Article: Contractors fall subject to Consumer Fraud Act.(INSIDE CONSTRUCTION & DESIGN)

The Appellate Division of the New Jersey Superior Court recently sent a none-too-subtle message to residential contractors engaged in business in the Garden State: contract directly with a homeowner at your own risk.

In its published decision of Czar, Inc. v. Heath, the Court addressed whether the Consumer Fraud Act (CFA) applied in the context of a contractor retained to install kitchen cabinets, doors and moldings in a newly constructed residence, notwithstanding the fact that the Home Improvements Practices Regulations (HIPR) promulgated under the CFA exclude "the construction of a new residence" from their scope.

The facts of Czar were unremarkable. ...

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