Webb
Front Line Motor Cars v. Webb
Opinion
Lead Opinion
Ikola, J.
*155 In two unrelated transactions, Front Line Motor Cars (Dealer), a used car dealer licensed by the Department of Motor *34 Vehicles (DMV), repossessed cars after the buyers failed to obtain financing. 1 Dealer then refused to return the buyers' down payments. The buyers complained to DMV. DMV instructed Dealer to refund the buyers' down payments. Dealer refused, asserting its actions were proper under the Rees-Levering Motor Vehicles Sales *156 and Finance Act ( Civ. Code, § 2981 et seq. ; the Act) and that DMV lacked the power to sanction Dealer.
DMV then brought a disciplinary action against Dealer. DMV accused Dealer of violating sections 2982.5, 2982.7, and 2982.9, which are the only sections of the Act which require a seller to refund a buyer's down payment upon the buyer's failure to obtain financing. After an administrative hearing, DMV adopted the administrative law judge's proposed order that Dealer's license be conditionally revoked for two years due to Dealer's violation of the Act. Dealer petitioned the superior court for a writ of administrative mandate, which the superior court denied.