the Respondent shall describe vehicles as "reconstructed" on
these documents if the vehicles are, in fact, reconstructed vehicles under 75 Pa. C. S. § 102.
III. The Respondent shall respond in writing to any written complaint filed with the
Office of Attorney General, Bureau of Consumer Protection, within ten (10) days of receiving
notice thereof.
IV. The Respondent shall allow the Office of Attorney General, Bureau of Consumer
Protection, to inspect any business records of New Kingstown Auto Sales Inc., with reasonable
notice to the Respondent, for a period of five (5) years. Reasonable notice shall constitute 24
1tJirs,
-3-
V. The Respondent shall pay three thousand one hundred and seventy five dollars
5i6;67do 05
($,JIL75.00) to the Commonwealth of Pennsylvania to be used as restitution to Robert A. Pond
and Karen R. Bell.
VI. The Respondent shall pay one thousand dollars ($1,000.00) to the Commonwealth
as civil penalties.
VII. The Respondent shall pay four thousand dollars ($4,000.00) to the
Commonwealth as costs of investigation and/or future public protection purposes.
VIII. The Respondent shall pay the total sum of eight thousand one hundred and
Jp3s• DO go
seventy-five dollars ($§,1-75.00) in accordance with the following payment plan, any violation of
which shall be deemed a violation of this Assurance:
5,o35aaA05
a. Upon signing this Assurance, the Respondent shall pay $3A,75.00 to the
Commonwealth to be used as restitution as stated above;
b. On May 15, 1999 and on the fifteenth day of each of the following four
months, the Respondent shall pay $825.00 to the Commonwealth; and
C. On October 15, 1999, the Respondent shall pay $875.00 to the
Commonwealth.
IX. In the event that the Respondent fails to make any one payment within thirty (30)
days after the due date of the payment, or if the Respondent is late by five (5) or more days in
making any two payments, regardless of whether they are consecutive or non-consecutive, the
Commonwealth, at its sole option, may accelerate the debt and declare the entire unpaid balance
immediately due and owing, Upon written demand, the Respondent immediately shall make full
payment of the accelerated amount. Failure to so pay the accelerated amount shall be deemed a
violation of this Assurance and shall subject the Respondent to all of the sanctions and penalties
provided for by this Assurance and otherwise by law.
4
X. The Respondent stipulates that in the event New Kingston Auto Sales, Inc., files
for protection under the United States Bankruptcy Code, the debts incurred herein shall be
considered by it to be non-dischargeable pursuant to 11 U.S.C. §523(a)(2) and (7). The
Respondent further stipulates that the consumer restitution encompassed herein represents debts
entitled to treatment under 11 U.S.C. § 507(a)(6) as a consumer priority.
XI. All monies owed by the Respondent under this Assurance shall be paid by
certified check, cashier's check or money order, made payable to the Commonwealth of
Pennsylvania, and delivered to the Bureau of Consumer Protection, 132 Kline Plaza,
Harrisburg, PA 17104.
XII. This Court shall maintain jurisdiction over the subject matter of this Assurance
of Voluntary Compliance and over the Respondent for the purpose of enforcing this
Assurance.
XIII. Provided that nothing contained herein shall be construed to waive any individual
right of action by a consumer or any local, state, federal, or other governmental entity, other
than the Office of Attorney General, Bureau of Consumer Protection, in regard to the specific
facts alleged herein.
NOW THEREFORE, the parties hereby stipulate that this Assurance of Voluntary
Compliance shall have the same force and effect as a permanent injunction issued under
§ 201-4 of the Consumer Protection Law, so that any violation of this Assurance of Voluntary
Compliance shall be sufficient cause for the Attorney General of this Commonwealth to seek
-5-
penalties as provided in §§ 201-8, 201-9 and 201-9.1 of the Consumer Protection Law and any
other equitable relief which the Court deems necessary or proper.
ez (PL-,
Witness the following signatures this of May, 1999.
FOR THE PLAINTIFF: FOR T.
BY: D. MICHAEL FISHER BY:
D. MICHAEL FISHER
ATTORNEY GENERAL
BY: DOUGLASP YAUGER BY:
DOUGLAS P. YAUGER
CHIEF DEPUTY ATTORNEY GENERAL
r /-7 . it A
BY:
GLACE, ESQ.
ALNUT STREET
JRG, PA 17101
iY FOR RESPONDENT
DEPUTY ATTORNEY GENERAL
ATTORNEY I.D. NO. 58131
BY: ?2%S1
MARK S. STEWART
DEPUTY ATTORNEY GENERAL
ATTORNEY I.D. NO 75958
OFFICE OF ATTORNEY GENERAL
132 KLINE PLAZA
HARRISBURG, PA 17104
(717)-787.7109 DAN1y1:i1es\F0RM5\AVC\New Kingstown • auto.wpdP12799
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SALES, INC.
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COMMONWEALTH OF
PENNSYLVANIA,
BY ATTORNEY
GENERAL D. MICHAEL
FISCI-IER,
Plaintiff
V.
NEW KINGSTOWN
AUTO SALES, INC.,
P.O. BOX 413 - 73 EAST
MAIN STREET, NEW
KINGSTOWN, PA 17072
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL ACTION - EQUITY
NO. 99-3295 EQUITY TERM
ORDER OF COURT
AND NOW, this 3151 day of December, 2001, upon consideration of Plaintiffs
Petition for Civil Penalties and Imposition of Sanctions under the Unfair Trade Practices
and Consumer Protection Law, a Rule is hereby issued upon Respondent to show cause
why the relief requested should not be granted.
RULE RETURNABLE at a hearing scheduled for Thursday, February 14, 2002, at
3:00 p.m., in Courtroom No. 1, Cumberland County Courthouse, Carlisle, Pennsylvania..
BY THE COURT,
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Jody L. Flitton, Esq.
Deputy Attorney General
Office of the Attorney General
Bureau of Consumer Protection
Harrisburg Regional Office
301 Chestnut Street
Suite 105
Harrisburg, PA 17101
Attorney for Commonwealth
John A Glace, Esq.
132-134 Walnut Street
Harrisburg, PA 17101
Attorney for Respondent
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COMMONWEALTH OF PENNSYLVANIA
BY ATTORNEY GENERAL
D. MICHAEL FISHER
Plaintiff
IN THE COURT OF COMMON
PLEAS OF CUMBERLAND COUNTY,
PENNSYLVANIA
V. CIVIL ACTION - EQUITY
NEW KINGSTOWN AUTO SALES, INC. No. 99--3295 Equity
P.O. BOX 413 - 73 EAST MAIN ST.
NEW KINGSTOWN, PA 17072
Respondent
QRDER
AND NOW, this day of December, 2001, it is hereby ORDERF,D that
a hearing will be held on , 2001, at a.m./p.m. in
courtroom of the Cumberland County Court of Common Pleas to consider the
Commonwealth's Petition for Civil Penalties and Imposition of Sanctions under the Unfair
Trade Practices and Consumer Protection Law.
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COMMONWEALTH OF PENNSYLVANIA
BY ATTORNEY GENERAL
D. MICHAEL FISHER
Plaintiff
IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY,
PENNSYLVANIA
V.
CIVIL ACTION -EQUITY
NEW KINGSTOWN AUTO SALES, INC.
P.O. BOX 413 - 73 EAST MAIN ST. NO. 99""3295 Equity
NEW KINGSTOWN, PA 17072
Respondent
AND NOW, this day of December, 2001, comes the Plaintiff, the Commonwealth
of Pennsylvania, acting by Attorney General D. Michael Fisher, through the Bureau of
Consumer Protection ("Commonwealth"), who brings this Petition for Civil Penalties and
Imposition of Sanctions under the Unfair Trade Practices and Consumer Protection Law
pursuant to §§ 201-8 of the Unfair Trade Practices and Consumer Protection Law, 73 P.S.
§201-1 - 201-9.3 "
Co
( nsumer Protection Law"), to have the Respondent in the above-
captioned matter sanctioned and subjected to other equitable relief for failing to obey the
previously filed Assurance of Voluntary Compliance dated June 1, 1999. In support thereof
the Commonwealth avers as follows:
1. Plaintiff, the Petitioner in this action, is the Commonwealth of Pennsylvania,
acting by Attorney General D. Michael Fisher, through the Bureau of Consumer Protection.
I
2. The Respondent, New Kingstown Auto Sales, Inc., is a Pennsylvania corporation
engaged in trade or commerce within the Commonwealth of Pennsylvania through the
operation of a used motor dealership under the same name, from a principal place of business I`
located at 73 East Main Street, New Kingstown, PA 17072.
3. On May 26, 1999, the Respondent entered into an Assurance of Voluntary
Compliance with the Commonwealth, which was filed in this Court on June 1, 1999. A copy
of said Assurance is attached hereto and marked as Exhibit A.
4. In the Assurance, the Commonwealth alleged that the Respondent failed to
comply with the Motor Vehicle Sales Finance Act, Automotive Industry Trade Practices
Regulations ("Auto Regs") and the Consumer Protection Law.
5. In the Assurance, Respondent agreed to comply with any and all of the
aforementioned statutes and regulations and was permanently enjoined from any further
violations thereof. AVC at 11.
6. The Respondent agreed to provide a printed or written contract form agreement,
receipt, or invoice in connection with the sale of a motor vehicle'to every customer as required
by §301.4(a)(1) of the Auto Regs. The contract utilized by the Respondent was to comply
with the terms of §301.4(a)(2). In addition, the respondant agreed to describe vehicles as
reconstructed on these documents if the vehicles are, in fact, reconstructed vehicles under 75
Pa.C.S. §102. AVC at 111.
7. The respondent uses a disclaimer statement in the ordinary course of its
business, which is attached herto and incorporated herin as exhibit B, that states:
(DISCLAIMER STATEMENT)
NOTICE TO PURCHASER:
THIS VEHICLE IS SOLD WITH NO WARRANTY
(NOTHING EXPRESS OR IMPLIED) YOU WILL PAY ALL
COST FOR ANY REPAIRS REGARDLESS OF ANY ORAL
-2-
STATEMENT ABOUT THE ABOVE MENTION VEHICLE.
WE DO NOT GUARANTEE ANY OF THE FOLLOWING:
FRAME BEN'Z', CRACKED, TWISTED OR RUST. ENGINE
BLOCK OR HEAD CRACKED. TRANSMISSION DAMAGE.
VEHICLE FLOOD DAMAGE. DIFFERENTIAL DAMAGED',
THIS VEHICLE IS NOT GUARANTEED TO PASS PA
INSPECTION OR PASS ANY PA STATE SAFETY CHECKS.
THIS VEHICLE HAS NOT BEEN INSPECTED BY THE
SELLING DEALERSHIP. THIS VEHICLE IS NOT
CONSIDERED ROAD WORTHY. WE DO NOT
GUARANTEE THE MILES, YEAR, MAKE OR MODEL.
8. The Respondent's disclaimer is inconsistent with and contradicts the
requirements of §§ 301.2(5) and 301.4(a)(2) of the Automotive Industry Trade Practices
Regulations.
9. The Respondent's conduct also violates § 201-2(4)(v) and (xxi) of the Consumer
Protection Law by misrepresenting and causing a likelihood of confusion or misunderstanding
as to characteristics of vehicles sold.
10. The Respondent's conduct is in violation of the Assurance of Voluntary
Compliance.
1 L The parties agreed that the Assurance of Voluntary Compliance
shall have the force and effect as a Permanent Injunction issued pursuant to § 201-4 of the
Consumer Protection Law, and that any violation of the Assurance of Voluntary Compliance
shall be sufficient cause for the Attorney General of this Commonwealth to seek penalties as
provided in §§ 201-8, 201-9 and 201-9.1 of the Consumer Protection Law and any other
equitable relief which the court deems necessary or proper.
-3-
f t k
12. Pursuant to § 201-8(a) of the Consumer Protection Law, any person who
I
violates any of the terms of an Assurance of Voluntary Compliance shall forfeit and pay to the
Commonwealth a civil penalty of not more than five thousand dollars($5,000) for each
j violation.
WHEREFORE, the Commonwealth respectfully prays this Honorable Court enter an
Order:
I A. Finding the Respondent in violation of the previously filed Assurance of
Voluntary Compliance;
B. Assessing and holding the Respondent liable for an additional penalty of
$5,000.00 pursuant to §201-8 of the Consumer Protection Law for each violation of the terms
of this Assurance of Voluntary Compliance;
C. Awarding such other relief as this Court deems appropriate and necessary to
ensure compliance with the Assurance of Voluntary Compliance.
RESPECTFULLY SUBMITTED:
BY: D. M_ ICIJAE FISHER
D. MICHAEL FISHER
ATTORNEY GENERAL
BY: FRANK T DONAGHUE
FRANK T. DONAGHUE
CHIEF DEPUTY ATTORNEY GENERAL
BY: SETH A. MFNDR SOHN
SETH A. MENDELSOHN
DEPUTY ATTORNEY GENERAL
ATTORNEY I. D. NO. 77063
-4-
Date: / 2) e& 01
BY:
J DI L. FLITTON
EPUTY ATTORNEY GENERAL
ATTORNEY I.D. NO. 58131
OFFICE OF ATTORNEY GENERAL
BUREAU OF CONSUMER PROTECTION
HARRISBURG REGIONAL OFFICE
301 CHESTNUT STREET
SUITE 105
HARRISBURG, PA 17101
TELEPHONE: 717-787-7109
-5-
VERIFICATION
I hereby verify that the statements made in the foregoing Petition for Civil Penalties
and Imposition of Sanctions under the Unfair Trade Practices and Consumer Protection Law
are true and correct upon information and belief. I understand that any false statements made
herein are subject to the penalties of 18 Pa.C.S. § 4904 relating to unsworn falsification to
authorities.
ton Palmer
gent, Bureau of Consumer Protection
Date: _/a- /9% a/
.,. ,;;)CnJ?Y
PEN\,S1'LViUj q Viy
y
EXHIBIT A
COMMONWEALTH OF PENNSYLVANIA
BY ATTORNEY GENERAL
D. MICHAEL FISHER
Plaintiff
V,
NEW KINGSTOWN AUTO SALES, INC.
P.O. BOX 413 - 73 EAST MAIN ST.
NEW KINGSTOWN, PA. 17072
Respondent
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY,
PENNSYLVANIA
CIVIL ACTION - EQUITY
No.
lei -?2"2cd
1999
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ASSURANCE Cr
OF VOLUNTARY C PLIANf`' - -c^
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WHEREAS, the Commonwealth of Pennsylvania, acting by the Office &Rttotgley U ? 3
General, through the Bureau of Consumer Protection ("Commonwealth"), has causedn
investigation to be made into the business practices of New Kingston Auto Sales, Inc.,
('Respondent"), pursuant to the Unfair Trade Practices and Consumer Protection Law, 73 P.S.
§§ 201-1-201-9.3 ("Consumer Protection Law,, the Motor Vehicle Sales Finance Act, 69
P.S.§§ 601- 637, and the Automotive Industry Trade, Practices Regulations, 37 Pa. Code §
301.1- 301.6.
WHEREAS, Respondent New Kingstown Auto Sales Inc., is a Pennsylvania corporation
engaged in trade or commerce within the Commonwealth through the operation of a used motor
vehicle dealership under the same name, from a principal place of business located at 73 East
Main Street, New Kingstown, PA. 17072; and
WI IEREAS, the Respondent is licensed by the State Board of Vehicle Manufacturers,
Dealers and Salespersons, and holds license #VD-019917-L; and
WHEREAS, an investigation was conducted into the business practices of the
Respondent by the Office of Attorney General, Bureau of Consumer Protection; and
WHEREAS, based upon its investigation, the Conunomwealth alleges that Respondent
New Kingstown Auto Sales, Inc., engaged in conduct violative of the Consumer Protection
Law, the Motor Vehicle Sales Finance Act, and the Automotive Industry Trade Practices
Regulations ("Auto Regs"), as more fully set forth herein; and
WHEREAS, the Respondent sold at least eight (8) vehicles from 1996 to 1998 without
providing a printed or written contract in connection with the sale of the motor vehicles allegedly
in violation of § 301.4(a)(1) ofthe Auto Regs; and
WHEREAS, the Respondent sold two (2) vehicles in 1996 without describing the vehicles
as "reconstructed" on a written contract, invoice, or receipt, allegedly in violation of
§ 301.4(a)(2)(iii) of the Auto Regs; and
WHEREAS, the Commonwealth alleges that Respondent's conduct in the previous two
paragraphs also violates § 201-2(4)(v),(vii), and (xxi) of the Consumer Protection Law by
misrepresenting and causing a likelihood of confusion or of misunderstanding as to the
characteristics of the vehicles sold; and
WHEREAS, the Respondent has agreed to cease and desist from the aforementioned
conduct, and desires to comply with these civil !aws of the Commonwealth; and
WHEREAS, the Commonwealth is agreeable in this matter to accept this Assurance of
Voluntary Compliance, pursuant to § 201-5 of the Consumer Protection Law, in lieu of
commencing proceedings pursuant to § 201-4 of the Consumer Protection Law; and
WHEREAS, under the Consumer Protection Law, this Assurance of Voluntary
Compliance shall not be considered an admission of a violation for any purpose,
WHEREAS, the Respondent asserts that it is entering into this Assurance in order to
show its good faith toward its customers, including both those named herein and unnamed.
NOW THEREFORE, while engaging in trade or commerce within the Commonwealth
of Pennsylvania, the Respondent agrees for itself, its officers, owners, partners, representatives,
employees and all other persons acting on their behalf, jointly or individually, directly or
through any corporate or business device, as follows:
.4
1. The Respondent shall comply with any and all provisions of the Consumer
Protection Law, the Motor Vehicle Sales Finance Act, and the Automotive Industry Trade
Practices Regulations, and is permanently enjoined from any violation thereof.
if. The Respondent shall provide a printed or written contract form agreement, receipt,
or invoice in connection with the sale of a motor vehicle to every vehicle customer as required by
§ 301.4(x)(1) of the Auto Regs. The contract utilized by the Respondent shall comply with the
terms of § 301.4(a)(2). In addition, the Respondent shall describe vehicles as "reconstructed" on
these documents if the vehicles are, in fact, reconstructed vehicles under 75 Pa.C.S. § 102.
111. The Respondent shall respond in writing to any written complaint filed with the
Office of Attorney General, Bureau of Consumer Protection, within ten (10) days of receiving,
notice thereof.
IV. The Respondent shall allow the Office of Attorney General, Bureau of Consumer
Protection, to inspect any business records of New Kingstown Auto Sales Inc., with reasonable
notice to the Respondent, for a period of five (5) years. Reasonable notice shall constitute 24
h1lrs.
-3-
V. file Respondent shall pay three thousand one hundred and seventy five dollars
516;;.5-60 p(_4i5
($?„-N5,00) to the Commonwealth of Pennsylvania to be used as restitution to Robert A, Pond
and Karen R. Bell.
VI. The Respondent shall pay one thousand dollars ($1,000.00) to the Commonwealth
as civil penalties.
VII. The Respondent shall pay four thousand dollars ($4,000.00) to the
Commonwealth as costs of investigation and/or future public protection purposes.
VIII. The Respondent shall pay the total sum of eight thousand one hundred and
g p,5 • to M?
seventy-five dollars ($1??5,00) in accordance with the following payment plan, any violation of
which shall be deemed a violation of this Assurance:
51 0 35aaA65?5
a. Upon signing this Assurance, the Respondent shall pay $3,1.75,00 to the.
Commonwealth to be used as restitution as stated above;
b. On May 15, 1999 and on the fifteenth day of each of the following four
months, the Respondent shall pay $825.00 to the Commonwealth; and
C. On October 15, 1999, the Respondent shall pay $875.00 to the
Commonwealth.
IX. In the event that the Respondent fails to make any one payment within thirty (30)
days after the due date of the payment, or if the Respondent is late by five (5) or more days in
making any two payments, regardless of whether they are consecutive or non-consecutive, the
Commonwealth, at its sole option, may accelerate the debt and declare the entire unpaid balance
immediately due and owing. Upon written demand, the Respondent immediately shall make full
payment of the accelerated tnnount. Failure to so pay the accelerated amount shall be deemed a
violation of this Assurance and shall subject the Respondent to all of the sanctions and penalties
provided for by this Assurance and otherwise by 1aw.
r
__11 '
X. The Respondent stipulates that in the event New Kingston Auto Sales, Inc., files
for protection under the United States Bankruptcy Code, the debts incurred herein shall be
considered by it to be non-dischargeable pursuant to 11 U.S.C. §523(x)(2) and (7), The
Respondent further stipulates that the consumer restitution encompassed herein represents debts.
entitled to treatment under I I U.S.C. § 507(a)(6) as a consumer priority.
XI. All monies owed by the Respondent under this Assurance shall be paid by
certified check, cashier's check.or money order, made payable to the Commonwealth of
Pennsylvania, and delivered to the Bureau of Consumer Protection, 132 Kline Plaza,
Harrisburg, PA 17104.
XII. This Court shall maintain jurisdiction over the subject matter of this Assurance
of Voluntary Compliance and over the Respondent for the purpose of enforcing this
Assurance.
XIII. Provided that nothing contained herein shall be construed to waive any individual
right of action by a consumer or any local, state, federal, or other governmental entity, other
than the Office of Attorney General, Bureau of Consumer Protection, in regard to the specific
facts alleged herein.
NOW THEREFORE, the parties hereby stipulate that this Assurance of Voluntary
Compliance shall have the same force and effect as a permanent injunction issued under
§ 201-4 of the Consumer Protection Law, so that any violation of this Assurance of Voluntary
Compliance shall be sufficient cause for the Attorney General of this Commonwealth to seek
-5-
t
penalties as provided in §§ 201-8, 201-9 and 201-9.1 of the Consumer Protection Law and any
other equitable relief which the Court deems necessary or proper.
Vu-
Witness the following signatures this
day of May, 1999.
FOR THE PLAINTIFF:
BY: D. MICHAEL FISHER
D. MICHAEL FISHER
ATTORNEY GENERAL
BY: DOUGLAS P. YA GFg BY:
DOUGLAS P. YAUGER
CHIEF DEPUTY ATTORNEY GENERAL
/r
BY:
1 LLITTON
)EPIU?TTYY ATTORNEY GENERAL
ATTORNEY I.D. NO. 58131
BY: *A-SM-.STEWART `
DEPUTY ATTORNEY GENERAL
ATTORNEY I.D. NO 75958
OFFICE OF ATTORNEY GENERAL
132 KLINE PLAZA
HARRISBURG, PA 1710$
(717)-787-7109
FOR THE RES,
, NENYKINGSTOWN AUTO
SALES, INC.
J I H :.. GLACE, ESQ
1 2- ALNUT STREET
A R RG; PA 17101
O EY FOR RESPONDENT
BY:
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ANY OFTEMFULL OWING: FRAM&BENT. CRACKED,TVnS=ORRUST.
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S1vII55IQNDAMa(E. VL-TUQE.:,.,C;GD
DA.M/AGE. DIFIF: [' NT]AL DAMAOBU. THIS VEHICLE IS NOT GUARANTE ) P'0 Ft-SS
PA'NISPECTIO. T flit PASS ANY PA STATE SAFETY CEWM. TT)L4 VEfjIC2i i Ate`: k3':)'(
BEEN c'NaF£C"d7 tr.BYTT? SELiFNGDFAJ.FU.SHp. TIM VEHICLE IS NOT
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OF MODR,-
D'DY()U -uSTO>:a-- 'tx,XVEPICT IREVOREtiOUPURCHASmITOs-vvTEFFDa„Tn.a: "Riicl•
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CERTIFICATE OF SERVICE
I hereby certify that on the Obay of December, 2001, I served the foregoing
Petition for Civil Penalties and Imposition of Sanctions under the Unfair Trade Practices and
Consumer Protection Law upon the Respondent by first class and certified mail, return receipt
requested, at the following address:
NEW KINGSTOWN AUTO SALES, INC.
c/o Attorney John M. Glace
132-134 Walnut Street
Harrisburg, PA 17101
Attorney for Respondent
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COMMONWEALTH OF PENNSYLVANIA
BY ATTORNEY GENERAL
D. MICHAEL FISHER
: IN THE COURT OF COMMON
: PLEAS OF CUMBERLAND COUNTY,
: PENNSYLVANIA
Plaintiff
V.
NEW KINGSTOWN AUTO SALES, INC.
P.O. BOX 413 - 73 EAST MAIN ST.
NEW KINGSTOWN, PA 17072
CIVIL ACTION - EQUITY
No. 99--3295 Equity
Respondent
ORDER
AND NOW, this day of December, 2001, it is hereby ORDERED that
a hearing will be held on , 2001, at a.m./p.m. in
courtroom __ of the Cumberland County Court of Common Pleas to consider the
Commonwealth's Petition for Civil Penalties and Imposition of Sanctions under the Unfair .
Trade Practices and Consumer Protection Law.
COMMONWEALTH OF PENNSYLVANIA
BY ATTORNEY GENERAL
D. MICHAEL FISHER
: IN THE COURT OF COMMON PLEAS
: OF CUMBERLAND COUNTY,
: PENNSYLVANIA
Plaintiff
V.
NEW KINGSTOWN AUTO SALES, INC.
P.O. BOX 413 - 73 EAST MAIN ST.
NEW KINGSTOWN, PA 17072
Respondent
CIVIL ACTION - EQUITYF2
No. 99--3295 Equity Cr
PETITION FOR CIVIL PENALTIES AND IMPOSITION OF SANCTIONS UNDER
THE UNFAIR TRADE PRACTICES AND CONSUMER PROTECTION LAW
AND NOW, this day of December, 2001, comes the Plaintiff, the Commonwealth
of Pennsylvania, acting by Attorney General D. Michael Fisher, through the Bureau of
Consumer Protection ("Commonwealth"), who brings this Petition for Civil Penalties and
Imposition of Sanctions under the Unfair Trade Practices and Consumer Protection Law
pursuant to §§ 201-8 of the Unfair Trade Practices and Consumer Protection Law, 73 P.S.
§201-1 - 201-9.3, ("Consumer Protection Law"), to have the Respondent in the above-
captioned matter sanctioned and subjected to other equitable relief for failing to obey the
previously filed Assurance of Voluntary Compliance dated June 1, 1999. In support thereof
the Commonwealth avers as follows:
1. Plaintiff, die Petitioner in this action, is the Commonwealth of Pennsylvania,
acting by Attorney General D. Michael Fisher, through the Bureau of Consumer Protection.
2. The Respondent, New Kingstown Auto Sales, Inc., is a Pennsylvania corporation
engaged in trade or commerce within the Commonwealth of Pennsylvania through the
operation of a used motor dealership under the same name, from a principal place of business
located at 73 East Main Street, New Kingstown, PA 17072.
3. On May 26, 1999, the Respondent entered into an Assurance of Voluntary
Compliance with the Commonwealth, which was filed in this Court on June 1, 1999. A copy
of said Assurance is attached hereto and marked as Exhibit A.
4. In the Assurance, the Commonwealth alleged that the Respondent failed to
comply with the Motor Vehicle Sales Finance Act, Automotive Industry Trade Practices
Regulations ("Auto Regs") and the Consumer Protection Law.
5. In the Assurance, Respondent agreed to comply with any and all of the
aforementioned statutes and regulations and was permanently enjoined from any further
violations thereof. AVC at 11.
6. The Respondent agreed to provide a printed or written contract form agreement,
receipt, or invoice in connection with the sale of a motor vehicle to every customer as required
by §301.4(a)(1) of the Auto Regs. The contract utilized by the Respondent was to comply
with the terms of §301.4(a)(2). In addition, the respondant agreed to describe vehicles as
reconstructed on these documents if the vehicles are, in fact, reconstructed vehicles under 75
Pa.C.S. §102. AVC at 111.
7. The respondent uses a disclaimer statement in the ordinary course of its
business, which is attached herto and incorporated herin as exhibit B, that states:
(DISCLAIMER STATEMENT)
NOTICE TO PURCHASER:
THIS VEHICLE IS SOLD WITH NO WARRANTY
(NOTHING EXPRESS OR IMPLIED) YOU WILL PAY ALL
COST FOR ANY REPAIRS REGARDLESS OF ANY ORAL
-2-
STATEMENT ABOUT THE ABOVE MENTION VEHICLE.
WE DO NOT GUARANTEE ANY OF THE FOLLOWING:
FRAME BENT, CRACKED, TWISTED OR RUST. ENGINE
BLOCK OR HEAD CRACKED. TRANSMISSION DAMAGE.
VEHICLE FLOOD DAMAGE. DIFFERENTIAL DAMAGED.
THIS VEHICLE IS NOT GUARANTEED TO PASS PA
INSPECTION OR PASS ANY PA STATE SAFETY CHECKS.
THIS VEHICLE HAS NOT BEEN INSPECTED BY THE
SELLING DEALERSHIP. THIS VEHICLE IS NOT
CONSIDERED ROAD WORTHY. WE DO NOT
GUARANTEE THE MILES, YEAR, MAKE OR MODEL.
8. The Respondent's disclaimer is inconsistent with and contradicts the
requirements of §§ 301.2(5) and 301.4(a)(2) of the Automotive Industry Trade Practices
Regulations.
9. The Respondent's conduct also violates § 201-2(4)(v) and (xxi) of the Consumer
Protection Law by misrepresenting and causing a likelihood of confusion or misunderstanding
as to characteristics of vehicles sold.
10. The Respondent's conduct is in violation of the Assurance of Voluntary
Compliance.
1 I . The parties agreed that the Assurance of Voluntary Compliance
shall have the force and effect as a Permanent Injunction issued pursuant to § 201-4 of the
Consumer Protection Law, and that any violation of the Assurance of Voluntary Compliance
shall be sufficient cause for the Attorney General of this Commonwealth to seek penalties as
provided in §§ 201-8, 201-9 and 201-9.1 of the Consumer Protection Law and any other
equitable relief which the court deems necessary or proper.
-3-
12. Pursuant to § 201-8(a) of the Consumer Protection Law, any person who
violates any of the terms of an Assurance of Voluntary Compliance shall forfeit and pay to the
Commonwealth a civil penalty of not more than five thousand dollars($5,000) for each
violation.
WHEREFORE, the Commonwealth respectfully prays this Honorable Court enter an
Order:
A. Finding the Respondent in violation of the previously filed Assurance of
Voluntary Compliance;
B. Assessing and holding the Respondent liable for an additional penalty of
$5,000.00 pursuant to §201-8 of the Consumer Protection Law for each
violation of the terms of this Assurance of Voluntary Compliance;
C. Awarding such other relief as this Court deems appropriate and necessary to
ensure compliance with the Assurance of Voluntary Compliance.
RESPECTFULLY SUBMITTED:
BY: D. MICHAEL. FISHER
D. MICHAEL FISHER
ATTORNEY GENERAL
BY: FRANK T. DONAGHUE
FRANK T. DONAGHUE
CHIEF DEPUTY ATTORNEY GENERAL
13Y: SETH A MENDELSOHN
SETH A. MENDELSOHN
DEPUTY ATTORNEY GENERAL
ATTORNEY I.D. NO. 77063
-4-
_f' `
BY.
JODI L. FLITTON
DEPUTY ATTORNEY GENERAL
ATTORNEY I.D. NO. 58131
OFFICE OF ATTORNEY GENERAL
BUREAU OF CONSUMER PROTECTION
HARRISBURG REGIONAL OFFICE
301 CHESTNUT STREET
SUITE 105
IARRISBURG, PA 17101
TELEPHONE: 717-787-7109
Date: J 'D e& o
-5-
FRIFICATION
I hereby verify that the statements made in (lie foregoing Petition for Civil Penalties
and Imposition of Sanctions under the Unfair Trade Practices and Consumer Protection Law
are true and correct upon information and belief. I understand that any false statements made
herein are subject to the penalties of 18 Pa.C.S. § 4904 relating to unsworn falsification to
authorities.
I
?L
ton Palmer
gent, Bureau of Consumer Protection
Date: /a-/&=o/
EXHIBIT A
COMMONWEAL-rii of., PENNSYLVANIA
BY A'T'TORNEY GENEILIL
D. MICIIAEL FISIII'sR
Plaintiff
V.
NEW KINGSTOWN AUTO SALES, INC.
P.O, BOX 413 - 73 EAST MAIN ST'.
NEW KINGSTOWN, PA. 17072
Respondent
IN THE COURT OF COti1MON PLEAS OP
CUIVIBERLAND COUN'T'Y,
PENNSYLVANIA
CIVIL ACTION - EQUITY
No.
1999
C;6
7=
ASSURA CF, OF VOLUNTARY COMPLIANCE
i i cr
WHEREAS, the Commonwealth of Pennsylvania, acting by the Office &&tomcy J
General, through the Bureau of Consumer Protection ("Commonwealth"), has caused an
K
investigation to be made into the business practices of New Kingston Auto Sales, Inc.,
("Respondent"), pursuant to the Unfair Trade Practices and Consumer Protection Law, 73 P.S.
§§ 201-1-201-9.3 ("Consumer Protection Law"), the Motor Vehicle Sales Finance Act, 69
P.S.§§ 601- 637, and the Automotive Industry Trade Practices Regulations, 37 Pa. Code §
301.1- 301.6.
WHEREAS, Respondent New Kingstown Auto Sales Inc., is a Pennsylvania corporation
engaged in trade or commerce within the Commonwealth through the operation of a used motor
vehicle dealership under the same name, from a principal place of business located at 73 East
Main Street, New Kingstown, PA. 17072; and
WIIEREAS, the Respondent i? licensed b} the Stalc Board 01' Vehicle Manufacturers,
Dealers and Salespcr.aons, and holds license t; Vh t)! v'117-L; anti
WHEREAS, nn rove ti ,pion ,t'as conducted into the husines, practice; of the
Respondent by the Office of Attorney General, Bureau of Consumer Protection; and
WHEREAS, based upon its investigation, the Commonwealth alleges that Respondent
New Kingstown Auto Sales, Inc., engaged in conduct violative of the Consumer Protection
Law, the Motor Vehicle Sales Finance Act, and the Automotive Industry Trade Practices
Regulations ("Auto Regs"), as more fully set forth herein; and
WHEREAS, the Respondent sold at least eight (8) vehicles from 1996 to 1998 without
providing a printed or written contract in connection with the sale of the motor vehicles allegedly
in violation of § 301.4(x)(1) of the Auto Regs; and
WHEREAS, the Respondent sold two (2) vehicles in 1996 without describing the vehicles
as "reconstructed" on a written contract, invoice, or receipt, allegedly in violation of
§ 301.4(a)(2)(iii) of the Auto Regs; and
WHEREAS, the Commonwealth alleges that Respondent's conduct in the previous two
paragraphs also violates § 201-2(4)(v),(vii), and (xxi) of the Consumer Protection Law by
misrepresenting and causing a likelihood of confusion or of misunderstanding as to the
characteristics of the vehicles sold; and
WHEREAS, the Respondent has agreed to cease and desist from the aforementioned
conduct, and desires to comply with these civil !aws of the Commonwealth; and
WHEREAS, the Commonwealth is agreeable in this matter to accept this Assurance of
Voluntary Compliance, pursuant to § 201-5 of the Consumer Protection Law, in lieu of
commencing proceedings pursuant to § 201-4 of the Consumer Protection Law; and
WHEREAS, under the Consumer Protection Law, this Assurance of Voluntary
Compliance shall not bu considered an admission of a violation for any purpose.
?_
WHEREAS, the Respondent asserts that it is entering into this Assurance in order to
show its good faith toward its customers, including both those named herein and unnamed
NOW THEREFORE, while engaging in trade or commerce within the. Commonwealth
of Pennsylvania, the Respondent agrees for itself, its officers, owners, partners, representatives,
employees and all other persons acting on their behalf, jointly or individually, directly or
through any corporate or business device, as follows:
1. The Respondent shall comply with any and all provisions of the Consumer
Protection Law, the Motor Vehicle Sales Finance Act, and the Automotive Industry Trade
Practices Regulations, and is permanently enjoined from any violation thereof.
if. The Respondent shall provide a printed or written contract form agreement, receipt,
or invoice in connection with the sale of a motor vehicle to every vehicle customer as required by
§ 301.4(x)(1) of the Auto Regs. The contract utilized by the Respondent shall comply with the
terms of § 301.4(a)(2). In addition, the Respondent shall describe vehicles as "reconstructed" on
these documents if the vehicles are, in fact, reconstructed vehicles under 75 Pa. C. S. § 102.
III. The Respondent shall respond in writing to any written complaint filed with the
Office of Attorney General, Bureau of Consumer Protection, within ten (10) days of receiving
notice thereof.
IV. The Respondent shall allow the Office of Attorney General, Bureau of Consumer
Protection, to inspect any business records of New Kingstown Auto Sales Inc., with reasonable
notice to the Respondent, for a period of five (5) years
hc, ?yus.
Reasonable notice shall constitute 24
-3-
V. The Respondent shall pay three thousand one hundred and seventy five dollars
? i G7".i-60 p? 5
(S,3,I-75,00) to the Commonwealth of Pennsylvania to be used as restitution to Robert A. Pond
and Karen R. Bell.
V1. The Respondent shall pay one thousand dollars ($1,000.00) to the Commonwealth
as civil penalties.
VII. The Respondent shall pay four thousand dollars ($4,000.00) to the
Commonwealth as costs of investigation and/or future public protection purposes.
Vlll. The Respondent shall pay the total sum of eight thousand one hundred and
SP/S• Do ?4?
seventy-five dollars (55.00) in accordance with the following payment plan, any violation of
which shall be deemed a violation of this Assurance:
i,03Sa- /,/
a. Upon signing this Assurance, the Respondent shall pay $3,1:75.00 to the.
Commonwealth to be used as restitution as stated above;
b. On May 15, 1999 and on the fifteenth day of each of the. following four
months, the Respondent shall pay $825.00 to the Commonwealth; and
C. On October 15, 1999, the Respondent shall pay $875.00 to the
Commonwealth.
IX, in the event that the Respondent fails to make any one payment within thirty (30)
days after the due date of the payment, or if the Respondent is late by five (51 or more days in
making any two payments, regardless of whether they are consecutive or non-consecutive, the
Commonwealth, at its sole option, may accelerate the debt and declare the entire unpaid balance
immediately due and owing. Upon written demand, the Respondent immediately shall make full
i
payment of the accelerated mnoutu. Failure to so pay the accelerated amount shall be deemed a
violation of this Assurance and shall subject the Respondent to all of the sanctions and penalties
provided for by this,Nssuraiicc and othcr%visc by law.
-4-
X. The Respondent stipulates that in the event New Kingston Auto Sales, Inc., files
for protection under the United States Bankruptcy Code, the debts incurred herein shall be
considered by it to be non-dischargeable pursuant to 11 U.S.C. §523(x)(2) and (7). The
Respondent farther stipulates that the consumer restitution encompassed herein represents debts
entitled to treatment under 11 U.S.C. § 507(a)(6) as a consumer priority.
X1. All monies owed by the Respondent under this Assurance shall be paid by
certified check, cashier's check.or money order, made payable to the Commonwealth of
Pennsylvania, and delivered to the Bureau of Consumer Protection, 132 Kline Plaza,
Harrisburg, PA 17104.
XII. This Court shall maintain jurisdiction over the subject matter of this Assurance
of Voluntary Compliance and over the Respondent for the purpose of enforcing this
Assurance.
XIII. Provided that nothing contained herein shall be construed to waive any individual
right of action by a consumer or any local, state, federal, or other governmental entity, other
than the Office of Attorney General, Bureau of Consumer Protection, in regard to the specific
facts alleged herein.
NOW THEREFORE, the parties hereby stipulate that this Assurance of Voluntary
Compliance shall have the same force and effect as a permanent injunction issued under
§ 201-4 of the Consumer Protection Law, so that any violation of this Assurance of Voluntary
Cotpliance shall be sufficient cause for the Attorney General of this Commonwealth to seek
r -5-
penalties as provided in §§ 201-8, 201-9 and 201-9.1 of the Consumer Protection Law and any
other equitable relief which the Court deems necessary or proper.
Witness the following signatures this ezc??Clay of May, 1999.
FOR TIME PLAINTIFF: FOR THE RESPONI
BY: A. MICHAEL FISHFR BY:
D. MICHAEL FISHER 1IA RY D. LA
ATTORNEY GENERAL NE?y
SALES, INC.
BY: pOUGLAS P YAUGER BY:
DOUGLAS P. YAUGER
CHIEF DEPUTY ATTORNEY GENERAL
BY: - Z^ 1.
A DI L. LITTON
EPUTY ATTORNEY GENERAL
ATTORNEY I.D. NO. 58131
' BY: -
MARK S. STEWART
DEPUTY ATTORNEY GENERAL
ATTORNEY I.D. NO 75958
OFFICE OF ATTORNEY GENERAL
132 KLINE PLAZA
HARRISBURG, PA 17103
I
INGSTOWN AUTO
ALNUT STREET
1RG; PA 17101
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CERTIFICATE OF SERVICE
I hereby certify that on the /May of December, 2001, I served the foregoing
Petition for Civil Penalties and Imposition of Sanctions under the Unfair Trade Practices and
Consumer Protection Law upon the Respondent by first class and certified mail, return receipt
requested, at the following address:
NEW KINGSTOWN AUTO SALES, INC.
C/o Attorney John M. Glace
132-134 Walnut Street
Harrisburg, PA 17101
Attorney for Respondent
t
Jodi L. Flitton
Deputy Attorney General
COMMONWEALTH OF
PENNSYLVANIA,
BY ATTORNEY
GENERAL D. MICHAEL
FISCHER,
Plaintiff
V.
NEW KINGSTOWN
AUTO SALES, INC.,
P.O. BOX 413 - 73 EAST :
MAIN STREET, NEW .
KINGSTOWN, PA 17072 :
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL ACTION - EQUITY
Respondent NO. 99-3295 EQUITY TERM
ORDER OF COURT
AND NOW, this 120i day of February, 2002, upon consideration of the attached
letter from John M. Glace, Esq., attorney for Respondent, the hearing previously
scheduled in this matter for February 14, 2002, is rescheduled to Thursday, April 4, 2002,
at 9:30 a.m., in Courtroom No. 1, Cumberland County Courthouse, Carlisle,
Pennsylvania..
BY THE COURT,
esley Oler, J.
Jody L. Flitton, Esq.
Deputy Attorney General
Office of the Attorney General
Bureau of Consumer Protection
Harrisburg Regional Office
301 Chestnut Street
Suite 105
Harrisburg, PA 17101
Attorney for Commonwealth
x,13.
John M. Glace, Esq. m ?•
132-134 Walnut Street /
Harrisburg, PA 17101 r U
Attorney for Respondent
Courtesy Copy:
Philip L. Zulli, Esq.
1501 North Front Street
Harrisburg, PA 17102
a, ,
:rc
Feb 12 02 11:29a John M. Glace (717)-238-6929 P•2
JOHN M. GLACE
ATTORNEY AND COUNSELOR AT LAW
132-134 WALNUT STREET
HARRISBURG, PENNSYLVANIA 17101
PHONE
717-238-5515 February 11, 2002
The Honorable, J. Wesley Oler, Jr.
The Court of Common Pleas
Cumberland County Courthouse
1 Courthouse Square
Carlisle, PA 17013
TELEFAXED ONLY
(717) 240-6462
Re: Comm. of PA by Attorney General N:ichad Fisher v.
New Kingstown Auto Sales, Inc.
Dkt. No.: 99 - 3295 (in Equity)
Dear Judge Oler:
TELEFAX
717-238.6929.
As per my telephone request, as counsel for the above Respondent relative to a
Petition for Sanctions, presently scheduled for hearing before Your Honorable Court on
February 14, 2002 @ 3.30 PM, I would request a brief continuance. My client has
retained co-counsel and this date represents a conflict in his schedule.
Counsel for the Petitioner, Deputy Attomcy General Jody L. Flitton, has indicated
that she has no objection to Respondent's continuance request. However, in regard the
rc-scheduling, she has indicated that she has a military obligation from March 9, 2002
until March 23, 2002.
in re-scheduling this hearing, I would note that both Ms. Flitton and I agree that
the probable hearing length will be in excess of the one and one half (1 1/2 ) hours
originally scheduled.
I remain available for any question or comment. Thank you very much for your
consideration in this matter.
JMG/pnos
cc: Jody 1. Flitton, Esquire ( via telefax)
Philip Zulli, Esquire (via telefax )
New Kingstown Auto Sales, Inc. (via telefax )
COMMONWEALTH OF PENNSYLVANIA
By ATTORNEY GENERAL
MICHAEL D. FISHER
Plaintiff
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY, PENNSYLVANIA
NO.: 99-3295 EQUITY TERM
V.
NEW KINGSTON AUTO SALES, INC.,
P.O. Box 413 - 73 E. Main Street : CIVIL ACTION - EQUITY
New Kingston, PA 17072
Respondent
PRAECIPE OF APPEARANCE
TO THE PROTHONOTARY:
Please enter my appearance as co-counsel on behalf of the Respondent, New Kingston
Auto Sales, Inc. Kindly serve copies of all papers filed in this matter on me at the address
appearing below.
Philip L. Zulli, Esquire
Attorney Id. No. 47499
ISO 1 North Front Street
Harrisburg, Pennsylvania 17102
(717) 238-9004
_ .. `>..
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1 I .. (_%
COMMONWEAL'1'll OF PI:NNSI'LVANIA : IN THE COURT OF COMMON PLEAS
BY ATTORNEY GENERAL CUMBERLAND COUNTY, PENNSYLVANIA
MICHAEL D. FISHER
Plaintiff
V.
NO.: 99-3295 EQUITY TERM
NEW KINGSTON AUTO SALES, INC.,
P.O. BOX 413 - 73 E. MAIN STREET CIVIL ACTION -EQUITY
NEW KINGSTON, PA 17072
Respondent
CERTIFICATE OF SERVICE
1 hereby certify that I am this day serving a copy of the PRAECIPE OF APPEARANCE
upon the persons, and in the manner, indicated below, which satisfies the requirements of the
Pennsylvania Rules of Civil Procedure, by depositing a copy of the same in the United States
Mail, postage prepaid, addressed to:
Jody L. Flition, Esq., Esquire John M. Glace, Esq., Esquire
Deputy Attorney General 132-134 Walnut Street
Office of the Attorney General Harrisburg, PA 17101
Bureau of Consumer Protection
Harrisburg Regional Office The Hon. J. Wesley Oler, Jr., Judge
301 Chestnut Street, Suite 105 Court of Common Pleas
Harrisburg, Pennsylvania 17101 Cumberland County Courthouse
One Courthouse Square
Carlisle, PA 17013-3387
DATE: February 15, 2002
Philip L. 7_ulii,`Esquire
Attorney Id. No. 47499
1501 North Front Street
Harrisburg, Pennsylvania 17102
(717) 238-9004
P. ?
3 GO
L'_
COMMONWEALTH OF
PENNSYLVANIA,
BY ATTORNEY
GENERAL D. MICHAEL
FISCHER,
Plaintiff
V.
NEW KINGSTOWN
AUTO SALES, INC.,
P.O. BOX 413 - 73 EAST
MAIN STREET, NEW
KINGSTOWN, PA 17072
Respondent
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL ACTION - EQUITY
NO. 99-3295 EQUITY TERM
ORDER OF COURT
AND NOW, this 2"a day of April, 2002, upon relation of counsel that this matter
has been amicably resolved, the hearing previously scheduled for April 4, 2002, is
cancelled.
Jody L. Flitton, Esq.
Deputy Attorney General
Office of the Attorney General
Bureau of Consumer Protection
Harrisburg Regional Office
301 Chestnut Street
Suite 105
Harrisburg, PA 17101
Attorney for Commonwealth
Philip L. Zulli, Esq.
1501 North Front Street
Harrisburg, PA 17102
Attorney for Respondent
?/. 0 3 0
C?..
BY THE COURT,
I
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COMMONWEALTH OF PENNSYLVANIA
BY ATTORNEY GENERAL
D. MICHAEL FISHER
Plaintiff
V.
NEW KINGSTOWN AUTO SALES, INC.
P.O. BOX 413.73 EAST MAIN ST.
NEW KINGSTOWN, PA 17072
Respondent
: IN THE COURT OF COMMON PLEAS
: OF CUMBERLAND COUNTY,
: PENNSYLVANIA
CIVIL ACTION -EQUITY
NO. 99-3295
ORDER AND FINAL DECREE
AND NOW, this ?VA day of April, 2002, upon consideration of the
Commonwealth's Petition for Civil Penalties and Imposition of Sanctions under the Unfair Trade
Practices and Consumer Protection Law and the Parties' Stipulation for Resolving the Commonwealth's
Petition, this Court hereby orders:
A. The Respondent shall be permanently enjoined from making representations, expressly or by
implication, which are inconsistent with and contradict the requirements of §§301.2(5) and 301.4(a)(2)
of the Automotive Industry Trade Practices Regulations. The Respondent is also directed to ensure that
the forms that they use in the ordinary course of business conform to the requirements of the Unfair
Trade Practices and Consumer Protection Law, 73 P.S. §§201-1-201-9.3 ("Consumer Protection Law"),
the Automotive Industry Trade Practices Regulations. 37 Pa. Code §§301.1-301.6, and the Used Motor
Vehicle Trade Regulation Rule, 16 C.F.R. §§455.1 gi 5&q., including proper disclosures for AS-IS sales
that conform to the requirements of §§301.2(5)(i - vi) and 301.4(a)(9) of the Automotive Industry Trade
Practices Regulations.
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B. The Respondent shall immediately provide a check to the Commonwealth in the amount of
$1,500.00 to be distributed to consumer Linda Yohe as consumer restitution.
C. The Respondent is also directed to pay $1,000.00 to the Commonwealth as civil
penalties under §201-8(a) of the Consumer Protection Law and $2,000.00 to the Commonwealth for
future public protection purposes in accordance with the payment provisions described in paragraph V of
the Stipulation Resolving Petition for Sanctions.
D. In the event the Respondent fails to comply with this Order within 10 days of
service of this Order, he will face the appropriate sanction for his contempt.
BY THE COURT:
. esley Oler, J(.)
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COMMONWEALTH OF PENNSYLVANIA : IN THE COURT OF COMMON PLEAS
BY ATTORNEY GENERAL : OF CUMBERLAND COUNTY,
D. MICHAEL FISHER : PENNSYLVANIA
Plaintiff
V.
NEW KINGSTOWN AUTO SALES, INC.
P.O. BOX 413 - 73 EAST MAIN ST.
NEW KINGSTOWN, PA 17072
Respondent
CIVIL ACTION - EQUITY
NO. 99-3295
STIPULATION RESOLVING PETI770N FOR SANCTIONS
WHEREAS, on May 26, 1999, the Respondent entered into an Assurance of Voluntary
Compliance with the Commonwealth, which was filed in this Court on June 1, 1999. A copy of
said Assurance is attached hereto and marked as Exhibit A.
WHEREAS, in the Assurance, the Commonwealth alleged that the Respondent failed to
comply with the Motor Vehicle Sales Finance Act, Automotive Industry Trade Practices
Regulations ("Auto Regs") and the Consumer Protection Law.
WHEREAS, in the Assurance, Respondent agreed to comply with any and all of the
aforementioned statutes and regulations and was permanently enjoined from a iy further violations
thereof. AVC at If.
WHEREAS, the Respondent agreed to provide a printed or written contract form
agreement, receipt, or invoice in connection with the sale of a motor vehicle to every customer as
required by §301.4(a)(1) of the Auto Regs. The contract utilized by the Respondent was to
comply with the terms of §301.4(a)(2). In addition, the respondent agreed to describe vehicles as
reconstructed on these documents if the vehicles are, in fact, reconstructed vehicles under 75
Pa.C.S. §102. AVC at 111.
WHEREAS, the Commonwealth, acting by Attorney General D. Michael Fisher, through
the Bureau of Consumer Protection, filed, on December 20, 2001, a Petition for Sanctions under
the Unfair Trade Practices and Consumer Protection Law, pursuant to §§201-8(a), 73 P.S. §201-1-
-201.9.3, ("Consumer Protection Law"), to have the Respondent sanctioned and subjected to other
equitable relief for allegedly violating the AVC and provisions of the Consumer Protection Law;
and
WHEREAS, the respondent used a disclaimer statement in the ordinary course of its
business, which is attached hereto and incorporated herein as exhibit B, that states:
(DISCLAIMER STATEMENT)
NOTICE TO PURCHASER:
THIS VEHICLE IS SOLD WITH NO WARRANTY (NOTHING
EXPRESS OR IMPLIED) YOU WILL PAY ALL COST FOR ANY
REPAIRS REGARDLESS OF ANY ORAL STATEMENT ABOUT
THE ABOVE MENTION VEHICLE. WE DO NOT GUARANTEE
ANY OF THE FOLLOWING: FRAME BENT, CRACKED,
TWISTED OR RUST. ENGINE BLOCK OR HEAD CRACKED.
TRANSMISSION DAMAGE. VEHICLE FLOOD DAMAGE.
DIFFERENTIAL DAMAGED. THIS VEHICLE IS NOT
GUARANTEED TO PASS PA INSPECTION OR PASS ANY PA
STATE SAFETY CHECKS. THIS VEHICLE HAS NOT BEEN
INSPECTED BY THE SELLING DEALERSHIP. THIS VEHICLE
IS NOT CONSIDERED ROAD WORTHY. WE DO NOT
GUARANTEE THE MILES, YEAR, MAKE OR MODEL.
WHEREAS, the Commonwealth alleges in its Petition for Sanctions that the Respondent's
disclaimer is inconsistent with and contradicts the requirements of §§ 301.2(5) and 301.4(ax2) of
the Automotive Industry Trade Practices Regulations.
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WHEREAS, the Commonwealth alleges Respondent on at least one occasion used the
disclaimer in conjunction with a sales presentation in which Respondent represented that implied
warranties were given for a vehicle on the FTC Buyer's Guide.
WHEREAS, the Commonwealth alleges in its Petition for Sanctions that the Respondent's
conduct also violates § 201-2(4)(v) and (xxi) of the Consumer Protection Law by misrepresenting
and causing a likelihood of confusion or misunderstanding as to characteristics of vehicles sold.
WHEREAS, the Commonwealth alleges in its Petition for Sanctions that the Respondent's
conduct is in violation of the Assurance of Voluntary Compliance.
NOW THEREFORE, the Commonwealth and the Respondent, and its successors, assigns,
officers, partners, agents, representatives, employees and all other persons acting on its behalf,
jointly or individually, directly or indirectly, or through any corporate or business device, agree to
the following terms and conditions as a means to resolve the Commonwealth's
Petition for Sanctions and request the Court to issue an Order consistent therewith:
1. The Respondent shall be permanently enjoined from making representations,
expressly or by implication, which are inconsistent with and contradict the requirements of
§§301.2(5) and 301.4(a)(2) of the Automotive Industry Trade Practices Regulations. The
Respondent shall ensure that the forms that they use in the ordinary course of business conform to
the requirements of the Unfair Trade Practices and Consumer Protection Law, 73 P.S. §§201-1--
201-9.3 ("Consumer Protection Law"), the Automotive Industry Trade Practices Regulations, 37
Pa. Code §§301.1-301.6, and the Used Motor Vehicle Trade Regulation Rule, 16 C.F.R. §§455.1
9jQ., including proper disclosures for AS-1S sales that conform to the requirements of
§§301.2(5xi -- vi) and 301.4(ax9) of the Auto Regs.
IL Upon the Court's adoption of this Stipulation the Respondent shall provide a
check to the Commonwealth in the amount of $1,500.00 to be distributed to consumer Linda
Yohe as consumer restitution.
111. The Respondent shall pay $1,000.00 to the Commonwealth as civil penalties
under §201-8(a) of the Consumer Protection Law in accordance with the payment plan described
in paragraph V of this Stipulation.
IV. The Respondent shall pay $2,000.00 to the Commonwealth for future public
protection purposes in accordance with the payment plan described in paragraph V of this
Stipulation.
V. The payment plan consists of the l'ollowing terms, the violation of which
constitutes a violation of this Stipulation and the Final Order and Decree adopting the same:
a. On or before May 1, 2002, the Respondent shall pay fifteen hundred
dollars ($1,500.00).
b. On or before June 1, 2002, the Respondent shall pay the final payment
of fifteen hundred dollars ($1,500.00).
VI. The parties agree that this Stipulation encompasses prior sales transactions,
described in this Stipulation, for which disclaimers were given through March 31, 2002, and no
further enforcement action will be taken by the Commonwealth for similar violations prior to
April 1, 2002.
V11. The parties agree that this Stipulation is entered into by the Respondent solely
for the purpose of amicably resolving the issues raised in this investigation without admission of
wrongdoing and may not be used or relied upon as precedent or to establish any fact or liability in
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this proceeding or any subsequent administrative or court proceeding of whatever nature. Nothing
contained in this Stipulation may be used or construed by any person as an admission of any fact
or liability by the Respondent in this proceeding or any subsequent administrative or court
proceeding of whatever nature.
VIII. The parties agree that the Court's Order, adopting this Stipulation, shall be a
final order and decree resolving the Commonwealth's Petition for Sanctions.
Witness this V day of APRIL, 2002
FOR THE PLAINTIFF: FOR THE
BY: D. MICHAEL FISHER
D. MICHAEL FISHER BY:
ATTORNEY GENERAL
BY: FRANK T. DONAGHUF
FRANK T. DONAGHUE
CHIEF DEPUTY ATTORNEY GENERAL BY:
BY:
SETH MENDELSOHN
BY:
DEPUTY ATTORNEY GENERAL
ATTORNEY ID. NO. 77063
L. FLITTON
ITY ATTORNEY GENERAL
TTORNEY ID. NO. 58131
OFFICE OF ATTORNEY GENERAL
BUREAU OF CONSUMER PROTECTION
HARRISBURG REGIONAL OFFICE
301 CHESTNUT STREET, SUITE 105
HARRISBURG, PA 17101
TELEPHONE: 717-787-7109
CIA r IMLAUGHMAN, President
N KINGSTOWN AUTO SALES, INC.
THERESA BLOSSER,
Secretary-Treasurer
NEW KINGSTOWN AUTO SALES, INC.
BY: l .`
t?A'4 ACE ESQ.
ALNUT STREET
URG, PA 17101
EY FOR RESPONDENT
BY:
411LIP /• '
UL .I SQ.
1501 NORTH FRONT STREET
HARRISBURG, PA 17102
ATTORNEY FOR RESPONDENT
TELEPHONE: 717-238-9002
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EXHIBIT A
COMMONWEALTH OF PENNSYLVANIA
BY ATTORNEY GENERAL
D. MICHAEL FISHER
Plaintiff
NEW KINGSTOWN AUTO SALES, INC.
P.O. BOX 413 - 73 EAST MAIN ST.
NEW KINGSTOWN, PA. 17072
Respondent
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY,
PENNSYLVANIA
CIVIL ACTION - EQUITY
No.
1999
(-7d
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vFr;
rirt? r .t
ASSURANCE OF VOLUNTARY COMPLIANCE 1
WHEREAS, the Commonwealth of Pennsylvania, acting by the Office & 4tto r 'm
r WY ti) < N
General, through the Bureau of Consumer Protection ("Commonwealth"), has caused an
investigation to be made into the business practices of New Kingston Auto Sales, Inc.,
("Respondent"), pursuant to the Unfair Trade Practices and Consumer Protection Law, 73 P.S.
§§ 201-1-201-9.3 ("Consumer Protection Law"), the Motor Vehicle Sales Finance Act, 69
P.S.§§ 601- 637, and the Automotive Industry Trade Practices Regulations, 37 Pa. Code §
301.1- 301.6.
WHEREAS, Respondent New Kingstown Auto Sales Inc., is a Pennsylvania corporation
engaged in trade or commerce within the Commonwealth through the operation of a used motor
vehicle dealership under the same name, from a principal place of business located at 73 East
Main Street, New Kingstown, PA. 17072; and
WHEREAS, the Respondent is licensed by the State Hoard of Vehicle Manufacturers,
Dealers and Salespersons, and holds license #VD-019917-L; and
WHEREAS, an investigation Nvas conducted into the business practices of the
Respondent by the Office of Attorney General, Bureau of Consumer Protection; and
WHEREAS, based upon its investigation, the Conintomveaith alleges that Respondent
New Kingstown Auto Sales, Inc., engaged in conduct violative of the Consumer Protection
Law, the Motor Vehicle Sales Finance Act, and the Automotive Industry Trade Practices
Regulations ("Auto Regs"), as more fully set forth herein; and
WHEREAS, the Respondent sold at least eight (8) vehicles from 1996 to 1998 without
providing a printed or written contract in connection with the sale of the motor vehicles allegedly
in violation of § 301.4(x)(1) of the Auto Regs; and
WHEREAS, the Respondent sold two (2) vehicles in 1996 without describing the vehicles
as "reconstructed" on a written contract, invoice, or receipt, allegedly in violation of
§ 301.4(a)(2)(iii) of the Auto Regs; and
WHEREAS, the Commonwealth alleges that Respondent's conduct in the previous two
paragraphs also violates § 201-2(4)(v),(vii), and (xxi) of the Consumer Protection Law by
misrepresenting and causing a likelihood of confusion or of misunderstanding as to the
characteristics of the vehicles sold; and
WHEREAS, the Respondent has agreed to cease and desist from the aforementioned
conduct, and desires to comply with these ch'i! la.vs of the Cennnomvcalth; and
WHEREAS, the Commonwealth is agreeable in this matter to accept this Assurance of
Voluntary Compliance, pursuant to § 201-5 of the Consumer Protection Law, in lieu of
commencing proceedings pursuant to § 201-4 of the Consumes Protection Law; and
WHEREAS, under the Consumer Protection Law, this Assurance of Voluntary
Compliance shall not be considered an admission of a violation for any purpose.
r . -1-
WHEREAS, the Respondent asserts that it is entering into this Assurance in order to
show its good faith toward its customers, including both those named herein and unnamed.
NOW THEREFORE, while engaging in trade or commerce within the Commonwealth
of Pennsylvania, the Respondent agrees for itself, its officers, owners, partners, representatives,
employees and all other persons acting on their behalf, jointly or individually, directly or
through any corporate or business device, as follows:
L The Respondent shall comply with any and all provisions of the Consumer
Protection Law, the Motor Vehicle Sales Finance Act, and the Automotive Industry Trade
Practices Regulations, and is permanently enjoined from any violation thereof.
II. The Respondent shall provide a printed or written contract form agreement, receipt,
or invoice in connection with the sale of a motor vehicle to every vehicle customer as required by
§ 301.4(a)(1) of the Auto Regs. The contract utilized by the Respondent shall comply with the
terms of § 301.4(a)(2). In addition, the Respondent shall describe vehicles as "reconstructed" on
these documents if the vehicles are, in fact, reconstructed vehicles under 75 Pa.C.S. § 102.
III. The Respondent shall respond in writing to any written complaint filed with the
Office of Attorney General, Bureau of Consumer Protection, within ten (10) davs of receiving
notice thereof.
IV. The Respondent shall allow the Office of Attorney General, Bureau of Consumer
Protection, to inspect any business records of New Kingstown Auto Sales Inc., with reasonable
notice to the Respondent, for a period of five (5) years. Reasonable notice shall constitute 24
hitrs.
_3_
V• The Respondent shall pay three thousand one hundred and seventy five dollars
9,5
(S?,P5.00) to the Commonwealth of Pennsylvania to be used as restitution to Robert A. Pond
and Karen R. Bell.
VI. The Respondent shall pay one thousand dollars ($1,000.00) to the Commonwealth
as civil penalties.
VII. The Respondent shall pay four thousand dollars ($4,000.00) to the
Commonwealth as costs of investigation acid/or future public protection purposes.
VIII. The Respondent shall pay the total sum of eight thousand one hundred and
-3,056'• DO At??
seventy-five dollars ($8 15.00) in accordance with the following payment plan, any violation of
which shall be deemed a violation of this Assurance:
5, 035aaAr
a. Upon signing this Assurance, the Respondent shall pay $3,,1-75.00 to the
Commonwealth to be used as restitution as stated above;
b. On May 15, 1999 and on the fifteenth day of each of the following four
months, the Respondent shall pay $825.00 to the Commonwealth; and
C. On October 15, 1999, the Respondent shall pay $875.00 to the
Commonwealth.
IX. In the event that the Respondent fails to make any one payment within thirty (30)
days after the due date of the payment, or if the Respondent is late by five (5) or more days in
making any two payments, regardless of whether they are consecutive or non-consecutive, the
Commonwealth, at its sole option, may accelerate the debt and declare the entire unpaid balance
immediately due and owing. Upon written demand, the Respondent immediately shall make full
payment of the accelerated amount. Failure to so pay the accelerated amount shall be deemed a.
violation of this Assurance and shall subject the Respondent to all of the sanctions and penalties
provided for by this Assurance and otherwise by law.
r . 3
X. The Respondent stipulates that in the event New Kingston Auto Sales, Inc., files
for protection under the United States Bankruptcy Code, the debts incurred herein shall be
considered by it to be non-dischargeable pursuant to 11 U.S.C. §523(a)(2) and (7). The
Respondent further stipulates that the consumer restitution encompassed herein represents debts
entitled to treatment under 11 U.S.C. § 507(a)(6) as a consumer priority.
XL All monies owed by the Respondent under this Assurance shall be paid by
certified check, cashier's check or money order, made payable to the Commonwealth of
Pennsylvania, and delivered to the Bureau of Consumer Protection, 132 Kline Plaza,
Harrisburg, PA 17104.
XII. This Court shall maintain jurisdiction over the subject matter of this Assurance
of Voluntary Compliance and over the Respondent for the purpose of enforcing this
Assurance.
XIII. Provided that nothing contained herein shall be construed to waive any individual
right of action by a consumer or any local, state, federal, or other governmental entity, other
than the Office of Attorney General, Bureau of Consumer Protection, in regard to the specific
facts alleged herein.
NOW THEREFORE, the parties hereby stipulate that this Assurance of Voluntary
Compliance shall have the same force and effect as a permanent injunction issued under
§ 201-4 of the Consumer Protection Law, so that any violation of this Assurance of Voluntary
Compliance shall be sufficient cause for the Attorney General of this Commonwealth to seek
r -5..
Penalties as provided in §§ 201-8, 201-9 and 201-9
other equitable relief which the Court deems necessary or proper.
Witness the following signatures this
-26?%y of May,
FOR THE PLAINTIFF:
FOR THE
BY: D. MICHAEL FISHER
D. MICHAEL FISHER BY.
ATTORNEY GENERAL
BY: DOUGLAS V VAuGEg
DOUGLAS P. YAUGER BY.
CHIEF DEPUTY ATTORNEY GENERAL
BY:
I L. LITTON
EPUTY ATTORNEY GENERAL
ATTORNEY I.D. NO. 58131
BY:
MARK S. STEWART
DEPUTY ATTORNEY GENERAL
ATTORNEY LD. NO 75958
OFFICE OF ATTORNEY GENERAL
132 KLINE PLAZA
HARRISBURG, PA 17104
( 717)-787-7109
T-
AUTO
ALNUT STREET
JRG, PA 17101
Y FOR RESPONDENT
DA.M) Fda\FOR1s7S1AV0Nnw Kingstown. auto.xT)dO42799
of the Consumer Protection Law and any
1999.
',NE
SALES, INC.
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CERTIFICATE OF SERVICE
1 hereby certify that on the4.c{day of April, 2002, I served the foregoing Stipulation
Resolving Petition for Sanctions upon the Respondent by first class mail at the following
addresses:
NEW KINGSTOWN AUTO SALES, INC.
c/o PHILIP L. ZULLI, ESQUIRE
1501 NORTH FRONT STREET
HARRISBURG, PA 17102
and
NEW KINGSTOWN AUTO SALES, INC.
c/o JOHN M. GLACE
132-134 WALNUT STREET
HARRISBURG, PA 17101
Attorneys for Respondent
L. Flitton
ity Attorney General
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