Define: Floor-Plan Rule

Floor-Plan Rule
Floor-Plan Rule
Quick Summary of Floor-Plan Rule

If you sell your car to a dealership and they subsequently sell it to someone else who was unaware that it was not yours to sell, you cannot later claim that you did not sell it.

Full Definition Of Floor-Plan Rule

The floor-plan rule is a principle that protects innocent purchasers who buy vehicles from dealerships. It states that if a vehicle owner sells their vehicle to a retail dealer and the dealer then sells it to a customer in the normal course of retail business, the original owner cannot later claim ownership and take the vehicle back. For example, if John buys a car from Jane to sell in his dealership and later sells it to Sarah, Jane cannot deny Sarah’s ownership of the car because Sarah bought it from John in the normal course of retail business. The floor-plan rule ensures that once a vehicle is put up for sale in a dealership, the owner cannot reclaim it from the purchaser.

Floor-Plan Rule FAQ'S

The floor-plan rule is a legal principle that determines the jurisdiction where a lawsuit can be filed based on where the injury occurred.

The floor-plan rule requires that a lawsuit be filed in the jurisdiction where the injury occurred, rather than where the defendant is located or where the plaintiff resides.

In some cases, the floor-plan rule can be waived if both parties agree to have the lawsuit heard in a different jurisdiction.

If the injury occurred in multiple jurisdictions, the plaintiff may have the option to choose where to file the lawsuit based on the floor-plan rule.

Yes, the floor-plan rule can apply to both personal injury and property damage cases, as it is based on the location of the injury or damage.

If the injury occurred on a property owned by a government entity, special rules and procedures may apply to determine the jurisdiction for filing a lawsuit.

Yes, the floor-plan rule can apply to cases involving products liability if the injury occurred in a specific jurisdiction.

In cases involving injuries on cruise ships or airplanes, the floor-plan rule may be subject to specific laws and regulations governing maritime and aviation jurisdiction.

Yes, the floor-plan rule can have a significant impact on the outcome of a lawsuit, as it determines which laws and procedures will apply to the case.

It is important to consult with a qualified attorney who can assess the specific circumstances of the case and provide guidance on the jurisdiction for filing a lawsuit based on the floor-plan rule.

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Disclaimer

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 16th April 2024.

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