Buying an RV in a business’s name could void warranty

If you’ve considered buying your dream RV in your business’s name or plan to use it for business you might want to give it a second thought.

Nicholas Knopick bought a $414,583 Jayco RV at a dealership in Iowa in July 2012, but he signed the purchase documents and took title on behalf of Montana Freedom Rider LLC, a company he controlled, reports TheIndianaLawyer.com. Almost immediately after the sale was complete, Knopick began having trouble with the unit. He said it leaked, smelled of sewage and the features were poorly installed.

Although Jayco repaired the RV twice at its manufacturing facility in Indiana, Knopick was not satisfied and sued the company. The U.S. District Court for the Northern District of Indiana granted summary judgment to Jayco, and Knopick appealed to the 7th Circuit.

District Court Judge Jon DeGuilio ruled Knopick had no rights under the warranty because the RV was actually purchased by a business. The language in the two-year limited manufacturer’s warranty specifically states it does not cover any RV used for commercial purposes or purchased in a business’s name.

The 7th Circuit pointed out the warranty also included a provision that stated any fixes done on an RV bought by a business would be considered “good will” repairs and would not alter the terms of the warranty.

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2 Thoughts to “Buying an RV in a business’s name could void warranty”

  1. Tom

    An LLC is a business, so most likely.

  2. Ron

    I wonder if this also pertains to individuals who get a Montana LLC specifically for this purchase (no business) to be able to escape from having to pay sales taxes from their home state?

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