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liability for the actions of a co. that you own

  • Thread starter Thread starter bethannm
  • Start date Start date

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bethannm

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this is sort of confusing, but here goes, we purchased a car from a used car dealer, (I now know that the dealership is owned by their "in-house" finance co.) the car had a serious transmission problem that the dealer failed to fix correctly after having it in their shop several times for repairs. conversations were had with both the dealer and finance co. informing them that we weren't going to continue paying until they properly repaired the car, at this point arrangements were made with the dealer to come tow the car in for repairs (again) as we felt it was not even safe to drive at this time. (we had already been stranded before due to the same problem, and didn't want to risk it again.) however instead of taking the car for repairs they reposesed it.
the finance co is now sueing us for the original loan agreement, stating that they are not responsible for the actions (or inactions) of the dealer.
my thought is this, if they (the finance co.) own the dealership, doesn't that also make them liable for the actions of a co. that they own, or that is a subsidiary of their corporation??
thanks for your thoughts!!!
 



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