EBay M3 gimmick fails, BMW dealer won't honor sale

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#1
Apparently all is not kosher in corn country. BMW of Lincoln, Nebraska posted an auction on eBay for a brand new M3 Sedan for $60,000. Perhaps they were hoping for the kind of eBay madness that would push the price to six figures. If that's what they were after, well, they didn't get it. The car was won by a gentleman in California for the listed price: $60,000.

The problem is that the dealer doesn't want to give him the car. Not long after the auction ended, the winning bidder got a call from BMW of Nebraska telling him the auction was "a mistake," and that he couldn't have the car. In spite of the fact that the dealership changed the Buy It Now price twice -- and so was paying attention to the auction -- and eBay rules that make it clear that if someone wins the auction then you must complete the transaction, the buyer is still trying to get someone to give him the car he won at the winning bid price.

M3post.com
 
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#3
every state's law re: advertisement & auctions might be slightly different. in CA, for example, you cannot hold a seller to a sale from just an advertisement, because it is considered merely an "invitation" to make an offer to buy. for an internet auction, i'd imagine that a seller is also inviting offers, but the criteria is slightly different. so, the only way to hold the seller to the sale is if a legally "binding contract" is made somehow.

do we have any lawyers here that can sound in?
 
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#4
i was reading through a forum on this topic and from what i have found out is when you enter an eBay auction it is a legally binding contract and the guy has since contacted lawyers and news papers around the dealership. he also got the story published on autoblog and has contacted BMW NA
 

Big Daddy

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#5
While it is true that every states laws may differ slightly I believe that every state accepts the legal definition of a contract, a product is offered, or as you state, "advertised", however as soon as someone accepts that offer, as in bidding, than you have a contract, legal and binding. If a store offers a product in an ad and you go to purchase that item they are legally bound to sell you that item at that price unless they have posted a correction. This buyer has a case and I would represent him.
 
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#6
UPDATE: The dealer agreed to sell under intense publicity pressure, and then backed out again!!!!


Ken came this close to receiving the Bimmer today after his lawyer negotiated away the conditions that were demanded by the dealership. The first was that he not sell the car for two years, and the second was that he somehow "control the press" and end the onslaught of communiques sent to the dealership by phone, fax, email and flaming bags of pooh. (We're kidding on that last one. No one send flaming bags of pooh to BMW of Lincoln. Seriously.) After the lawyers wrangled for a bit, Ken was instructed to call BMW of Lincoln today and arrange his deposit over the phone by a certain time, but according to our distressed interlocutor, was instead lectured by the General Manager, one Fil Cataniam, for failing to stop the press from contacting the dealership. He refused to take Ken's credit card info over the phone, in effect reneging on the resolution that had previously been reached by the lawyers.

Ken's lawyer has now drafted a letter to BMW of North America (check it out after the jump) informing the big brand of what's been going on and simply asking for help. It must be noted that BMW NA likely does not have any jurisdiction here, as dealers usually operate on a very long leash from the mothership. Still, what has become a PR nightmare for this particular dealership could easily leave a bad taste in the mouth of many potential BMW customers. Perhaps it would behoove BMW proper to get this guy his M3 sedan prompto and slap the wrists of these knuckleheads in Lincoln, Nebraska.

Adding yet another facet to this gem of a story is news from Ken that other BMW dealers have contacted him offering great deals on an M3! Man, there must not be much brotherhood among BMW dealers. Ken states that rather than getting a different M3 and letting this dealership off the hook, he'd like to see BMW of Lincoln live up to its obligation.


Herbert L. Klein, Corporate Counsel
BMW of North America


Herb:

I represent Ken Tanisaka in connection with his dealings with BMW of Lincoln. No doubt you have heard of the controversy that became viral on the Web this weekend.

Ken and I had worked out a "no preconditions" deal in which BMW of Lincoln
was going to treat him as any other customer and sell him the M3 sedan at the winning bid made by Ken on eBay. ($60,000 plus a $399 title or document fee.)

Mike Maledon, counsel for the parent company that owns BMW of Lincoln, instructed me to have Ken call Fil Catania, the general manager of that BMW store, to provide credit card information and place the deposit. Mike had told me that Ken had 24 hours (from last night) in which to make the deposit.

When Ken called Mr. Catania, Ken was subjected to an abusive lecture and told
it was his (Ken's) responsibility to make the press go away. Mr. Catania refused to take a deposit from Ken, effectively reneging on the deal that was reached yesterday, in which BMW of Lincoln, through Mike Maledon, had agreed not to impose an impossible condition that Ken "control the press."

Can you help us? As you may be aware from the blogosphere, thousands of BMW afficionados are asking "What is BMW NA doing about this?" I think that's a fair
question. And, once we get this straightened out, perhaps BMWFS can also step up to the plate.


Sincerely yours,


SCOTT J. TEPPER

cc: Ken Tanisaka
 
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#7
Why don't they just sell it to the guy?

Too many dealerships have no idea how to operate on eBay. eBay warns people about 50,000 times that it is a legally binding auction.
 
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#8
60k is still a good mark up from what the dealership had to pay for the car. Ebay could get involved and sue the dealership as well. Something tells me that ebay has some pretty powerful lawyers on retainer.
 


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