{"id":1749,"date":"2019-12-05T00:43:24","date_gmt":"2019-12-05T05:43:24","guid":{"rendered":"https:\/\/businesslaw.handponist.com\/blog\/?p=1749"},"modified":"2023-11-28T13:42:01","modified_gmt":"2023-11-28T18:42:01","slug":"deceptive-consumer-sales-act-does-not-apply","status":"publish","type":"post","link":"https:\/\/www.hpindiana.law\/business-blog\/deceptive-consumer-sales-act-does-not-apply\/","title":{"rendered":"Deceptive Consumer Sales Act Does Not Apply"},"content":{"rendered":"<p><a href=\"https:\/\/www.hpindiana.law\/business-blog\/wp-content\/uploads\/2019\/12\/Buy-or-Rent_-826041426_300x181.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-1751\" src=\"https:\/\/www.hpindiana.law\/business-blog\/wp-content\/uploads\/2019\/12\/Buy-or-Rent_-826041426_300x181.jpg\" alt=\"Deceptive Consumer Sales Act\" width=\"300\" height=\"181\" srcset=\"https:\/\/www.hpindiana.law\/business-blog\/wp-content\/uploads\/2019\/12\/Buy-or-Rent_-826041426_300x181.jpg 300w, https:\/\/www.hpindiana.law\/business-blog\/wp-content\/uploads\/2019\/12\/Buy-or-Rent_-826041426_300x181-199x120.jpg 199w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>In a recent <a href=\"https:\/\/www.hpindiana.law\/business-blog\/land-contract-or-residential-lease\/\">post<\/a>, we discussed <em><a href=\"https:\/\/www.in.gov\/judiciary\/opinions\/pdf\/09131901ggs.pdf\">Rainbow Realty Group Inc., v. Carter<\/a><\/em>, in which the Indiana Supreme Court considered whether a particular \u201crent-to-buy contract\u201d was a land contract or a rental agreement. The court held that the transaction was a rental agreement, notwithstanding language in the contract that the transaction was a purchase and not a lease. Accordingly, the property was subject to the statutory requirement that a dwelling unit subject to a rental agreement must be in clean, safe, habitable condition. Because the house was clearly uninhabitable, Rainbow Realty violated that requirement.<\/p>\n<p>Next, the Court considered the claim of the Carters that Rainbow Realty\u2019s unsuccessful attempt to disclaim the statutory warranty of a safe, clean, habitable dwelling violated the Indiana Deceptive Consumer Sales Act (or \u201cDCSA\u201d), <a href=\"https:\/\/iga.in.gov\/legislative\/laws\/2018\/ic\/titles\/024#24-5-0.5\">Ind. Code ch. 24\u20115\u20110.5.<\/a> In particular, the Carters relied on Ind. Code \u00a7 24\u20115\u20110.5\u20113(a)(8)*, which (at the time the rent-to-buy contract was signed) provided that a supplier\u2019s representation that a \u201cconsumer transaction involves or does not involve a warranty, a disclaimer of warranties, or other rights, remedies, or obligations, if the representation is false and if the supplier knows or should reasonably know that the representation is false\u201d is a deceptive act actionable under Ind. Code \u00a7 24\u20115\u20110.5\u20114(a), which provides a private cause of action for consumers who are the victims of deceptive acts.\u00a0 The court held that the tenants had no DCSA claim, for no less than three distinct reasons.<\/p>\n<p>First, a false representation that Subsection 3(b)(8) defines a deceptive act as including a false representation that a transaction does or does not involve a warranty only if the supplier (i.e., Rainbow Realty) <em>knows<\/em> that its representation is false. In this case, the Supreme Court held that Rainbow Realty did not know its representation was false and, therefore, did not commit a deceptive act. Indeed the Supreme Court pointed to the fact that three members of the Court of Appeals agreed that the transaction was a land contract and, therefore, that Rainbow Realty\u2019s representation of the absence of a warranty of habitability was, in fact, true. In essence, the Supreme Court held that no one could have known whether the representation was false until the court held that it was false.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.hpindiana.law\/business-blog\/deceptive-consumer-sales-act-does-not-apply\/\"  title=\"Continue Reading Deceptive Consumer Sales Act Does Not Apply\" class=\"more-link\">Continue reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>In a recent post, we discussed Rainbow Realty Group Inc., v. Carter, in which the Indiana Supreme Court considered whether a particular \u201crent-to-buy contract\u201d was a land contract or a rental agreement. The court held that the transaction was a rental agreement, notwithstanding language in the contract that the transaction was a purchase and not [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":1755,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,10,16],"tags":[32],"class_list":["post-1749","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-contract-law","category-indiana-court-decisions","category-real-estate","tag-deceptive-consumer-sales-act"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Deceptive Consumer Sales Act Does Not Apply &#8212; Indiana Business Law Blog &#8212; December 5, 2019<\/title>\n<meta name=\"description\" content=\"In a recent post, we discussed Rainbow Realty Group Inc., v. Carter, in which the Indiana Supreme Court considered whether a particular \u201crent-to-buy &#8212; December 5, 2019\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.hpindiana.law\/business-blog\/deceptive-consumer-sales-act-does-not-apply\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Michael R. Smith\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Deceptive Consumer Sales Act Does Not Apply &#8212; Indiana Business Law Blog &#8212; December 5, 2019","description":"In a recent post, we discussed Rainbow Realty Group Inc., v. Carter, in which the Indiana Supreme Court considered whether a particular \u201crent-to-buy &#8212; December 5, 2019","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.hpindiana.law\/business-blog\/deceptive-consumer-sales-act-does-not-apply\/","twitter_misc":{"Written by":"Michael R. Smith","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.hpindiana.law\/business-blog\/deceptive-consumer-sales-act-does-not-apply\/#article","isPartOf":{"@id":"https:\/\/www.hpindiana.law\/business-blog\/deceptive-consumer-sales-act-does-not-apply\/"},"author":{"name":"Michael R. 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