As if they were subject to the ancient curse, auto dealers live in exciting times. Whether it is the tumult in the federal government resulting from Trump administration policy revisions, franchisors taking advantage of good times to tighten their control, employee empowerment because of the publicized worker shortage, or the many changes affecting society generally, dealers face unprecedented challenges.
This quiz allows you to test your knowledge of recent legal developments. Answer true or false.
- True or False? Because of the Trump deregulation, our dealership must be far less concerned about federal government interference in our business.
- True or False? My ad agency tells us we can avoid disclaimers in TV, radio, and newspaper advertising if we have all disclaimers in our internet ads. That works well because we can do the disclaimers with rollovers and everyone has access to the internet. However, we believe that each ad must stand on its own with proper disclosures.
- True or False? In my 20 group, several dealers in other states are having great success in advertising prices and then adding to them other fees. For all sales they are adding salesperson compensation fees. For used car sales they are adding dealer preparation fees. This is valid if these fees are prominently disclosed in the advertisements.
- True or False? I include a warranty by my franchisor on late model used cars of my brand. My service contract rep is telling me that if I provide a franchisor warranty I need not note that a vehicle is being sold as is even if my dealership offers no separate warranty on the used car. We can note on the used car buyers guide that the vehicle is being sold with a limited warranty because of our franchisor’s warranty.
- True or False? Arbitration agreements are regularly challenged by plaintiffs’ attorneys. But there are substantial benefits to arbitration – reduced time to a decision, removal of the possibility of a runaway jury, limited discovery, to name a few. We believe arbitration agreements are less subject to challenge than ever.
- True or False? I have heard that the Department of Defense has invalidated the December announcement that selling GAP to active duty service members and their dependents subject to the transaction to the Military Lending Act. I can resume sales activities of GAP products benefiting those customers.
- True or False? We have several military customers to whom we sell vehicles. Many come in on lease transactions. Given manufacturer finance subvention programs, and aggressive manufacturer captive approval practices, buying the vehicle on credit may be more advantageous for a military buyer than leasing. Where advantageous to them, we should try to convert them to financing the vehicle.
- True or False? I signed a contract with a vendor for three years. It has a provision that it will roll over for another three-year term at expiration. We need not worry about that. State public policy invalidates such roll over provisions.