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May 22, 2006

Word of caution to all those small business owners out there (a lot of them lawyers) who are writing off 80% or more of the cost of the car as a business expense: it might take you out of the coverage of the Consumer Sales Practices Act. That's what happened to the plaintiff in Lecso v. Toyota of Bedford, Inc. She'd sued Toyota for various problems, but the court held that the CSPA didn't apply, given that "Lecso testified that she primarily used the vehicle (95% of the time) for business purposes."  The CSPA applies only to "consumer transactions," which are confined to "the sale of an item of goods or services to an individual 'for purposes that are primarily personal, family, or household.'"

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