There’s likely a portion in a finance contract, and probably in the retail installment sales contract, even for Buy Here / Pay Here dealers, that says that any particular remedy is not the exclusive remedy. Watch this video to learn what that means and why it is important.
Below is a transcript of the video:
Here’s something I get a lot when it comes to finance and finance agreements, and that’s exclusive remedies. There’s likely a portion in a finance contract, and probably in the retail installment sales contract, even for Buy Here, Pay Here dealers, that says that any particular remedy is not the exclusive remedy.
Now, let’s define what that means so that dealers are aware of what that provision actually means in the contract. It means that one option chosen by the finance company or by the dealer against a customer may not be the only option they have as far as pursuing a legal claim. That provision specifically explains that the dealer or the finance company, whoever is the plaintiff in the lawsuit, doesn’t necessarily waive any right to pursue other claims just because they’re pursuing that one claim. It’s not the exclusive remedy. It’s not the only choice.
You see this in a lot of cases in default situations where a dealer might repo or a finance company might repo a car, but repossession may not be the exclusive remedy. They may also choose to sue or sue instead. There are lots of different choices.
Same with repurchase in the event of a finance arrangement where the finance company could demand repurchase, could demand indemnification as we spoke about earlier, or could sue, but none of them are exclusive remedies. Meaning the finance company or the dealer, whoever the plaintiff is, doesn’t have to pick just one. They can pick others.
That’s very common in a lot of contracts. It’s almost always found in a dealer’s retail installment sales contract, and in a finance contract with the dealer.
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