Fairway to Settle Suit on Alleged Misrepresentations

The Fairway group of automotive dealerships has agreed to pay about $80,000 to settle a civil lawsuit that alleged it fail to tell car buyers that they were getting former rental vehicles, the Orange County district attorney’s office said Monday.

Fairway Lincoln Mercury, Toyota, Volkswagen and Ford were accused of violating a state Department of Motor Vehicles regulation by failing to tell more than 60 customers that they were buying used rental cars.

State authorities also claimed that some salespeople had told used-car buyers that they were purchasing former company cars or demonstration models when they were really former rentals.

“Salespeople were picking things out of the air to tell people,” Deputy Dist. Atty. William J. Feccia said.

Although the company agreed to pay a civil penalty of $50,000, it did not admit to any wrongdoing. The Fairway group agreed to refund 5% of the purchase price of each car, or a total rebate of about $30,000.

Fairway defense attorney John D. McGuire said that the dealerships were not aware of the cars’ histories and that a prior DMV hearing failed to prove that they were knowledgeable.

“We are settling this case because it makes economic sense,” McGuire said. “The restitution to the customer is a gesture of goodwill.”

Fairway Lincoln Mercury--now known as Fullerton Lincoln Mercury--and Fairway Toyota are both in Fullerton. Fairway Ford is based in Placentia and Fairway Volkswagen is no longer in business.