Two firearms dealers have agreed to make changes aimed at preventing straw gun purchases stemming from an Oregon court case hailed as the first to hold dealers liable for guns sold online.

The two businesses and a third party will pay more than $750,000 to the family of a woman killed in Oregon with a pistol they sold.

The landmark settlement announced this week stems from a lawsuit filed against the dealers by the family of retired California auditor Kirsten Englund, 57.

Englund was driving north up the Oregon coast in April 2013 to visit her son, a sophomore at the University of Oregon, when she stopped at a scenic overlook along U.S. 101 in Douglas County to see a lighthouse. She encountered Jeffrey Boyce, a stranger, who shot her six times, poured gasoline on her, lit her on fire and shot her again. He committed suicide in his California jail cell that June.

The handgun Boyce used was one of two semi-automatic pistols Boyce's mother helped buy for her mentally disturbed son, the lawsuit says.

World Pawn Exchange of North Bend and J&G Sales Inc., an online firearms dealer based in Arizona will adopt more stringent measures to deter sales of guns to people who then hand them over to someone else.

The suit claimed World Pawn Exchange and J&G. "knew or reasonably should have known" Diane Boyce was a straw buyer for her son and "should have refused to sell or transfer" guns to her.

J&G sold the gun to Jeffrey Boyce via the Internet. J&G then transferred the gun to World Pawn Exchange, which gave it to Diane Boyce. Diane Boyce signed papers that she was the actual buyer.

"I hope this case encourages better business practices by gun dealers,'' said Nick Wiegardt, 25, of Castro Valley, California, one of Englund's two sons.

He was the one his mother was going to visit and recalled wondering what had happened to her when she didn't show up to the UO campus.

"There's a lot of common sense and better business practices that can be done to prevent unnecessary gun deaths,'' he said.

Under the settlement, World Pawn Exchange agreed to no longer transfer guns that have been ordered from online sellers. The exception is if someone has ordered the gun online through World Pawn Exchange.

It also agreed to take specific steps to prevent straw purchases. For example, it will ask prospective buyers how they intend to use the gun and if they're buying it for someone else.

World Pawn Exchange posted this message on its Facebook page, a part of the settlement's requirements:

"World Pawn recognizes that, as a federally-licensed firearms dealer, it has an important role to play in preventing dangerous people from obtaining firearms, and keeping its community safe. World Pawn recommends and encourages that all gun dealers, including online sellers, go beyond the legal minimum to implement the safest business practices to prevent firearms from being obtained by criminals, straw purchasers, and other persons who pose a danger to themselves or others when in possession of a firearm.''

J&G agreed to add to all its invoices for online gun orders: "Transfer firearm only to (purchaser's name).''

It also will delay any sales if the name of the gun buyer doesn't match the name on the credit or debit card used for the purchase. The online purchase order also will ask buyers to check a box that affirms they're the actual buyer or if they're buying the gun for themselves or as a gift as permitted by law for someone who's allowed to have a gun.

"If it were not so easy for a dangerously mentally troubled killer to obtain a gun on the Internet, Kirsten Englund would be alive today, with her two sons and loving family,'' said Jonathan Lowy, a lawyer for Englund's estate. He also is vice president of litigation at the nonprofit coalition The Brady Center to Prevent Gun Violence.

According to court records, Diane Boyce picked up three guns from the North Bend pawn store on behalf of her son:

-- An AK-47 assault rifle in December 2011 that her son ordered online from Minnesota-based Grant County Guns.

-- A Makarov 9mm semi-automatic pistol in January 2012 that her son ordered online from J&G.

-- A Rock Island pistol in February 2012 that her son ordered online from J&G.

Jeffrey Bryce used his mother's credit card for each of the J&G purchases.

"I think this case is the recognition that it's just too easy for straw purchasers to get guns on the Internet,'' Lowry said. "I expect these reforms will serve as a model for legislators that want to codify these practices."

Diane Boyce earlier agreed to pay $400,000 to Englund's family and provide documents, information and testimony in the family's suit against the gun dealers.

-- Maxine Bernstein

mbernstein@oregonian.com

503-221-8212

@maxoregonian